Little Things Can be Big in Revenue Enhancement

Source: Partner’s Report—the Monthly Update for CPA Firm Owners

Little improvements in certain metrics can make a big difference:

One additional hour of billable time a day would result in $46,000 in revenue (1 hour x 230 days x billing rate of $200 = $46,000)
If the average time between work performance and billing can be improved from 2.1 months to 1.6 months, your firm will have a permanent increase of ½ of one month’s collected revenue.
If the average time between billing and collection can be improved from 2.7 months to 2.2 months, your firm will have a permanent increase of ½ of one month’s collected revenue.

From Partner’s Report—the Monthly Update for CPA Firm Owners, December 2005, p. 8. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $329. 212-244-0360, [email protected].

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Little Things Can be Big in Revenue Enhancement

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