The only six ways accountants can increase their own profits

Over the years I have addressed this topic many times in training sessions that explained how to make more profits from your smaller clients (without fancy schemes)*.

It seems that I have yet to include on this blog the opening summary in which I share what seem to me to be the only six ways in which accountants can make more profits from their smaller clients:

You can:

  1. Increase your charges for doing the same work (which often means increasing the perceived value of what you do);
  2. Speed up the collection of your fees (this includes adopting more commercial billing strategies);
  3. Reduce the time you spend doing the work but keep the fees the same;
  4. Provide more services and charge accordingly for these;
  5. Encourage existing (good) clients to introduce new prospects (just like them);
  6. Sack the duff D-list clients who get in the way.

Of course this advice can be adapted to help clients make more profits in their businesses too. But it would be a shame to do this before applying the advice to one’s own practice wouldn’t it?

 * Variations on the same talk can be presented under a variety of titles, either in-house, at conferences or seminars, as required.

By | 2013-04-03T09:30:35+00:00 April 3rd, 2013|Accountants, Pricing|

About the Author:

Mark is a speaker, mentor, facilitator, author, blogger and debunker. Mark Lee helps professionals who want to STAND OUT and be remembered, referred and recommended using his 7 fundamental principles to create a more powerful professional impact, online and face to face.

4 Comments

  1. Della Hudson 3rd April 2013 at 5:05 pm - Reply

    Very succinctly put. Thanks Mark.

  2. Bob Harper 9th April 2013 at 12:33 pm - Reply

    Increasing the fee for the same work is often just a case of changing the pricing methodology and linking the fee to the result.

    A good example is charging 25% of the tax saved rather than charging £X an hour X number of hours.

    Another way to charge higher for the same work is to deliver the service in a different way, like first class travel.

    Collecting cash quicker will not increase profits but being quicker and keeping the fee the same will. However, I think accountants really need to be looking to create new services to replace the old ones.

    That’s what we are doing.

  3. Jayson Fox 18th April 2013 at 9:35 am - Reply

    This surely is a must-read blog for every single accountant. I am an Accountant in London and I have been looking for tips to increase my profit. This blog has helped me a lot in acquiring effective tips to maximize my earnings. Thanks a lot for the tips.

  4. Jason Dormer 24th April 2013 at 10:14 am - Reply

    Bob

    Collecting cash quicker will result in higher profit as it will:

    – Reduce overdraft fees;
    – Increase cashflow resulting in less cash pressure to taker on duff (unprofitable) clients;
    – Reduce bad debts;
    – Increase interest earned

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