Awkward conversations cost accountants nearly £70k each year, survey finds

According to 85% of accountants and bookkeepers surveyed in a new report, unrecovered out of scope work is costing UK firms on average £69,957 each year, while a further 33% say their mental health suffers as a result. 

The new findings in the ‘2022 State of Client Engagement’ report from Ignition, the world’s first client engagement and commerce platform, shines a light on the financial and human cost to accounting and bookkeeping firms when they avoid or delay awkward client conversations. 

Conducted by YouGov, the study interviewed 470 key decision-makers in accounting and bookkeeping firms with 1-50 employees in the UK. 

The outcome of the survey suggests that “awkward” client situations are quite common, as 90% of UK accountants and bookkeepers have reportedly encountered an awkward client situation. 

The most awkward conversations were cited as having to chase clients for late payments (62%), advising clients that the work they have requested is out of the agreed scope (58%), and finding errors in client proposals or engagement letters which have been sent manually (45%). 

In the UK, 74% of accountants and bookkeepers said they have delayed or avoided having an awkward conversation with a client, including 54% who said they were trying to improve or maintain the client relationship. 

More surprisingly, it found a third (33%) of accountants and bookkeepers have gone as far as to write off all or part of an invoice to avoid having an awkward conversation with a client. When managing increases in the scope of client work, the same percentage admitted they absorb the increased time and costs themselves. 

On average, accountants and bookkeepers in the UK estimate that out-of-scope work that hasn’t been fully billed is costing their business £5,830 each month. 

In addition, 85% experience late payments, while 28% of client invoices are paid after the due date. The average client invoice is reportedly 32 days overdue. 

Emma Crawford-Falekaono, managing director of EMEA at Ignition, said: “If you work in professional services, chances are you’ve experienced an awkward client situation. Accountants and bookkeepers are putting off these awkward conversations as they’re worried about their clients’ reaction or losing their business.”