How to generate more cash in your accountancy firm
Review your price structure
Pricing by the hour is no longer the preferred way to pay for a lot of clients, and changing to a set fee can see you earning more overall. When was the last time you reviewed your pricing? Have you increased the price of a given service annually to keep up with inflation? When things are ticking over comfortably, you might become complacent with turning profit. Take the time to understand the value of the services you provide. People are understanding of price increases if you are demonstrating the value they get.
Gear yourself towards existing and potential clients
People buy people. Clients want a personal connection with the person overseeing their financial data, so be friendly! Making yourself approachable but smart will reflect on the firm, and updating to the cloud will give your firm the nudge it needs to stay relevant. Look at how you operate and make changes to reflect the clientele you want.
Update your business model
Adapt your services to provide what the cloud can’t. Lead with your knowledge. While the cloud will continue to develop and automate the role of an accountant in the traditional sense, there’s a plethora of advice business owners need and want more. There’s a difference between business coaching and advisory. The former is essentially holding the business owner’s hand through everything. Advisory is more of a middle ground that gives strategy to clients – you won’t be coaching them through every detail, but helping them understand how to reach their goals.
Upsell services to your clients
Instant access to services is expected these days. Like online banking, business owners expect instant access to their cash. Frequent communication is essential – trust is built when clients can rely on you. Set up alerts and pick up the phone and tell them when they’re nearing their budget limits – they’ll feel supported and know their money is safe. It’ll also grow their business faster, making them more revenue, and also make more profit. Take the time to get to know your clients, not just as a business but as people. They might not know what they need to grow and this is your opportunity to increase your fees per client.