The most embarrassing part of doing business is not being able to handle the financial problems. Young startups often avoid talking about it or discussing it either. When you are doing business you need to be extra intuitive and consult the right people to manage the financial deeds over the long run.
Small businesses often face this problem if their budget is low or limited in a way that it’s going to disturb their overall financing. A client may have hired the CPA or accountant to do the job. Most work is not automated and easily manageable thanks to the accountant’s practice management software.
But in some cases, clients are too shy and nervous to admit they need professional help to manage their financial needs.
In such a case, being the responsible accountant, you need to look out for the signs that sing the struggling tale of the small business client.
1. Late Fee Structure
Your client is a good businessman. He takes care of the employees and expenses regularly. So why the sudden late fees on the loans and credit cards?
This is the red sign telling you that your client is struggling to manage the flows. Sure a practice management software is a lot helpful to avoid the situation. In fact, it’s a common practice too.
It could be that the client is struggling with work issues and cannot concentrate easily. Accountants ensure that clients do not have to suffer through late payments. You can prove value to your client and build a better relationship too.
The easiest work practice is to help set up the automatic payments using the advanced tools so that the accountant can better monitor the transactions and meet the deadlines.
2. A Large Sum of Cash Withdrawal
When a client suddenly transfers a lump sum amount to their personal account without any heads up, it will clearly ring the bells. When business is thriving, a sudden move like this should make you suspicious. Although it might not be a big deal in this case, when the business is barely covering its expenses, transferring or withdrawal of large amounts can leave the business distorted.
The accountant needs to raise the right questions, enter the loophole about what is going on with the client. According to the nature of the problem, he can help the client resolve it.
3. Less Communication
An active client always wants to be in communication. They want to be informed about the updates, inflows, and outflows, and related financial information. Using the accounting management software you can do all the daily tasks. But what if your client is not taking an interest?
At some point, the accountants need to wait longer to hear a response from the client. If an active client suddenly goes dark, it indicates a struggle. For instance, you were on medical leave and the client made some hasty decisions and therefore later realized the severity of the actions.
So if a client is communicating less, keep in touch to become aware of the situation.
4. No Response
Is your client giving you vague and evasive responses to the questions? Is this behavior out of the normal for you?
If yes, then you need to sense the change in his tone, feel if the client is stressed or not. You can do this using the accounting software, in the most professional way, and send them an email softly poking for the information.
If you sense the change in your client and the irregular behavioral pattern, then you need to be persistent in looking for the right answers.
You can help your client to recover from financial trouble with advanced tools like practice management software. However. To improve financial struggles you will require your soft skills that make an accountant even more valuable in hard times.