{"id":128293,"date":"2024-08-19t11:57:52","date_gmt":"2024-08-19t15:57:52","guid":{"rendered":"\/\/www.g005e.com\/?p=128293"},"modified":"2024-09-10t09:26:14","modified_gmt":"2024-09-10t13:26:14","slug":"dont-risk-losing-good-employees-for-bad-clients","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/08\/19\/dont-risk-losing-good-employees-for-bad-clients\/","title":{"rendered":"don\u2019t risk losing good employees for bad clients"},"content":{"rendered":"

\"\"<\/strong><\/p>\n

keep the right kpis and the right clients, and you\u2019ll keep the right staff.<\/strong><\/p>\n

by alan anderson, cpa
\ntransforming audit for the future<\/a><\/em><\/p>\n

audit in the future will be much different than in the past. it\u2019s going to require different skill sets. in the future, we need to teach more thinking and interpretive skills. the ticking and tying can be automated, but we\u2019ll need people to interpret the anomalies that the bots and automation tools kick out. they\u2019ll need to develop a deeper understanding of the industry, the client, and general business sense to discern whether an anomaly is just a mistake or a sign of something more profound.<\/p>\n

more: <\/b><\/strong>can a service center model solve audit staffing shortages?<\/a> | don\u2019t take on audits in an industry you don\u2019t understand<\/a> | how \u2018business expert cpas\u2019 get their own business wrong<\/a> | exceptional audit client service demands effective communication<\/a> | five ways to prevent audit bottlenecks<\/a> | how do we drive relevance in audit?<\/a> | lack of relevance drives audit commoditization<\/a> | four basic understandings every auditor must master<\/a> | wanted: great audit mentors<\/a> | closing the audit expectations gap<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/h4>\n

 <\/p>\n

as the owner of a business myself, i understand the need to ensure there is enough cash coming in to keep the lights on and everyone paid. but sometimes, firms take on work just to keep people busy all year round. a prime example of this is ebp audits, which seem quick and easy but have their own risk factors. doing only one or two a year can be especially risky for your firm.<\/p>\n

<\/p>\n

firm profitability is generally considered an \u201coutcome measure,\u201d which means that over the long term, profitability results from successfully and effectively managing engagement risk and providing superior client service. the profitability goal, however, should not overtake the other firm goals but should be balanced with them.<\/p>\n

profitability is just one side of an equilateral triangle that balances quality and customer service. if you focus too much on one area, you throw the others out of balance. if you put too much emphasis on profitability by billing your clients for every nanosecond that something gets done, then quality and customer service might get squeezed. if you put too much effort into quality so that you\u2019re providing \u201c120 percent quality,\u201d then you can disrupt profitability and client service. too much emphasis on client service could lead to compromising your ethics and making decisions to keep the client happy. when you keep these factors balanced, you\u2019ll have quality, you\u2019ll serve the client well and you\u2019ll also have profitability if you do everything else right.<\/p>\n

it’s not enough to narrow down your client list to the industries in which your firm specializes. another aspect of business-mindedness from the firm side is ensuring you\u2019re taking on and keeping the right clients. keeping the right clients usually means getting rid of the bad ones, as ron baker\u2019s law states: \u201cbad customers drive out good customers.\u201d<\/p>\n

we\u2019ve all taken on clients just to fill up the schedule and to keep staff busy. but if you talk to the staff accountants, they\u2019ll tell you how much they hate working with some clients. these are the clients who aren\u2019t responsive, they don\u2019t care and they complain about the fee. yet the firm still keeps these clients on.<\/p>\n

think about all the time you spend with demanding clients and how that takes away from the time you could spend with your best clients. plus, those f clients are not likely to be interested in the value-add from forming a deep relationship with the auditor, and are not likely to be interested in any additional services.<\/p>\n

business-mindedness also means creating a work environment that attracts and retains the best talent you can find. focusing on volume demoralizes staff when a firm hangs on to those f clients because they bring in revenue.<\/p>\n

now, many firms sort of pay lip service to client quality by ranking them as a, b, c or d. however, because partner compensation is typically based on volume, they\u2019re reticent about weeding out the bad clients. what these firms don\u2019t know is that they\u2019re weeding out the good auditors because they don\u2019t want to work at the firms that keep all these bad clients.<\/p>\n

working with low-quality clients has a powerful impact on morale. the more d and f clients a firm has, the higher the turnover rate. people are worried about billings and building a book of business, but that can be at the expense of losing your best people. the cost of replacing staff far exceeds the revenue that a firm could earn.<\/p>\n

some of these difficult clients can be salvageable. working with your team, maybe you can come up with some plans to improve the relationship. but if you constantly put up with those bad clients \u2013 which most firms do \u2013 that causes staff to leave. with unemployment for accountants hovering around 1 percent, your best people know they can walk out of your firm on monday and work at another firm by friday. why risk losing those good people?<\/p>\n","protected":false},"excerpt":{"rendered":"

keep the right kpis and the right clients, and you\u2019ll keep the right staff.<\/strong>
\n\"\"<\/a>
\nby alan anderson, cpa
\ntransforming audit for the future<\/a><\/em><\/p>\n","protected":false},"author":5075,"featured_media":128301,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3925,2274,3120,3002],"tags":[4086,2394,127],"class_list":["post-128293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-assurance","category-pricing","category-pro-member-exclusive","category-special","tag-alan-anderson","tag-audit","tag-clients"],"acf":[],"yoast_head":"\ndon\u2019t risk losing good employees for bad clients - 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