The elephant in the room

It is human nature to avoid awkward situations. Accountants (since they’re human!) are no different. Don’t let matters go too far down the track if there is a problem with a client – especially the sometimes sensitive topic of fees.

Recently I heard a horror story of a partner of a Top 20 accounting firm doing some work for a “friend” of his who operated a sizeable business. Given the relationship with his mate, the partner took some short cuts in the usual method in how a new client is brought into the firm. Well … to cut a long story short … a few months later the work-in-progress of almost a million dollars was written off. Needless to say, the partner’s friend refused to pay the huge bill since he had not been given any regular updates or communication with the partner and/ or the firm. The partner had paid the price of not talking about the elephant in the room!