Why Empowerment Matters in Accounting Engagements

There are many accountants on the market offering a variety of accounting-related services for small and medium-sized businesses. Some focus on the entry of daily transactions, others focus on higher-level review and reporting, and some do auditing. Still, others focus primarily on tax preparation and planning. All of these services offer great value to the client in the form of accounting and tax compliance, as well as providing a platform for sharing knowledge. What is often lacking, however, in the average accounting engagement, is a significant focus on client empowerment. While many accountants offer financial reporting and at least some level of client follow-up, oftentimes there is a lack of (1) meaningful and detailed review of the accounting file or reporting with their clients and (2) proactivity on the part of the accountant to make sure their clients feel confident in their understanding. Sometimes this can leave the client with more questions than answers.

A “client-centric follow-up” is essential to ensuring that the clients not only understand their financials but understand them in a way that allows them to make important business decisions. Client-centric follow-ups include structured feedback to, and education for, the client and their staff. This component is essential for creating a true collaboration and partnership between accounting professionals and their clients. If the client understands how to read the financials, what each report means, and how it relates to their operations and growth trajectory, the more valuable the information contained in the reports becomes to the client. Additionally, if the client’s staff who are responsible for recording the data in the accounting system have a more comprehensive understanding of basic accounting principles and posting procedures, it will aid them in being able to double-check their entries and feel more confident in their accounting work. For bookkeepers and accountants, this means being proactive about providing timely reports to your clients and scheduling time on a recurring basis to ensure that the client understands what the financials mean for the business operationally. This also includes providing feedback about what was incorrect on the books and diving into how the issues can be corrected moving forward. It can also mean offering enhanced services such as KPI tracking, budgeting, and forecasting, and taking the time to explain the results in a way that makes sense to the business owner. Doing this transforms the reporting into information that is actionable. For tax accountants, this means offering tax planning services at least once, or perhaps even several times a year.

While clients should always be able to place a high level of trust in their accounting professionals, our view is that accountants should proactively educate their clients to enhance their client's understanding of how the numbers impact their daily operations. This not only helps build greater trust with their clients but also adds value to the compliance services they offer. They should want their clients to fully understand the value of what a solid accounting platform can mean for their company and the role it can play in their company’s growth. Ideally, accountants should take more of a personal interest in the success of their clients' businesses, and aim to empower their clients through education and mentorship. In this way, you can ensure that your clients receive high-quality service that goes beyond compliance work.

At the heart of our service offering is “empowerment.” Our accounting and consulting services move beyond simple reporting and review. We help business owners & staff build confidence in their accounting through experienced feedback, education, and implementing efficient processes. With a strong foundation, we help our client companies grow through in-depth reporting and goal-setting.