As accountants, you’ve probably seen businesses thriving under your care, but there are just some unfortunate instances when they don’t. These are inevitable, especially when there are factors like pandemics, bushfires, and recessions happening all around. Luckily, as an accountant, you are uniquely placed to offer advice to your clients that can help lower their chances of going out of business.
Help them assess their finances
Some clients are not always on top of their finances. This is where you’ll step in and help them assess their financial status – from debts to handling their money to knowing who owes them too.
If they’re reaching out to you or you’re suspecting one of your clients is in danger of going bankrupt, consider an accounting session where you can organize everything for him.
Having a financial counselor to assist clients is one of the best ways to not only prevent going into debt but also keep track of finances seamlessly. This helps strengthen your relationship with your clients as well.
Connect them to their banks
Being an accountant would also let you have contact with their banks. Since we are talking about money here, you should know when your clients should connect with their banks.
This is crucial because money is involved. This will give both your clients and their banks enough time to assess and organize their finances with the possibility of going bankrupt in mind.
This is also when they can discuss how they should proceed in such circumstances, thus possibly saving your clients from going into further debt.
Collect owed money
It’s not impossible to have money not getting collected in a business, especially if it’s a large one with no proper accounting going on. Thus, track everything and see which of your clients’ partners or customers are not paying yet.
This can surely help with their sensitive financial state. Let them prepare reminders and have them list down all those partners or customers who are late or have not yet made their payments and suggest that they keep track of it through constant prompts.
Let them pay back debts
Having execessive debts could plummet your clients to bankruptcy further. While some may find it difficult to pay their debts consistently, when there’s a surplus of income, they should at least slowly pay off some parts of their dues.
This is an excellent way to ease the pressure, and it even promotes a culture of paying debts more regularly. With this executed, you can also assist with planning their future finances to make them debt-free.
Whatever business your client is into, there’s always a possibility of bankruptcy if the business has taken on excessive debt. Use the above tips to guide and advise your clients to manage their debt so they can stay on track for growth. Swoop can help offer free financial health checks for your clients and help them manage their debt and risk. Reach out to us.