24 Feb How to Be a Better Accounting Advisor
The end of the tax year is around the corner, and it’s the perfect opportunity for all accountants to be better accounting advisor for their clients.
Let’s start from January.
What were your priorities? Must be the clients in trouble that needed some serious troubleshooter /accounting advisor 2020 might not have proved out to be a good year for many businesses, but they got out of it with the help of their resilience. Sorting out your client base now allows you to channelize your efforts and resources towards winning advice for certain customers.
When looking at things in retrospect, we see that accountants might have been a bit confused about what businesses they must be leaving behind, and what businesses they might be getting along with. In difficult times like these, we see different accountants stepping in to support accountants that needed help/support in making the right choice and helping out accountants who’re going through some trouble.
Accountants were really crucial in the process, mainly because they helped businesses get out of really tough situations. Sorting out the most vulnerable clients was part of the journey and crucial for an accounting advisor.
If you’re an accountant and seeking additional help. Let us suggest you one formula that really worked out for us. These are the tips that helped us in getting more efficient down the road. As a starter, let us help you identify solutions for all your clients:
The Struggling Ones
- It’s important to review the cash flow projections of this particular group keeping the implications of lockdown under consideration. This will give them a clear picture of the cash situation.
- Work on the time to pay arrangements for HMRC.
- Also, accountants normally end up helping out this group with insolvency advice. This is a big help, particularly for a limited company that is on the verge of becoming insolvent.
- If a turnaround situation is just around the corner. How will it be managed? What are the reviewing strategies for trading and capital position?
The Steady Ones
- The clients surviving lockdown require working capital facilities to continue trading. It more important to meet their cash flow needs now more than ever. Corona Business Interruption Loan Scheme (CBILS) is something these businesses might want to look forward to helping them pull out in difficult situations.
- Other tools such as R&D relief, capital allowance claims, having debt recovery systems for slow and unwilling customers, and systems that help others manage internal capital prove out to be really crucial. You can also call them ways of injecting more capital into your business. Less hassle guaranteed.
The Growing Ones
- These businesses are the real asset for a growing economy. It’s important to make them more confident about their strategy and refuel their motivation to continue adding to the economy. So what are the strategies? Having a business plan, writing business plans are some ways that help a management team succeed.
- CBILs or other debt products help out in growth strategies, but your target must be equity finance in form of business angels, private equity/venture capital or crowdfunding are important for many businesses.
- If you’re worried that whether any grants will be announced in the future or no, don’t be. Economic recovery is extremely important, therefore more grants will be announced in the future too.
- If your clients are more ambitious and intend to grow at a faster pace in no time, you might want to recommend them to buy a particular company. You may be able to find multiple accusations across all sectors as many business owners find it difficult to trade. Corporate financiers will definitely be very busy in 2021.
The deadline for a government-backed loan scheme is 31st March 2021. A new replacement scheme might be announced shortly. You won’t find attractive schemes like these ones more often. So it’s the right time to sign up for these.