Leadership Shines in Challenging Times

“During every minute of the flight, I was confident I could solve the next problem. My first officer, Jeff Skiles, and I did what airline pilots do: we followed our training, and our philosophy of life. We valued every life on that airplane and knew it was our responsibility to try to save each one, in spite of the sudden and complete failure of our aircraft. We never gave up. Having a plan enabled us to keep our hope alive.” Those were the words of Captain Sullenberger, aka Sully, in Newsweek as he reflected on the miraculous landing of a US Airways jet in the Hudson River.

Many of your clients are crashing in this economy and this is your opportunity to provide leadership and hope.

As accountants, we have tremendous expertise to share with business and household clients experiencing financial hardship. Here’s why:

1. We’ve been through similar experiences with other clients.
2. We’ve lived through other downturns.
3. We have a better grasp on the financial dynamics of income, expenses, debt, and assets.
4. We can be more objective about the decisions that need to be made.

Sully did what airline pilots do- he followed his training. As accountants, we are equipped for much more than preparing tax returns and financial statements.

Here are 3 things you can do, even during busy season, to help steer your clients through difficult times:

1. Listen. Ask how the economy has impacted them, what adjustments they are making, what they are most worried about. Fight the urge to have all the numbers tied down before assessing how clients are weathering the downturn. The fastest way to find out is simply ask.
2. Get Organized. The first response of many clients is denial. Simply understanding the financial situation can mitigate much of the fear factor and provide the foundation for a plan. If clients aren’t already keeping records, now is a great time to start. Intuit offers free and inexpensive versions of QuickBooks Online for businesses and a free version of Quicken Online for households. Both solutions will summarize bank and credit card transactions as well as automate much of the categorization until you get involved. I recommend an online solution so clients can get started quickly and you can engage remotely.
3. Coach. Once your client has records and a foundation (and April 15 has passed), you can begin coaching. Use the budgeting tool to develop a plan. Simply being involved, as their trusted advisor, will provide comfort and hope.

Sully went on to say, “perhaps in a similar fashion, people who are in their own personal crises—a pink slip, a foreclosure—can be reminded that no matter how dire the circumstance, or how little time you have to deal with it, further action is always possible. There's always a way out of even the tightest spot. You can survive.”

This is your opportunity to be a hero for your clients.