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 →
what econ 101 and inelastic demand curves teach us about billing rates.
by frank stitely, cpa, cva
before we turn our hymnal to page 10 and sing that old favorite “we’re not selling time. we’re selling knowledge,” let’s consider if clients are buying what we’re selling.
when you go to the grocery store, do you ask, “i’d like to buy the cow milking knowledge of a farmer?” of course not. you ask for a gallon of milk. customers buy outcomes, not inputs. read more →
how good communication habits can head off problems.
by ed mendlowitz
implementing fee increases
professional fees are typically billed based on time. yet, clients want outcomes and place a value on results, which doesn’t necessarily relate to time spent.
ingrained habits are hard to break away from. for ages, many professionals quoted jobs by providing hourly rates and possibly a range of expected hours. some projects are open-ended in the sense that no one knows where it will take them and what will be uncovered once work commences. this might include a forensic investigation, litigation where the discovery process becomes acrimonious, unraveling transactions in a complicated bankruptcy, a first-time audit of a multinational corporation or a tax audit for a reasonably sized business.
however, for most work, there is an understanding of what will need to be done and the approximate value to the client. this could include an annual audit, tax return, setting up a cost accounting or internal control system or a transfer price study. read more →
new trends emerge in net profit margins and accounts receivable.
after years of intensifying and debilitating pressure on bottom lines, profits at tax, accounting and bookkeeping firms appear to be hitting 10-year highs, according to information obtained by 卡塔尔世界杯常规比赛时间 from sageworks, the specialist in tracking private-company financials. 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 →
competitors vie for clients on price and promises…
by ed mendlowitz “tax season opportunity guide“ question: a client owes me a very large amount of money and seems to be giving me a runaround and i need to get the check quickly. the client has the cash, so … continued
rates drop by $4 an hour for basic accounting services.
by 卡塔尔世界杯常规比赛时间 staff
a new survey of mostly solo and small-firm tax and accounting practitioners shows average rates and fees for standard accounting and bookkeeping services tasks are tracking downward. read more →
how to focus on value first.
by sandi smith leyva, cpa
accountant’s accelerator
how do you talk to a prospect or client about your fee?
some of the answers i have heard are:
most accountants spill the beans about their rates way too early in a conversation with a future client. so when should you talk rates?
the best answer is: read more →
ed mendlowitz, cpa, abv, pfs author of “implementing fee increases“ 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 … continued
even if the first one gets away.
by ed mendlowitz, cpa, abv, pfs
author of implementing fee increases;
the 30:30 training method; and tax season opportunity guide.
question: i just heard from a client we hadn’t heard from in seven or eight years and he says he has an “emergency.”
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 since he did not want the offer to slip away. he then asked what the rates would be and could he have a discount since 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.
ed, how should i handle it? i feel like i could bill $2,000 to $3,000 and i want to do the work. is that the right price?
ed mendlowitz, cpa, abv, pfs
author of “implementing fee increases“
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. 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 year’s fees. what should i do about getting paid? read more →
when to let the next accountant take the losses.
ed mendlowitz, cpa, abv, pfs
author of “implementing fee increases“
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. 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 →