Are Poor Pricing, Billing, and Collection Practices Hurting Your Business?

Source: Journal of Accountancy

In this article, the author offers suggestions for improving these practices, including:

• Review each of your services to be sure you understand the value they provide and that they are priced appropriately. Consider “value pricing” rather than billing based on time.
• Don't be afraid of high price quotes – reducing a quote is easier than increasing it.
• Keep clients informed of changes that require extra work, and discuss additional fees before you do the work.
• Enhance cash flow by presenting bills together with the deliverables.
• Improve the presentation of your bills by itemizing services and including greater detail.
• Improve collections by communicating your value to clients, following up after bills are delivered and accepting credit card payments.

For the complete article, read “Pricing, billing and collecting fees – What CPA firms can do to run their businesses more efficiently and effectively.”

From Journal of Accountancy, American Institute of Certified Public Accountants, November 2011, http://www.journalofaccountancy.com/Issues/2012/Feb.