Managing client accounting can be challenging, but with careful planning and review of current practices, you will be able to identify areas for improvement, plans for the future, and create a process that will streamline your accounting practice and ensure client success. Here are some best practices to consider when managing your client business accounts.
- Evaluate current business practices
Clients who have been managing their own accounting for a while might turn to professional help when their process is out of control. It is important to review the overall process before beginning to help clients sort their books to determine the next steps for their business. Before beginning work with a client, Accountants should review the overall company business practices when it comes to accounting, and determine the best course of action before beginning to manage daily operations. - Identify areas for improvement
There are potential risks that clients are unaware of when they are managing their own accounting. There could be immediate issues that need to be addressed, unpaid or incorrect tax filings, and other mistakes that should be corrected before moving forward. Identifying areas for improvement and making recommendations to enhance operations will make you a vital key to your client’s success. - Ledger Review
There should be a thorough review of the client general ledger to identify discrepancies, allocation of payments, accruals or adjustments, and any other costs impacting the client business before beginning to improve operations. If there are red flags in the general ledger, those items must be corrected before moving forward with the client accounting work. - Monthly management
Evaluate the client procedures used each month to manage accounting and financial obligations. Are there any issues or roadblocks in the process? Are there too many people managing processes that could be wasting resources? Once you’ve evaluated the client procedures, identify ways to streamline the process, reduce resources, and ensure compliance with all financial obligations. - Create a Plan
Clients need guidance to ensure compliance and move their businesses forward. They look to a professional to identify weaknesses and risk, create opportunities or plans, and execute those plans to move their business forward. By creating a new plan, mitigating risk, and ensuring compliance, you will be a vital component of your client’s success.
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