Every accountancy firm has a ‘client database’. However, what that actually consists of, will differ from practice to practice. Some will have an all-singing, all-dancing cloud-based CRM system, others will have their client’s details stored in an excel spreadsheet and some will be saved only in the senior partner’s head!
Whatever system you have, the quality of your data will determine how useful it is and tax season is the perfect time to client your data.
Basic data essentials
At the very least your client data system should contain the following information:
- Title (Mr, Mrs, Ms, Dr etc)
- First name
- Last name
- Business name (if appropriate)
- Full postal address including postcode
- Phone numbers – landline and mobiles if possible
- Email address
Whilst all this information should be collected at the time of client engagement, I’m staggered as to how little of it is then input into the firm’s central database. Worse still, how typos are not spotted such as incorrect spellings and lower case letters in names, addresses and postcodes.
So, look through your own database. Is your client data correct?
Why data is key to the success of your firm
Without client data, you cannot function as a business. However, in order to function effectively and successfully, your data needs to be accurate, up to date and be able to be used for different purposes. From emailing invoices and posting Christmas cards, to conducting phone surveys and texting appointment reminders, being able to access the right information, quickly and easily will transform the way you communicate with your clients.
Marketing data essentials
I outlined above what the basic data requirements should be in your client database. However, in order to make your marketing more effective, you should be collecting a wider range of information. Typical information which can be used to segment your database to enable you to send selective client communications to specific contacts would include:
- Business structure – sole trader, LLP, limited company, charity etc.
- Business sector – IT, manufacturing, tourism etc.
- Directors/partners.
- Offices (and address details where relevant).
- Year-end date.
- VAT registration details (if relevant).
Get it out of your head and into the database!
All too often people carry around information in their heads and don’t add it to the database. However, if that person isn’t available to answer a question and there’s nothing logged on the database, you can waste a lot of time trying to find it. Everyone in the firm should be tasked with making sure their client details are logged accurately and in full on the database. Use the coming weeks to confirm client data on your system whilst processing tax returns.
Why data impacts the value of your firm
If you are looking to sell your firm, the quality of your client data will be key to how much a buyer will be prepared to pay. A prospective purchaser will want to assess your data to check that it is not out of date, incomplete or difficult to access. Work that you can do to clean and improve your client data now, will help to improve client relationships in the short term, but will also make your firm more valuable, and indeed marketable as and when you look to sell.
Your client data is the lifeblood of your firm. An up to date, comprehensive database will make any activities you want to implement seamless, professional and timely. Put the effort in today, to make life easier for you and the team tomorrow and where possible get your admin people involved to help spread the workload and to keep on with the checking and updating.
