At this week’s meeting of The Inner Circle for Accountants our headline discussion topic was: “Improving the profitability of your practice”
Members had identified this as a key issue they shared. It was also one of the most common concerns expressed in a recent survey I ran of accountants who want to feel more successful.
We started by exploring the key headline ways in which accountants can improve profitability – most of which I have addressed on this blog a number of times previously. Our list included the obvious: Increasing fees (and value as perceived by clients), providing more advice and services (and charging for these) and systemise recurring services so as to reduce the time they take to provide.
We also listed a number of preliminary steps to take to improve profitability. These included considering what really makes for a profitable or unprofitable client (especially for sole practitioners). And also hat are the most effective lad generation activities – comparing the fees/profits generated by clients with the cost of acquisition (considering both cash and time involved in securing the client).
One of the most challenging parts of the meeting was when members attempted to summarise their most profitable services. They realised that few of these services were promoted on their websites.
Among the key learning points noted at the end of the meeting were the following:
• Increase fees for compliance services generally by referencing value of each service, rather than the time and work involved. Clients rarely care.
• Review whole approach to AE and charge more for related services.
• Pilot the idea of offering upgrade to monthly reviews for those clients currently benefitting from quarterly business reviews.
All members have received a list of the key learning points identified at the end of the meeting, together with la summary of the discussions, ideas and suggestions raised during the meeting and links to related reading topics*
*The growing library of post meeting notes are also available to new members when they join The Inner Circle. Take a look and if you think it might help you, feel free to schedule a call with me here>>>