Struggling with client responsiveness is a tried and true pain point all Australian accountants encounter throughout their tenure in the industry. Handling clients who are slow to submit, report, and respond can increase turnaround times, create bottlenecks, and extend your team’s working hours. Delays in submitting documents can also spell trouble for your clients. Failure To Lodge (FTL) fees from the Australian Tax Office (ATO) add up costing $364 per day the documents remain in limbo, totaling $1820 per 28 day period.

Jump to:

1. Set clear expectations when onboarding
2. Show them value
3. Tailor communication preferences to your clients
4. Use technology to automate your follow-up
5. Focus on building strong client relationships
6. Outline the consequences for late submissions
7. Be prepared to have an honest conversation

Each job that sits idle within your queue ends up costing your firm. Tasks that aren’t in motion aren’t able to generate revenue, while team members that are tasked with following up with clients reduce valuable time spent on jobs that are producing profits. The firms that get the best client responsiveness are not the ones with the most compliant clients. They’re the ones that have made it as easy as possible to respond, as clear as possible as to what is needed and why, and are aware of the ramifications of delaying. Setting boundaries on both sides of the partnership allows for clear communication to map out what is expected before the arrangement commences. Here are six ways to encourage responsiveness in a timely manner and reduce delays so it works for both your firm and your clients.

1. Set clear expectations when onboarding

Having a clear set of expectations during the onboarding process is the best way to set the standard that the firm ideally works towards. It’s best to tell your clients what they can expect from you too, so that they feel they’re embarking on a partnership. Some ways you can do this are:

• Before your onboarding call, explain the dynamic in your engagement letter. Take the time to walk your client through the letter, and the process in which information will be requested and when
• Outline key dates that the client needs to turn in documents so that your turnaround time can be upheld. Provide the mode in which they are to submit, what documents are needed, and the penalties that may apply if they are late

2. Show them value

Make the value of your firm visible to your clients. Take a moment to point out how you plan on bringing intrinsic value to their business by explaining what your firm does, why it matters, and how it will be executed.

Delve deeper with your clients to explain how submitting their documents on time will improve their overall experience. For example, letting a client know the best date to submit their receipts into DEXT so that their Business Activity Statement reflects the last quarter accurately will lead to less queries or pushback when the bill comes in.

3. Outline communication preferences to your clients

Outlining the communication channels your firm prefers to your clients is the best way to establish a boundary to keep interactions streamlined. Some clients prefer to communicate via email, while others would rather a quick phone call to convey key information. Take the time to let your clients know how your firm can work with those preferences and leave the choice up to them within the parameters of your chosen line of communication. 

You can also utilise surveys to check-in with your clients and gather valuable data on their preferences. This can be especially effective for clients who are consistently slow to respond. It presents an opportunity to understand their approach without confrontation or accusations. 

4. Use technology to automate your follow-up

The ultimate goal when dealing with unresponsive clients is to reduce time spent on following-up and to reduce bottlenecks for your team. Technology that automates checking on your clients can be a great tool to harness. Some ways you can do this are:

• Document software: Tools like DEXT or Financial Cents have features that send reminders to clients who have failed to upload receipts, documents or invoices on time
• Practice Management tools: Platforms like Karbon automatically alert clients when monthly, quarterly or yearly books are due and also notify your team to chase them if needed
• Invoice reminders: Software like XERO has templates that can be automated to send reminders when invoices are overdue, reducing time spent chasing late payments for both your firm and when handling a payment management for a client
• Automated email templates: Uku is a handy software tool built to send automated email templates to follow up on overdue invoices, deadline warnings, document requests or reminders, and can also onboard new clients.

5. Focus on building strong client relationships

While most practical advice focuses on encouraging client responsiveness through systems, technology and workflow, building strong client relationships is just as integral. When fostering a strong partnership, you will want to maintain a connection to your client where they feel they are valued, heard, and supported by their advisor. Investing in a strong client relationship means being proactive, forecasting before issues arise, and providing sound advice through consistent follow-ups. 

If an accountant only reaches out to their client base when documents are needed, it can be easier to ignore. Provide updates on government regulation changes through monthly or quarterly newsletters, reach out when you notice a change in their incomings and outgoings to discuss strategies, and utilise opportunities to level up your service through business advisory. An accountant who is trusted by their client will naturally encourage responsiveness through a mutually respected, long-standing relationship.

6. Outline the consequences for late submissions

Sometimes consequences for your clients are out of your hands and are tasked with higher bodies like the Australian Tax Office to action. This is why outlining ramifications for late-submissions or delays is important so you aren’t held with the blame for a client who might not be aware of fees or penalties that can accrue. 

Failure To Lodge (FTL) fees should be outlined in your engagement letter during the onboarding process and set as a reminder within emails for clients whose late submissions are getting down to the wire. Notify them of the increased risk of an individual or business-wide audit, or of the General Interest Charges (GIC) associated with overdue lodgment which is 11.43% interest on top of the $1820 per 28 days FTL fee. Giving your client the most up to date information should spur them to take action sooner rather than later, and if not, providing the consequences for them is the most proactive step you can take.

7. Be prepared to have an honest conversation

Some clients are consistently unreliable and unresponsive no matter how many actions you take to help them submit on time. Identifying the usual clients who need the most attention and having a frank, honest conversation with them may be your final hope. Some ways you can open up the floor are:

• Schedule an in-person meeting or video call to address your concerns about their lateness with empathy and solutions that can help them. Most clients who are unresponsive are rarely doing it deliberately, so this can be a great opportunity to gain insight into what is causing the delay
• Be direct about the impact their approach to submitting their tax information, documents, payment of invoices etc. is having on your firm, your team, and ultimately on their business. Approach this without blame, but rather outlining how to improve with your support
• Be prepared to assess if the client will be a good fit for your firm long-term. If a client is not taking any consistent steps to make changes, it may be time to let them go. If they are creating disproportionate pressure on your team and undervaluing your time, it is worth evaluating if this client is creating higher strain on the firm and whether the energy spent managing them could be better directed toward clients who respect your process, value your expertise, and contribute to the kind of practice you are trying to build.