Art of Accounting: Seven ego builders to avoid

December 19, 2022 11:12 AM

Public accounting is a profession, but it is also a business, and as such we need to keep the bottom line in mind and understand that it would grow with fewer nonproductive or detrimental ego builders. Here are some things that should be avoided:

Quoting an hourly rate

Sergey Nivens - Fotolia

Occasionally hourly rates are important to quote, but usually they are counterproductive to getting an engagement. Clients do not buy hours, they buy solutions to problems. For most engagements, discussing a fee or a range for a type of activity is best done after you tell the prospect that you could be better able to provide a (fixed) price after you thoroughly review what is needed will get you the job. I have seen many accountants (and even a younger version of me) quoting an hourly rate as more of an ego trip than a business getter.

Writing unnecessary memos

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Memos take time to write and many times might not be as thorough as they need to be. After all, a memo needs to cover every alternative and eventuality and possibly explain why some things are not applicable. Why put something in writing when a short or even not-so-short phone call would provide the answer to a client's question? Memos include emails and any form of written communication.

I get many calls from colleagues who had a problem because of an unnecessary memo they wrote that has resurfaced in some sort of controversy. These memos were ways of showing off an imagined expertise that did nothing other than boost the writer's ego. Furthermore, many times they were not fully compensated for the memo, sort of like a Boy Scout helping a woman to cross a street she did not really want to cross. When the situation calls for a written opinion that you can fully research and you're fully aware of all of the facts, and the client is willing to pay for it, then do it.

Yelling or getting angry at staff

Neither of these accomplish anything. We need staff to "push our pencils," and upsetting them thwarts this goal. People become less productive when they are working under pressure, are badgered or belittled, and certainly not motivated by what they are working on.

Instead of deriding staff, boost them up. Excite them! Do what Ken Blanchard says: "Catch them doing something good!" Yelling and getting angry are shallow and debilitating ego boosters.

Assuming no one working for you is as good as you

auremar - Fotolia

That might be the case, and if so, then why did you hire them? A good manager finds the best in everyone working for them and shields them from what they do not do well. That is how a team is formed. Maybe no one individual is as good as you, but the team might be. This assumption is a wasteful ego booster.

Rushed instructions to staff

Assigning work and then providing instructions helps reach the goal of your staff getting your work or projects completed. Not taking the time to carefully provide instructions will get in the way of getting your work done as effectively and efficiently as you need it to be done. Perhaps the difference is an extra few minutes of calm, detailed instructions.

If you need more than a few minutes, then break the job down into smaller segments until you do not need more than a few minutes. You might have more interruptions, but the total time will be greatly reduced and you'll get your job done right. My rule is that if it takes more than three minutes to explain what to do, it's too long. Rushing or inadequate instructions is another needless ego builder.

Living in the past

Yesterday is history. Today is reality. Tomorrow is promise. Talking about what you did serves no purpose other than perhaps providing an indication of what you are capable of doing on a future project. A better way might be to signify that your experience, background and knowledge on such matters will provide the best outcomes for the client. Also, no one likes to hear about what you did unless there is a lesson to be learned and, most of the time, there isn't. This is another pointless ego builder that can be eradicated.

There are many more but thinking about which of these apply to you and working to eliminate one or two of them is a good start.

Do not hesitate to contact me at

emendlowitz@withum.com

with your practice management questions or about engagements you might not be able to perform.