Tax expert or rainmaker?

• Author: Jennings, Robert M.
• Position: Accounting firms

How do accounting firms compete? Successful accounting firms must follow the same rules for growing their practices as other businesses, and concentrate on service, quality and price.

Service

How does service affect accounting firms? When evaluating client services, firms should consider if they adhere to the following:

* Return client phone calls and voice mail as soon as possible;

* Return other phone calls (bankers, attorneys, insurance agents, etc.) as soon as possible;

* Complete client work as quickly as possible;

* Make suggestions for tax savings ideas to clients--before the fact;

* End every client interview on a positive note, with a suggestion for a tax savings idea or tip; and

* Keep promises for work timeliness and letter responses.

Possibly, the most important service factor that accountants overlook is the telephone receptionist. Other than the partner, this can be the most important person in a tax office. The receptionist is a client's or potential client's first contact with the firm; if this person is not friendly and helpful, he can drive clients away to the competition. A receptionist can be a key player in retaining clients during the stressful tax season.

On the hand, there are also several business practices that may dissatisfy clients, including:

* Billing a client immediately for every five-minute phone call. Practice management seminars taught by accountants continually advise accountants to bill for everything as soon as possible. Conversely, practice management seminars taught by marketing professionals say just the opposite--send annual or quarterly bills that include telephone calls and other minor items in the overall service fee. Clients dislike intermittent bills and, as a result, may be reluctant to make follow-up calls for other advice or tax planning.

* Taking phone calls during client appointments.

* Keeping clients waiting for more than 10 minutes for an appointment or interview.

* Appearing disorganized or lacking confidence during an interview.

* Immediately giving a client an estimate of his refund or balance due without completing and reviewing the return.

* Failing to point out major changes from last year's income that would significantly affect this year's return.

* Presenting a sloppy, unbound or hand-written return, cover letter or note.

* Raising fees every year without discussing this with the client.

* Discussing confidential client information with other clients, friends or relatives.

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