Category: Accountants

As a software developer and also as someone who comes from an accounting background, I must admit that I am often concerned by the fact that many accountants and accountancy firms have not embraced modern technological developments in their day-to-day operations.

I don’t expect an accountant to be a Mark Zuckerberg or an Elon Musk, but I would like to expect a level of competence from a person who works in a discipline that is being continually driven by client expectations to be more efficient and by legislation to communicate more via the internet.  This is not just about e-mail, but also about being familiar with the basic requirements of website design, online marketing and integrated processes, to name but a few examples.

Accountants have made the leap when it comes to accounting software (how many solely rely on ledgers and paperwork these days?) but they have yet to make the same logical progression with other essential parts of their business.  Why is this?

When dealing with any business or professional person (not only accountants), I would expect them to have their own website, a healthy presence on social media and the basics of a consistent marketing brand.  These are not superficial considerations; they reflect the mindset of that business or business person, and both consciously and unconsciously make an impression (or lack of) on the potential client or business partner.

For instance, I wonder how many of you reading this article use an e-mail address that incorporates the name of your business, which would also be the URL (web address) for your website?  For those of you who don’t, you are possibly losing out on potential business.  I for one would intuitively be more inclined to do business with someone using an e-mail address such as john.smith@johnsmithaccountancy.co.uk than something like johnsmith78a@hotmail.com.  The former implies a professionalism that the latter simply does not.

Of course, such considerations in themselves would not make you a better accountant, but if you have the core accountancy skills, a good reputation and a desire to grow your business, you would be doing yourself a disservice by not tidying up your professional online appearance.

Did you know that Diamond Discovery (the makers of Prelude Accounts) provides accountants and accountancy firms with cost-effective web-hosting and e-mail services, along with web design, copywriting and online marketing packages?  This is in addition to our accounting and business software and services, some of which are discounted or even FREE for ICPA members.

We come from an accountancy background and we understand what your business will need in terms of an online presence.  A good online presence consolidates and protects your existing position in your local area, as well as being required if you want to grow your business.

For instance, you can integrate Prelude Accounts with your own website, including branding, colour scheme and certain style parameters, to help you provide a one-stop portal for your clients to access their accounts. This would all be through a fully-branded website that you would own and have full control over.

We are always listening to client feedback from our growing user base and requests for bank feeds come up a lot.  As a result we have approached Bankstream, providers of bank-authorised data feeds, with a view to providing an integrated solution with their service for accountants to use in Prelude Accounts.

We will also soon be opening up an API (Application Program Interface) for Prelude Accounts, so it can be integrated with other software programs such as Bankstream. This would allow for Prelude Accounts to integrate with CRM (Customer Relationship Management) systems.  Diamond Discovery is also developing its own CRM system to incorporate an e-mail marketing function, so you will soon be able to use the information inputted straight into Prelude Accounts for your own or your clients’ e-mail marketing purposes.

We are also looking at making Diamond Discovery’s final accounts program (Comprehensive Accounts) an integrated part of the Diamond Discovery suite of software products, so we can provide the ultimate software package that would meet all the business needs of an accountancy firm.

To celebrate this expansion of our services for accountants, Diamond Discovery is offering FREE website and POP/IMAP email hosting to all those who have a current Prelude Accounts subscription.  To find out more about how having a Prelude Accounts subscription can significantly reduce your business’ online overheads, call 01656 725800 or e-mail info@preludeaccounts.comtoday.

Please be sure to visit www.preludeaccounts.com regularly for further Diamond Discovery offers and services for accountants and accountancy firms.

Prelude Accounts can also be found on Twitter via @PreludeAccounts.

Accountants and accountancy firms are rapidly embracing new technologies to manage their clients and to operate their accounting software. Packages such as Prelude Accounts are completely web-based and offer an easy two-way street for clients and their accountants to assess and manage the books.

Yet, while accountants are embracing the web for their actual accounting, they seem to have not fully yet embraced the technologies for promoting their firms and services.  Maybe it is because of people’s preconceptions of accountancy as a dry, traditional subject and profession, but I would still argue accountants do not use social media conversations and the social networks to their full advantage.

It doesn’t have to be like this. Here are just 7 ways accountants can use social media to improve their business, to engage with clients and to advertise their services:

1. Use Twitter
   Twitter is a microblogging social network, in which you can broadcast statements (or ‘tweets’) of up to 140 characters.  You can follow other users on the network, and they can follow and interact with you in return.Although not the most popular social network (which remains Facebook), Twitter is certainly one of the most effective for businesses and individuals to connect with others online.  140 characters does not provide a lot of space, but by using internet links within a tweet (and other techniques such as ‘retweeting’) you can highlight online content that is external to Twitter to your followers that you think may be of benefit and interest to them.
   Twitter is invaluable if you use a website or a blog (see below) to promote yourself, and is a good way for accountants to be associated with their clients, many of whom no doubt will have a presence on the network.  Following your clients on Twitter will keep you informed as to what they are up to and, if they reciprocate, they can see what information you are sharing or promoting. Using Hashtags can also increase the reach of your tweets beyond that of your followers too.
   One of Twitter’s biggest strengths is that Twitter accounts are visible to those online who don’t happen to have a Twitter account, and a Twitter Feed can be embedded into a website, thereby acting as a de facto news feed for yourself or your firm.
2. Join, and participate with, LinkedIn
   LinkedIn is business-to-business (‘B2B’) social networking site on which individuals, companies and organisations can connect with each other in a manner akin to Facebook, as well as participate in online forums for members (known as LinkedIn Groups).The main basis of LinkedIn is individual profiles, which highlight past professional experience, education and other qualifications, along with endorsements and recommendations from other LinkedIn members.  In a way, this acts as an online CV and is used by headhunters, but people also use LinkedIn as a way to interact with colleagues, clients and competitors on a neutral ground.
   Companies can also have a corporate presence as a LinkedIn Company Page, which LinkedIn members can follow, although I would argue that people prefer interacting with individuals rather than corporate entities on the network.
   For an accountant, LinkedIn offers a great medium in which you can be publicly endorsed and recommended by clients and colleagues alike.  It also provides you a forum in which you can debate issues or inform others through LinkedIn Groups, which will raise your profile with others in that forum and may lead to potential clients approaching you for your services.
3. Start Blogging
   Blogging is publishing a short article online, which are normally hosted on a website or on a dedicated blogging platform.  Writing a blog entry is a very effective way to establish your brand and your credentials to an outside audience, and it has the associated benefit of providing new content for your website, which you can also share elsewhere online via social media.Blogs entries can be on anything that you think is appropriate for the audience you are trying to communicate with, and can range from opinion pieces to ‘How to…’ articles.  An established blogger (a person who writes a blog) can also offer articles to be published on other people’s websites and blogs, which again increases the chances of reaching a wider audience and establishing your brand.
   Accountants may find blogging a useful tool to impart advice or news to existing clients, although a good blog entry should also be able to double up as a sales tool.
4. Google+ and Google Authorship
   Google is not just a search engine; it offers a wide range of online tools and programs for users, all of which are integrated to a greater or lesser extent.One of these is Google+, Google’s very own social network that is designed to rival Facebook, Twitter and LinkedIn.  Although Google+ is a very powerful social network that has many applications and features ideal for business, it remains unloved by many and its complexity for new users is a big issue for many.
   I would argue that it is worth investing time with Google+, as it has many fringe benefits involving concepts such as online video (see below) and SEO (Search Engine Optimisation – techniques intended to improve where your website would appear in search engine results).
   One of the most interesting and potentially powerful facets on Google+ is Google Authorship, which enables an author to be identified with their articles within Google Search results with a byline and profile picture.  If you are looking to establish yourself as an influential ‘thought leader’ in the field of accountancy (with regular blog posts and a coherent content marketing strategy), Google Authorship is essential to give your article the edge.
5. Online Video and Video Conferencing
   Other free (at the point of use) Google products that would be of use to accountants areYouTube and Google Hangouts On Air.YouTube enables users to upload videos to a single platform on which other users can comment or share the content.  If you have got a promotional video for yourself or your firm, it really should be hosted on YouTube as well as on your website, as by doing so improves the chances of it being seen and it appearing in Google Search results.
   Google Hangouts On Air is a video conferencing facility on Google+ that allows you to broadcast live to the outside world via YouTube.  Not only is your video conversation broadcast, it is also simultaneously recorded on YouTube, meaning that the footage can be reshared or edited for marketing purposes.
   Google Hangouts On Air enable others to put ‘a face to the name’ and in a field such as accountancy where trust is held at a premium, an online video or broadcast is an easy way for people to get to know you in a way that the written word would not.
   However, you do not have to broadcast your video conversations for them to be of value.  You can have private Google Hangout conversations as well, or you could use a competitor product such as Skype for this purpose.  Video conferencing can negate the need for your clients to travel to see you or you to them, saving both parties time and money.
6. Monitor your competitors
   If you are not active online and your competitors are, you are missing out on a wealth of information about them, their services and their clients.By monitoring your competitors’ online behaviour, you can assess their marketing material and product offering in relation to your own, and you can also glean who may be their clients via their connections and interactions.
   Of course, this works both ways; your competitors can monitor you.  However, being alert to your privacy settings on LinkedIn and being aware of lesser-known Twitter functionality such as Twitter Lists can mean that you’re somewhat protected against such snooping and that you can monitor others discreetly and privately.
7. Find new contacts and clients
   A good and thorough social media marketing campaign is based on interaction and engagement with others, and this happens without geographical boundaries or hindrances.  Most people now access their social networks through mobile devices such as phones and tablets, meaning that the interactions are highly personal, immediate and portable.If you manage to build up a following online or have a constructive interaction with a new person, you would be wasting your time not reciprocating or responding in some way.  You would follow up your leads from a networking meeting or conference, so why not do so on the back of your conversations online?

Summary

The above is the briefest of summaries of how social media could help promote your accountancy work, and there are hyperlinks throughout the above that will take you to more information.

You may have been surprised by my omission of Facebook but there is good reason for that; you now have to pay quite considerable sums to have any impact on the network, and I don’t believe that it is best suited to marketing accountancy services.  However, you can read more about Facebook Pages and the reach of Facebook posts over on the Nick Lewis Communications website if you are determined to have a Facebook presence.

The key thing is don’t implement all of the above at once.  It is better to master one or two social media channels or techniques than to flail around badly on all of them.  Good social media marketing also takes time, consideration, resources, determination and consistency, so make sure that you are committed to the concept before embarking on your new online marketing campaign.

It is easy to think you can do without a professional service if you have a degree of competency in the skill which they provide. After all, why pay for a plumber when you could do it yourself after a trip to a hardware store? But there is a reason why the professions are still here and are resilient to any fluctuation in the economy. Accountants, like lawyers and skilled handymen, are always in demand. So, do you actually need an accountant? The answer is, more likely than not to be, “yes”.

This blog in recent weeks has been highlighting the greater degree with which people are managing their own books with the mass adoption of IT solutions, and has also examined the decline in bookkeeping as a value-added service. And while it is true that the client can save themselves money by doing some accountancy functions themselves, they (unless they are a qualified accountant) will always inevitably require some professional financial advice when running a business, whether that is as a sole trader or a limited company.

Given the complexities of most western governments’ tax systems, it would be a remarkable individual who could keep on top of all the tax obligations and opt outs that get passed into law each year. This is one of the most pressing reasons why it is always prudent to consult with an accountant over your tax affairs; they are very easy to get wrong, and getting your tax affairs wrong can be very stressful, costly and, potentially, legally problematic.

But consulting an accountant will not just ensure that your business affairs are compliant with tax laws; a good accountant will also advise you on how to legally structure your business affairs to minimise your tax burden and will also monitor the appropriate tax systems for any change that could either disadvantage your business or provide it with an opportunity.

Also, while many accountancy functions can now be undertaken directly by an accountant’s client, it is always good to have that second pair of eyes who can professionally ensure that your books are in order. True, you may no longer want or need to pay your accountant to do your bookkeeping for you, but you may want them to check that you have been doing it correctly by yourself.

Indeed, the vast improvements and widespread adoption of online communications technology means that it has never been easier for an accountant and their client to share information and review the same set of books simultaneously (through Cloud computing), whether or not they are actually in the same room.

Because an increasing number of people are now self-sufficient with bookkeeping, accountants can dedicate more time to other high-end services that they offer clients. Accountants are not just there for VAT returns, basic accounting and bookkeeping; there are lots of other services that an accountant or an accountancy firm can provide for their clients.

For example, if you are an expanding company and are looking to hire someone, an accountant can assist with managing their payments through payroll processes as well as ensure that they are probably registered with HMRC. In addition, accountants can also help with setting up a workplace pension scheme and manage pension payments (either for yourself or your staff).

A good accountant also acts as a good sounding board for professional aspirations and intentions.Do you have a business plan? An accountant can constructively interrogate it for you, to ensure that the sums and the financial logic within it add up and make sense. If you also want to monitor your monthly cash flow and project forecasted earnings, an accountant can be brought in to help with that.

It is therefore wrong to view your accountant just as the medium between yourself and HMRC. Accountants can help you to deal and communicate with a wide range of bodies and organisations, through which you may want to make applications for funding or place tenders for contracts.

When choosing an accountant or accountancy firm, you may want to do so according to specialisation or sector. If you are intending to work within a particular industry or business-type, the chances are that there are accountants who specialise in dealing with businesses in that field.

Although any good accountant will be able to cover all the basics that you require to run a business, a specialist will be able to advise from an experienced and knowledgeable perspective, often making suggestions that your ‘average’ accountant would not make. Such an accountant will also be able to offer some professional comparisons on how other businesses in your field are constituted and how they are performing.

However, the true value of an accountant is that they share some of the strains and stresses that are inevitably involved with running a business, especially small ones. There are already enough things to do in keeping a business going, and there never seems enough time to do everything that needs to be done. Hiring an accountant eases this burden considerably.

Legally, you are under no obligation to hire an accountant to manage your tax affairs. However, you are legally expected to submit a complete and accurate set of accounts to the taxman, and there is no better way of ensuring that you do this than by employing a professional accountant to do this for you.