i’m 76. should i slow down? how?

senior man working at desk

many considerations factor into the best time to retire.

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

question: i am 76 and am starting to think about slowing down and selling my practice. i am a sole practitioner with three bookkeepers and a secretary/admin person working for me. i have a nice spacious office in a small building i own.

more: who to hire when it’s time to grow | hourly billing doesn’t cover the value; now what? | should you merge? here’s how to chart your path | when selling a firm to staffers is tricky | want to merge? six steps to take | courting a client? don’t give too much away for free | every accounting firm needs quality control | measure knowledge gaps (then close them) | should you offer financial services? | thirteen things to consider before you sell your practice | how much is your tax practice worth? | ready to retire? selling your practice is no strategy
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

i have been approached by a larger firm that wants to buy my practice, but they want a guarantee of retention, and i was thinking of working with them for two years to ease the transition, and then sell. how do i set up the work arrangement?

also, they want me to move into their office, but then i will have to sell my office and the real estate market is soft. also, we will negotiate the price now (a percentage of gross) but how do i know they won’t change their mind, or what happens if the transition period is not good and i have to pull out? what do you suggest i do or how should i proceed?
read more →

who to hire when it’s time to grow

young businesswoman speaking with client

management and review still will be needed.

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

question: a cpa sole practitioner with a few part-time staff told me that he has come to realize that he no longer had a practice, but a business, and wanted to hire a person for “growth,” not just someone to help him get through the day.

more: hourly billing doesn’t cover the value; now what? | ask for what you’re worth | 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
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

 

he wanted some suggestions of what type of person he should hire. read more →

hourly billing doesn’t cover the value; now what?

a lesson in applying judgment.

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

question: i helped a client get a bank loan, negotiated the rate and fees with the bank and had a tight covenant loosened. i prepared a personal financial statement, prepared a compilation statement for the business, projected financial figures and accounts receivable projections and reviewed and discussed them with the bank, and had numerous conversations with bank and client.

more: ask for what you’re worth | the top tip for reviewing tax returns | you have to start somewhere | two options for collecting past due fees | you can’t win with lowballing | 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
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

read more →

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.
read more →

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.
read more →

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.”
read more →

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?
read more →

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?
read more →