How Important is Trust, and Why Do Clients Trust You?
Source: AICPA CPA Insider
This is based on a study by State Street Global Advisors and Knowledge@Wharton on qualities clients want in investment advisors. The results are relevant to other CPA services as well.
The most important quality was trustworthiness, as indicated by 69 percent of respondents.
Other qualities mentioned were: Understanding needs of the family, 20 percent; cost, 12 percent; and performance of investments, 10 percent.
How do you inspire trustworthiness? Here are three areas of trust:
- Be candid. Discuss ethical standards and honesty. The client probably won’t ask about them. But the client is worried about whether you have a financial interest in the products you offer and is also worried about hidden fees. So talk about fees and other issues without being asked.
- Clients are not only concerned that you might steal their funds, but also that you might mismanage them. Provide detailed information on your qualifications, your competence, and your research methods. Find out how much risk they’re willing to tolerate.
- Don’t neglect personal trust. Clients should be able to confide in you and know that what they share will remain confidential, and that you won’t mock them or advise them to have therapy.
From AICPA CPA Insider, October 18, 2007, www.cpa2biz.com. For the complete article, click here.