by ed mendlowitz
question: how do i switch to value pricing?
response: there are a number of ways. ron baker’s books tell how to do this. so does dave cottle’s but in a different way. i believe most firms do some sort of value pricing and that is when a fee is determined in advance with the client. i’ve written previously on this and have presented programs for cpa firm management groups, but here is a descriptive checklist to use as a guide: read more →
by ed mendlowitz
question: i have a client i really don’t like and want to drop, but i hesitate because of the long relationship i’ve had with her, and also i don’t want to lose the income. what should i do?
response: i’ve addressed this before, but i am taking a different approach this time.
dropping clients is never easy and i don’t think should be done lightly. however, there are some instances when it needs to be done. this particular client i was called about is extremely obnoxious. not the normal grade of obnoxious, but far more so.
in fact it was one of the rare clients that i dropped. the call was from the accountant who had the client since then. i had the client six years. she’s had the client eight years – so she is much more patient than i am.
when she told the client she was dropping her, the client started to cry and beg her not to, so she changed her mind. now she wants me to tell her what to do. for beginners, i have dropped very few clients. this client was one of the nastiest people i’ve ever dealt with. she was also very nasty to her husband, treating him like s – – t, and he has since passed on.
question: i am 57 and have become very concerned about retiring and what i could get for my practice, how long i would have to stay and how the whole process works. i believe i’ve read all of your q&as but have never heard you speak on this subject. is there anything you can give me to read that sort of ties in everything?
response: for cpas in practice, succession planning takes on a meaning other than what it might seem. many of the cpas i know find it difficult to imagine themselves retiring, and therefore do little in the way of planning. for those who think they will work until they drop, stop reading now and go to the sudoku puzzle, because that will probably provide you with more gratification in the long run. read more →
by ed mendlowitz
101 questions and answers
question: i assigned four projects to a manager who reassigned them to a staff 2 person and i gave a date when they were needed that was three weeks away. when i asked about the progress after two weeks, i was told that nothing was near completion. now there is a super rush with much stress. how could this situation have been avoided?
response: first off – you are to blame. you did not work with the manager to see how she would assign the work and to whom. read more →
plus five more clauses you might want to consider.
by ed mendlowitz
101 questions and answers
question: you state on the bottom of your invoice that you charge 1.5% for balances over 60 days. do you actually implement that or is it just warning? do you do it on all clients or just some? do clients pay that or complain? if they send in payment without that, do you write off the finance charge or leave it open? read more →
from “ridiculous” to “important.”
in ed mendlowitz’s column this week, nice office, clunky car, cool computers: how much do they matter?, he is asked about the importance of a small cpa firm’s appearances, including the office and what kind of car a partner drives. commenters are having their say.
it’s not about keeping up appearances, but keeping up with clients.
by ed mendlowitz
101 questions and answers
question: what do you think the impact is on a small cpa firm regarding:
and nine strategies to fix the “problem.”
by ed mendlowitz
101 questions and answers
question: my partner seems to always be out of sync with me, but my biggest pet peeve is that he never does what he says he will do. do you have any suggestions?
response: some people are not cut out to be partners. they could be control freaks, someone who skipped kindergarten and read more →
eight data points to check your tax season quality control systems.
by ed mendlowitz
how to review tax returns
accounting firms that have high review times usually have high error rates necessitating the higher review time. doesn’t that sound crazy?
why not set up procedures to reduce the error rate? i have been told that error rates range between 5% and 95%. 95%!? that is crazy! there must come a time when you decide to fix this. you can rationalize all the expediency reasons in the world, but this is just bad, stupid and poor business!
start by considering eight key metrics. read more →
by ed mendlowitz
101 questions and answers
question: how can i get buy-in in the implementation of new things we decide to do?
response: i find buy-in the key to a successful program. it is also extremely hard to get. it is easy in the board room or at the meeting when the new process or procedure is agreed to, but then there has to be a champion to be responsible for the follow-through and success. read more →
nine reasons you need them and the one big reason they don’t get used.
by ed mendlowitz
how to review tax returns
this is an area i feel very strongly about, and it is a major reason for the success of the better firms and the lack of growth of smaller firms. read more →
by ed mendlowitz
101 questions and answers for managing an accounting practice
question: a former client wrote me a letter threatening to sue me for bad services. i did nothing wrong and actually did a great job and they still owe me money. what should i do?
response: walk away! ignore the threat. don’t respond. stop billing them. and go about your business. life is too short to get tied up in dissipating actions. it is rare to run a business without getting stuck from someone. read more →
how to build a plan.
by ed mendlowitz
101 questions and answers for managing an accounting practice
question: i want to start growing my practice but am having trouble defining my target client. i tend to accept every client i can and seem to have clients all over the place. is there anything i can do to better target my “ideal” clients?
answer: to have a target client means you have a target. the target is the result of a plan. so, what is your plan? read more →