fee structure

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 →