My experience has been that 90% of bottom line profits for CPA firms are earned between January 1 and April 15. From May to December, they try to keep their best people on the payroll without spending down all of their profits. To accomplish this, many firms encourage their staff accountants to take vacations, complete their CPE requirements, or take additional courses – all to avoid having to pay for excess capacity.
Wouldn’t it be easier to find new services you could offer–services your clients already need–and begin incorporating them into your practice?
Many of today’s business owners have a laundry list of services they either are not getting anywhere else, or are not satisfied with the service the are receiving.
Services that business owners are in need of include such things as:
- Strategic planning
- Wealth management
- Personal financial planning
- Profit improvement/ cost containment
- Risk management
- Human resources/ recruiting/ compensation consulting
- Succession and estate planning
- Business valuation
CPAs who have expanded their practices to offer these services are getting a big thank you from their clients not only for the added services, but for the convenience of one-stop shopping. For the CPA firms that are already expanding their services, not only are they increasing customer satisfaction but their bottom line as well.
By broadening your relationships, expanding your services and providing the products your clients need to meet their goals and objectives, you’ll not only re-invigorate your practice and move beyond simply surviving, but you’ll also earn money unrelated to time–and that will make a world of difference for your practice.
Allan Koltin is an independent consultant and CPA providing advice to National Life’s CPA Advantage Program. The companies of National Life Group® and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.