Let's face it, few accountants have detailed procedures in place to ensure they do all they need to do when they lose a client. The simple reason for this is that it doesn't happen often enough to warrant a detailed procedure and even when it does occur there's rarely a problem. The larger firms lose
Probably the most sensible thing any adviser can do is to recognize their limitations. Most accountants are like GPs. Great at dealing with day to day issues. Every now and then though when you visit the doctor they recommend you see a specialist. Indeed you’d be very worried if the GP suggested you hop up
One of the pressures that all ambitious accountants endure is the need to advise on issues that do not arise every day. The more experience you have the more confidence you gain to know whether or not you have enough knowledge to give the advice without double checking it's right. Double checking might simply involve
One of the key points I invariably highlight during my talk on 'Avoiding negligence claims' concerns a pretty standard term that appears in PI insurance policies. Indeed it's as important a term in PI policies as the 'Don't admit liability' clause is in motor car insurance policies. All drivers are well aware that if they
How often do you turn away prospective clients? During my talks about 'How to avoid professional negligence claims' I refer to that awful feeling you sometimes get in your gut when you meet a new client (or, more accurately, a prospective client). It's the feeling that makes you think this person could be more trouble
As regular readers will know, one of the talks I regularly present to accountants and tax advisers around the UK addresses Negligence claims and what you can do to avoid these. Early on in the talk I know that I shock some of my audiences when I spend a few minutes talking about Forgery and
This was another of the thoughts I had during the workshop that followed an E-business for accountants seminar that I attended. (I've already commented on the seminar here and here). One of the workshop leaders was suggesting that accountants should be more prepared to 'upskill' their clients as regards their e-business strategy. I asked whether he
These have evolved a great deal over the last few years, both to reflect the changing approach of HMRC and also the feedback from accountants and their clients. I must admit that I'm torn. If I were still in practice I'm sure I'd want to ensure that my clients had this sort of cover. Equally
I created this list recently for a forthcoming article in the professional press. It's drawn from my talk, How to avoid tax related professional negligence claims, which I have been presenting all over the UK for the last few years. 1 - When providing tax advice always state the known facts on which your advice
I regularly encourage accountants to ditch their bad clients. There are two primary reasons for this. - Following the Pareto (80/20) principle, you can be sure that your worst clients (however small the number) cause the bulk of the problems and hassle that you suffer. Conversely, 80% of your profits are probably generated by the
Years ago when I joined a new firm I remember an audit partner telling me about two tax managers in his team He preferred ‘Dana’ because she always knew the answers. He didn’t like ‘Susie’ as much because she was never sure of anything and always wanted to check with a tax partner. I expressed
I'm not one for making annual new year resolutions - or indeed 'predictions'. Indeed, rather than risk 'predictions' for 2008 I offer instead three of my hopes for the new year, that Accountants will: 1 - earn more money by advising their clients about their menu pricing models - so that clients know they'll pay
In yesterday's blog I described what I see as the three categories of advice that best describe the approach of many professional advisers. The third category I described was 'dangerous' and I explained that advisers giving dangerous advice, normally do so as they are what we might term 'unconscious incompetents'. That is they are unaware
What would be the impact on your practice if a client alleged that you had been negligent? It's not something that anyone wants to consider, of course.Often such allegations lead to complaints that result in investigations and disciplinary proceedings, or a professional indemnity insurance claim – whether justified or not. All such eventualities invariably result
Last month I noted some thoughts about detailed fee quotes and bills for professional work. The posting was inspired by the service I had received from my garage. The same is true of today's blog as the garage owner telephoned me yesterday. Why? Just a courtesy call, he said. I know we did a lot of
When I give talks about professional negligence issues and how to avoid claims, I comment about how much time can pass between the alleged act and the claim being made. Some people assume that all such claims are made promptly. In practice this is not always the case. I recently became aware* of a case
Following on from yesterday's blog there are also plenty of people with whom my question resonates. Some of the partners and sole practitioners present are remarkably honest in their replies: Those who said ‘yes’ all explained why: YES: ·Convinced my knowledge is not as uptodate as it should be but working on it ·Anyone doing
During one of my talks I ask the delegates whether the risk of a PI claim keeps them awake at night. By far the majority answer ‘No’ but a number of people add a qualifying statement: NO: · [added later] Not until this talk · But I should! · Doesn’t keep me awake but it
The December 2006 issue of Accountancy magazine contains a two page article of mine that the editor has titled: "How not to get sued." This article contains extracts from my talk "How to avoid professional negligence claims". If you would like to receive a copy of the article please just ask.
An article in the Guardian today includes reference to research conducted by Which? magazine which shows that a third of people think they receive poor service from their solicitor. A quarter of those surveyed think their solicitor doesn't listen to their opinion, and a third don't feel they are told enough about how much they
Back in late 2004 I was asked to give an initial view as to the tax issues in a professional negligence case involving an accountant. I was paid but then heard nothing more for almost 9 months. This was one of the those cases that was clearly going to settle before the trial date. Only
