pricing rates

why value billing won’t transform your life

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what do cpas have in common with french fry cooks? maybe more than you think.

by frank stitely, cpa
stitely and karstetter 

a french fry professional, who was employed by a national franchise with a creepy clown for a mascot, wondered how he could make more than his current $7.25 per hour.  so he attended a value billing seminar.  when he returned, he opened an excel spreadsheet and calculated his worth to his employer.

more about pricing and billing:  the problem with timesheets? not enough timesheets!   |   the problem with frank stitely? we need more frank stitelys!  |   who’s missing in action from your workflow processing system?  | how to make an extra $72,000 by working smarter  |  seven ways to increase fees in 2013  | the big issue for 2013: fee pressure   |   five ideas to reduce client price-sensitivity  |

he determined that he was personally responsible for the frying of 1,126,438 french fries in a year.  while he earned only $15,000 in a year, his employer sold his output for $30,000.  using what he learned in the seminar, he scheduled a meeting with his boss to ask for a raise, because he wasn’t making what he was worth. read more →

the problem with frank stitely? we need more frank stitelys!

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in response to “the problem with timesheets? not enough timesheets!“ more comments here.

by greg kyte
www.gregkyte.com / @gregkyte

frank stitely’s 卡塔尔世界杯常规比赛时间 article “the problem with timesheets? not enough timesheets,” a courageous response to what he refers to as “the value billing taliban,” was flawless from start to finish.

to start with, since most timesheet detractors are required to grow a beard, are pissed that women can read, and have up to three wives, comparing them to the taliban was spot on, and was in no way incendiary or belligerent.

with insights like frank stitely’s, we can all come closer to winning the race to the bottom.

next, he made a great call telling everyone to stop reading his article except firm owners and future firm owners. only firm owners can understand how to run a firm in the same way that only highly successful nfl players can ever be great nfl coaches. take vince lombardi. he never played pro football, and now people are like, “vince who?” read more →

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 →

when not to offer a free initial consultation

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are we giving it away too easily?

ed mendlowitz answers some of the toughest questions practitioners can throw at him. he’s the right one to ask. after more than 40 years in the business – building his own practice, running the firm, and eventually selling it to a major regional firm, withumsmith+brown, where he remains a senior partner and consultant to professional services clients – he has the answers.

related: measuring growth in yourself, staff and partners  |  what do you think you’re doing?  | can you teach judgment?  |  clients’ calls at home  | what you need to know before expanding into business valuation | asking an attorney for a referral fee  |  are partner retreats really worth the cost? | audit reports without doing the work? | should i really spend the time making checklists? | what’s a tax practice worth today? |

question: i was wondering what your thought is regarding initial consultation fees. currently, i do not charge a fee for an initial consultation, and it seems that most cpas do not charge either (at least not the sole-practitioners that i know). would the fee deter new clients or actually weed out the ones who are most likely not going to become clients anyway? if a fee is charged, then how much, and how long should the consultation last? should the fee be applied to any work that i am eventually engaged for?

it seems to be a toss-up between two different philosophies:

  • people value something more when they pay for it
  • you don’t want to create any barriers to entry

i am eager to hear your thoughts. read more →

revenues on the rebound for most u.s. cpas

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billing rates and partner incomes gaining strongly.

most cpa firms are reporting some measure of revenue growth, according to one widely followed survey obtained by 卡塔尔世界杯常规比赛时间.

“and while the profession has yet to rebound to pre-recession levels,” the authors say, “it is steadily gaining momentum.”

furthermore, the smallest firms appear to be the biggest winners, with 33% growth in net client fees per professional and per partner.

the report includes data and trends on:

  • increase in net fees
  • fees per partner
  • net remaining per partner
  • average partner billing rates
  • average partner compensation
  • utilization rates
  • paid time-off
  • firm technology
  • online technology

read more →

billing rates jump sharply at cpa firms

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a sign of a full economic recovery for the profession?

pro members: click for details, charts, analysis

by rick telberg
exclusive to 卡塔尔世界杯常规比赛时间

cpa firms are shaking off the effects of years of a fee-cutting death-spiral that halted growth, pinched profits and forced painful staff reductions.

instead, firms are now pushing through some of the most aggressive price increases in years, led by audit services, followed by tax prep, bookkeeping and compilations. read more →

five tech questions before adopting value pricing

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keys to success in value pricing.

by drew west and ken mccall
boomer consulting

in order to avoid competing on price for commoditized services in the face of a wider array of competitors, more and more firms are evaluating value pricing as a model for the future. industry leaders including large firms such as kennedy & coe, llc in kansas and smaller ones like lawhorn cpa group, inc. in tennessee have already made the move.

perhaps your firm is already considering adopting a value pricing strategy but you wonder if your processes and technology will support it. read more →