{"id":80036,"date":"2020-10-21t12:00:23","date_gmt":"2020-10-21t16:00:23","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=80036"},"modified":"2023-10-05t09:19:55","modified_gmt":"2023-10-05t13:19:55","slug":"shift-your-practice-stop-depending-on-compliance-work","status":"publish","type":"post","link":"\/\/www.g005e.com\/2020\/10\/21\/shift-your-practice-stop-depending-on-compliance-work\/","title":{"rendered":"shift your practice: stop depending on compliance work"},"content":{"rendered":"

\"number<\/a>are you ready to step off the hamster wheel?<\/strong><\/p>\n

by matt solomon
\nthe center for enlightened business<\/a><\/em><\/p>\n

this article is the first in our five shifts series, which lays out five key shifts you need to take your business away from a high-volume model with long hours and unfulfilling work and toward monthly engagement of $3,000-$15,000 per client with $500+ hourly realization rates and a better quality of life.<\/p>\n

shift 1: stop depending on compliance work<\/p>\n

more:<\/b> let go of beliefs that hold you back<\/span><\/a> | <\/span>reframe sales as communicating value<\/span><\/a> |<\/span> 3 keys to evolving your accounting practice<\/span><\/a>
\n\"goprocpa.com\"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

the idea of reducing your dependence on compliance work may be radical for some accountants and familiar to others.<\/p>\n

compliance work is the main source of income for many accountants, but unfortunately, it\u2019s a high volume, low-profit ballgame. in order to be successful, you need to have flawless execution and massive leverage \u2013 <\/span>if anything is out of place or goes awry, you won\u2019t get the results you\u2019re hoping for.
\n
\nhere are a few critical problems with compliance work:<\/p>\n

the compliance model keeps you chained to the tax-season cycle. you work at max capacity a few months out of the year, and the rest of the year … you still work too much. generating more revenue means getting more business, which means working more hours, which is time you already don\u2019t have.<\/p>\n

compliance work breeds massive competition. between technological developments with artificial intelligence (ai) and outsourcing compliance work to other countries, this market has long since been disrupted.<\/p>\n

the compliance model is risky. it leaves you with inconsistent cash flow, low realization rates and a low perception of your value from the market. enough said.<\/p>\n

compliance is outdated. you\u2019re probably working this way in your business because it\u2019s the way your bosses and mentors showed you how to do things. accountants are slow to change, but \u201cthe way things have always been\u201d is no longer a safe bet. see \u201cthe compliance model is risky\u201d above.<\/p>\n

you can\u2019t compete with the big players out there. companies such as turbotax and h&r block spend millions of dollars advertising in your market and undercutting your prices for compliance services. it\u2019s an uphill battle to compete with these giants.<\/p>\n

your clients don\u2019t value what you do. clients don\u2019t value compliance work highly. why should they, when turbotax or h&r block is offering dirt-cheap tax prep services around the block?<\/p>\n

you\u2019re not responding to what the market needs. the market (including your current clients) wants less audit and accounting services and more value-added consulting services. it\u2019s time for you to respond accordingly!<\/p>\n

this list is quite extensive, but it shouldn\u2019t make you disheartened! it\u2019s simply meant to illustrate that a compliance-based practice isn\u2019t the way to evolve your practice to the next level of profitability and purposeful, satisfying work.<\/p>\n

a successful firm can still retain some compliance work (hey, some accountants find tax returns relaxing!), but it should not be your main offering or source of revenue. it should be a choice, part of a hybrid offering or a supplemental service. under the model we propose, you don\u2019t have to do any compliance work if you don\u2019t want to!<\/p>\n

to recap: under the compliance model, you\u2019re stuck on the hamster wheel of work; your revenue is handcuffed to the number of hours you put in; and you\u2019ll be subject to brutal tax seasons forever.<\/p>\n

fortunately, there\u2019s a better model! if you get this right, you can shift your practice:<\/p>\n