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TABLE OF CONTENTS
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INTRODUCTION: WHY SMALL BUSINESSES ARE A HUGE OPPORTUNITY FOR ACCOUNTANTS
FREELANCERS & SMALL BUSINESSES: A BOOMING MARKET FOR ACCOUNTANTS, BOOKKEEPERS, AND TAX PREPARERS
HOW TO ATTRACT AND KEEP SMALL BUSINESS CLIENTS
HOW TO AVOID LAWSUITS FROM SMALL BUSINESS CLIENTS
CONCLUSION
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WHY SMALL BUSINESSES ARE A HUGE OPPORTUNITY FOR ACCOUNTANTS
©2015 insureon, a BIN insurance holdings agency
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Why Small Businesses Are a Huge Opportunity for Accountants
As the country recovers from its economic recession, there
are tremendous growth opportunities for small accounting
practices like yours all across the United States. Specifically,
you have the potential to grow by offering your services to
small businesses, a growing sector with a significant need for
accounting services.
More and more people are going into business on their
own, working independently, and freelancing. In fact,
FreelancersUnion.org estimates that nearly 53 million working
Americans are independent contractors. By IRS standards,
these individuals are businesses in their own right, but they
may not realize it. This means…
• They might need help with taxes and budgeting.
• They may not realize they have to pay quarterly taxes.
• They need help balancing their books.
And while that market is full of potential, it’s not the only
one that can boost your business. Nearly 46 percent of small-
business owners (excluding freelancers) don’t work with an
accountant. That’s a huge potential market.
In this guide, you’ll discover ways you can attract small-
business clients and tips for ensuring that those new
relationships thrive for years to come. Of course, with any
growth comes new risk. That’s why we’ll also explore how
to prevent these relationships from triggering professional
liability claims. After all, letting opportunity turn into financial
disaster just doesn’t add up.
46% of small businesses don’t work with an accountant.
CHAPTER 1:FREELANCERS & SMALL BUSINESSES: A BOOMING MARKET FOR ACCOUNTANTS, BOOKKEEPERS, AND TAX PREPARERS
FREELANCERS & SMALL BUSINESSES: A BOOMING MARKET FOR ACCOUNTANTS, BOOKKEEPERS, AND TAX PREPARERS
©2015 insureon, a BIN insurance holdings agency
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Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
There are two types of small businesses:
1. Those that know they’re a small business.
2. Those that don’t.
Mom-and-pop corner stores, independently owned auto shops,
and independent consultants all have a solid understanding
that they are indeed businesses and have more tax obligations
than employees. However, some people have the same
responsibilities and status as these businesses but they just
don’t know it.
For instance, say an individual does part-time freelance work
as a graphic designer and files a 1099 as part of her return. As
far as the IRS is concerned, that self-employed person has the
same obligations to pay quarterly taxes as does a
small-business owner. This individual may think she’s just
doing part-time gigs and earning some side money, but she is
technically a small business.
What does this mean? It means that there are a lot of people
who need your advice and expertise and might not know it.
Of the nation’s 53 million freelancers, many don’t know they have to pay quarterly taxes.
?
©2015 insureon, a BIN insurance holdings agency
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Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
WORKING WITH (AND EDUCATING) FREELANCERS
As an accountant, you already know that different business
entities have different tax obligations. But freelancers and
independent contractors may not even think of themselves
as a business, and that can lead to problems when they file
their annual returns. That’s why closing the knowledge gap (at
least in this respect) is an important part of serving the small
business market.
Educate this group by letting clients with 1099s know that they
are expected to pay quarterly taxes, just like any other small
business. You can explain how working with an accountant
and using accounting software can help them save money in
the long run.
But how do you reach out to small businesses? How do you
market your advice to people who may not even realize they
need it? Here are some tips:
• Start with your existing clients. Ask if they know
anyone who freelances or does contract work that you
could contact.
• Go to small business and freelancer events.
Conventions, seminars, and community events are just
a few ways you can meet small-business owners in
your area. Offer to speak there about taxes or related
issues in order to spread the word.
©2015 insureon, a BIN insurance holdings agency
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Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
• Leave fliers in coffee shops or co-working spaces. To
find freelancers, you’ve got to think like a freelancer.
These folks may work in libraries or other community
spaces to help them stay focused if distractions at
home are an issue. Leave business cards at these
places and talk to baristas to build connections.
• Offer referral incentives. Want to get your accounting
business some word-of-mouth action? Give people
an incentive to pass along your business card to
freelancers or small businesses.
• Be where your potential clients are. Once a week, or
maybe a couple times a month, work in a coffee shop
or co-working space to build relationships and make
contacts.
The hardest part is getting started. After that, as you build a
client base of freelancers, contractors, and small businesses,
the momentum can grow as you become known for this type
of work. Soon enough, you might find your schedule packed
with small business clients, and you’ll have the experience to
handle them efficiently.
WORKING WITH ESTABLISHED BUSINESSES
When marketing yourself to established small businesses –
that is, those that are well aware of their small-business status
– it’s more a matter of convincing them that the investment in
your services is worth the money. Small-business owners are
entrepreneurial spirits, after all, and often try to do everything
on their own. The argument hinges on how you can do a better
job for them while saving them time and money.
The best way to support any argument is with facts and
figures. Let’s look at some statistics that you can use to make
your services look enticing to budget-conscious small-business
owners.
Working with an accountant + using accounting software = 16% greater revenue growth for small businesses
©2015 insureon, a BIN insurance holdings agency
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Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
STATS TO LEVERAGE YOUR ACCOUNTING SERVICES
You know that you can navigate finances better than most
people, but how do you translate that into a convincing sales
pitch? Highlight these figures to potential small business
clients:
• Small businesses that work with accountants and use
automated software have 16 percent greater revenue
growth than those that use just software or neither,
according to Accounting Web.
• Small-business owners see 24 percent more revenue
by working with both an external accountant and an
internal one.
This is a powerful selling point. An investment in your services
means greater revenue for your small business clients. Even
if they already have an internal accountant, outside help
catch oversights that drain revenue. According to a GoDaddy
survey…
• 46 percent of small-business owners report not
working with an accountant.
• 85 percent of small-business owners don’t know
exactly what they’ll owe in income taxes before filing.
As you can see, small businesses may be more aware of their
tax obligations than freelancers, but they still don’t know
just how much they’re missing out on by not working with an
accountant. Plus, many of these clients don’t even realize the
full scope of an accountant’s services:
• A majority of small business that use accountants only
use them for specific accounting services and don’t
take advantage of their full range of skills, according to
the Journal of Accountancy.
• 47 percent of those who do use an accountant only
see them once per year for taxes, according to the
GoDaddy study.
Almost half of small businesses don’t yet have an accountant.
©2015 insureon, a BIN insurance holdings agency
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Freelancers & Small Businesses: A Booming Market for Accountants, Bookkeepers, and Tax Preparers
In other words, it’s up to you to make sure your clients know
about the array of services you offer. If you market your
services appropriately, small businesses may turn to you for
more than filing their taxes – they may also enlist your services
for bookkeeping, financial planning, and wealth management.
The more services you sell, the more revenue you’ll enjoy, and
the more revenue your clients will be able to hold on to. It’s a
win-win.
Plus, these additional services allow you to interact with
clients more often and develop strong relationships, which can
go a long way toward reducing your professional risks.
As you can see, there is opportunity for accountants in the
small business world. Hopefully you’ve started thinking about
ways to market your firm to this audience. In the next section,
we’ll discuss what small-business owners want from their
accountants and how you can use that information to attract
new clients and increase revenue from existing ones.
HOW TO ATTRACT AND KEEP SMALL BUSINESS CLIENTS
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
As we already established, you know how your services can
benefit a client. But how do you communicate those benefits?
In a nutshell, you’ve got to pin down your clients’ pain points.
For example, is your client most concerned about…
• Revenue?
• Complicated tax returns?
• Future investments?
Understanding where your client is coming from can help
you sell your services more effectively from the outset. You’ll
probably find that for most small-business owners, their
business is their passion, but their finances are a pain.
With that in mind, let’s look at your small business audience
and give you some insight into how to address their needs.
Selling your services starts with understanding your clients’ pain points.
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
WHAT SMALL BUSINESS CLIENTS WANT AND WHY THEY LEAVE
The Sleeter Group recently researched small- and
medium-sized businesses [PDF] across the United States to
better understand their needs, and the results are illuminating
for the accounting industry. The study shows how accountants
currently fit into the small business world and ways in which
enterprising accountants can take advantage of unmet needs.
Let’s take a look at what the numbers show.
WHAT SMALL BUSINESSES LOOK FOR WHEN SELECTING AN ACCOUNTANT
The survey found that, when choosing a CPA, small-business
owners prioritize…
• Expertise.
• Responsiveness.
• Proactive strategic advice.
According to the survey, low fees are one of the lowest
priorities that small-business owners have, meaning that
they are willing to pay for quality, expert accounting work.
Naturally, they want the best from their accountant.
However, small-business owners are seeking professionals
who can give guidance before it’s needed. In other words,
they want financial help before circumstances change for the
worst. (Indeed, lack of proactive advice is the number-one
reason why businesses switched CPAs – we’ll get into that
in a bit.)
When hiring a CPA, small-business owners care less about money than expertise.
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
WHICH CPA SERVICES SMALL BUSINESSES USE AND WANT
Businesses that work with a CPA report that they use the
following accounting services:
But even though these services are the most common, these
numbers don’t tell the whole story. Business owners are
looking for more. Those already working with CPAs reported
that the following are the most desired accounting services:
If it still isn’t clear, small businesses often yearn for help and
guidance. Preparing tax returns is important, but business
owners want more information, more knowledge, and more
tools for keeping track of and budgeting their finances
throughout the year. If you can meet that need, you’re in a
good position to gain clients.
25% of small businesses are willing to spend on accounting services that help them with business planning.
Small Business Use of Accounting Services
0
10%
20%
30%
Business Planning
Business Strategy
Business Monitoring
Business Analytics
Accounting Services Desired by Small Businesses
0
20%
40%
60%
80%
100%
Tax Prep Tax Planning Reviewing Business Records
Representation at Gov't. Audits
Bookkeeping
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
WHY SMALL BUSINESSES SWITCH ACCOUNTANTS
Nearly half of the businesses surveyed in the study switched
CPAs at one point during the life of the business. Their top
reasons for leaving their accountant?
• The CPA failed to give proactive business advice.
• The CPA demonstrated poor responsiveness.
• A trusted contact referred a new accountant to the
business.
• The CPA lacked expertise.
• The CPA’s fees were too high.
• The CPA relied on old technology or was
inadequately staffed.
• The business had no personal relationship
with the CPA.
These responses show that communication is key. If you can
provide planning services, offer financial advice, and maintain
working relationships with your clients, you have a good
chance of holding on to them. Find out what they want and
meet them halfway. Embrace technological tools and keep
educating yourself on better ways for your clients to run their
businesses.
For some more insight on the referenced study, check out The
Sleeter Group’s blog.
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
KEEPING SMALL BUSINESS CLIENTS HAPPY MEANS MORE SERVICES, MORE REVENUE
The results of the Sleeter survey and the GoDaddy survey cited
earlier indicate that taxes, accounting, and finances are a real
pain point for a lot of small-business owners. They show that
finances are the most unpleasant part of running a business,
and the expertise needed to confidently handle them is still in
high demand. Business owners’ responses show that what they
want is an expert who can guide them and an accountant they
can trust. Fees are less important than the feeling that they’re
in good hands.
It follows, then, that meeting this demand can be beneficial
for both you and your clients. By offering more services, you
strengthen client relationships, improve communication, and
provide an additional revenue source for your practice.
Though your role as an accountant in the coming years may
require you to tackle analytics, new accounting software, and
other innovative methods for assisting small-business owners,
investing in learning to use these tools is likely to pay off.
STRATEGIES FOR INCREASING REVENUE FROM EXISTING SMALL BUSINESS CLIENTS
Based on the research we’ve examined so far, it’s clear that
you stand to gain a lot from offering more services. But if
you already have a number of small business clients, how do
you get them to sign up for more than just tax preparation?
Consider these tactics:
• Update marketing materials (website, brochures, etc.)
with key pain points for small businesses. Show that
you have a solution to the problem as they see it.
• Update messaging with existing clients to promote
your other services. If you’ve performed these services
for them in the past, remind them.
• Discuss the value of meeting several times per year
to manage finances. It makes tax time easier for you
and gives clients a better idea of how their business is
doing. Schedule intermittent appointments at your
tax-time meeting.
• Introduce “value-added” services like reminder emails
about paying quarterly taxes and updates on ACA
requirements. Go above and beyond, letting your
clients know that you’re on the same page as they are.
• Communicate in person or on the phone and introduce
your broader range of services beyond tax preparation.
Clients may not know you offer financial planning, for
example.
• Consider offering services at an introductory rate for
a limited time or for referred clients. Be sure to send
reminder emails and post the offer on your firm’s
social media pages.
©2015 insureon, a BIN insurance holdings agency
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How to Attract and Keep Small Business Clients
By taking a proactive approach in educating and advising your
client, you may find a need that’s unfilled. They may not even
realize it themselves. Explore the client’s wants and see if you
can aid them with your expertise. If the fit is right, you’ll both
benefit.
The important thing is not to box yourself in and not to let
your client box you in. You’re more than a bean counter, after
all.
Increase revenue by selling more services to existing clients.
©2015 insureon, a BIN insurance holdings agency
17
How to Attract and Keep Small Business Clients
STRATEGIES FOR INCREASING REVENUE BY ATTRACTING NEW SMALL BUSINESS CLIENTS
Growing your practice necessitates gaining new clients and
wading into unknown territory. Do you feel prepared for it?
There are plenty of prospective clients out there, but the pool
of small businesses is large and can seem daunting. Like a
patient fisherman, the enterprising accountant is going to
have to know where to look and how to lure them in.
So what should you include in your client tackle box? How
do you get business owners to notice you and take interest?
Consider the following tips:
• Build relationships with existing clients so they spread
the word. If you currently serve small business clients,
they are your biggest allies in advertising your practice.
Word of mouth is a powerful marketing tool, so give
your clients plenty of reasons to rave about your
services.
• Implement a referral program for getting new clients.
The individuals and businesses you serve have
networks of their own, so tap into them. Incentivize
referrals for both parties, and be proactive about
asking for referrals. Make it clear that you’re interested
in helping other businesses that may need it.
• Tailor your marketing materials for small businesses.
Highlight the things that small-business owners care
most about, including the services we’ve explored in
earlier sections. Your website, business cards, and ads
are all opportunities to focus on small businesses.
• Listen first, talk second. In all meetings with
prospective clients, find out what their specific pain
points are, and then frame your services (if they’re a
match) in a way that meets the client’s needs.
• Highlight any niche experience you have. Are a
majority of your existing clients in a certain industry?
Do you serve mostly independent contractors? Have
you come from another field to pursue your passion
of accounting? Take stock of your experience and
focus on specialties. There’s no need to compete with
hundreds of CPAs for every client out there when
you’re one of the few who has expertise in underwater
salvage companies, for example.
©2015 insureon, a BIN insurance holdings agency
18
How to Attract and Keep Small Business Clients
A successful approach to attracting clients will take a bit of
effort, but the payout can be well worth it. Be mindful about
maintaining the strong relationships you’ve already developed
and find ways to better serve your clients. Growing too quickly
can backfire if your old clients feel that the care they’re used
to has deteriorated and may even find a new accountant if
you prioritize growth over their needs. It will take balance,
experimentation, and good communication to pull off, but an
ocean of clients is there for the taking.
Carve out a niche to help prospective clients find you.
©2015 insureon, a BIN insurance holdings agency
20
How to Avoid Lawsuits from Small Business Clients
Here’s a conundrum: with every client comes the risk of a
lawsuit if something goes wrong. At the same time, you need
clients to keep your business afloat. The best you can do to
minimize your risk is to get familiar with the incidents that
trigger lawsuits and avoid them accordingly.
For starters, professional liability (in the form of costly
mistakes or unwise financial decisions in an advisor role) is
generally the largest exposure to contend with, but personal
injury, libel, and property damage could all be cause for
suits. Small-business owners who have a lot to lose may be
especially likely to sue if they feel that their accountant’s
mistakes cost them financially. Even defending against a
frivolous lawsuit can cost up to $5,000, according to research
by the US Chamber Institute for Legal Reform [PDF]. And that’s
if you’ve done nothing wrong.
As you grow your accounting business and take on more small
business clients, it’s essential to keep disputes from spilling
over into the courtroom. Let’s explore some ways to avoid
common mistakes and oversights that lead to lawsuits.
Frivolous lawsuits cost $2,000 - $5,000 in legal fees.
HOW TO AVOID LAWSUITS FROM SMALL BUSINESS CLIENTS
©2015 insureon, a BIN insurance holdings agency
21
How to Avoid Lawsuits from Small Business Clients
AVOIDING LAWSUITS BY COMMUNICATING CLEARLY WITH CLIENTS
Communication is arguably the most important skill to
have in any business (in fact, there’s a whole international
organization devoted to it), and its role in avoiding lawsuits
can’t be overstated. Relationships, whether personal or
professional, require a certain level of communication
between parties to be considered healthy and successful.
Communication clears misconceptions, illuminates wants and
motives, and solves problems that affect both parties.
Recall that 54 percent of small-business owners leave
their accountants at some point. The top two reasons
they cite for their dissatisfaction? No proactive advice
and poor responsiveness – i.e., a lack of communication. If
communication breakdowns are extreme enough, a client may
do more than leave their accountant – they may sue.
What makes good communication? In the accounting
industry, there are three tenants of effective communication:
familiarity, cushioning, and tact.
Poor communication is the top reason small-business owners switch accountants.
©2015 insureon, a BIN insurance holdings agency
22
How to Avoid Lawsuits from Small Business Clients
TIP #1: GET FAMILIAR
Every small business has a different story, and every business
owner has different priorities. To foster a good relationship,
you need to know what makes your client’s business tick. Start
by…
• Asking your clients what they hope to get out of
the relationship, including what they want for their
business and themselves.
• Checking in every once in a while to see how their
business is doing.
• Educating them about what to expect and letting them
know when things change.
You want to be familiar with your clients’ businesses, and they
want to be familiar with yours. Remember, familiarity builds
bonds. It’s why friends hang out and why couples go on dates.
The more effort you put into knowing your clients, the more
they’ll trust you.
And if something does go wrong? It’s a lot easier to fix
mistakes if you’ve already earned your client’s trust. Also,
clients are less inclined to sue someone they consider a friend.
TIP #2: CUSHION THE BLOW
The reality is that not all of your clients are going to be
consistently rolling in the dough. Small businesses may be
stretched thin at tax time or years down the road when the
market changes. To keep the relationship productive and
friendly, help guide the client when they need it most.
If they owe a ton of taxes they didn’t expect to, look for
ways to decrease the burden, such as a payment plan. Offer
a solution so the same problems don’t keep popping up.
Cushion the hard times the best way that you can – it’s what
your clients look to you for.
It’s okay to “fire” a client who insists on shady bookkeeping practices.
©2015 insureon, a BIN insurance holdings agency
23
How to Avoid Lawsuits from Small Business Clients
TIP #3: BE TACTFUL
Sometimes, your relationship with a client will require a bit
of sensitivity. Small-business owners often pour their blood,
sweat, and tears into a business, working long hours and
risking lots of money to make it work. Know how to handle a
situation when emotions are running high.
Sometimes, you’ll have to protect yourself, too. For instance,
if you see shady accounting practices, address them
immediately to prevent an IRS audit or fraud charge. Assume
it was an honest mistake the first time, but consider it a red
flag if the client seems unconcerned or wants to continue
the illegal practices. This client could end up being a major
liability for you.
Always include a “scope of services” clause in your retention letters.
©2015 insureon, a BIN insurance holdings agency
24
How to Avoid Lawsuits from Small Business Clients
THE ROLE OF DOCUMENTATION IN LIMITING LAWSUITS
Business sometimes relies on a promise and a handshake, but
if your agreements aren’t in writing, you leave your firm wide
open to messy disputes and potential lawsuits. Documentation
can help iron out disagreements and foster communication at
the same time. Plus, using contracts makes you look prepared
and professional.
For starters, always outline your scope of services in your
retention letter. Remember: if it’s not in writing, it didn’t
happen. (For additional advice, see The Savvy CPA’s guide to
drafting an engagement letter.)
When communicating with a client about your services or
business matters, document, save, and file…
• Phone calls.
• Face-to-face discussions.
• Emails and letters.
• Any other important decisions.
If you agree to something over the phone, send a follow-
up email to create a written record. Write a memo after a
conversation, date it, and file it away. In the event of a lawsuit,
this evidence will be invaluable support for your case.
If, for example, you find a problem in the numbers and notify
the client, you’ll have evidence of your recommendations
and whether or not the client chose to follow them. Enough
written evidence to support your case may dissuade an
upset client from even considering a lawsuit. (If a lawsuit is
underway, know that your evidence will be important during
the discovery process.)
A simple mistake can lead to a high-profile lawsuit against an accountant.
©2015 insureon, a BIN insurance holdings agency
25
How to Avoid Lawsuits from Small Business Clients
QUALITY CONTROL: THE IMPORTANCE OF DOUBLE-CHECKING YOUR WORK
Anyone can make a simple error – a fact famously
demonstrated by the loss of the Mars Climate Orbiter
after a team of engineers used English units instead of the
metric system. But it wasn’t just the error that caused the
malfunction; it was the lack of review that cost NASA $125
million.
You’re probably not under quite the same pressure as rocket
scientists, but exacting standards and deadlines can be
stressful in any field. When tax time comes barreling down
and you’re drowning in work, it can be all too easy to rush a
job and accidentally file incorrect tax returns.
Unfortunately, a simple mistake can cost your client the
client a small fortune. That’s more than enough to sour a
relationship and lead to a lawsuit. For example, NBA star
Kevin Durant sued his former accountant over deducting
personal expenses as business expenses. Another thing to
keep in mind is that mistakes can trigger fraud allegations
from the IRS, leaving a client with no recourse but to sue you
over the mistake.
Take the time to check and review your work so things are
aboveboard from the start. This may require your client’s
cooperation, so let them know it’s for their own good.
Lastly, don’t believe yourself to be above an occasional error.
It happens to the best of us.
Listening to upset clients and acknowledging their frustration can ease a tense situation.
©2015 insureon, a BIN insurance holdings agency
26
How to Avoid Lawsuits from Small Business Clients
AVOIDING LAWSUITS BY MANAGING EMOTIONS AND EGOS
Understand the emotional investment owners have in their
businesses and finances. For many, their business is their life.
Emotions and ego are naturally going to play a part in that, so
be aware of it.
Numbers may be the most important part of your business,
but remember the people driving those numbers. When you
have to deliver bad news, remember the communication
tips we discussed earlier. Cushioning and tact can soften the
blow and appease an angry client. Sure, it’s not your job to be
someone’s therapist. At the same time, keeping a cool head
and showing a little empathy can help you navigate a tense
situation.
When dealing with an upset client, it may be helpful to…
1. Listen and let them vent.
2. Acknowledge the frustration and apologize (even if it’s
not your fault, apologize for the frustration).
3. Offer solutions.
On the other hand, know when a client is a liability to you.
Irrational decisions fueled by recklessness or anger can make
whatever you’re getting from the client not worth the trouble.
Sometimes dropping them from your clientele (gracefully, of
course) is the best option. For more tips on handling charged
professional interactions, check out the Forbes article
“Keeping the Peace: How to Deal with an Angry Client.”
If you’re sued over your work, your E&O Insurance can cover the legal costs.
©2015 insureon, a BIN insurance holdings agency
27
How to Avoid Lawsuits from Small Business Clients
PROFESSIONAL LIABILITY INSURANCE: A LAST LINE OF DEFENSE
Professional Liability Insurance, otherwise known as Errors
and Omissions Insurance, serves your accounting practice in
two ways:
1. It makes you appear more credible and trustworthy,
which is something that small-business owners want. It
shows that you have backing by an insurance company
in case a mistake leads to financial loss. This lets
business owners breathe a little easier and makes you
a more appealing option for their accounting needs.
2. It covers professional liability claims, including
lawsuits. Though the hope is that you won’t have to
use your policy, you don’t want to risk losing your
livelihood and your business because of an angry
client.
If all your efforts to prevent a suit fall short, your insurance
can help pay for attorneys’ fees, court costs, and judgments or
settlements.
Every effort should be taken to avoid a lawsuit, make no
mistake. But if a lawsuit does occur, having Errors and
Omissions Insurance can be a lifesaver. The policy provides
the funds for an attorney right away, which means your
legal advisor can try to get the suit dismissed. The ability to
act quickly may spare you from going to court at all. Plus,
the peace of mind a policy affords is indispensible for any
professional accountant.
©2015 insureon, a BIN insurance holdings agency
28
Conclusion
It’s our hope that you now have a clearer picture of how
accounting professionals and small business clients can make
each other’s lives (and bottom lines) better. Small businesses
rely on accountants to help them decrease their tax burdens,
make financial plans, and balance books. By understanding
the needs of these potential clients, you can market your
services more effectively.
But as you know, all opportunity comes with risk. As your
practice grows, make sure to adequately protect it by
maintaining professional standards, communicating with
clients, documenting your decisions and interactions, and
carrying liability insurance. With these precautions, your
accounting practice is bound to see better numbers in no time.
CONCLUSION
Photos: shutterstock.com Cover Photo: shutterstock.com