Information does not always uncover a need

Newsletters and tax updates tell clients about things that have changed in the outside world. They might explain a new tax allowance, an employment law change or an approaching deadline.

What they cannot easily identify is something that has changed in the client’s world.

Perhaps a major customer has just been lost. The owner might be thinking about buying another business, taking on an employee, purchasing premises or selling an investment property. They may have received an unexpected approach from somebody interested in buying their company.

None of these developments will necessarily appear in the accounting records immediately.

And the client may not think to tell their accountant.

The value of an open question

This is where a telephone conversation can be remarkably effective.

There does not necessarily need to be an agenda. Questions such as “How is business?”, “What has been happening?” or “Anything interesting coming up?” give the client an opportunity to talk.

The important part is listening to the answer.

A client who says that business is extremely busy may be facing capacity problems. Someone complaining that they are working too many hours might need to recruit or delegate. A casual comment about wanting to slow down could start a conversation about succession or eventually selling the business.

The initial conversation may have nothing whatsoever to do with tax or accounts. That is precisely why it can be valuable.

From accountant to adviser

There is an important distinction between keeping clients informed and keeping in touch with them.

Both matter.

A newsletter can communicate useful information to hundreds of clients efficiently. But it cannot replicate a conversation in which an accountant hears something and asks, “Have you thought about…?”

Regular conversations also help accountants understand what clients are trying to achieve, rather than simply recording what has already happened.

That understanding is at the heart of a genuine advisory relationship.

Sometimes, just pick up the phone

There is always another tax return to complete, another email to answer or another deadline approaching. Finding time for conversations without an immediate compliance purpose can therefore seem difficult to justify.

But perhaps we should look at them differently.

The next valuable piece of advisory work may not begin with a sophisticated analysis of the client’s accounts.

It might simply begin by picking up the telephone and asking:

“How are you?”