pricing, fees & billing rates

value pricing in uncharted waters

by

businessman sitting on scales with stack of coins in other trayand when hourly billing and fixed fees make more sense.

by ed mendlowitz
call me before you do anything: the art of accounting

equitable is not the same as equivalent.

more: testifying before congress | creative ways to retain staff | what cpas can learn from lawyers and doctors | my top 10(ish) regrets | social security is an asset class | what’s your negotiating style? | how to make your own opportunities
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

i use the word “equitable” because i have charged three completely different fees for the same result. “equitable” refers to the value delivered and charged to the client. but it’s not “equivalent.” and the difference can determine your pricing strategies.

with many accountants now working in uncharted waters helping clients get through the covid-19 crisis, the pricing question is especially important.
read more →

4 ways to bill clients

by

two businesswomen shaking hands in modern officeof course we have a preference.

by jody grunden

when i attend cpa conferences across the united states, i often hear from cpas: “i don’t want to bill for my time.”

so, how do you bill your clients?

more: 3 measures of the effectiveness of your team | transferring clients to a new employee | why process is key to remote work | innovate for the right reasons | creative perks for remote employees | 10 interview questions for unlocking true potential | toss the org chart for an accountability chart
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

client billing can include hourly billing, but it can also include flat-fee, retainer-based and/or value-based billing. most people use one of these four methods. some use all of them or even a hybrid.
read more →

quoting tax resolution fees

by

5 scenarios with fee quotation breakdowns.

by jassen bowman
tax resolution systems

one of the most common questions i get from practitioners adding tax resolution services to their service offerings has to do with fees. many practitioners see the benefit of offering flat-fee service options, while others choose to stick with their existing hourly fee model.

more on tax resolution: basics of tax season work flow | overcome objections in 7 steps | how to reactivate lost clients | don’t ignore your existing leads | some office nuts and bolts | the importance of goals and affirmations | market to your ideal clients
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

these are some example of how i quote fees when running a high-volume tax resolution practice. these scenarios do not represent any one particular client i’ve had. rather, they each represent dozens of similar situations i’ve worked on. these scenarios are the norm if you’re focusing on 941 representation. for completeness, i’ve also added a 1040 scenario as an example.
read more →

how to set a profitable price every time

by

the right clients will be willing to pay fair prices.

by gabrielle fontaine
addviserplus

whenever in negotiations with a potential client, do you know when to walk away, or do you feel forced to lower your price just to win the sale?

more on pricing:  4 ways to bill clients   |  timesheets: the nuclear option  |  joey havens on advanced pricing |  i lost a client to an accounting firm with cheaper fees |  august aquila: what marketers need to know about pricing |  value pricers ignore half the pricing puzzle |  where marketers fit in the pricing process |  the value-pricing con job |  price it right: how to value accounting services

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

especially when attempting to use flat-fee pricing, many accounting professionals get caught up in doing anything to win new clients. that’s a mistake.
read more →

what’s your negotiating style?

by

businesspeople having a meeting over coffee sitting together at a table discussing a document, young man and two middle-aged women presentthe meeting is the goal.

by ed mendlowitz
call me before you do anything: the art of accounting

we all have our own styles. many have different styles for different things. over the years i’ve developed an individual style for negotiating on behalf of clients that i have been very successful with, which i am sharing with you now.

more: why tax time is the best time to get new business | problem clients | when pushing the pencil pays off | when to say no to pro bono work | i used to hate quickbooks
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

when entering a negotiation, it is very important to have clients clearly articulate their thoughts about what they want. this takes time and patience, along with some prodding and challenging. but if it’s done right, clients will be clear about what they want.
read more →

4 ways to bill clients

by

businessmen standing on dollar billwhat services do your clients value the most?

by jody grunden

when i attend cpa conferences across the united states, i often hear from cpas: “i don’t want to bill for my time.”

so, how do you bill your clients?

more: 3 ways to keep client files safe from security threats | how ‘tech stacks’ can help you standardize | automation and the future of accounting | the rise of the virtual cfo | ready to be a virtual cfo? | the only three metrics you need to measure staffers
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

client billing can include hourly billing, but it can also include flat-fee, retainer-based and/or value-based billing. most people use one of these four methods. some use all of them or even a hybrid.

let’s take a closer look at each of them:
read more →

timesheets: the nuclear option

by

lamentations on the billable hour: jamey johnson’s “the dollar.”

nuke ’em: kill timesheets before they kill the profession.

by ed kless

the litany of “challenges for the profession” repeats the narrative that has been well documented and continues to grow for over the last decade:

  • while there are more people graduating with degrees in accounting, fewer of them are sitting for the cpa exam. this is leading to fewer new hires for firms.
  • the new hires they do have are “millennials” who desire a challenge and think they should be made partner sooner rather than later.
  • attrition, especially at the mid-career level, is over 10 percent and is mostly initiated by the professional, not the firm.
  • the loss of people in the middle and bottom of the pyramid is eroding the traditional economic model. non-equity partners are increasing and funding for partner buyouts is disappearing.
  • cries of “we must become more efficient,” and/or, “we must embrace new technology,” and/or “we must hold people more accountable,” reverberate in meetings.
  • compliance work continues to flatline and while new offerings are growing revenue, they are not growing fast enough. worse still those that do this work are often not even cpas!

more ed kless at 卡塔尔世界杯常规比赛时间: your time has no inherent value  |  ed kless: what is strategic pricing?  |  ed kless on factors affecting price sensitivity  |  a radical close look at value pricing  |  billable hour in the extreme  |  the four factors for fixed pricing

goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

presentation after presentation is viewed on the modern equivalent of the campfire, the conference room projector. “our profession is sick, even dying. we might have cancer. we really don’t know, but it is bad.” it’s true, the profession does have cancer. the good news is, we know the cause and it is curable.

it is called “a timesheet.” it be must cut it out completely before it kills.

read more →

i lost a client to an accounting firm with cheaper fees

by

businessman holding two papers with happy and angry face each on themwhy they came back.

by ed mendlowitz
call me before you do anything: the art of accounting

i have never been the lowest-priced accountant, but neither was i the highest.

more: getting a referral from an adversary | the background to saving a business | secret success formula: e=fs4uh | becoming an expert in irs collections | how hidden bias taints results | when to keep some plans to yourself | when writeups went extinct | kennedy’s acceptance speech | what consulting is
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

sometimes prices charged are subject to the perception of the client and not reality. fees are always related to the value provided, although that isn’t always evident.
read more →

busy season: the busiest ever?

by

tax professionals expect a very busy busy season.

today’s bonus question:
the tcja impact on your practice and your clients
join the survey: get the results.

busy season barometer: 63 percent expect an increase in clients this year, and 78 expect higher revenues.

by rick telberg
卡塔尔世界杯常规比赛时间 research

one thing’s certain about the 2019 tax season: nothing’s certain.

the early results from the 16th annual 卡塔尔世界杯常规比赛时间 busy season barometer show tax practitioners hopeful but nervous.

more busy season:  tax season 2019 launches with a whimper  | 16 big questions for tax season  |  survey: tax accountants alarmed by tcja & shutdown  |  shutdown: what to tell tax clients during “the lapse”   |  beware the leeches and consultants   |  charitable giving under tcja  |  why padding tax deductions is a risky proposition  |  handling the delay in 199a regs |  survey: clients rush for tcja answers |goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

for many, the season seems to be shaping up for more clients and increased revenues. at the same time, however, practitioners are showing unprecedented concerns that instead of success, they could end up with a mess.

and mess or success, they’re in for a lot of work. read more →

value pricers ignore half the pricing puzzle

by

profits.

by frank stitely
the relentless cpa

the best thing about value pricing is that you can succeed with just one piece of information – the value of your services to clients. you can toss your time sheets or any other cost tracking.

more stitely: beware the leeches and consultants | 2 lessons clients taught me | no consultant can solve your biggest problem | the great marketing hoax | what the value-pricers get wrong | 3 rules for asking great tax-return questions

goprocpa.com

exclusively for pro members. log in here or 2022世界杯足球排名 today.

the income statement for a value-pricing cpa firm consists just of revenue – no expenses. expenses are irrelevant when we have forward-looking metrics such as client and employee satisfaction.

let’s have a little fun with the core tenet of value pricing. you only need know the value of your services to a client. you can ignore the cost of providing the services.

read more →