fees

collecting past due fees

by

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 →

the low-ball pricing game is for losers

by

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 →

amid industry expansion, cpa firms remain cautious in hiring

by

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

read more →

seven world-tested strategies for coping with fee pressures

by

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

by

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.

read more →

seven ways to increase fees

by

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!

by

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 →