fees

amid industry expansion, cpa firms remain cautious in hiring

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the good news: 10,700 accountants hired. the bad: profit pressure.

the u.s. tax, accounting, and bookkeeping industry added a seasonally adjusted 10,700 jobs in march, the ninth straight month of year-over-year expansion, according to 卡塔尔世界杯常规比赛时间 sources. women and non-exempt employees are making up the bulk of the workers returning to the industry, but not, it seems, to cpa firms, where caution seems to be continuing. at the same time, 卡塔尔世界杯常规比赛时间 finds renewed pressure on fees and pricing while utilization rates and salaries continue to increase.

– rick telberg
卡塔尔世界杯常规比赛时间 research

in this report:

  • overall hiring trends
  • women employment
  • cpa firm hiring
  • overall trends in pricing and billing rates
  • cpa firm pricing trends
  • tax prep pricing
  • pricing for bookkeeping and compilation
  • number of hours worked per week
  • trends in wages and earnings

 

the 3% increase to 932,900 full-time equivalents from the year-ago month represents the biggest jump in a year. still, the rise left the industry’s head count 14,100 jobs shy of the month’s record high of 946,700 in 2008.

all employees, thousands

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seven world-tested strategies for coping with fee pressures

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global accountants’ association warns profit squeeze may “the new normal.”

in the face of profit problems for accounting practices worldwide, the international federation of accountants, which represents the world’s national accountancy institutes, is warning the global profession that fee pressures may be “the new normal.”

with many clients around the world “faced with subdued demand” for their products and services, “it’s not surprising to find small- and medium-sized practices facing demands to negotiate fees or cut prices.”

related: fee pressures emerge as worldwide problem

with that in mind, ifac suggests seven strategies: read more →

accountants chop prices for schedule c’s

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but most other rates are increasing.

in another sign that the profession is pushing through at least some price increases in a highly fee-pressured environment, a new survey reports that professional tax preparers this year will be charging an average of $246, up 6%, for a typical 1040 with a schedule a and a state return. still, the survey finds price pressure for schedule c’s.

the survey shows pricing for the bread-and-butter forms delivered by local independent tax professionals, including:

  • form 1040 schedule c (business)
  • form 1065 (partnership)
  • form 1120 (corporation)
  • form 1120s (s corporation)
  • form 1041 (fiduciary)
  • form 990 (tax exempt)
  • form 940 (federal unemployment)
  • schedule d (gains and losses)
  • schedule e (rental), and
  • schedule f (farm)

the survey also breaks down pricing patterns by region, and adds data on client payment options.

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seven ways to increase fees

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the techniques for telling clients you’re raising your rates.

by ed mendlowitz
author of “implementing fee increases“

any time is a good time is a good time to review your fees and consider increasing them.  but the beginning of the year or a new season is especially good.

keep in mind that whatever the method you choose, you are making a business decision that should be handled with care and finesse and can affect the relationship with the client that you have been cultivating.

also, losing the client is always a threat, so you must be prepared for this. further, not raising the fee also presents a threat to your long term success and business viability, and this must also be considered.

here are seven methods of increasing fees: read more →

the problem with timesheets? not enough timesheets!

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time tracking and the v.b.t. (value billing taliban)

by frank stitely, cpa
stitely and karstetter 

i have long been a true believer in value billing.  five times a day i kneel towards the east and pray, “i am not selling time.  i am selling expertise.”  however, i just can’t follow with the end of the prayer which goes, “time trackers are evil.  we must stone them.”   time tracking is essential to value billing, done profitably.

more unconventional wisdom from frank stitely, cpa: who’s missing in action from your workflow processing system?  | how to make an extra $72,000 by working smarter

let’s invite some people to leave our discussion.  if you are a coach, consultant, or some other type of cpa advisor, who has never owned an equity position in a cpa firm, please exit stage left.  yes, i know you have decades of experience observing cpa firms.  i have decades of experience watching professional football.  that doesn’t qualify me to coach the redskins.  veteran poker players know that playing someone else’s hand is easier than playing your own when big money is on the table.  if you’re a cpa firm employee, please stay.  some day you’ll need this information.  but sit there silently until we are done.

there are three reasons time tracking is important: read more →

five ideas to overcome client price-sensitivity

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just in time for busy season.

by sandi smith
the accountant’s accelerator

no matter how small or large your practice is or how experienced you are, you’re probably going to meet some prospect or clients this busy season who are price-sensitive. many of you try to run from them as far away as possible, and others of you tell me you have to take these clients or you wouldn’t have a full practice.

sandi smith
sandi smith

more for soloists and small firms from at 卡塔尔世界杯常规比赛时间: rise to the top with a fresh elevator speech  •  four ways to practice entrepreneurial perseverance • 5 mistakes to avoid when seeking new clients •  the success secrets women already know  • his and her brains at work in tax and accounting  • the power of deadlines in closing a deal • on the road to a stress-free life: identify your character strengths • the missing ingredient in your marketing that will make all the difference  •

so you might already have a solution to dealing with price-sensitive clients that you’re happy with. if you don’t, or are ready for more ideas, this article is for you. read more →

new survey results: busy season prices heading up 4.1%

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source: 卡塔尔世界杯常规比赛时间

after a conservative 3.2% price increase last year.

complete findings are published in the 卡塔尔世界杯常规比赛时间 practitioner’s tax season performance review and outlook report. (learn more here)

tax and accounting practitioners are again cautiously raising prices this year, prompted by years of little or no rate hikes and continuing step-ups in labor and technology costs, according to new 卡塔尔世界杯常规比赛时间 survey data.

becky klotz, the head of small local firm of tax consultants in oregon, says that, with an economy where “i don’t see much improvement in the near future,” her firm will be raising pricing, but “just a bit.”

on the other hand, wray rives at rives cpa in coppell, texas, is holding the line. “we believe we are priced at the right level for our market,” he says.

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big four revenues bounce back

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up 1.4% in 2010 after 7% drop in 2009. deloitte takes top spot from pwc.

via “the 2010 big four firms performance analysis” by big4.com

after an extraordinary period of continuous revenue growth from the early 2000s to 2008, combined revenue for the big four firms fell 7% in 2009, then recovered in 2010 and seems headed for bigger advances this year, according to “the 2010 big four firms performance analysis” by big4.com.

source: big4.com

in 2009, revenue decreases in us dollar percentage terms ranged from negative 5% for deloitte to negative 7% each for ernst & young and pricewaterhousecoopers to negative 11% for kpmg. but in 2010, the situation improved remarkably, with $95 billion combined revenue for the four firms in fiscal 2010 increasing 1.4% from $94 billion in fiscal 2009 in us dollar terms.

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instant download: click for the 2010 big four firms performance analysis by big4.com (pdf, 18 pages)

revenue increases in us dollar percentage terms ranged from negative 0.9% for ernst & young, 1.5% for pwc, 1.8% for deloitte and 2.6% for the fastest-grower, kpmg. kpmg also had positive growth in all its three regions and narrowed its revenue gap with e&y. e&y was the only firm whose full year revenues shrank, though the firm indicated that the second half of the fiscal year was much stronger, especially in advisory and tas.

the big story of 2010 was that deloitte with its 1.8% growth was able to beat pricewaterhousecoopers with its 1.5% growth to gain first place and become the largest accounting firm on the planet. in 2009, pwc was narrowly ahead of deloitte, but deloitte’s 2010 revenues of $26.578 billion was ahead of pwc’s 2010 revenues of $26.569 billion by an ultra-slim, but very significant, $9 million. ernst & young took the third spot at $21.3 billion, and kpmg maintained its position as the smallest of the big four firms at $20.6 billion, but narrowed the gap against e&y.
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