Preserving your sanity in tax return season - Time Management techniques (Part One)

The summer break is a distant memory and we are now very much bunkered down for the onset of winter and with that comes the dreaded 31 January deadline looming yet again.

Once again we have failed to put systems in place to avoid the perennial crisis- justifiably so due to pressures of client demands, volume of work and staffing or recruitment issues. This is the life of a practitioner.

Now is the time to make the most of the time available and put some simple strategies in place to ensure client service levels are maintained and staff aren’t wanting to move to another firm come the 1st February 2016.


How to reward and motivate your team

Many practices are coming towards the end of their financial year and the time for career development reviews which usually include pay review discussions. The current trend is a move away from traditional annual % pay rises in line with inflation and towards a system whereby individuals can be in control of setting their own pay rewards and increased earnings.

Accountancy practices are keen to develop and retain a team of people that are self-motivated and eager to be rewarded by results. Bonus schemes have changed dramatically in recent years. There used to be a variety of methods used to calculate and pay out bonuses. These included;


Holiday reading-What client service really means- a year in the life cycle of a client.

The summer break is nearly upon us and many practitioners use this as an opportunity to reflect on what they need to change – especially in terms of keeping clients happy.

Happy clients’ means they will stay with you and not be tempted to leave for your competitors. A retained client is far more valuable to your business in terms on ongoing income streams than having to replace them with new client fee income.

Happy clients also tend to pay bills on time and recommend to you to others. Similarly, they are far more likely to ask you for other advice and services which makes working life more interesting and again increases fees.

Every practitioner believes they offer fantastic client service but when asked what this really means on a day to day basis they often get stuck after replying ‘meeting deadlines.’ Meeting compliance deadlines is a given for any accountant- it is simply a fundamental part of the job.


Cash flow- why clients don’t pay on time and how to prevent this.

As practitioners you will be well versed in advising clients on managing their business cash flow but often I see practices who struggle to manage their own cash flow. This cripples growth plans and impacts client service levels as partners spent too much time on trying to manage their own lock up. We all know ‘cash is king’ but perhaps need a reminder on what we need to do to ensure clients are happy to pay on time.


Why do Partners never have enough time to get things done?

If you are a Partner reading this then congratulations! You have already found some time to focus on managing your own business. This is rare as most practitioners continue to work very long hours and do not earn an appropriate realistic return on the true time they spend working. Time is absorbed often with dealing with technical compliance work instead of doing what only a partner can and should be doing. Surprisingly, the majority of partners do however make time to check Smart Phones regularly during the course of each day! This proves if you really consider something important enough it will get done and perhaps it is now time to consider how to prioritise the job role and responsibilities of a partner in practice.


How to retain, train
and recruit the right people.

‘Why can’t I ever find anyone as good as me?’ is a question I hear regularly from practitioners struggling to find the right people. Based on past and recent experience of the pitfalls of recruitment stories shared with me the following practical points are worth sharing with you to help your practice grow and become more successful.


Succession Planning- Part Three

In Part Two we last looked at the practicalities for planning for succession. In this final part we will assume you have now dealt with the ‘housekeeping’ issue detailed previously and are ready to go ahead with your plan whether it be for a third party sale or merger or an internal ‘buy in’ to an existing or new partner.

Overview checklist of what you now need to consider

  • What summary information to include in your ‘sales pack.’
  • What time you need to budget for whilst the succession plan goes ahead and how to keep managing the core business.
  • Communication to staff and clients about what is going on. How to manage expectations.
  • Your role in the transition period and beyond.
  • The reality of ‘taking a back seat’ and deal with no longer being in control.

Succession Planning- Part Two

In Part One we looked at the reasons behind wanting to exit your practice. In this second feature we will assume you want to go ahead and the objective here is to ‘drill down’ into the detail in order to help you achieve your goals. This article is all about planning and the practical issues you may need to address.

Overview checklist

  • How do I know what I need to look at. Key areas-lock up (WIP/Debtors/cash).
  • How do I find the time to address what needs to be done.
  • Know your clients and where your fees and profit come from. How do I easily get this information.
  • What makes my practice special-how to be objective.
  • Identify unattractive ‘bad’ clients.
  • How dependent is the business on me and why this matters.



  • Start with knowing your existing gross margin and identify which clients return higher margins and which are the lower contributors
  • Pricing- is your pricing ‘right.’ • Review and clear out old and irrecoverable Work in Progress which may be ‘enhancing’ what you think your current gross margin is.
  • Where partners spend time on compliance work, ensure their time is booked and reflected in a true gross margin measurement.
  • Production systems- do you have any and how do you monitor them?
  • Budgets for all jobs-essential.
  • Planning on all jobs-essential.
  • Allow for reasonable training time.
  • Manage over-runs in real time. Talk to client at earliest opportunity where job is taking longer than budgeted and agree extra fee.
  • Learn from mistakes so they don’t recur- re; pricing/budgets/over-runs. • Invest training time and monitor results - this improves staff retention and increases efficiency and margin in the long run. • Use a work planner to drive efficient production systems.
  • Perform a ‘time and motion’ study with individual staff members to agree available chargeable time and work production rate.
  • The above ‘magic 13’ steps will guarantee a rapid increase in gross margin and profitability

Succession Planning - Part One

Key questions to ask yourself before planning your succession and exit strategy from your practice

  • Be sure of the reasons you want to sell your practice. Are you being driven by emotional factors due to current stress, workload, long hours, staff issues, difficult trading period etc.?
  • Options available to you- external sale/merger or internal plan to bring on existing team member to buy you our over a period of time or recruit new potential partner?
  • Realistic timeframe and have you the time needed to devote to the process?
  • Set a realistic ‘price’ and know the amount you need to retire/exit in conjunction with personal financial and future plans.
  • Examine your existing business as if you were a buyer. Identify the weaknesses and draw up a plan on how to eliminate these.

Dealing with late payers

• Revenue is vanity....margin is is king. (Unknown)
• Profit is an illusion, cash flow is fact. (Unknown)
• Profits are an opinion, cash is a fact. (Unknown)

The above quotations were given to me some years ago by different clients in businesses who were small business owners. These businesses had suffered hugely due to late payers and both businesses nearly went into insolvency. Thanks to the right kind of action taken at the right time, both businesses survived. I want to share some examples from their experiences which will help you deal with late payers in your own business.


how to get the most out of client meetings

How often do you have a client meeting where the following happens ?

  • The client is late or sometimes doesn't turn up at all
  • You are running late and leave the client waiting for a while before you are ready to start the meeting.
  • When it does start it goes on for too long
  • Much of the time is spent trawling through audit and account queries and trying to finalise accounts
  • You are apprehensive about having to talk to the client about fees and debtors and often avoid or 'forget' to !
  • You rarely generate any extra work from the meeting and see it as 'something that has to be done.'
  • There is no real format to the meeting and you end up spending a fair bit of time chatting about nothing in particular.
  • You end the meeting not really knowing if the client is happy or not.
  • Once the client has left you kick yourself for 'forgetting' to talk about things that you had planned to but didn't get round to it or feel comfortable with mentioning.
  • You then don't get around to writing up your notes from the meeting to give to staff or send anything to the client.
  • You don't follow anything up with the client after the meeting and think 'well that's that then for another year!'

Ring any bells with you? 


Practical tips on managing your cash flow and getting clients to pay

There is one major issue that all practitioners seem to have at the moment and are asking for help with. This is cash flow. We all know that 'cash is King' and the lifeblood of all businesses, yet many practitioners are finding it a challenge at the moment and are having problems with clients paying for work done.

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