Practice steps you can take today with clients
When a country goes through difficult times or a recession, we always notice an accompanying increase in potential claims. This is especially true for the accountancy sector, which is currently experiencing increasing numbers of fee disputes and a rise in speculative claims.
Many companies and individuals are now prepared to raise an issue with their accountant in an attempt to get a discount. Clients will claim that work was not done to the standard specified in the letter of engagement and ask for their money back as a result. Some practices may choose to pay their clients to resolve the situation when the amount in question is below the threshold to warrant challenging.
We recommend taking the following steps to avoid situations like this arising:
Putting these steps into everyday practice will not only provide better protection from potential claims, but will also help to improve the relationship between you and your client by building trust and, in turn, a better reputation for your firm. It also enables more time, money and resource to be spent elsewhere within the practice.
Graham Wynes, head of claims, Lockton Companies LLP
If you have any questions please contact your Lockton Account Manager for further advice or email ACCAaccountants@uk.lockton.com.
Lockton is ACCA’s recommended broker for professional indemnity insurance
ACCA is collaborating with Practice Ignition to provide a solution that helps you to streamline and automate your client onboarding experience, from engagement letter creation to debt recovery. Practice Ignition has launched a version of its product with ACCA templates.
For next steps, and to start a free 14-day trial of Practice Ignition, you’ll find all the information here.
Their return on investment calculator allows you to determine how much your ROI would be if you use Practice Ignition in your firm.
Rest assured that ACCA will always have free engagement letters for members to use. You can download our free factsheets from the SMP section of our website, where you will find a wealth of other practice resources.
Each factsheet contains a main client covering letter with a privacy notice, a terms and conditions document and the most commonly used schedules of services.