We have come into contact with many agencies. One thing that stands out is the variety of processes in place from agency to agency when dealing with client accounts. From our experience, we have witnessed two common operational systems that agencies generally fall into.

CATEGORY A – THE ORGANISERS

Agencies falling into Category A tend to have clear and concise policies and procedures for all client accounts and in’s & outs. Clients know when to expect communications, reports and disbursements and the entire process runs like clockwork.

CATEGORY B – THE FLY BY THE SEAT OF THEIR PANTS

Those agencies in Category B tend to operate each day as it comes – flying by the seat of their pants. Reacting to events and situations as they fall on their desk, as opposed to creating a proactive system. Jobs and responsibilities are shared throughout the agency with erratic timelines and often-unclear lines of communication and accountability.

There is no doubt in our minds those agencies that tend more towards Category A operate more efficiently and productively, and tend to have better relationships with their clients. Those falling into Category B generally do not have a set workflow. This not only affects their productivity, but also reflects unfavourably to their clients.

Some questions to consider when outlining your procedures:

  • When is the receipting done?
  • What is the procedure for cash & cheque handling?
  • Which documents are printed and what can be stored electronically?
  • Which day of the month are the Landlords disbursed?
  • What are the fees?
  • Who enters new managements into database?
  • How are complaints related to the trust handled?
  • What is your process for escalation and recording?
  • When are invoices entered?
  • Who enters the invoices and what happens if that person is away?
  • What is the standard format for entering invoices into the system? (see our previous blog on creating policies for data entry to avoid simple mistakes)
  • How does the company handle a late payment of an invoice on behalf of a client?
  • What day of the month is the end of month process run?

Everyone in the agency should understand their role and what they need to do to fulfil it to the best of their ability. Better time management comes into play, which in turn increases efficiency and productivity amongst your staff.

On a client note, relationships with your clients will improve as they will know what to expect and when, helping to avoid unrealistic and demanding client expectations. When recruiting new business, your Business Development Managers have a clear framework they can communicate to potential clients, making your agency more attractive for them to entrust their account with you.

Clear processes mean less likelihood of compliance issues and less stress come audit time.

If you are on the brink of Category A or B, take the plunge and throw yourself into Category A. It may take some blood, sweat and tears to get everything up to standard, but once done, your staff and your clients will thank you for it.

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~ Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 19 years industry experience. Don’t trust just anyone with your trust accounting, trust End of Month Angels and get back to what you do best – growing your business.