Three things accountants need as they take on more HR tasks

Accountants have had to take on more HR, pastoral and legal responsibilities, which could be a permanent change. James Harris explains what it’s meant for him and his colleagues at Strivex.

As accountants, our role within the financial services industry and the broader economy has always been clear and no one ever pressed too hard to change. However, the pandemic has led to more remarkable change within our industry than ever before.

Over the last year, we have seen that our clients are looking for much more than accountancy services from us. Clients have taken us up on our offerings to look at cash flow planning, furlough claims and loan applications. This has given us real opportunities to add value and gain trust during times of need.

Human resources (HR) has been an interesting addition to the mix that we’ve seen a huge demand for. While finance and HR are often two different ends of the spectrum, the administration of the furlough scheme and other elements of Covid-19 support have led to accountants taking on more of these tasks. In order to provide support in these areas, here are some things you need to consider.

1 Legal elements

Clients have been looking to us as accountants to not only process their furlough claims, but also to deal
with the HR aspect of furloughs – including contract changes and potential redundancies. For many accountants, this is far beyond their comfort zone.

With lots of clients submitting their own furlough claims and loan applications, we have also seen a rise in the number of clients looking to us for HMRC investigation insurance, and this is something we have proactively provided.

To achieve this, we have been out to tender the HMRC and tax investigation insurance sector to find the best quality and best advice available to our clients.

This involved making changes to our care and support services packages, and as a result, we have been able to provide our clients with the peace of mind they deserve.

HR consultants, of course, focus on employment law and navigating those terms and conditions – and while accountants don’t necessarily step into that territory, it’s something we’ve had to become more familiar with as we provide guidance around these areas and relaying that information to HMRC.

Given these changes and how rapidly it’s happened, a key skill is knowing when to refer clients onto other professional advisers, such as payroll or legal teams.

2 Emotional support

An interesting element that has shone through this year is how much business owners need a support system around them. As accountants, we can be many things to many people. But during the crisis, our calling has often been as simple as being on the end of the phone to listen, support and guide.

For some clients, we have seen them use this downtime to take stock of their business, reflect and decide how they will pivot in the new, post-Covid world. As part of this, many clients are looking to their accountants and business advisors for guidance and support while making these decisions and further using their resources to put together wider business plans, cash flow forecasting and practical implementations.

For many clients, the survival of their business and livelihood is at stake and they are looking to their accountants to help secure their future. This is a significant emotional demand for accountants to bear.

It means showing empathy for the client’s position and using emotional intelligence to reduce the likelihood of emotional exhaustion, either through any conflict or fatigue.

Having looked at the way the accountants role has changed, it’s important to consider how it will change moving forward. What skills will accountants require to meet these new needs? We are already seeing professional qualifications take into account the new qualities required by accountants, as they too are looking to broaden their horizons to capture this new market.

As employers, we would firstly look for people skills as a priority to ensure we are employing staff who fit our “person-centred finance” business model, where the client and their experience come first. We have also been looking forward to seeing how best we can meet these new needs. We are currently putting senior members of our team through executive MBAs to be able to bring more comprehensive business knowledge and strategy to our client offerings.

3 Build your network

Something that we have learned during the pandemic is just how vital your network is. When your clients are looking for a vast range of services and have very complex needs, a strong network really comes into play. We have been calling upon the professional consultants within our network to add value to our clients when they really need it in areas that we are not specialists ourselves.

The top trusted contacts to have within your network include

• financial advisors,
• mortgage advisors,
• insurance brokers,
• legal consultants, and
• HR consultants.

Being part of a network of professionals you know and trust is a great way to expand your service offering. We check in regularly with our contacts and see how they’re getting on with our clients to cover all bases when speaking with our clients. It also allows us to share knowledge and keep abreast of significant changes in rules and regulations.

One day, the pandemic will be over, and there won’t be such an urgent need to perform all these tasks to the same extent. But, even in more normal times, there will continue to be a demand to give this kind of support. And the harsh experiences of Covid-19 will equip us to do so.

About the author

James Harris is a director at Strivex.

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.