five steps to firm transformation

clients will be open to new pricing if they see the benefits.

by 卡塔尔世界杯常规比赛时间

growth is one thing, transformation another.

growth is good. it’s what most cpa firms want: growth in clientele. growth in revenue. growth in profit.

marketing efforts tend to engender growth. but it’s an incremental growth – a new client, then another, then a new service, then a bump in revenue.

transformation is more than that. it engenders exponential growth – a host of new clients, a whole new set of services, a local reach rendered regional.

five steps to transformation

a transformation is an overhaul of a cpa firm business model. a recent aicpa cpa.com survey formulated a big, model-level picture by looking into hundreds of specific little pictures. the little pictures were snapshots of what businesses and cpa firms want from a business relationship.

the big picture presented five interwoven steps to transformation.

1. sell to buyers’ challenges.

the survey found patterns in the challenges that clients and potential clients face and which cpa firms can alleviate. a lot depended on size.

large companies want:

  • quality and efficiency
  • technology

midsize companies need help with:

  • compliance with laws and regulations
  • attracting and retaining talent
  • planning for growth

small companies are challenged by:

  • too little time to focus on accounting
  • getting expert financial advice
  • cash flow and control of overhead

of course these are generalized tendencies. every company has its own set of challenges. the point is, firms need to identify those challenges and then offer solutions.

2. pay special attention to strategic advisory services.

the survey found that companies would expect fee increases of up to 50 percent for the kinds of consultation that cpa firms can give. among the advisory services most valued by businesses:

  • revenue growth
  • business modeling
  • budgeting
  • tax planning
  • risk management

in this step of transformation, the accounting firm needs to assess target companies for the advisory services they need. as needs are perceived, the firm moves on to explore staffing strategies and capabilities.

3. create a services roadmap.

to truly transform, a firm needs to not just offer more service but develop new services. if a target client is seen to need, say, forensic accounting, the growth-minded firm cannot rush in to offer services it cannot deliver. it will need to develop capability. to do so, it needs to lay out a roadmap or timeline to competency. personnel development needs to be planned. new technologies need to be explored.

4. reassess new technology capabilities.

virtually every new service involves new technology. artificial intelligence and automation are benefits highly valued by clients for their efficiency and their relief from rote administrative functions. but clients need to be informed of these benefits. once they understand, they are more open to new pricing propositions.

5. experiment with value pricing.

once clients are enticed into new services and new technologies, they are more open to the potentials of value pricing. as a benefit to both firm and client, value pricing is a cornerstone of the transformation strategy. with value pricing:

  • the firm no longer needs to count hours.
  • clients are not surprised by high bills.
  • transparency allows better planning and a better view of the big picture.
  • services can be bundled to offer holistic benefits to the client.
  • bundled service can yield greater revenues for the firm.

firm transformation enables exponential growth. it isn’t easy, but it’s always possible for firms willing to strive for it.