The Value of Keeping Open Lines of Communication with Clients Throughout Year End Accounting Process
The annual year end accounting process is a race against time for accounting practices and accountants, making it stressful for you and your clients. The reason is simple: you have to deal with numbers, complicated and ever-changing regulations, and mismatched invoices. However, we have noticed that most of the stress during the year end accounting process is avoidable only if the right strategies are adopted.
By utilising the right strategies, you can turn this hectic and time-consuming process into a smooth and achievable one, thus making it easier for your clients to do business and make them more profitable. This blog will focus on the strategies to help you achieve that, so prepare for an incredible read.
Reasons for Chaotic Communication During the Year End Process
The year end accounting process is stressful for accounting practices like yours and your clients because it requires a lot of your attention, and communication with your clients takes a back seat. Apart from that, many other situations hinder clear communication with your clients, for example, tight deadlines, increases in workload, and restrictions imposed by clients. Let’s elaborate on some of the major reasons for the breakdown in communication between clients and accounting practices.
Huge Workload
When your year-end workload increases for your accounting teams, you will have less time to communicate and address your clients’ needs. To add to this problem, if your clients’ documents are not recorded in an organised manner, then your accounting teams will have to comb through multiple data and search for missing files and documents, contributing to your workload.
When you face such situations, it will be natural for you to get in extra hands to ease the pressure. That can be done by recruiting more accountants or availing of year end accounting outsourcing services offered by service providers like Corient. We have established year end processes that will streamline and increase your productivity.
Cut Throat Deadlines
Meeting year end deadlines and reporting requirements can make it difficult to maintain effective communication with your clients at regular intervals.
Lack of Clarity
Due to a lack of communication, client expectations and instructions are unclear, and timetables and deliverables are confused, leading to severe problems.
You will have to be proactive and plan accordingly to avoid these reasons becoming a hindrance between you and your clients.
Do’s and Don’ts of Year End Accounting Process
To complete your clients’ year end accounting processes without stress, you must follow certain do’s and don’ts.
Do’s
Pre-emptive Planning
Before problems arise, it is better to establish effective communication with your client, obtain the necessary documents, and fix timelines. Proactive planning will also help you create a good impression on your clients.
Maintain Clear Communications
Constant communication with your clients, including updates on progress made, problems faced, and any further information required, is essential. Clear communication will help you build trust and avoid last-minute hiccups.
Thorough Review Process
All the financial papers your clients submit must be thoroughly reviewed to ensure accuracy and compliance with the regulations.
Use the Latest Available Technology
You can share information safely in real time by using cloud-based technology and document management tools.
Build Transparency and Trust
If there are any discrepancies from your side, you must share them with your clients before they notice. If the HMRC notices such discrepancies, they can dearly cost your clients. Hence, sharing any mistakes made on your side or showing any discrepancies increases your clients’ trust in you.
Don’t
Not Taking Client’s Queries Seriously
You must respond to every client’s query. Any delays in attending to or responding to their queries will cause dissatisfaction among them and slow down the entire year-end process.
Non-compliance of Regulatory Rules and Regulation
It is important to note that the HMRC regulations keep changing as per the requirement, and keeping a tab on these changes is important. Ignoring them will lead to non-compliance with these updates, leading to legal problems for you and your clients.
Manual Entries
Manual entries are obsolete and error-prone; hence, automation tools should be utilised to speed up the process and reduce errors.
No Constant Updates to Your Clients
Lack of updating your clients will lead to several misconceptions and delays, which can be avoided through regular updates. Regular updates to your clients regarding the progress made in the year-end process will keep them well-informed about the process.
Strategies That Will be Helpful for Accounting Practices While Doing Year End Accounting
Fill in the Talent Gap as Fast as Possible
All accounting practices struggle to find the right accounting talent, so forward planning that incorporates the future needs of your clients is needed. However, finding the right and experienced talent for your accounting practice or finding a replacement is not an easy task, so outsourcing options must also be explored.
Year-end outsourcing services offered by outsourced accounting service providers are a solution for the talent shortage you face or the sudden departures of your talent. Through outsourcing at year-end, you will get access to a large pool of experienced talent, thus buffering you from sudden disruptions.
Incorporate Latest Technologies
Accounting procedures that used to be manual have become obsolete and have been replaced by modern technology. Numerous tools and software have simplified how accounting, specifically year end accounting, is done. With the help of Xero, QuickBooks, FreeAgent, and so on, you can now manage multiple clients without facing any issues.
Prioritise Year-End Tasks
Year-end tasks are hectic and time-consuming for accounting practices like yours. You must be handling multiple clients simultaneously, making the timeframes very tight. Therefore, it is important to prioritise tasks; otherwise, things can get highly inconvenient. You can save yourself from stress and work overload by prioritising important tasks such as year-end ones.
Keep Tabs on Compliance Changes
All the year-end closings you perform must comply with HMRC guidelines, but they keep updating. Hence, constant vigil must be maintained over any updates that affect the closing process. By keeping tabs on regulatory changes, you are being proactive, thus ensuring full compliance.
Conclusion
The year end accounting process can be highly chaotic if it is not taken seriously. Proper prioritisation, incorporation of the latest technologies, maintaining clear communication with clients, and exploring the option of outsourcing year-end can transform your year-end process and transform this hurdle into a platform for success for your practice.
We suggest outsourcing at year-end because it will reduce workload load, give you access to expertise and technology, and keep tabs on regulatory updates on your behalf. We think Corient can be the perfect candidate for outsourcing year-end. To better understand our services or explain your unique requirements, don’t hesitate to contact us via our website contact form. We are eager to assist you in your year-end process.
