ed kless: accounting must innovate beyond technology | accounting influencers

in an era when traditional models fail, accountants should rethink relevance, client experience, and the power of language.

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accounting influencers
with rob brown

accounting visionary ed kless challenges the profession to move beyond the traditional billable hour and embrace a proactive, subscription-based model. in this episode of accounting influencers, kless, known for his strong stance on abolishing hourly billing, offers actionable insights into how accountants can redefine their services and stay relevant in an evolving landscape.

kless wastes no time challenging one of the industry’s longest-standing practices: billing by the hour. “it’s an absolutely dead model, and it’s a problem not only for accountants but also for their customers,” he argues. by emphasizing efficiency over effectiveness, kless says hourly billing creates a barrier to innovation and true client satisfaction. “think about it—if you had a brain tumor, would you want an efficient surgeon or an effective one?” he asks, underscoring the need for quality service over rigid time-tracking.

according to kless, small shifts in language can significantly impact client relationships and the overall perception of the accounting profession. instead of referring to clients, kless suggests calling them “members,” creating a sense of community and belonging. “if you treat your clients as members of a club, it changes your mindset,” kless explains. this mindset shift, he believes, can lead to more meaningful interactions and foster stronger loyalty among clients.

kless highlights the potential for subscription-based accounting services inspired by businesses like fender and tesla. he suggests that accountants should think about the experience they’re offering and aim to sell peace of mind rather than simply a balance sheet or tax return. he states, “what accountants are really selling is transformation—a sense of stability and reassurance.”

kless believes this shift could set a new industry standard, where clients pay for a more continuous, supportive relationship rather than isolated transactions. “the subscription model allows firms to constantly enhance what they offer, creating a more dynamic, client-centric experience,” he explains.

for accountants uncertain about where to start, kless offers practical advice: “it can be something as simple as the language you use.” he encourages firms to “plus” their client experience by introducing small, regular improvements. one example? “make a point to celebrate your clients’ birthdays or show personal interest in their family milestones,” he suggests. these small gestures, he believes, can transform the client experience and strengthen long-term relationships.

as tech giants and non-traditional competitors enter the accounting space, kless warns that “the thing that’s going to be a problem for accounting firms maybe isn’t another accounting firm—it’s something outside of the profession entirely.” he cites jeff bezos’s investment in accounting startup pilot as an example of how powerful players are making their mark in the industry.

in a parting message to listeners, kless emphasizes the importance of mindset: “just begin to think about changing. although they may seem small, language changes and incremental improvements can have a transformative impact on your practice.”

5 key takeaways:
  1. the traditional billing model of charging by the hour is no longer effective in today’s marketplace. instead, firms should focus on delivering value to their clients and pricing their services based on that value.
  2. innovation is not just about technology but about bringing disparate things together to create something new. this includes innovative business models, delivery methods, packaging, pricing, and language.
  3. social capital and networking are important for building connections and helping others. even weak connections can be valuable and lead to new opportunities.
  4. subscription marketing can be a powerful tool for firms looking to provide experiences and transformations beyond the product itself. the key is to focus on what customers are ultimately after, whether it’s peace of mind, experiences, or transformations.
  5. the power of language should not be underestimated. using language that focuses on the benefits and outcomes of a service or product can change clients’ mindsets and lead to increased sales.
kless

more about ed kless

ed kless is a senior fellow at the verasage institute, a think tank dedicated to eliminating the billable hour and the timesheet in all professional organizations. 

he frequently contributes to industry publications and has spoken at many conferences worldwide. additionally, kless cohosts “the soul of enterprise: business in the knowledge economy” with ron baker on voiceamerica talk radio and is a consultant for tipping point advisors.

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