ask for what you’re worth

hand moving triangle along beam to indicate balance between price and value

how to prepare for a value pricing opportunity.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: i just heard from a client we hadn’t heard from in seven or eight years and he says he has an “emergency.”

more: the top tip for reviewing tax returns | you have to start somewhere | nine reasons not to specialize | hiring experience vs. training inexperience | a friendly chat or a billable discussion? | when selling a firm to staffers is tricky | courting a client? don’t give too much away for free | nine tips for a healthier tax season | fifteen strategies for first-time supervisors
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

here’s the story: he had started a business eight years ago and he used us for a couple of years until some big money was raised and they switched to a big four firm. he also stopped using us for his personal return, switching to the big four firm. then, just last week, he called us to ask for assistance in evaluating a multimillion-dollar termination package. he needed to meet with me right away because he did not want the offer to slip away. he then asked what the rates would be and could he have a discount because he was once a good client (he was – seven and eight years ago!). the asking for a discount left a bad taste in my mouth.
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the top tip for reviewing tax returns

what would you say?

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: i know you have a lot of advice on how to review tax returns. what’s your single best tip?

more: you have to start somewhere | two options for collecting past due fees | when board service gets tricky | eleven ways new staffers can help bring in business | busy season is over, so it’s time for some resolutions | want to merge? six steps to take | how to start providing family office services | every accounting firm needs quality control | no one listens to you? change how you talk | 47 types of business valuation to provide | thirteen things to consider before you sell your practice | uncooperative partner might not be the problem
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

response: i had never thought about this until this question was asked.
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you have to start somewhere

wishful thinking won’t move you forward.

by ed mendlowitz
the 30:30 training method

question: thanks for the training memo. although i requested your memo because i know i need help with improving efficiency and the like with my practice, many of your thoughts and ideas i have already thought of but simply did not implement them.

more: two options for collecting past due fees | you can’t win with lowballing | yes, you have to share work papers | should you merge? here’s how to chart your path | hold staff accountable if you want them to listen to you | how to raise your rates | higher fees to start: ten ways to make your tax season better | three ways to start an accounting practice | free consultation? not always | referral fee? forget it
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

response: i think you hit part of the nail on the head in what you wrote – you’ve had many of the ideas and “simply did not implement them.”
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two options for collecting past due fees

you can do more work, but under certain conditions.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: client didn’t pay his bills to me, doesn’t return my phone calls and his secretary keeps sending me the tax notices he gets with notes of “when are you going to take care of them?” i tell her that i need the client to call me before i can do any more work and she ignores this and keeps sending me the notices and other tax correspondence he gets.

more: you can’t win with lowballing | nine reasons not to specialize | hiring experience vs. training inexperience | a friendly chat or a billable discussion? | when selling a firm to staffers is tricky | courting a client? don’t give too much away for free | nine tips for a healthier tax season | fifteen strategies for first-time supervisors | measure knowledge gaps (then close them) | should you offer financial services? | ready to retire? selling your practice is no strategy | 20 things you need for a business valuation
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

i don’t want to tell him i am dropping him because then i don’t think i’ll ever be paid. every year he goes on extension and he usually pays me half of what he owes when he sends me his tax info, but the past due amount has really accumulated to about three years’ fees. what should i do about getting paid?
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you can’t win with lowballing

when to let the next accountant take the losses.

ed mendlowitz
202 questions and answers: managing an accounting practice

question: a client of 10 years was paying a fixed fee that was now a little less than half of our time charges. also, there had been a gradual scope creep with additional services being forced on us without any extra fees.

more: nine reasons not to specialize | when board service gets tricky | yes, you have to share work papers | hiring experience vs. training inexperience | eleven ways new staffers can help bring in business | should you merge? here’s how to chart your path | a friendly chat or a billable discussion? | busy season is over, so it’s time for some resolutions | hold staff accountable if you want them to listen to you | when selling a firm to staffers is tricky | want to merge? six steps to take | how to raise your rates
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

the cpa had not received an increase in six years because of the client’s constant complaining that the fee was too high. the client just told us they had a quote from another firm that was half of ours, and said if we didn’t match it, they would leave us. what should we do?
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use surveys to generate new revenue

 

blue pencil marking survey

download the sample client satisfaction survey.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: is there any value to sending clients a survey?

more: nine reasons not to specialize | when board service gets tricky | eleven ways new staffers can help bring in business | busy season is over, so it’s time for some resolutions | want to merge? six steps to take | how to start providing family office services | every accounting firm needs quality control | no one listens to you? change how you talk | 47 types of business valuation to provide | thirteen things to consider before you sell your practice | uncooperative partner might not be the problem
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

response: yes. our firm sends a survey with every deliverable to a client. we want to know what they think and how they feel about our service.
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nine reasons not to specialize

young black woman sitting in front of laptop looking thoughtful

think about what you really want.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: can you recommend a specialty i can get involved in to generate more revenue for my practice?

more: when board service gets tricky | yes, you have to share work papers | should you merge? here’s how to chart your path | hold staff accountable if you want them to listen to you | how to raise your rates | higher fees to start: ten ways to make your tax season better | three ways to start an accounting practice | free consultation? not always | referral fee? forget it | how much is your tax practice worth?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

response: my discussion with the cpa indicated that his practice consisted of a large individual tax return practice and many monthly business clients. he thought financial planning or business valuations would be a way to expand his services and make more money. it did not seem he had an intellectual interest in these areas.
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when board service gets tricky

businesspeople having a meeting over coffee sitting together at a table discussing a document, young man and two middle-aged women present

keep the totality of the relationships in mind.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: i am on the board of directors and am treasurer of a not-for-profit organization. one of the board members is an officer of a commercial bank where we have our accounts.

more: yes, you have to share work papers | hiring experience vs. training inexperience | a friendly chat or a billable discussion? | when selling a firm to staffers is tricky | courting a client? don’t give too much away for free | nine tips for a healthier tax season | fifteen strategies for first-time supervisors | measure knowledge gaps (then close them) | should you offer financial services? | ready to retire? selling your practice is no strategy | 20 things you need for a business valuation
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

the organization wants to get a one-year cd with some excess funds they have. it turns out that the interest rate is less than half of what we could get from a local savings bank. i suggested that we open the cd in the savings bank and the bank officer got very agitated and threatened to cut off the bank’s support of the organization if we did not keep the funds in his bank.
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