Why education is key in broker-accountant partnership

According to leasing and finance manager Dan Cuthbert, the accountants and mortgage brokers have been able to form a robust referral partnership by educating each other on accounting and finance and mortgage broking.

“I think that’s helped the referral process,” he told The Adviser.

“Quite often, accountants see finance differently to finance brokers and vice versa. We see tax a bit differently as well. So, I think it’s about understanding each other’s business quite thoroughly.”

Mr Cuthbert also observed that immediacy is sometimes critical for accounting clients, and as such, urged brokers to always be available to them.

“Accountants sometimes have clients who need things now, which we understand. So, I think as a finance broker, we need to be available to take those calls and be there to help clients at the drop of a hat,” he said.

“I think if you’re going to set up a referral partnership (internally or externally), you need to understand the accountant’s business needs and what they want.”

The practice also educates its clients around the different services it offers to ensure that clients approach them should they require them.

Furthermore, chief executive Amanda Kenafake said that education has assisted the accountants and brokers in her team to understand which client might benefit from these services, which has led to a more efficient referral process.

“As their education and awareness increases around what it is their colleagues can do for clients, they can refer clients that are well suited to those services,” she told The Adviser.

“The accountant will not just send this client to the broker, hoping that they can do something and make a deal.”

If a client wishes to purchase a house in 12 to 18 months for example, Ms Kenafake could refer them to Mr Cuthbert or other brokers in her practice, or ensure that the clients’ financials are healthy to increase their chances of securing loan pre-approvals, she said.

“Having those conversations with clients helps us understand what we need to do to make sure that their finances are in good shape when they want to purchase a house,” she said.

According to Mr Cuthbert, providing feedback to the accountant about a client who has been referred to the broker is crucial to ensure a robust partnership.

“At the end of the day, the client belongs to the accountant as much as us so we generally try to provide good feedback about what’s happened with that client referral,” he said.

“I think if you try to restrict yourself and not provide that feedback, it could do a bit of damage to the relationship.”

Before accountants and brokers form a referral partnership, it is critical for both parties to build confidence in each other’s abilities and form an agreement around the structure of the partnership, Ms Kenafake advised.

“It’s all about having a lot of conversations upfront to make sure you’re actually holding hands and getting in business with the right person that fits your business vision and philosophy and how you deal with clients,” she said.

Mr Cuthbert concluded by recommending a written agreement between brokers and accountants, and warned that “handshake agreements won’t work”.

To hear more about how to leverage strategic partnerships with accountants and financial planners to deliver holistic funding solutions to clients, come along to the 2022 SME Broker Bootcamp in February.

Click here to secure your spot and make sure you don’t miss out.