Scope Creep is Biggest Thief in Your Accounting Practice
I expect I have hit a nerve with some of my readers on this topic.? It’s natural to want to help our clients however I ask what is the financial cost to you providing service without billing for it??
Your accountants.? You know what Tax Creep is! Has the government ever given it back or stopped applying it?? Exactly, but you are allowing the same thing to happen to you by your clients.? Isn’t this why we have engagement letters? The minute we allow this to happen, you have given control of the working arrangement to your client. Let’s be frank here.? Every minute you give away to a difficult client takes away your time to work for clients who appreciate what you do for them and happy to pay you for it.?
Engagement letters establish the rules.? Rules created by your deliverables and your boundaries.? If they agreed and signed the engagement letter then you or your staff have to manage the work being performed.? Be quick to recognize it and bring it to your client’s attention. ? If they push back then they likely don’t appreciate the value you bring.? If you can’t support the value you charge, then you need to spend some time identifying the value you bring to your clients.? It should role off your tongue like an elevator pitch.?
This is one way to support value pricing in your practice especially for compliance work.? There is a block of services/transactions built into your monthly fee. If you don’t support this in your practice then your client’s will always be questioning the invoice.?
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Sticky conversations come with the territory of being an accountant.? Most of the successful accountants I work with are good communicators.? Conversations with clients are a way to get feedback of how they feel about working with you. I can share in my working with an accounting form owner yesterday we were reviewing the 5 highest paying clients and what the firm did for them. Three of the five clients the owner would like to stop working with. Scope Creep and outside of the firm’s area of expertise floated to the top.? Many firm owners have an addiction to the revenue even if it was below your posted hourly rate.
Choose wisely when it come to scope creep. You would advise your clients not to take low margin business.? The same should be said about yourself.
Paul Roy is a Certified Professional Coach who helps Accountant and CPA practice owners build the business of their dreams working 40 hours a week or less while their business grows. Book a 20-minute Call to learn more and take the first step towards transforming your accounting practice.? ? https://calendly.com/paul-snh8/30min
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4 个月Thanks for sharing, I agree!!
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4 个月Excellent point Paul - in the contracting business we call it “sub-creep”. It is common for some Sub-contractors to keep raising their prices when they know they aren’t getting shopped or challenged on smaller jobs. I’m sure every industry has a version of #scopecreep
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4 个月Exciting news, Paul!
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4 个月When you are presented with an opportunity for more business it can be hard to stick to your scope of expertise, couple that with the commitment to a delighted customer outcome it can be very compelling. But…. In my experience this often back fires and we end up with a client who only remembers being let down not for the good work you did. Great point Paul!