Daniel Day Lewis – a frustrated accounting client?

Recently I was in a meeting with a CFO of a large privately-owned business with an annual revenue of $120m +. We were chatting about his thoughts regarding the accounting profession. Let’s call this CFO Daniel as in Daniel Day Lewis.

I came to a question of what can the profession do to improve its service to clients.  There was a pause. Daniel paused and then his face started to look redder and redder.

“You know what frustrates me the most James?” he asks rhetorically. “I resent the fact that we hire a firm of accountants/advisors to help us with a particular issue for which they have the right expertise and I end up managing their people for them! I’ve got enough things on my plate without having to set deadlines, follow up and provide guidance when it should be the partners job to take care of their own people. I really get sick of it”

Is Daniel being unrealistic here? What do you think? To my mind I don’t think he is. If you were to hire a building company to build a house for you is it up to you to deal with the various tradespeople directly and make sure the job gets done on time and on budget? Clearly it’s not. The building company would usually have a project manager with whom you can liaise to discuss progress and work through any issues that might come along. Is accounting any different? Or perhaps should accounting be different?

What are some ways in which accountants can offer their clients better service so that CFOs like Daniel don’t get frustrated and tear their hear out! I’ll share some thoughts in the next post.

Thanks,

James E

Are you an accountant who can save the world?

Recently I was at the gym. Don’t  be too impressed. I joined a group about 6 months ago that goes to the gym every Monday & Friday morning and I hate very minute of it! The only reason I go is that I know it is supposed to be doing me some good.

Between some boring weight exercises I chatted with one of my fellow victims at the gym. We both knew each other before the gym and have been friends for a few years. My friend is the Head of Design at a small to medium manufacturing firm which designs, builds and distributes catering equipment. The firm employs around 100 people and has been locally owned & operated for more than 20 years.

I asked my friend how business was going. To cut a long story short, the conversation moved to the impact of the so called “carbon tax” For my readers overseas, the Australian government introduced a tax on carbon producers so as to penalise emissions on 1 July 2012.

My friends firm, as one of the inputs into their productive process, uses refrigeration gas. This gas is one of the long list of items that attracts the new carbon tax. I was amazed to learn that before 1 July this manufacturing firm was paying a wholesale rate of $25 per kilo. Come 1 July the rate for the same gas increased to $160 per kilo. A whopping 640% increase! By the way … this manufacturer doesn’t use a kilo or two of gas a year – they use hundreds of kilos! And this is just one expense item that has been increased due to the carbon tax.

How do business owners and management cope with such a shock? In steps the accountant to the rescue. Given my work with accountants over many, many years I would have thought that  the above example is a golden opportunity to enter the business and use their expertise to help with solutions to manage such impacts on the business.

Numerous examples come to mind of accountants that I have met and worked with who are able to develop innovate ways to run business more efficiently and effectively. Its not just about numbers of course its about the helping the business do better!

Are you an accountant that can save the business world?

See you next post.

All my best,

James E