6 ways to build a strong relationship with accounting clients

A strong client relationship looks like any other healthy relationship – you communicate with ease, understand each other’s expectations, and consistently do what you say you’ll do.

So, if you want to create a lasting connection you need to understand how to build a successful relationship with your new client.

In this guide, we show you how to build relationships with clients that stand the test of time. Learn client relationship management tips so you can ace the onboarding process, demonstrate industry knowledge, and strengthen the relationship.

Why client relationships matter for accountants and bookkeepers

Accountants and bookkeepers have the privilege of seeing businesses up close and personal. For clients, there can be a sense of vulnerability that comes with sharing business information – especially the financial aspects.

So, clients need to feel that there’s a strong relationship with their advisor. Not only is this essential for getting the relationship off the ground, it enables deeper and more strategic work as clients bring you closer to the business. Good client relationship management enables better, more impactful work.

Producing accurate forecasts, presenting reports, and offering tailored advice requires an intimate view of a client’s finances and a thorough understanding of their needs. The better you know your clients, the easier it is to respond to and meet their needs. When your relationships become strong, they can improve the quality of your work together. Plus, returning clients might refer you to others.

Most practices need a mix of old and new client relationships, to ensure the work pipeline for months and years to come. While you should devote some attention to attracting new clients, the energy you put into strengthening existing relationships matters too.

You might have heard the saying that it costs five times more to create a new customer than to retain an existing one. While the true costs depend on the industry and business type, retaining your existing clients can pay off just as much as finding new businesses willing to pay for your services.

1. Start strong with a thoughtful client onboarding process

Your onboarding process should show clients a glimpse of your great client relationship management skills.

You need smooth systems, clear communication, and plenty of time to invest in understanding your new client’s pain points, needs, and plans for the future. Here are some must-haves for your onboarding process:

• Make sure your engagement terms are clear and simple for clients to understand, avoiding jargon where possible
• Outline roles and responsibilities for you and the client as early as possible, so everyone knows what’s expected from them
• Use forms or data collection templates to standardise how you receive client information
• Maintain a regular communication schedule throughout onboarding so you can address any challenges or concerns as they come up
• Make sure clients are fully trained to make the best of new software
• Discuss ways of working upfront – not everyone likes to meet up in person, and some prefer specific communication channels

If onboarding every new client feels like starting from scratch, software tools can help standardise, simplify, and speed up the process. For example, a proposals tool can give you access to templates for setting up new working relationships – you just need to fill in the client details.

Xero’s cloud-accounting software can make the client onboarding process simple. Xero HQ Ask is a secure way for you to request information or documents from your clients. You can keep track of your client's replies, or see queries where replies are outstanding.

Meanwhile, our data-capture software Hubdoc can reduce much of the back-and-forth involved in collecting documents from your clients, and our practice management tool, Xero Practice Manager, allows you to easily store and manage all of your client information.

2. Communicate clearly and consistently

Maintaining clear communication is fundamental to any working relationship. Identify a few preferred communication methods for your practice and clients. This could be email, video calls, or messaging services – the choice is yours.

Different client types will need different levels of communication. For example, the confident solopreneur client might take care of their own bookkeeping, coming to you for occasional support with tax returns and advice. Their ideal level of communication could be a monthly email check-in and a quarterly video call to discuss tax strategy.

Alternatively, the busy retail client might pass all bookkeeping and compliance work over to you, so they can focus on their business. Their ideal level of communication could be regular WhatsApp messages with the latest updates and a monthly meet-up to address discrepancies, run some cash flow forecasting, and plan for their tax bill.

For messages that every client needs to receive, you could set up scheduled email newsletters with upcoming deadlines, changes to services or pricing, and the latest regulatory news. Regular check-ins and well-constructed messages are reassuring and informative – they show you know your stuff.

When you respect clients’ boundaries around communication and share information with them promptly, they’re likely to do the same in return. In time, communicating with each other will feel simple, because you’re familiar with the other’s preferences. From there, you can watch your relationship blossom.

3. Be proactive, not reactive

Being a proactive practice is about having awareness of the wider market, industry, and tax law changes.

To anticipate client needs, you need to know what’s happening in their business and also the wider market. For example, as MTD for IT comes into place, you can help clients familiarise themselves with cloud-based software. Doing this early can make a huge difference to how confident they feel with the legislation, and compliance.

The alternative, being reactive, means you leave your practice and clients without enough time to properly deal with change. Given the rate of transformation for tax and accounting in the UK, being proactive is essential for moving with the times.

A proactive approach to client relationship management can also help your clients deal with obstacles. Let’s imagine your client is planning to invest in an expensive piece of equipment. But they’re holding off purchasing, because they’re worried about their cash flow.

Ahead of your next meeting, you generate a cash flow projection for the next three months to see how well their business can absorb the cost. While things look a little tight in the first month, your projection shows that the investment can be handled by the business. This gives your client the confidence to invest in their business.

The extra effort you put into tailoring updates and insights to clients can help them build a successful business, and prove your value.

4. Show that you understand their business

As part of your client relationship management strategy, you should be learning more about the different industries your clients operate in. Understanding the challenges and opportunities they face can help you build trust and offer more valuable services.

Setting up a meeting with your client to learn about their business is a good start. You can ask about their goals and challenges, opportunities, the landscape and their competitors. Getting a sense of who they are and what they want to achieve will help you provide services that go beyond accounting and bookkeeping, and towards strategic advisory. This is something that will evolve over time, so keep checking in with them about their direction.

To make it easier to keep up with client industry news, you could sign up for publications or newsletters. You could also set up a Google alert for benchmarking data or reports relating to their industry, so news is automatically routed to your email inbox.

If you’re using modern software, you already have more client data at your fingertips than you realise – through analytics and reporting tools. With Xero, you can generate all kinds of reports, forecasts, and projections based on client data in a couple of clicks. You can use this data to advise clients and help them build healthy businesses.

5. Build trust through transparency and reliability

By following the previous steps in this guide – delivering thoughtful onboarding, communicating clearly, being proactive, and understanding your clients’ business – you’ll be well on your way to building trust.

Keeping to deadlines, meeting expectations, and following through on tasks is essential for building trust. Being open with clients goes a long way, and you can avoid most misunderstandings if all of the information is on the table. This is especially important when it comes to talking about pricing, processes, and limitations. Being open about these things can build understanding between you both.

Trust and transparency are the bedrock of good advisory. You can’t help a client with their finances if they’re not willing to share information or take advice onboard. Running a business is tough, but as an accountant or bookkeeper, you’ll have first-hand experience of this in the practice. Show empathy and understanding towards your clients and their businesses – and make sure you tap into your active listening skills to fully get to grips with the clients’ situation.

Don’t be afraid to show off your knowledge and expertise to build their confidence, either. If clients can see the positive impact of your work, they’re more likely to trust you.

6. Keep evolving the relationship over time

Now, you know how to build a successful relationship with your new client, but how about ensuring that relationship lasts for years to come?

Businesses aren’t static – they’re always evolving to meet customer, industry, and internal demands. So, for a long-term client relationship, partnership needs to be a running theme throughout your work together. Keep learning about their business, inviting conversation, and asking clients if you’re meeting their needs.

A regular meeting is the perfect time to check in about service levels, changing goals, and clients’ financial position. You could also use feedback forms and surveys to get a sense of your clients’ needs. Once these are set up they can be scheduled to go out automatically (using email software), so you can get regular feedback without lifting a finger.

When you can intercept client needs and present new opportunities, you move from a simple service provider to a strategic partner. An example of this could be using your knowledge of a client’s subscriptions to suggest more cost-effective packages or useful app integrations for helping them run their business efficiently.

Take note of your client’s business KPIs, and consider how you can help with achieving them. Listen to their pain points, and prioritise addressing these with your services. You could also provide incentives for longer-serving clientele – but know that the best reward for your clients will always be delivering a personalised, high-quality service.

Practical tools to support better client relationships

Technology can enable easier collaboration – helping you work together with clients more effectively.

For example, with cloud-based accounting software you can automate admin tasks, creating more room for deep conversations and advisory that actually helps your clients grow their business.

Take Xero accounting software’s bank feeds feature as an example. Instead of manually importing bank statements, you can connect clients’ bank accounts to software, so transactions are imported automatically ready for reconciliation. Then, with the bank reconciliation predictions feature, matches are suggested for statement lines automatically.

This means you can spend less time on repetitive bookkeeping tasks, and more time working with clients to improve their long-term financial picture. Of course, cloud-based software also centralises client information, making it easier to manage the work in one place. There’s no more wasted time tracking down a record or receipts when it’s all stored in one secure location. These time-saving features make it easier to access the information you need and support clients.

Build lasting client relationships with confidence – and Xero

Clients are your business – so keeping them satisfied isn’t just a perk, it’s fundamental to your bottom line.

By understanding how to build relationships with clients, you can ensure they stick around for the future. Client relationship management is a continuous investment, but client retention is what keeps your practice in business. Keep listening to clients, communicating regularly, and staying open to opportunities for them and your practice.

You can also make more time for clients by using cloud-based software. With Xero accounting software, you can automate admin tasks and draw on data and reports that show clients exactly how their business is performing. It’s the perfect combination of your earned expertise and experience, with data-backed insights.