{"id":5129,"date":"2009-10-05t23:17:26","date_gmt":"2009-10-06t03:17:26","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=5129"},"modified":"2015-10-23t03:47:06","modified_gmt":"2015-10-23t07:47:06","slug":"whats-the-secret-sauce-for-cpa-success","status":"publish","type":"post","link":"\/\/www.g005e.com\/2009\/10\/05\/whats-the-secret-sauce-for-cpa-success\/","title":{"rendered":"what’s the ‘secret sauce’ for cpa success?"},"content":{"rendered":"

with client retention the top issue for firms, we go looking for answers.<\/strong><\/p>\n

by rick telberg
\nat large<\/em><\/p>\n

\"secret-sauce\"if you want some real answers for how to avoid losing clients, just start asking cpas how they\u2019ve managed to pick up new clients.<\/p>\n

that\u2019s exactly what i\u2019ve been doing lately. some of the answers are startling. all of them are instructional. most of the time, accountants can blame the cpa that their new clients were abandoned.<\/p>\n

mirella martorano, an independent accountant and tax practitioner near rochester, n.y., puts it succinctly, \u201cyou will lose a client if you charge too much, do not answer their phone calls, do not get their work done on time and do not give them the personal service that they deserve.\u201d<\/p>\n

\u201cyou may lose a client if you make a mistake,\u201d she adds. \u201cbut if you are honest about it and fix it, you may keep them if all the other things are in line.\u201d<\/p>\n

i like howard cox\u2019s take on it, too. \u201cthere are all kinds of ways to lose a client,\u201d says cox, director of business consulting at somerset cpas in indianapolis. \u201chowever, my experience is that when i pick up a new client, the prior cpa repeatedly made one or more\u201d of the following mistakes:<\/p>\n

1. failure to deliver the product, tax or accounting, in a timely manner.<\/p>\n

2. failure to respond to routine inquiries, e-mails or voice-mails, in a timely manner.<\/p>\n

3. failure to understand that the key to profitability is to maximize the lifetime value of a client and not in trying to squeeze the most fees out of an individual transaction.<\/p>\n

joshua nowack, who calls himself \u201cthe chief numbers guy\u201d at his own nowack strategic business advisory & cpa in the los angeles area, is still relatively new as his own practice owner.<\/p>\n

but he says he\u2019s been building his new business \u201cby doing three simple things.\u201d<\/p>\n

1. do what i say i’m going to do.<\/p>\n

2. charge what i say i’m going to charge.<\/p>\n

3. ensure that my client understands the value exchanged.<\/p>\n

i think most people naturally understand the first and second, but nowack calls no. 3 \u201cthe secret sauce.\u201d<\/p>\n

he tells the story of winning a client who had told him, \u201ci just don&apos;t understand what that guy did to earn $700.” in fact, nowack is not much cheaper. he may even be more expensive than the accountant he replaced.<\/p>\n

but, he explains, \u201cthe point is when you charge for a service, if a client doesn’t perceive the value, there is no reason to come back.\u201d if the incumbent practitioner did nothing to enhance the experience or the relationship, then any kind of fee can feel unjustified. and, that\u2019s \u201call that’s required to send someone shopping.\u201d<\/p>\n

the fact is switching costs are low for most clients, with the exception of audit clients. but overall, the answer seems to come down to setting expectations and then exceeding them. that\u2019s \u201csecret sauce.\u201d not much of a \u201csecret,\u201d really.<\/p>\n

copyright 2009 aicpa. used by permission.<\/strong><\/h6>\n