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Listening to some commentators, you could be forgiven for thinking that the future of every accounting practice depends entirely on how quickly you adopt artificial intelligence (AI). Software vendors, consultants and AI advocates all seem keen to tell us what clients now expect from their accountant.<\/p>\n
Much of it is speculation, with many simply repeating what they\u2019ve heard elsewhere until opinion starts to sound like fact.<\/p>\n
I\u2019m not convinced.<\/p>\n
Nor do I share the view of those who predict that accountancy will eventually become the domain of AI agents and large language models. I sit firmly in the camp of those who believe AI will change the role of accountants rather than replace them.<\/p>\n
I have no doubt that AI, large language models and increasingly sophisticated automation will, in time, transform the way accounting firms operate. In time. Not tomorrow. Or even next month.<\/p>\n
Many of the guests on my podcast are already embracing AI and integrating new tools into their practices, and it\u2019s clear that the direction of travel is set.<\/p>\n
Unsurprisingly to me is the fact that not one of them has suggested that increased use of technology and AI will reduce the importance of sustaining relationships with their clients.<\/p>\n
Quite the opposite. They see AI as creating more time for the conversations clients actually value.<\/p>\n
Forward-thinking firms are experimenting, learning and finding ways to improve efficiency and client service.<\/p>\n
Many sole practitioners are moving more cautiously, which is understandable. Even so, I suspect that, over the next few years, every practice will find itself making greater use of AI in one form or another.<\/p>\n
The question is whether AI will determine whether your clients remain loyal.<\/p>\n
For most existing clients, I don\u2019t believe it will.<\/p>\n
Your clients care about different things<\/strong><\/p>\n Here\u2019s the truth as it applies for most existing clients of most established accountants.<\/p>\n Whatever new developments, new opportunities, new technology, new laws or other changes emerge over the next few years, very few of your current clients are going to leave you for another accountant.<\/p>\n Clients who have been with you for some time and who trust you don\u2019t care how you do what you do for them. They don\u2019t care whether you use the latest cloud software, a desktop package, AI or even quill and ink \u2014 although I think we\u2019d all agree that\u2019s looking a little outdated now \ud83d\ude09<\/p>\n Most people who insist that your practice will collapse unless you immediately embrace new technology are trying to sell you software, consultancy or both.<\/p>\n The good news is that few of your current clients will even notice the advertising from bookkeeping software providers or AI developers. They\u2019re busy running their businesses. They trust you to get their accounts prepared, their tax returns filed and to keep them out of trouble.<\/p>\n That\u2019s why I\u2019ve long maintained \u2014 and been proven right so far \u2014 that there has rarely been any need to move existing clients onto new platforms the moment they appear.<\/p>\n Nor do I believe that your current clients are suddenly going to demand fee reductions simply because AI enables you to complete parts of your work more efficiently.<\/p>\n To be fair, if you still charge by the hour, you\u2019ll need to decide whether those efficiency gains should benefit your clients, your practice or both. That\u2019s a discussion for another day, but it does reinforce my long-held view that time-based fees can penalise accountants for becoming more efficient.<\/p>\n Most clients who have agreed a fixed fee simply don\u2019t care how long it takes you to complete their work, provided you deliver it when promised.<\/p>\n That\u2019s why I remain sceptical whenever someone claims that your existing clients are about to abandon you because another accountant is using a more advanced AI platform or newer bookkeeping software.<\/p>\n What most clients care about is peace of mind, confidence and convenience.<\/p>\n The clients who are at risk<\/strong><\/p>\n My preamble there does not mean that you can be confident about every one of your client relationships.<\/p>\n Some accountants assume that if clients aren\u2019t complaining, everything must be fine. Unfortunately, silence isn\u2019t the same as satisfaction. Confusion isn\u2019t confidence, and inertia isn\u2019t loyalty.<\/p>\n Think about the last client you won from another accountant. At what point did they tell their previous adviser they were unhappy? Before they found you or, more likely, only afterwards?<\/p>\n Most clients who aren\u2019t happy, for whatever reason, don\u2019t complain. They simply move on.<\/p>\n While you\u2019re busy looking after your client base, other accountants are actively looking to attract those same clients. The question isn\u2019t whether your clients trust you today. It\u2019s whether you\u2019re continuing to deserve that trust.<\/p>\n AI has its limits<\/strong><\/p>\n Already, large language models can draft emails, summarise meetings, analyse financial information and even explain tax legislation surprisingly well. Used properly, they can make accountants more productive and help firms deliver a better service.<\/p>\n Like every professional tool, AI works best when used well. Poor prompts produce poor outputs, just as poorly designed spreadsheets produce unreliable calculations.<\/p>\n Regardless of how brilliantly AI-led systems enhance your services, they can\u2019t replace the reassurance that comes from speaking to someone who genuinely understands a client\u2019s circumstances.<\/p>\n AI systems don\u2019t notice the hesitation in someone\u2019s voice before they ask an awkward question. They don\u2019t recognise when someone is worried but trying not to show it. They don\u2019t build trust simply by being consistently dependable over many years.<\/p>\n AI won\u2019t shake hands. And that still matters.<\/p>\n Keeping clients loyal<\/strong><\/p>\n What really influences your ability to retain clients?<\/p>\n It\u2019s easy to assume it\u2019s about avoiding fee increases or delivering flawless technical work. Both matter, but neither is usually the deciding factor.<\/p>\n Some accountants make occasional mistakes and retain loyal clients for decades. Others produce technically excellent work yet still lose clients.<\/p>\n The real key is demonstrating that you care as when clients know you care, they\u2019re far less likely to leave.<\/p>\n Demonstrating that you care isn\u2019t sentimental; it\u2019s a collection of practical business skills.<\/p>\n I find it helpful to think of them as CARE.<\/strong><\/p>\n C \u2013 Credibility<\/strong><\/p>\n Clients trust you when they believe you know what you\u2019re doing. Avoid empty boasts and unrealistic promises. Explain your thinking, support your advice and never be afraid to say, \u201cI\u2019ll check that and come back to you.\u201d You can be credible and confident even when you don\u2019t know the answer.<\/p>\n A \u2013 Appearance<\/strong><\/p>\n First impressions matter, but ongoing impressions matter even more. Your emails, reports, proposals and marketing material should all reinforce professionalism. AI may help you communicate more effectively, but clients still judge the professionalism behind every communication.<\/p>\n R \u2013 Reliability<\/strong><\/p>\n Clients rely on you to meet deadlines, anticipate issues and keep your promises. Reliability creates confidence. AI-led technology can certainly help firms become more reliable, but only if you (and your team, if you have one) use it consistently.<\/p>\n E \u2013 Empathy<\/strong><\/p>\n This remains the biggest differentiator.<\/p>\n Clients need to feel that you genuinely care. That means understanding their business, their concerns, their ambitions and the pressures they\u2019re under. It means making life easier for them rather than expecting them to adapt to you.<\/p>\n Every survey into why clients change accountants reaches a remarkably similar conclusion. It usually isn\u2019t because of fees. It usually isn\u2019t because of technical competence. This does not however mean that you need to agree to every unreasonable request from your clients. Its simply a question of how you explain your ground rules.<\/p>\n Demonstrating CARE in practice<\/strong><\/p>\n Being client-focused means returning calls promptly, replying to emails without unnecessary delay and making yourself accessible when clients genuinely need you. If something goes wrong, own it. Apologise. Ask what you can do to make amends, then follow through.<\/p>\n Another way to ensure your team gets all this is to think about something as simple as how you would offer refreshments if clients visited your office.<\/p>\n You wouldn\u2019t automatically hand every visitor a black coffee with no milk or sugar. You ask what they\u2019d like because you want them to feel comfortable. Some firms even remember returning clients\u2019 favourite drinks. It\u2019s a tiny gesture, but it says something important.<\/p>\n It says, \u201cWe know you and we care.\u201d<\/p>\n The same principle applies throughout your practice. Every interaction should reinforce that clients are treated as individuals rather than as case files.<\/p>\n The bigger challenge is winning tomorrow\u2019s clients<\/strong><\/p>\n This is where AI really changes the conversation.<\/p>\n Many of your existing clients will remain loyal because they value the relationship you\u2019ve already built. That\u2019s encouraging.<\/p>\n Future clients are different. Some will be replacing an accountant who has let them down. Others will be appointing their first accountant. Increasingly, they\u2019ll expect firms to make sensible use of AI-enabled systems and modern technology because they\u2019ll assume that\u2019s simply how efficient businesses operate.<\/p>\n Historically, most clients appointed accountants to deal with compliance. That work isn\u2019t disappearing, but it is becoming easier to automate.<\/p>\n It seems inevitable that start-ups will increasingly expect accountants to help them manage their finances in ways that simply weren\u2019t possible only a few years ago. Routine compliance work will continue to become more efficient, and that will inevitably place downward pressure on fees.<\/p>\n Within a few years, firms wanting to compete successfully for this work will need to embrace greater efficiency, streamline onboarding and become comfortable managing more client relationships than ever before.<\/p>\n The alternative is to develop higher-value advisory services that justify stronger fees while serving fewer clients more deeply. That\u2019s another important discussion for another day.<\/p>\n Whichever route you choose, the challenge won\u2019t simply be retaining today\u2019s clients. It will be attracting tomorrow\u2019s.<\/p>\n New competitors<\/strong><\/p>\n There will be plenty of competition for this work, not only from better-trained and more forward-thinking accountants, but also from consultants, coaches and advisers who can offer many similar services at lower fees.<\/p>\n They\u2019ll have access to the same technology, apps and AI-led systems as accountants. They may lack your financial training, but many already possess the marketing, communication and advisory skills that enable them to win work accountants have traditionally regarded as their own.<\/p>\n Get ready<\/strong><\/p>\n Distinguishing your firm and clearly communicating why prospective clients should choose you will become increasingly important.<\/p>\n That means keeping up with AI-led developments, new technology and changing opportunities. More importantly, it means becoming better at winning work because of the value you bring, not simply because someone needs help complying with statutory filing obligations.<\/p>\n You\u2019ll need to think carefully about where tomorrow\u2019s clients will come from, why they\u2019ll choose you and why they\u2019ll happily pay your fees.<\/p>\n AI will help you produce work faster, large language models will help you communicate more effectively, and AI-led software and agents will remove many repetitive administrative tasks.<\/p>\n The opportunity isn\u2019t simply to save time. It\u2019s to invest that time where it has always mattered most: understanding clients better, asking better questions and becoming more valuable advisers.<\/p>\n Ironically, the more technology advances, the more important these very human skills become.<\/p>\n Clients won\u2019t remain loyal because you use AI. They\u2019ll remain loyal because AI gives you more time to demonstrate that you care.<\/p>\n AI will almost certainly help you win the race for efficiency.<\/p>\n It won\u2019t win the race for trust.<\/p>\n Trust is still what keeps clients loyal.<\/p>\n If these ideas resonate with your partners, members or conference delegates, I\u2019m currently developing a new talk that explores how AI is changing client expectations, why loyalty is becoming more, not less, dependent on human relationships, and what accounting firms can do now to prepare for the clients they\u2019ll be trying to win over during the next few years.<\/p>\n Please let me know if that would be of interest for your group or association.<\/p>\n Because, in the end, AI won\u2019t shake hands. But it might give you more time to.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Listening to some commentators, you could be forgiven for thinking that the future of every accounting practice depends entirely on how quickly you adopt artificial intelligence (AI). Software vendors, consultants and AI advocates all seem keen to tell us what clients now expect from their accountant. Much of it is speculation, with many simply repeating […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[12982,1938,15483,13313,9696,11231],"dealstore":[],"offerexpiration":[],"class_list":["post-356832","post","type-post","status-publish","format-standard","hentry","category-accounting","tag-client","tag-hands","tag-loyalty","tag-playbook","tag-shake","tag-wont"],"yoast_head":"\n
Clients leave because they don\u2019t believe their accountant really cares.<\/p>\n
Clients can sense whether you care from the way you communicate. They hear it in your voice and they read it in your emails. Your communications should always be written with the client in mind. Avoid unnecessary jargon, explain your assumptions and make your advice easy to understand.<\/p>\n