don’t be blinded to the benefits of standardizing services.
by jody padar
radical pricing – by the radical cpa
the accounting profession will never resemble an automotive production line, perhaps for no other reason than we don’t look good in steel-toed boots. we’ll never be widget producers and, from my viewpoint, that’s a good thing. however, our position among the professional class shouldn’t blind us to the benefits of standardizing many of our services.
more: four ways automation pushes the paradigm shift | are you the key signal caller for your clients? | value pricing requires defining your clients | how value pricing impacts your employees | six steps to start value pricing | stop selling time | why pricing is so disruptive | the radical pricing model: start with $25k | three critical factors drive the value pricing trend | accounting disruptors are heading your way … with deep pockets | the convergence of trends makes pricing changes imperative | stop looking for talent that does not exist
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anyone who has been an accountant for any length of time has certainly seen enough to eliminate the need to reinvent the wheel every time they start a new engagement. an entire firm has even more institutional knowledge to draw from. you can develop reliable and repeatable recipes for different services and deliverables by capturing this institutional knowledge. this is standardization, and it makes your service offerings more efficient, cheaper, consistent and predictable – all good business practices. you’ll be able to predict with better accuracy the time frames required for new projects, and you’ll be able to scope out exactly what will be required to bring the project to a successful conclusion.
most firms already have at least four different ways to complete the same deliverable, but if you could figure out the absolute best way to do it and then standardize it, you’d be saving everyone a lot of time and confusion. you’d also deliver better results.
think about how real estate lawyers work. they aren’t rewriting new contracts for every deal. if they are, they won’t be in business long. rather, they produce one master contract, ensuring all the i’s are dotted and t’s are crossed. then, they use the same basic contract with every new deal, updating and customizing it where necessary.
your service bundles and deliverables should be as easily streamlined with the same steps, software and outcomes. this level of consistency will also help you price and scope more accurately.
standardization will help you run a more efficient, streamlined and profitable business. the following are steps you can take to unleash the power of standardization in your practice:
- standardize your chart of accounts. historically, accountants have allowed clients to take the lead on a chart of accounts, resulting in a lack of standardization. however, if you lead the way, you can ensure standardization and clarity, making it easier for everyone to know where and how to classify a transaction.
- standardize by industry or vertical. similarity breeds standardization. for example, you can standardize solopreneurs across different industries because they are always individuals identifying as companies for tax status.
- standardize internal management teams. the person responsible for a client should always be the person responsible for that client. they understand the services, expectations and scope. they know where the engagement begins and ends and when a new service order is needed. they may also specialize in the client’s industry and know the appropriate kpis. you want to distribute your clients to employees who have corresponding niche expertise.
- standardize procedures per client. everything must be documented so everyone knows what you’re doing for the client. create a standardized recipe for how things are done for every client. this way, everyone knows every engagement’s expectations, procedural order and financial goals. these steps must be documented with everyone aware of the appropriate amount of labor allocated to each deliverable to keep employees from overworking a file. scribe is a tool that could help; it follows around your mouse and wherever you click, producing a training document with screenshots within minutes.
- create a clear scope of service. your teams need to know exactly what services they are providing. in this manner, clients needing additional services can get them with transparency. team members can let the client know they can provide the additional service, but because it’s out of scope, they’ll be charged separately. this simplifies difficult conversations.
- maintain a dedicated client services staff. we have previously relied on our accountants and managers to do client services. you’ll want a dedicated professional to carry these responsibilities and manage service expectations to promote standardization. this person needs to be friendly and customer-driven. they will be talking to your clients regularly and asking for statements and information on your behalf, but they will not be responsible for any of the technical activities associated with the materials. this is an important detail because their role is to meet client service expectations and provide resources and overhead protection. by saving your technicians from doing this kind of work, you’re not paying high salaries for clerical activities.