The cost of a long-term relationship
3 Feb 10
One accountancy firm reports that helping clients through the recession has hit its profit margins. In the long term, it’s a price well worth paying
French Duncan reports that the firm’s profits have been hit by an increased requirement for free advice (see News).
According to French Duncan’s managing partner, Robert Kerr: “Clients come first and we have had to meet huge demand to advise and hand-hold some of them through the recession.”
While there’s definitely more of an air of optimism about as we move further into the current year, nobody is expecting 2010 to be an easy ride. There remains huge uncertainty about what happens when the bank of England’s quantitative easing programme stops pumping liquidity into the economy.
Also, whether or not we see a change of government at Westminster, it seems inevitable that we are heading for a round of very tough budget cuts in the public sector, which will impact not only on social services but also on consumer spending and on businesses reliant on the public sector as a client.
With all this, the need for professional financial skills, experience and wisdom has never been greater. It’s a great opportunity for CA firms to show what they can do
When accountancy firm Scott-Moncrieff moved into new offices in Edinburgh from the Georgian town houses it had occupied since the 1920s, a cashbook was discovered dating back to 1793. That's more than 50 years before the creation of the first chartered accountancy body. Amazingly, the firm still has clients on its books today that appear in that cashbook from the 18th century.
It’s a great argument for making sure that the professional relationship between the firm and its clients is something thing is nurtured for the long term – even if that means taking a hit on chargeable hours.