What Accounts Do You Use for Client Inquiries?
Introduction
When managing client accounts, do you find it more effective to classify uncertain transactions under an account akin to “Ask My Accountant”? Alternatively, do you prefer to record them as uncategorized transactions, or perhaps split them into uncategorized expenses and income? I’m currently working on standardizing these processes for my clients and would appreciate your insights.
Request for Feedback
Thank you in advance for sharing your experiences and suggestions. My goal is to generate a report that can be easily shared with clients to address their questions and provide clarity.
One response
When dealing with transactions that require client clarification or are initially uncertain in their categorization, it’s essential to implement a systematic approach to maintain clarity in Accounting and facilitate client communication. Here’s a recommended strategy to standardize the handling of these kinds of queries:
1. Setting Up a “Questions” Account
Account Name:
– “Ask My Accountant”: This is a common practice in Accounting, where a suspense account is created specifically for transactions that require further clarification from the client.
Account Type:
– Other Expense/Income Account: Depending on your Accounting Software, you might classify this account under “Other” expense or income. This helps in keeping it separate from regular income and expenses reports.
Usage:
– Every time you encounter a transaction that is unclear, categorize it under “Ask My Accountant.” This allows you to track all questionable transactions in one centralized account.
2. Handling Uncategorized Transactions
While creating specific accounts for different types of uncategorized transactions can be tempting, it’s usually best to centralize them for simplicity:
3. Running Reports
To generate a report that you can send to your client for review, follow these steps:
Select the “Ask My Accountant” Account: Use the account filtering feature in your Accounting Software to isolate this account.
Generate a Transaction Detail Report: Look for a report type that provides transaction details. Customize this report to include date, description, and amount – all crucial details for your client to analyze.
Include Notes and Descriptions: Encourage your team to add notes in the memo or description field of each transaction. These notes should detail what clarification is needed. This practice will save both you and your client time when reviewing the report.
4. Communicating with the Client
Regular Review Meetings: Schedule periodic reviews (e.g., monthly or quarterly) with your client to go over the “Ask My Accountant” transactions. It helps in clarifying doubts and also ensuring timely resolutions to all queries.
Automated Alerts: Set up automated alerts or reminders for both parties. This proactive approach ensures that neither you nor the client overlooks these unresolved transactions.
Conclusion
Establishing and maintaining a