Leadership can make or break an accounting company’s success. 

While strong leadership drives growth, innovation, and team satisfaction, poor leadership behaviours can have the opposite effect—creating chaos, confusion, and a toxic work environment. 

Whether you’re leading a small accounting team or managing a large firm, avoiding certain bad habits is crucial to maintaining a thriving, efficient organisation.

But what are bad business leadership behaviours? And how do they negatively impact an entire organisation?  

We’ll step you through five of the most common bad leadership behaviours that can derail your business. From micromanaging every detail to neglecting employee well-being, these leadership missteps not only hurt your bottom line but can lead to high employee turnover, damaged client relationships, and a weakened company culture.

The good news? 

By recognising and steering clear of these pitfalls, you can foster a more empowered, productive team that drives sustainable success for your accounting practice. 

So, let’s explore these leadership mistakes and highlight why they’re so damaging. 

1. Micromanaging 

In an accounting company, micromanaging refers to a leadership style where a manager or director exercises excessive control over every aspect of their team’s work. 

Rather than empowering staff to handle tasks independently, micromanagers closely monitor, direct, and often redo work, focusing on minute details and leaving little room for employee autonomy.

Where attention to detail is crucial, micromanaging can be especially problematic, as it can slow down processes, lead to inefficiencies, and negatively impact both morale and the firm’s overall performance.

Not sure if you’re micromanaging your team? Generally, there’s a few tell-tale signs: 

• Reviewing every financial report or statement in detail: Micromanagers often feel the need to review every number, calculation, or formula in reports such as financial statements, tax returns, and audit reports.
  
• Requiring approval for every decision: Micromanagers demand that employees seek approval (from the manager) for even minor decisions, such as adjusting an invoice, applying tax deductions, or choosing software tools.
  
• Re-doing work submitted by staff: Even after work has been submitted, micromanagers often feel the need to redo it themselves to meet their own standards, even when the work is acceptable. 

Effective leadership in an accounting company doesn’t mean overseeing every detail but fostering a team of trusted professionals who can manage their responsibilities independently.

2. Poor communication 

When leaders fail to communicate effectively, it can have a significant negative impact on team morale. In an accounting practice, where deadlines are tight and workloads can be demanding, employees need to feel informed, supported, and valued. 

Poor communication leaves team members feeling disconnected and unsure of where they stand, leading to feelings of frustration, isolation, and demotivation.

Here’s why poor communication is a bad leadership behaviour:

• Leads to confusion and misunderstanding: Poor communication often results in unclear instructions, objectives, or expectations. In an accounting practice, this can lead to mistakes in financial reporting, tax filings, or audit procedures, where precision is crucial.

• Reduces team morale: When communication is lacking, employees often feel disconnected, undervalued, or unsure of their standing in the firm. Team members who are left in the dark about key decisions, changes, or client updates may feel unimportant or excluded.

• Breaks down client relationships: Effective communication is essential for managing client relationships in an accounting firm. Poor communication with clients—whether it’s failing to update them on their financial status, not explaining complex tax regulations clearly, or missing deadlines—can result in a loss of trust and business.

Poor communication undermines a leader’s ability to effectively guide their team, meet client expectations, and build a positive work environment. It leads to confusion, inefficiency, and a lack of trust—both within the team and with clients.

3. Lack of accountability

Lack of accountability as a leader refers to a failure to take responsibility for one’s actions, decisions, and the outcomes of the team or organisation they oversee. 

Accountability is crucial for effective leadership because it sets the standard for behaviour, performance, and trust within an organisation. 

When leaders avoid or fail to uphold accountability, it leads to numerous negative consequences for both the leader and the team. Here’s a deeper look at what lack of accountability as a leader means:

• Blaming others for mistakes: A lack of accountability is often seen when leaders shift the blame onto their team members or external factors rather than owning up to mistakes. For example, if a project fails or a client is unhappy, an unaccountable leader might point fingers at employees instead of recognising where their own leadership decisions or instructions contributed to the failure.

• Avoiding responsibility: Unaccountable leaders tend to distance themselves from problems or challenges. When issues arise, they may avoid addressing them altogether or pass them off to others. For instance, if a client deadline is missed or financial errors occur, a leader lacking accountability may fail to take ownership of the situation or offer solutions, leaving the team to deal with the fallout.

• Inconsistent standards and expectations: Leaders who lack accountability often set inconsistent expectations for their team or fail to follow through on their own commitments. For example, they may demand punctuality and excellence from their staff but regularly miss deadlines themselves or fail to communicate clearly.

Holding yourself and your team accountable is critical for long-term success. When mistakes are made, a lack of accountability can create a culture of blame-shifting, where no one takes ownership of problems.

4. Inconsistent decision-making

Inconsistent decision-making is a leadership style where decisions are unpredictable, lack coherence, or vary significantly over time without clear reasoning. 

In an accounting company, this can occur when the leader makes decisions that contradict previous choices, are not aligned with established policies, or vary depending on the situation or person involved.

Leading inconsistently when it comes to decision-making, impacts the entire operation:   

• Decreased employee engagement and productivity: Inconsistent decisions make it difficult for employees to understand their roles and responsibilities, which can cause confusion and frustration. This can lead to decreased engagement, inefficiency, and lower productivity as employees are unsure of what is expected.

• Increased employee turnover: Employees may feel undervalued and stressed if they cannot rely on consistent leadership. Inconsistent decision-making can create a chaotic work environment, leading to burnout and ultimately, increased turnover, which is costly for any organisation.

• Inefficient processes: In accounting, adhering to rules, regulations, and consistent procedures is vital. Inconsistent decision-making can lead to operational inefficiencies, as processes may change frequently, causing errors, non-compliance issues, and delays.

For a leader in an accounting company, maintaining consistency in decision-making ensures stability, fosters trust, and helps create a productive and harmonious work environment.

5. Ignoring employee well-being

When a leader ignores employee well-being in a modern workforce, several negative consequences can affect both the employees and the organisation. 

In today’s work environment, where employees increasingly value work-life balance, mental health, and job satisfaction, neglecting these aspects can be particularly harmful. 

Here are some key impacts:

• Negative workplace culture: When well-being is ignored, it can create a toxic workplace culture where employees feel unsupported and disconnected. A hostile or neglectful environment can foster resentment, stress, and poor relationships among colleagues, diminishing teamwork and collaboration.

• Reputation damage: These days, companies are increasingly judged by their treatment of employees. If leaders consistently ignore well-being, it can damage the company’s reputation, both externally and internally. Negative reviews, low employee ratings on platforms like Glassdoor, and word of mouth can make it difficult to attract top talent and new clients.

• Reduced employee loyalty: Employees who feel that their well-being is disregarded are less likely to remain loyal to the company. In contrast, organisations that prioritise well-being tend to foster stronger bonds between employees and leadership, which enhances loyalty and long-term retention.

In a modern workforce, employee well-being is not just a “nice-to-have” but a key factor in maintaining a productive, engaged, and innovative workforce. Leaders who prioritise well-being see improved outcomes across the board, including better employee retention, higher productivity, and a positive workplace culture.

Effective leadership in an accounting company goes beyond simply managing tasks; it’s about empowering your team, fostering communication, and creating a healthy work environment. 

Micromanaging, poor communication, lack of accountability, inconsistent decision-making, and ignoring employee well-being are all behaviours that can hinder your business growth and success. These leadership missteps not only lower team morale but can also lead to inefficiencies, higher employee turnover, and damaged client relationships.

By being mindful of your leadership style, maintaining clear communication, and creating an environment of accountability and support, you can build a thriving firm where both employees and clients feel valued. 
Want to step-up your leadership for a modern workforce? We’re ready to help you.