…as accounting firms redefine value. by bruce w. marcus professional services marketing 3.0 today’s modern accounting firm — and there are more of them than we think, and fewer of them than we’d like to think – is still evolving. … 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?
by sandi smith leyva, cpa
accountant’s accelerator
with labor day closing in, it’s a good time to take stock of where we stand for the year, plus re-group as needed before the 2014 busy season is upon us. with so many changes in software, politics, tax laws, and global standards, it’s pretty easy to feel a little disorganized.
more for soloists and small firms: the five essential skills accountants need today | the seven essential components of a simple marketing plan for accountants | take six big steps to go beyond compliance services | when your business needs to be rebooted | two steps to easy cross-sells | the hot new tech product for automated data entry | five value-add service areas to take you beyond bookkeeping | six money-making strategies to take you beyond quickbooks | proactive ways to get more referrals | the three biggest money leaks in your practice | new client opportunities with mobile apps | six questions to launch your summer strategy sessions | what most accountants miss in the five simple steps to get more clients | accountants, do you know your opportunity number? | five ideas to reduce client price-sensitivity | rise to the top with a fresh elevator speech | four ways to practice entrepreneurial perseverance | 5 mistakes to avoid when seeking new clients | the top 12 business card blunders accountants make | seven tips to keep the clients you have | how to attract clients like a magnet | eleven easy ways to deliver more value to clients
here are three steps to help us take stock of our foundational business goals, re-evaluate our big picture, and get us centered as we enter the next quarter. 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 →
beat the billable hour by doing more than just taxes or quickbooks.
by sandi smith, cpa
accountant’s accelerator
as compliance services become more commoditized and automated, accountants are faced with how this affects their practice and their bottom line. they can:
those are pretty much the options available to keep profits from shrinking. but today i want to focus on the third point above, adding new services, and provide you with some ideas on how you may be able to serve your tax compliance clients in new ways.
more for soloists and small firms: when your business needs to be rebooted | two steps to easy cross-sells | the hot new tech product for automated data entry | five value-add service areas to take you beyond bookkeeping | six money-making strategies to take you beyond quickbooks | proactive ways to get more referrals | the three biggest money leaks in your practice | new client opportunities with mobile apps | six questions to launch your summer strategy sessions | what most accountants miss in the five simple steps to get more clients | accountants, do you know your opportunity number? | five ideas to reduce client price-sensitivity | rise to the top with a fresh elevator speech | four ways to practice entrepreneurial perseverance | 5 mistakes to avoid when seeking new clients | the top 12 business card blunders accountants make | seven tips to keep the clients you have | how to attract clients like a magnet | eleven easy ways to deliver more value to clients
even if you don’t do taxes, you will find some ideas for new related services you can think about offering to your clients. (remember, it’s easier to sell to existing clients than to acquire new ones.) read more →
frank stitely, cpa, cva, and the managing member of stitely & karstetter cpas, likes to stir things up – especially when it concerns the intersection of timesheets and value pricing. here’s a piece of fiction (we assume) that he titles…
– the editors
cpa firm nightmares
by frank stitely
in this week’s show, my brother and famed practice management consultant, gordon stitely, visits the venerable firm, value, billem, and dunn. vb&d managing partner bob cratchett took over the firm when founding partner izzy dunn died unexpectedly after jamming an rj45 cable into an electrical socket. cratchett knew he had to modernize the firm, and he started by banishing timesheets.
related:
why value billing won’t transform your life
the problem with frank stitely?
when he left his previous employer, scrooge & associates, p.c., he vowed never to sell time again. he would sell knowledge. he hired a value billing consultant to implement a new business model that eschewed timesheets in favor of trusting employees, since costs will always take care of themselves.
here comes gordon striding into cratchett’s office. read more →
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:
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.
and three reasons why it’s becoming “the new normal.”
if you think clients and costs are squeezing the profits out of your practice, then be happy you’re not trying to operate in europe or asia.
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 →
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:
the survey also breaks down pricing patterns by region, and adds data on client payment options.
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 →
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 →
but that’s not the real problem.
a media outlet contacted me the other day to ask:
“what challenges or opportunities do you predict for the accounting profession in 2013?”
here’s what i told them: read more →