Culture is an interesting thing. Culture can be difficult to change, but sometimes the culture of a business is best changed for the benefit of the business and those involved.
Business culture can cover a broad range of areas but we're going to focus on habits and values. Working on these can greatly affect and improve a client's financial management.
How many times do you find clients' just don't regularly maintain proper records?
Is there anything that can be done?
There's a reason many businesses fail, or even just struggle to survive. Your clients have to understand this, and know that not having a firm grasp on the business finances is one big reason behind this.
Would you expect, or even want a client to operate blind?
Not have a clue how they are really doing?
This one surprises me quite a bit. As most of us probably need to see real figures to get a feel for how a business is doing, it seems most small businesses think they know how things are from having a good feel of things. Knowledge of how a business sits financially can somehow be satisfactorily plucked from the top of ones head.
If that's fine for you and your clients, you needn't waste any more time reading this.
Otherwise... I'd first suggest you help your client understand that either they handle parts of it properly, else they pass it over to you. Even the smallest tasks such as invoicing has to be done in a timely manner.
Use some tough love.
If your client wants to handle their own records, and if you want to have successful clients... if you truly want to help your clients either they need to get proper processes in place, and change their habits, their business culture and keep on top of it, or they pass it all over to you to manage it on a regular basis for them.
Be prepared to help your clients help themselves.
Often clients are simply too afraid to deal with record keeping. They see it as a necessary evil, and often as something needed for bureacracy. They need to value having an understanding of their financial position. Show them how keeping records can be done easily each week, how it can become a part of their routine. Maybe first thing Monday is to go through all of the previous weeks records. Find something that works for them, and introduce this into their routine.
Present them with information following this, or show them how they can look at the figures themselves and interpret these. I'd hope most clients that take themselves seriously as a business will be wanting management accounts to be provided. Be interested in these as a part of your own business culture, and lead by example.
Your clients probably aren't bookkeepers or accountants. They have their own goods and services they provide, but as business people they have to learn to understand and appreciate the financial aspect of business. This is your job. Don't let them down.
Harry Nicholson
H Nicholsons Accountants
You are welcome to republish this article providing you include the following text and link at the end of the article:
Harry Nicholson, H Nicholson Accountants - A fictitious sample member of The Accountants Circle.