8 Major Challenges Of Corporate Account Handling

Account management is rarely without numerous roadblocks and different challenges. Clients often challenge your sales team’s competence by demanding solutions to their complicated problems. These problems are diverse and range from a client’s shifting concerns to some gross misunderstanding. But a company needs its “key accounts” to survive because they contribute massively to its profitability. Let’s talk about the importance of account management and the challenges these managers face. Here, you can find the details about 8 major challenges of corporate account handling.

SKILLS NEEDED BY CORPORATE ACCOUNTANTS

You’ve probably heard about companies focusing on the management of their key accounts. Some also use the term “strategic account” alternatively here. These bank accounts constitute a significant proportion of the company’s income. Proper maintenance of these accounts ensures satisfied clients and customers. Key account managers systematically organize these valuable accounts to generate ongoing revenue. Here are some skills these managers are endowed with generously:

• Key account managers provide value-based selling by communicating the financial value of conducting business with your clients.
• A strategic perspective is essential to ensure the organization’s long-term gains. Accountants prioritize these gains over short-term investments.
• By creating a comprehensive understanding of your clients’ specifications, your accountants effectively improve your company’s financial performance.
• Customer satisfaction is mandatory for a business’s survival. Account managers provide quick responses and correct order deliveries to enhance your clients’ satisfaction.
• Corporate account handlers provide ways to strengthen your ties with significant clients. They offer strategic advantages to your key customers and increase your control over their accounts.

PROBLEMS CORPORATE ACCOUNTANTS FACE

We can see that individual accounts are more valuable to your organization’s financial objectives. Here we apply the 80/20 principle, which states that 80% of your profit comes from 20% of your customers. Only a select number of clients bring you the lion’s share of your business. That’s why you should focus on investing in long-term solutions to the challenges posed by these accounts. Then you’ll be able to retain these customers and cultivate a permanent bond with them. Here are some of these challenges:

• Lack of talent:

The deficiency of the right talent can be a tough challenge to meet in this financially-tiresome world. But how to find the right people to handle your essential accounts? The secret lies in education!

Considering the recent trends, recruiters are counting on candidates with online MBA Accounting degrees. Profiles that possess a blend of experience and knowledge to stand out in the crowd. This sublime schooling furnishes your employees with leadership and problem-solving skills. These skills help a company make strong ties with its key clients.

• Consistency:

Handling corporate accounts requires consistency and uniformity of behavior. Lack of consistency overshadows an accountant’s brightness and experience. Your account management procedures must be clear-cut and obedient to a strict pattern. This pattern will act like a flagpole for the entire team and allow you to standardize your financial approach. Consistency also eases the process of hiring new talent and guiding a seamless transition of new clients.

• Budgeting:

A company’s financial advancement depends on effective budget-making. Problems arise when the management decides to make some cuts in spending only on its strategic expenditures. Now accountants face the dilemma of meeting the client’s demands with limited resources. Where to acquire the necessary capital now? Find your client’s priorities and implement them after consulting with the officials.

• Miscommunication:

And we’re not talking about phone-calls you’ve not picked or messages you’ve not read. It happens while you’re mentally relaxed, assuming the client’s satisfied with your performance. Then the guy calls your boss, and you learn that he’s having trouble working with you. Things can go even worse when the client decides to close the account. A lack of effective communication is at fault here. Don’t just assume stuff. Observe your client’s responses and make sure they’re happy with you.

• Numerous accounts:

Some companies don’t seem to understand the basic definition of a ‘key account.’ They assign a revenue limit, and anyone who generates more than this limit becomes a key client. Then the company asks account managers to handle these dozens of accounts, which is just impossible!

As per a general principle, key accounts shouldn’t exceed 5 to 25 in number for effective management. Even Xerox kept their key accounts less than 100 back in 2012. And they were resourceful!

• Ill-informed clients:

Not all clients are well-informed regarding financial complications. Some customers come with experience, while others only had nominal contact with your industry. How to provide satisfactory results to such clients? You need to explain the reasons behind your recommendations, the process you’ve proposed, and these procedures’ objectives. You must try to understand your client’s concerns and then find ways to resolve them. Make sure to back your claims with facts and data.

• Unpleasant requests:

Has it ever happened to you when everything is going as planned and suddenly the client comes with an ad-hoc request? It becomes a toll on your strategies to fit your client’s out-of-nowhere demands somewhere. Now how to make room for such a wish without delaying your high-priority tasks?

The solution is to be honest with the people in question. If the ad-hoc appeal is more beneficial to your client, that’s fine. If not, then frankly discuss this issue with your customers.

• No support:

In the end, a grave challenge that hinders an account manager’s performance is the lack of support from senior management. And this lack of supporting deals with both psychological and monetary encouragement. It includes having great expectations from an insufficiently-funded team. It also includes committing inadequate time and resources to the projects. Key account managers can only function when given a suitable environment to work in by the company.

CONCLUSION

An accountant’s responsibilities include nurturing his/her organization’s financial relationships with major and minor clients. But the company’s key accounts deserve a deeper attention-to-the-detail. These key clients spend 33% more than regular clients. However, they’re 60-70% more prone to close. Moreover, it costs 6-7 times more to make new clients than retain the existing ones.

So, key accounts managers focus on strengthening these financial relationships. They do it by endeavoring to solve these clients’ issues and meet the key customers’ challenges. Tackling these challenges ensures an organization’s economic growth and commercial stability.