Barely a week goes by without someone looking to sell me – or my clients – something.
The problem is, it’s usually a copy-and-paste faceless introduction lifted from their sales spiel, or a request to book a meeting without first working out whether it’s a total waste of time for us or them.
It’s a shame, because I’m sure there’s loads of great products out there which could genuinely make life easier or more profitable for me and my client. But if I said “yes” to everyone who approached me with their offering, I wouldn’t get much else done!
The inimitable Mark Lee (www.bookmarklee.co.uk) has worked with a LOT of accountants over the years. He wrote a report – which I have heavily plagiarised, with his kind permission – and I hope this page will help you get under the skin of what it’s like to be on the other side of what you’re selling.
As they say – you don’t get a second chance to make a first impression.
Mistake 1: Assuming we’re motivated by financial incentives
This is probably the most common assumption of all. I’ve lost track of the number of people who assume they know what will encourage accountants to advocate their service or product to clients.
We have pondered accepting commissions and referral fees in the past, but the related admin and (let’s not be coy about it) the work required on our part to explain your services to our clients in the hope that one or two might sign up means my time would actually be more profitably spend doing what I do best – tax returns and company accounts.
And I can promise you, I’m not alone on this.
We’re also required by the ICAEW to disclose introducer fees to our clients which could then bring our integrity and independence into question.
MY TIP:
The code of ethics, by which most qualified accountants operate, means that commissions and introduction fees are unlikely to be attractive incentives.
Sure, some accountants might be interested, but don’t make “commissions” your opening gambit.
Mistake 2: Treating all accountants the same
Unlike solicitors, financial advisers, vets and doctors where there are limitations on who can use the title that identifies their profession – ANYONE can call themselves an accountant. Even you!
That might be a surprise to you. And it’s often a surprise to our clients too. That “accountancy firm” you’re trying to contact could be KPMG or it could equally be a man in his spare room doing a bit of bookkeeping.
The term ‘accountant’ is used inconsistently and may refer to a whole plethora of different services.
For example, we’re Chartered Accountants, but we don’t do audits. So if you’ve developed some fancy tools to cut audit time in half…that’s great, but having a call with me is a waste of your time. And mine. Sorry.
MY TIP:
Decide what type of accountants you want to target, based on what you’re selling. Do your homework and find out what characteristics they share so that they are easier to find and to focus upon.
And you’ll also save yourself time in building relationships with firms who just won’t have need of your services.
Mistake 3: Not realising that most accountancy firms are one-person outfits
That’s a fact. Most firms are owned and run by one person, perhaps with a couple of staff members to share the load. Blue Penguin falls squarely into this category! But with the power of the internet and social media, small firms can make themselves appear a lot larger with their online presence.
This means two things:
Firstly, the business owner will be spending most of their time getting on with the day job. They won’t have a lot of time to be looking at new software, building supplier relationships and so on.
Secondly, it means that there’s only going to be a limited number of clients who could benefit – and pay for – the service/software/product you’re offering. So your ROI on that might not be as much as their online presence would suggest.
If your offering is aimed at small firms like me – fine. If you’re more interested in more substantial firms, you need to recognise that they constitute only a very small proportion of the marketplace. The bigger the firm, the more robust your presentation will need to be – and the better you will need to understand them.
It may be a cliché, but people buy people – AND people buy people like them, so build relationships and rapport first
MY TIP:
Find out how big the firm is BEFORE you approach them, so you know what you’re dealing with. If your offering only becomes viable when you have (say) 100+ clients using it, then even if it’s the best thing since sliced bread you’re barking up the wrong tree with me.
All but the smallest firms will be Limited Companies, and their accounts at Companies House will disclose the number of staff on the payroll, so check that out before you pick up the phone.
Mistake 4: Not understanding how accountancy firms are structured
Obviously larger firms have more staff working for the partners than smaller firms: Most sole practitioners have between zero and four staff.
In larger firms it takes time to identify the real decision makers and to get any investment decisions ratified by the other partners or the relevant management team. This also explains why so many people are disappointed by the level of valuable follow-ups they secure after what seemed to be positive meetings with (someone at) various firms of accountants.
Only a minority of firms make central buying decisions across all of their offices. And some firms struggle to commit to new business contracts as the ‘partners’ act more like a group of sole practitioners who simply share common overheads and staff.
MY TIP:
Find out who the real decision makers are in the firms you are targeting. In Blue Penguin that’s me – Peter – but larger firms will have different people responsible for different areas.
And if you’re feeling bold, approach the partners of each office of larger firms separately – each one may be running “their” office like a separate business under the same brand.
Mistake 5: Misunderstanding accountants’ income streams
Unlike solicitors, finance brokers, architects, and most other service providers, accountants generate most of their income from ‘recurring fees’. This is because, unless we give them a reason to jump ship, clients stick with us year after year.
At Blue Penguin I can tell you that 85% of our income is from recurring fees, with just 15% for one-off work.
Accountants are risk-averse and will avoid anything that might jeopardise their recurring income. This includes introducing third parties (like you!) who could adversely impact my relationship with (and let’s not be coy about it, fee income from) my clients.
Unless your product is something absolutely revolutionary (tip: it probably isn’t), then you’re asking me to take a risk with it. So I need to be 100% sure of what I’m dealing with here.
MY TIP:
You will need to spend time getting to know the accountants you wish to work with. They need to be reassured that you have their best interests at heart and are not just trying to sell something.
They won’t be receptive until you have spent time gaining – and deserving – their confidence in both you and your product.
Mistake 6: Believing accountants will want to introduce new ideas to their clients
Your service or product may well be ideal for many accountants’ clients. Perhaps you have a pitch ready to explain how your offering will help their clients to be more profitable and effective in business.
However, most accountants will be more interested in focusing on their key services, rather than comparing new products and services – after all, if last year the client was happy, and we made a reasonable profit from the work, why risk changing anything this year?
We’re creatures of habit. You’ll need a good case to make us break that habit.
MY TIP:
Ask yourself: “What problem does [your product] solve?” for my practice and/or my clients. It might be sexy and slick and have AI and blockchain and machine learning involved somewhere, but if you can’t tell me what problem it solves, it’s a non-starter.
Mistake 7: Assuming all accountants want to grow their practice
You don’t know what motivates me unless I tell you. And the next accountant you speak to will have different motivations. Some want more clients, but many are comfortable with the current size of their practice.
Blue Penguin has a waiting list for new clients, and we’re being selective about who we work with. Growth is not something we’re interested in.
A firm’s approach to growth will also dictate the sort of products and services they will be looking for or willing to purchase.
MY TIP:
Before you give accountants chapter and verse about how great your product is and what it does…ask US about OUR business and OUR plans.
It’s important to understand that firms which aren’t looking to grow are also unlikely to outgrow their existing solutions (assuming they are currently fit for purpose).
Mistake No.8: Treating accountants as business advisers
Is it fair to assume that all accountants will have good insights into their clients’ business, personal assets, cash-flows and financial controls?
Er, No.
There are plenty, like us, who simply focus on the preparation of tax returns, annual accounts, and generally keep our clients’ businesses compliant and tax-efficient. Whilst others basically run the clients’ whole finance function from the ground up.
So, no point trying to sell your amazing payment authorisation software to a firm whose client base comprises personal just tax returns, for example.
A firm’s website might also be a red herring – some firms say “we do X” as if it’s something they specialise in, whereas in fact it means “we don’t do X right now, but happy to give it a go for you if you want”.
MY TIP:
Find out from each accountant what sort of services they provide to their clients. Nobody does everything!
In addition, it may be that only some of the people in the firm deal with the sort of clients who would benefit from your offering – so make sure you’re speaking with someone who actually walks the walk on that.
Mistake 9: Assuming your proposition is unique
Over the years many people have tried to convince me that they have a new proposition for me or my clients.
Maybe it’s a new service, a new product, or some innovative way of delivering a service or product that benefits the accountants or their clients. But rarely is it truly unique.
The worst of the bunch (sorry if this is you!) are financial advisors who approach me out of the blue as if somehow they are the first IFA to have ever contacted me, without any explanation of why they are different to the one who connected with me last week. And the week before that.
It’s very common to forget that accountants have not been living under a rock. They have already been approached by many of your competitors.
What you consider to be special or unique may not appear to be sufficiently different to warrant much of the accountant’s time.
MY TIP:
You’ll find most accountants to be cynical about claims about uniqueness. Rather than claim your product, service or software is unique, first find out what the accountant knows of the marketplace. You might also save time explaining the product in general – and you can move on to what makes yours the best in class.
Mistake 10: Quoting inappropriate testimonials
One size doesn’t fit all; there are very few services and products that suit the largest of accountancy firms and also the smaller ones. It can be the kiss of death to your marketing campaigns to quote testimonials from large multi-partner firms to smaller firms.
If you tell me that “50 of the top 100 firms” is using your service, I’ll think “If it suits a big multi-partner firm then it will either be too expensive or too complex for me.”
MY TIP:
If you want to engage smaller firms focus on compelling testimonials from credible smaller firms – i.e. their competitors.
Do not discourage them by highlighting that very large firms use your service or product; it won’t impress them.
Mistake 11: Coming across as a competitor
This is particularly relevant if you are offering R&D or capital allowances work, coaching, business advice or related services.
Accountants still like to think that their clients see them as trusted advisers. It’s not wise to point out that their client service has holes in it – unless you’ve taken the time to confirm it for yourself.
Also, if your initial approach could be interpreted as competing with what they offer, you may never get the chance to explain it in more detail.
MY TIP:
Know how to modify your initial approach to avoid it being an instant turn-off and then present your offering in a way that complements, rather than replaces, what they already offer their clients.
To succeed you’ll need to see your offer from the accountant’s perspective. To make your offer stand out you really need to present it in a way that taps into their key desires and objectives and, to do that, you’ll need to understand their firm reasonably well
Mistake 12: Being a ‘one-hit wonder’
A one-off connection, event or conversation will rarely be enough to keep you or your business front of mind. Even if they are interested they will forget you unless you start building a relationship.
This is especially true if they later hear about something similar from another supplier.
Remember, even if I’m not in need of your product today, it might be a year down the line that I realise “hey, we could do with that thing…if only I could remember who sells it….”
MY TIP:
Don’t just give me a business card and assume I’ll keep a framed copy on my dest. Make the effort to stay in touch – without being a pest!
Connect with me on social media, drop me a note when you publish a blog or article that may be of interest; pick the ones that are relevant rather than pepper me with random articles every week.
See things from the accountant’s point of view and aim to be memorable for all the right reasons
MISTAKE 13: Thinking Accountants don’t talk
For me, the accountancy profession is a wonderfully supportive enviroment, where lots of small firms and sole practitioners share their knowledge and insights freely with each other on Facebook, Whatapp and LinkedIn groups.
So, if you’ve nailed the presentation, you’ve got me feeling pretty pumped about your product and I’m nearly ready to sign…the one thing that I can guarantee I will be doing without fail is asking my other accountant buddies “Hey, have you tried XYZ, what do you think, is it worth it, etc etc?”.
If I get negative feedback from a couple of other firms, then I’m sorry but (going back to Mistake 5) I just won’t take the risk. Indeed, there’s some companies out there – I shaln’t name them here – which I won’t ever do business with, purely on the strength of what other accountants have experienced.
MY TIP:
If the company you work for has a bad reputation for e.g. poor after-sales service, long contract tie-ins, or just not being very good, then you need to fix that first. Because accountants talk to each other. A lot.
And if I hear bad things about your offering from other accountants, then whether that’s a reflection of the reality or not… It’ll be a “no” from me.
And Finally…
There’s a theme running through this; you might say it’s the basic ‘Selling 101’.
To avoid making these common mistakes when you approach accountants for business or referrals:
• Do your research
• Ask good questions
• Treat each accountant as an individual
• Build relationships
• Deliver your proposition to address the accountant’s specific issues
I hope the above was useful for you. And if you’ve got this far (not everyone does!) and you’re GENUINELY thinking “yes, I think I can tick all of Blue Penguin’s boxes with my offering” then great.
Please go ahead and book a ten minute slot in my diary using this link.
