From nurturing client relationships to working with colleagues, accountants spend most of their workday interacting with others. The job of an accountant is to meet the needs of clients, build trust, and steer them towards a brighter financial future. Therefore, you would assume that most accountants are driven by ethical conduct and the desire to deliver a first-class service that can change people’s lives. But sadly, that isn’t always the case.
The most recent CCAB Ethics Survey examines the “ethical temperature of the accountancy profession in the UK and Ireland”, and the results are pretty alarming.
In summary of the key findings, the ICAEW states that “more than one in four professional accountants say they have been put under pressure or felt under pressure to act in an unethical way over the past three years”, often attributing it to “the need to hit targets and austerity identified as some of the drivers likely to increase the risk of unethical behaviour.”
While this research can be disheartening for well-meaning firms to hear, there is a silver lining. The CCAB has also found that “out of those who said they had been put under pressure to act unethically, almost 80% spoke up against the unethical action.”
Iain Lowson, chair of the CCAB Ethics Group, offers the reminder that ethical conduct makes the core of the accountancy profession. “It is clear that ethical pressures are a real problem for a significant number of accountants. On the other hand, it is encouraging that so many accountants feel empowered to speak out against unethical pressures and practices and that so many respondents say they promote an ethics-based culture in their organisations.”
Here at Public Practice Recruitment Ltd, our core values are the backbone of our business. The importance of honesty, transparency and integrity in accountancy cannot be understated, and we believe that firms should be doing everything they can to uphold these principles and make them a priority when delivering their services.
So, what are the ethical principles that accountancy firms need to follow?
In today’s blog, we’ll outline the morals that public practice accountants should be upholding, and how these values translate into business development and enhanced employee wellbeing.
Honesty
Whether your firm is a start-up, an established independent, or a multi-office group, few things are more important than maintaining client trust. You have a duty to ensure that every person who walks through your door feels heard, valued and well looked after.
From protecting financial information and offering accurate advice, to simply being a friendly face during times of financial uncertainty, it’s crucial that you uphold truthful practices across all services you provide.
But honest financial reporting isn’t just a matter of morality – it’s a legal requirement. Maintaining legal compliance in every intricacy of your firm will build credibility among stakeholders, investors, creditors, and the public. It shows both existing and potential clients that they can always lean on you for transparent, well-informed advice and trust you to store their sensitive information in accordance with the law.
Blurring the lines between fact and fiction can potentially jeopardise your firm, resulting in regulatory scrutiny, market instability, and even legal ramifications. Therefore, it’s imperative that accountancy is accountable, and every firm delivers transparent services.
Is your team feeling stressed? Have you noticed a rise in sick leave? Discover how to better support your staff to help them manage stress.
Integrity
It’s inevitable that firms will encounter some pitfalls and make a few mistakes over the course of their establishment. Your team are only human, after all. However, it’s not the obstacles that define you – it’s the way you collectively deal with them and move forward.
By upholding professional standards during times of difficulty, and always demonstrating an unwavering commitment to clients, you’ll be showing integrity that will inspire trust. It’s the first branch that forms the foundation of many fruitful business relationships.
They say workers are only as good as their tools. And in the world of accountancy, a firm is only as good as its reputation. Demonstrating integrity through professionalism will help you sustain your position, which will lead to greater business opportunities and a competitive advantage in the marketplace. It will also help you attract and retain top talent and open scope for broader economic development.
Here at Public Practice Recruitment Ltd, we believe that integrity plays a critical role in the business ecosystem. As the UK’s largest agency recruiting exclusively into public practice, no one’s better positioned to provide you with market insight and expert guidance on the best ways to recruit talent. Contact us today to find out more.
Forgiveness
No firm is perfect. Sometimes, mistakes happen, and while these may be hard to mitigate, it’s important to view challenges as opportunities for growth, in both a personal and professional sense.
In the context of accountancy, forgiveness is reflected by your firm’s willingness to acknowledge past mistakes and learn from them. Showing understanding will promote a work culture where honesty is valued and errors are seen as opportunities for growth, rather than reasons for punishment.
Ensuring that your staff feel comfortable and confident approaching you is the first step to building a welcoming workplace environment. Dealing with grievances, conflicts, or work-related mistakes with compassion will enhance team cohesion, encourage personal responsibility, reduce stress, and enhance the overall effectiveness of your leadership.
Looking to bridge the gap between hiring manager and candidate? Create a more welcoming recruitment process.
Transparency
This may seem like an obvious one, but the importance of transparency in accountancy can’t be overstated. It’s the cornerstone of credibility, and the backbone of building meaningful relationships with clients, peers, and stakeholders.
You need to provide clear, honest, and accessible information to ensure that your clients and stakeholders make well-educated decisions that will greatly benefit them.
Transparent communications are also a great way to enhance both client and employee engagement. From bookkeepers and auditors to payroll managers, every member of your team wants to be actively involved in your firm’s goals and hear about how their efforts are helping to achieve them. So why leave them in the dark?
Share your plans and paint the bigger picture of your business to motivate your team. It will help you boost morale, reduce the spread of misinformation, attract and retain talent, and support diversity and inclusion.
Community
For accountancy firms, it’s essential to adhere to the strict ethical standards that govern the profession and embody community values to develop long-lasting relationships.
Doing what’s profitable isn’t enough – you need to do what is right by your clients. Firms that clearly demonstrate strong community values are the most successful. Fostering a culture of respect, inclusion, and collaboration will lead to increased client engagement and a happier workforce. It’s a win-win!
But the idea of community goes beyond just the four walls of your office. Like all businesses, your firm has a social responsibility to contribute positively to the place you call home. Therefore, you could consider other ways to build a strong sense of community both in and out of house.
Charitable giving, environmental sustainability, and paid volunteering opportunities are great ways to strengthen relationships with clients, stakeholders, and staff.
Is it time to try a new interview technique? Start securing top talent with peer-to-peer interviews.
Hope
Accountancy firms serve as a beacon of hope for businesses and individuals facing financial challenges. It’s hard for some companies to admit that they’re struggling, so it’s important that your firm deals with matters sensitively and provides clients with optimistic but realistic solutions.
As a public practice accountant, you’re responsible for helping people navigate through financial distress and implementing effective strategies for recovery. Identifying pathways and helping your clients pivot across financial potholes will, in turn, provide them with much needed comfort in even the most uncertain times. Serving as a source of hope will bring reward that you’ll enjoy in both a personal and professional way.
While it’s important to remain completely transparent, following strategic financial planning practices will empower your clients and help them face challenges with a more positive outlook.
Final Thoughts
Since an accountant’s job directly affects financial decisions, investments and the economic health of individuals and organisations, firms are entrusted with considerable responsibilities. Therefore, the public practice sector demands an unwavering commitment to ethical conduct. Firms should not be cutting corners. Instead, accountants should be proud to act with honesty, transparency, and integrity in every aspect of their professional life.
Here at Public Practice Recruitment Ltd, we’re proud to put these principles into practice every day. As a team of specialist recruiters, we’re dedicated to treating others as we want to be treated ourselves. It’s one of the reasons why we work closely with accountancy firms to provide the high-level oversight that steers them in the right direction.
If it’s time for your firm to rethink its position in the marketplace, reassess its values, or grow its team with new talent, we’re here to help.
Get in touch with our team today. Or if you’d like to receive our latest jobs and industry insights direct to your feed, be sure to connect with us on LinkedIn. We’ll see you over there!
