Where did all the profit go
Richard Brewin • February 12, 2024
I’m 65 this year.
That used to be a significant milestone before the government shifted the statutory retirement age but, whilst I must wait longer for my state pension, I’ll still qualify for cheaper haircuts at my local barbers and a discount on my Leicester City season ticket so it’s not all bad news.
Besides, I have no intention of retiring. I love what I do and have plenty of passion and energy for working with fellow accountants for a good few years yet. I mention my age because I came into this profession long enough ago to remember how simple the profit equation was for accounting firms once upon a time.
The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
All accountants are the same! We’ve all heard it said. It’s nonsense, of course, but, when you are asked what it is that your firm does that differentiates it from other accounting firms, it can be a challenge to come up with something tangible. Accounting firms tend to offer similar services, that’s what makes them accounting firms. Differentiating from competitors based upon services provided is therefore an issue.
Question… Should accountants charge for the additional work and obligations they will have when MTD ITSA finally comes into play next April? Not sure? Let me ask another one… Should business owners and taxpayers be expected to pay for the work that their accountant does for them and for the expertise that they receive? Put down in black and white, the answer seems obvious but there are many in the profession who are losing sleep over this issue.
Accountants selling to their clients is a topic as old as the profession itself. I regularly hear criticism from those looking to monetise the accountants’ relationships with their clients that “accountants can’t sell”. I also come across an attitude within the profession that “accountants shouldn’t sell to their clients…it’s unprofessional…it’s not what my clients expect”. Let’s tackle the issue.