The Collection Process Starts With the Client

Source: Partner Insights

In an article titled “Run Your Practice Like a Business—Not a Bank,” August Aquila shows how to eliminate many collection problems. Here are highlights excerpted from the article:

• Review your current client acceptance form:
  • Find out clients’ credit rating.
  • Why are they changing accountants?
• Use an engagement letter. It should include:
  • How fees are determined.
  • Firm’s billing philosophy.
  • Possible outcomes for the client.
• Capture time timely:
  • Enter daily, even when out of the office.
  • Include details, e.g., “conference call with John Smith regarding…”
• Work-in-process—bill monthly.
• Remove partners from the billing process—it will speed up the process.

For the complete article, click here.

August Aquila helps CPA firm leaders develop and implement succession, compensation, strategic and merger plans. Reach him at 952.930.1295 or [email protected].

From Partner Insights, Aquila Global Advisors, Minnetonka, MN, December 16, 2008, www.aquilaadvisors.com.