With June 30 now behind us, it’s important to take time to look at your own business to get a better understanding of your client-base and how you can improve your cashflow and workload alike.
Accountants and bookkeepers are presented with a unique opportunity each year in the form of client re-engagements. To some, this is a necessary evil and a pain to go through, whereas others see this process as an opportunity to take a look at each of their clients and figure out if they are happy with the relationship over the past 12 months.
Let’s take a look at eight actions that accountants and bookkeepers often overlook during EOFY (you can download the full article below for useful links and resources).
- Reviewing your fees
This may seem like an obvious one, but it’s often something that gets left to the last minute and therefore never actioned. How do you compare? When was the last time you reviewed your prices?
- Reviewing client profitability
As accountants and bookkeepers move to fixed fees, it’s important to make sure each and every one of your clients is paying you a fair price for your time. With the increasing power of reporting even within your own ledger software, there’s really no excuse these days for doing work for free. Check out how you handle scope creep during these challenging times, by downloading the full article.
Annual re-engagement time provides a great opportunity to make sure your clients are on the right service plan. If you have packages or levels of service, and a client has outgrown that package, then now is the time to move them up to the next tier.
- Trim the fat
If you have discovered a few clients that aren’t as profitable as the rest of your client base, then it’s time to have a serious think about whether you’d like to continue the relationship.
Having unprofitable clients is a double whammy because not only are you not getting paid your fair share, you are also using time that could be spent on a much more profitable client. There’s an opportunity cost if you continue to work on unprofitable clients. That means that it’s time to either bump their fees, or bump them out the door to free up your time for other clients.
- Automating your engagement process
A big problem with annual re-engagements is how manual the whole process is. Finding your old contract, reading the terms, amending, sending the new agreement and waiting for a signature to come back. Not to mention setting up the fee collection process.
Apps like Practice Ignition automate this engagement process, freeing up your time to focus on much more valuable activities.
Download the full article here to find out how you can better plan for growth in your own firm, this new financial year.
Written by Brendan Allen
Account Manager – Practice Ignition
37 Shepherd Street, Chippendale, NSW 2008, AU