![\"\"](\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/01\/profit-squeeze-crop-profit-squeeze-vise-depositphotos_4716704_xl-2015.png\")
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twelve causes to repair asap.<\/strong><\/p>\n by hitendra patil<\/i> we discussed that you need to explain the why <\/strong>of your client accounting services pricing. a price is a measurable number. \u201cvalue\u201d of each of your cas component also needs to be reasonably measurable for your clients and prospects to understand the why. this is easier said than done, and you need to keep rewriting the value statements, testing them and revising them.<\/p>\n more: <\/b>price by outcome, not time spent<\/a> | want higher profitability? turn to cas<\/a> | structure insights as what-why-what<\/a> | set your processes apart in nine steps<\/a> | five ways to overcome cas staffing challenges<\/a> | think cas isn\u2019t for your firm?<\/a> | convince your firm of cas value<\/a> the best way to define the measurable value of each of your cas components is to state it from the client\u2019s perspective, i.e., which business decisions the client can make based on the information\/insight\/intelligence you provide in a given cas component, and under which circumstances. then state the measurable impact of such business decisions. e.g., <\/em>\u201con an average, we help our clients reduce money stuck in inventory by 11 percent, which in many cases results in lower overdraft interest costs by about 1.3 percent annually.\u201d without the numbers in your value statements, clients can feel you are pitching marketing fluff. marketing legend jay abraham says there are only three ways to grow your business, but there are infinite combinations and variations of ways you can go about working with each of these areas. those three ways are:<\/p>\n while the first one above is directly related to the marketing and sales competencies of your firm, cas helps you achieve the next two. and your cas pricing can be adjusted to make those two ways more profitable for your firm.<\/p>\n increasing the transaction value<\/strong><\/p>\n your cas packages, when designed expertly, can quickly move the prospects toward the higher level of price. it does not always mean you will do more work for the client. it can result in efficiency gains adding to the profitability, e.g., when staff works on a given client because the staff is producing multiple deliverables for the same clients, there is no need for that staff to keep switching between various clients\u2019 work too frequently. in an interesting study, \u201cprogrammer, interrupted: data, brains, and tools,\u201d microsoft found that a programmer takes between 10-15 minutes to start editing the code after resuming work from an interruption. it also found that there can be as high as 20-30 percent overhead in \u201cwork resumption costs.\u201d it is higher when \u201cinformation density\u201d is higher in a given task.<\/p>\n accounting can be considered as high-information density work for sure. multitasking, according to brain science, is a myth. \u201cswitching\u201d between multiple client tasks is akin to work interruptions. when your staff produces deliverables for more service components for the same client at one go, your \u201ccost\u201d decreases, thereby increasing your profitability.<\/p>\n secondly, as you deliver more actionable insights to your cas clients, their business (should) grow, and that pushes the work volume upward. thus, your revenue from the client goes up.<\/p>\n thirdly, as the client\u2019s business grows, the higher-end cas components become necessary for your clients. hence, they will end up upgrading to your next higher level of cas package, thereby resulting in revenue growth for your firm.<\/p>\n as you deliver consistent value, your clients generally want you to do more work for them. you can sell add-on services, partner services, solutions and so on. this has a direct impact on your firm\u2019s top line, as well as the bottom line.<\/p>\n in effect, cost reduction and revenue growth will have a double-whammy positive impact on your cas profitability.<\/p>\n increasing the frequency of repurchases<\/strong><\/p>\n cas, by very design, requires longer-term agreements, i.e., providing periodic services to your cas clients is a must. contrast that with other work accountants do, e.g., tax return preparation, sales tax filing, quarterly\/annual compliance and so on. when a client\u2019s business grows, that client may need weekly reports instead of monthly. some clients may even need daily reports instead of weekly. an increase in the frequency of service delivery necessitates that clients pay your firm more fee commensurate with the outcomes they receive. \u201cusage-based fee\u201d is a concept well entrenched in the software solutions world. it also applies well to the cas world of accountants.<\/p>\n adjusting your cas profitability <\/strong><\/p>\n when all of these things are happening, it gives you more data to analyze your firm\u2019s cas profitability. it will be possible for you to allocate your operating costs to each client\u2019s work and prepare a per-client profitability worksheet. you will invariably find that for the same cas package level, some clients are more profitable for your firm than others. you need to dig into the causes of why so. you might find causes like:<\/p>\n when you find the reasons, remedy them across that cas level to ensure a majority of clients within the same cas package are more or less similarly profitable for your firm.<\/p>\n one of my friends, an experienced cpa, increased the revenue of his cas practice by 75 percent in five years, without increasing the number of clients! sixty-five percent of his firm\u2019s revenue comes now from cas and cfo services. it is because he managed to create and sell additional services to enhance the transaction value as well as repurchase frequency.<\/p>\n","protected":false},"excerpt":{"rendered":" twelve causes to repair asap.<\/strong>
\nclient accounting services: the definitive success guide<\/i><\/a><\/p>\n
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exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
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\ntip:<\/strong> think of the proverbial \u201cwhat keeps clients up at night,\u201d but think of it in the words clients describe those concerns\/anxieties. e.g., if the client expresses \u201ci never know how much money i am really making,\u201d you want to write the value of your income statement as, \u201cyou will exactly where the money came from, where did it go and exactly how much you made after providing to taxes. we can deliver this peace of mind every week.\u201d<\/p>\nhow to make your cas pricing more profitable<\/h3>\n
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<\/a>
\nby hitendra patil<\/i>
\nclient accounting services: the definitive success guide<\/i><\/a><\/p>\n","protected":false},"author":1363,"featured_media":57588,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3058,3120,3002],"tags":[],"class_list":["post-118206","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-client-accounting-services","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\n