Every business, no matter how well-run, will receive a complaint at some point. What separates successful companies from the rest is how they respond. At Long + Cowan, we remind Wellington business owners that customer feedback, even when negative, can be one of the most valuable tools for growth.
Complaints are uncomfortable, but they reveal weaknesses and highlight areas for improvement. When handled correctly, they can even strengthen relationships and build loyalty. An unhappy client who feels heard and respected is far more likely to return than one who feels ignored.
How to Respond to an Unhappy Customer
An effective response begins with patience and empathy. When a customer is upset, resist the urge to defend or react emotionally. Instead, listen carefully to their story before taking action.
Practical tips for handling complaints professionally:
• Stay calm and let the customer explain their concern without interruption.
• Use active listening; repeat their key points to confirm understanding.
• Maintain a respectful tone and make eye contact if meeting in person.
• Apologise sincerely, even if the issue seems minor. Phrases such as “I’m sorry you’ve had this experience” show empathy.
• Move quickly to resolution. Ask, “What can we do to make this right?” and agree on a practical solution together.
• Follow up afterward to ensure the problem has been fully resolved.
By listening and responding constructively, you transform a negative moment into a positive experience.
Managing Stress After a Difficult Interaction
Dealing with a complaint can be emotionally draining. After resolving an issue, take a moment for yourself. Step away from your desk, go for a short walk, or grab a coffee. Resetting your mindset allows you to greet the next client with positivity. Maintaining composure and balance ensures long-term professionalism and resilience.
The Connection Between Complaints and Accounting Methods
Understanding customer concerns is one part of good business management. Another is understanding your financial systems. Many business owners overlook how their accounting method influences cash flow and profitability. Our accountants often explain that clarity in finances is just as important as clarity in communication.
Cash and Accrual Accounting: What You Need to Know
There are two main ways to record financial transactions: cash accounting and accrual accounting. Each affects how income and expenses appear on your financial statements.
Cash Accounting
With cash accounting, income is recorded when money is actually received, and expenses are recorded when payments are made. It is simple, straightforward, and shows exactly how much cash your business holds at any given moment. However, it does not track money owed by customers or due to suppliers, which can make forecasting difficult.
Accrual Accounting
Accrual accounting records income when a sale occurs, not when payment arrives. Likewise, expenses are recorded when incurred rather than when paid. This approach provides a more accurate picture of business performance, as it includes unpaid invoices and outstanding bills. Most larger businesses and those required to file complex tax returns use this method.
Cash vs Accrual Accounting: Pros and Cons
Advantages of Cash Accounting:
• Easier to understand and maintain.
• Provides a real-time view of available cash.
Disadvantages of Cash Accounting:
• Does not account for unpaid invoices or future expenses.
• Makes long-term profitability harder to measure.
• Adjustments are still needed at tax time, as Inland Revenue generally requires accrual calculations for income tax.
Advantages of Accrual Accounting:
• Offers a more accurate view of financial performance.
• Makes it easier to track debtors and creditors.
• Helps identify trends and manage cash flow projections effectively.
Disadvantages of Accrual Accounting:
• More complex to manage.
• Requires regular adjustments for unpaid income and expenses.
At Long + Cowan, we handle these adjustments for clients, ensuring compliance and clarity without unnecessary stress.
Which Method is Right for Your Business?
Smaller Wellington businesses often prefer the simplicity of cash accounting, while larger operations benefit from the detailed insight of accrual accounting. The right method depends on your business size, structure, and financial goals.
If you are unsure which approach you use—or should use—our accountants can review your current system and explain the benefits of each in plain language. Choosing the correct method helps you make better decisions and improves cash flow management.
When to Seek Professional Advice
Accounting systems can quickly become confusing if not managed correctly. Whether you need help interpreting reports, adjusting for accruals, or improving payment processes, professional guidance ensures your books stay accurate and compliant.
We enjoy simplifying accounting for our clients. For expert advice on cash or accrual accounting, or for assistance in improving your client satisfaction and financial performance, contact us for more info by filling in an enquiry form or e-mailing or calling us during office hours.
