Protect Your Reputation
California CPA March/April 2010
Calculating Numbers and Your Reputation
By Lynne Doll & Elliott Fils, CPA
There was no shortage of entertainers, athletes, politicians and even CPAs whose carefully manicured reputations were tarnished in 2009 the minute the public learned of their regrettable missteps. While high-profile figures are especially at risk of experiencing negative public scrutiny, every individual and company—including CPAs and CPA firms—is vulnerable to the damaging effects of a tainted reputation.
A strong individual and corporate reputation reaps many benefits, including an increased ability to attract and retain new clients and high-quality staff. In addition, if a CPA is ever faced with an unexpected situation that threatens business and client relationships, an established history of trustworthiness and a proven track record of quality work will go a long way toward mitigating the situation.
Therefore, individual CPAs and CPA firms should take a proactive approach to enhancing their reputation and building visibility with existing and potential clients, referral sources and the media.
Establish Your Brand
Whether you’ve just opened your practice or your business has been around for years, establishing your brand is paramount. Your brand is your identity and influences how others perceive you.
The first place to establish your identity is online, which is where most people turn first for information. Your website should clearly communicate the firm’s expertise and be easy to navigate.Maintaining your website is as important as creating it in the first place. Add new content regularly, such as new clients or professional staff, updated case studies or recent awards and recognition.
Establish Credibility and Visibility
Earning the public’s trust is always important, and is especially so for CPAs, because many people lack a solid understanding of the profession. Proving your trustworthiness and increasing brand awareness is no small feat, but the following steps will get you started.
Media Coverage
- Identify media outlets and reporters that are relevant to your business. Introduce yourself and offer to provide commentary on specific topics, such as new tax laws or economic issues, in which you have expertise. This commentary can help establish you as an expert that provides useful information that the public needs and wants.
- Be proactive. Consider writing an opinion piece or bylined article about a timely topic—such as tips on how to minimize tax burdens.
Speaking Engagements
- Speaking at an industry meeting, convention or conference will reinforce your expertise with an audience that will be receptive to what you have to say.
- Find appropriate forums at which you can offer to speak. Check trade publications or newsletters of major associations and societies for upcoming meetings, panels or conventions. Major associations begin planning months in advance, so the earlier you approach them, the better your chances will be of securing an opportunity.
Industry Appointments
- Become a board member or adviser to a nonprofit organization that would benefit from your financial knowledge. Contributing your time and expertise to a reputable organization speaks volumes about your values and ethics, and helps to strengthen your reputation.
E-newsletters
- Publishing an e-newsletter is one of the most common ways to establish your image and increase your visibility by regularly placing your name in the minds of clients and other stakeholders.
- Use your e-newsletter to communicate information that your external audience cares about, such as stock market trends, retirement planning strategies or client success stories. An e-newsletter is also a great tool to reprint positive media coverage you may have received.
Client Endorsements
- Seek and promote unpaid client endorsements. Many clients are willing to provide positive references in writing that you can then use on your website, e-newsletter and other materials.
Choose Clients Wisely
- If you have done your homework to build an enviable reputation, there is one more thing to consider: your clients. Even in an economic downturn, take care in choosing your clients, as they are a reflection of your own business ethics.
Managing a Crisis
Companies of all sizes and across all industries are susceptible to a crisis—an event that could potentially threaten your reputation, image or credibility.
One of the best ways to prepare for a crisis is to have a plan in place that outlines steps that should be taken. The following steps can help weather the storm:
Assess the Situation Quickly
- Gather all pertinent facts and assess the scope and nature of the crisis to help determine what actions you need to take.
- Important questions to ask: What is the worst possible outcome? Who will be hurt by this crisis? What could be misunderstood? Who needs to know what has happened, both internally within the firm and externally—such as clients, media, legal counsel and professional liability carrier?
Communicate Proactively
- Develop key messages about your company and the situation.
- Prepare a statement that expresses the facts of the situation, the course of action to be taken and the company’s point of view.
- Determine the best way to distribute the statement—e-mail, phone calls, the company’s website or a news wire service.
- Arm all employees with the statement so you’re communicating consistently.
Determine a Media Strategy
- If the crisis is one that is likely to attract media attention, it is best to inform reporters about the matter before they receive information from another source. This will help avoid unfavorable speculation and show that your company values transparency.
- Select a single spokesperson and respond to media inquiries promptly. Always tell the truth and avoid speculating about what you don’t know or what may happen.
- Monitor media coverage, blogs and client responses to determine the overall impact on the company’s reputation and be prepared to disseminate additional information as the situation evolves.
The single most important step sole practitioners and firms can take is simply to play by the rules. However, there is always a looming possibility that an unforeseen crisis may strike. For that reason, it’s important that you employ an ongoing reputation management plan to establish your trustworthiness, as it will help tremendously when facing negative scrutiny.
Lynne Doll and Elliott Fils, CPA are president and CFO, respectively, of The Rogers Group.
Tips from CAMICO
Screening Prospective Clients
When deciding to take on a new client, interview the prospective client’s management, banker, attorney and former CPA. Look at the client’s financial statements and tax returns. Additional information can be found through credit bureaus and industry or accounting journals. While gathering information, pay special attention to attitude clues—guarded, evasive, standoffish, hesitant, terse behavior—from any of the information sources.
Other questions to ask when screening an individual (not corporate) prospective client:
• Is the prospect contemplating a change in marital status in the near future?
• Does the prospect have any lawsuits pending? What is client’s litigation history?
• Has the prospect bought or sold a principal residence within two years?
• Does the prospect maintain organized financial records upon which you can rely?
• What was the prospect’s relationship like with their former CPA(s)?
• Why is the prospect changing CPAs?
• Are there any services not requested for which there appears to be a need?
