Accountants are one of the most topmost earning professions in the industry these days. Despite the low economy due to pandemics, every profession has evolved. This basically means that businesses who may even be facing insolvency or bankruptcy still need an accountant to close the accounts. You will still owe them the money they worked for.
But do you want to know one unsurprising fact? Depending on the situation of the companies, sometimes accountants are not even paid what they’re due.
Turns out even accountants can be exposed to bad debts. Which is nothing new by the way. However, it can be rectified by the right means. Using online software like CPA secure client portal allows the accountants to stimulate a streamlined working process. This means that they can keep tabs on not only on work but also manage their own finances when it comes down to it.
This article highlights how accountants can better manage their own finances without going into bad debts.
Are Accountants At Risk More Than Others?
Yes, like any other employee, they suffer the same fate, sometimes worse. Despite being one of the top-earning jobs all over the world, it is a little unfair that an accountant working tirelessly managing a client’s accounts himself faces the financial issue.
Even if a client faces insolvency, accountants face major backlash. Why is it so? We have narrowed it down to two reasons;
- Businesses expect the accounting to be flawless
- Invoicing troubles are spiraling downwards
This being said, financial distress can be caused due to a number of reasons. Maybe an accountant wasn’t using the CPA secure client portal, the practice was stagnant. Accountants are nothing short of the superheroes with excellent tools that are now available thanks to the IT reforms.
But there is one major culprit hidden behind the fiasco – the hourly billing.
The root practice is the same everywhere, but the frequency with which an accountant bills does has a prominent influence. This is the ticket either to the trade deficit or surplus.
Is CPA Secure Client Portal A Possible Solution?
Sure, there is. Billing is time-based. This can immediately put an accountant to risk. As we said earlier, client portals for accountants are the key to handle everything in one go.
As great as you feel in using this software for the clients, it’s time an accountant needs to protect their own practices too.
Here are some of the ways an accounting firm can protect the accountants;
- Thorough research on the company before taking them on as a client
- Detailed engagements for the work to be done
- Fixed-fee payments and regular invoices
- Upfront payments (whenever possible)
Finding About The Company
It is one of the most crucial steps that is sometimes overlooked by individual accountants. When you agree to work with a client you need to get hold of the best CPA secure client portal for accountants. Xero and My CPA Dashboard are such examples.
This will help you dive a litter easier into the company’s finances. The accounting firm can carry out in-depth due diligence.
Once you are armed with the information you need on the client’s business performance, you can better make a smart choice.
To safeguard the accountant’s practice, it is best to be clear about the number or type of accounting service that will be provided to the client.
The budget or charge must be finalized accordingly. This will help to have a clear foundation between the client and the accountant. The price must be negotiable and affordable by the client in the current economy.
So you need to make sure that the client can afford the services for the price on the table.
Once the letter is signed, the real works begin. You have to make sure, as an accountant, to regularly invoice the clients for the damage in business or if because of it they will be unable to pay up in the future.
Be honest in your observations. The more often the payments and invoices are taken the better.
Once a price is set and agreed upon, then there is no reason not to provide the payment details.
This way you can further ensure that the client will pay for the great work done to support the business. Besides, if you want to be in control of your cash flows this is one straightforward strategy that you need to look forward to.
As the accounting industry is slow to accept change it is crucial to take matters into your own hands by being specific about the procedures, in the beginning, the use of certain software you will need to accommodate by the company, and to manage your own cash flows.