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Make More Money
By making more money, we mean raising your bottom line and increasing your take-home pay. You may accomplish this by:
- Increasing your income from existing clients (e.g., by offering more services, adding value, or increasing your fees),
- Getting more clients, and
- Reducing overhead.
Let’s be realistic. The last of these is not a viable option for most accounting firms. How many accounting firms do you know that haven’t already brought their overhead to the bare bones?! Instead, let’s explore the other two, far more promising options.
Capitalize on existing clients
This is perhaps the most effective way to make more money. Unless you are just starting out and haven’t yet built much of a practice, you should explore all possible means for generating more revenue from your existing clients. Essentially, you have two broad options:
- Derive more net income per hour from existing clients.
- Offer more services to them.
Derive more net income per hour
Generating more net income per hour is the most desirable means of increasing your bottom line. Here are some simple tips for accomplishing this.
- Let go of your bottom-of-the-barrel clients. Letting your least productive clients go will impact your bottom line only minimally, but will also save you a significant amount of time.
- Enhance your client relationships. As a rule, you can generate more revenue per hour from your most satisfied clients.
- Analyze the services you offer. Probably with only a slight change in your mix of services, you can significantly decrease your workload and increase profitability.
- Be open to improving your internal processes. Don’t be afraid to change your outdated processes or implement new methods.
- Use the right solutions and technologies. Progressive accountants who use the right solutions and technologies have increased their productivity by as much as 50-80% over accountants who haven’t advanced with the times.
- Add value. Tax and accounting services can be easily supplemented by complementary value-added services from which both you and your clients can benefit.
- Analyze your fee structure. Most accountants overlook the way their fee structure, not just their fee levels, has a significant impact on revenues.
Offer more services
When deciding to add more services, it’s best to start with services related to ones you currently offer. For example, you can offer personal financial planning services to your tax clients, and payroll services to your business clients.Before deciding to add more client services, do a assessment of the client needs and firm resources required.
Acquire more clients
Once you have capitalized on your existing clients and want to grow more, it’s time to look for new clients. Please refer to the section on "Getting new clients" to learn how to accomplish this.
How AccountantsWorld can help
We can help you analyze your practice and determine the best course of action for you. We will provide you with the appropriate products, services, and training to accomplish your goals.
Click here to learn more.
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