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Monday
Jul242017

"How do I make my accounting firm more profitable?"

This is perhaps the most acute strategic challenge facing professional accountants like you. Most firms spend over 80% of staff time on core services like tax, accounting, audit and payroll. These are all either compliance services, or services that are considered commodity services by clients. That makes it very difficult for accountants to "price their way to success" by raising rates on those services. Moreover, the fees that you and your peers have traditionally been charging for these services have already set a precedent for the “right” fee for these services in the minds of your clients. That’s naturally going to be very hard to change.

So if greater profits aren't achievable simply by changing our rates, what's the alternative?

There are simple techniques that virtually every CPA firm—large or small—can use to make their practices significantly more profitable. And you can accomplish this growth without increasing your fees, or adding any clients or staff. What’s more, you’ll also become a better advisor and add more value to your clients’ businesses while you’re raising your bottom line.

To learn how, we have to draw from parallels in other industries.  

Take the examples of Amazon Web Services (AWS), the largest Web hosting platform in the world, or Google Maps. These are astoundingly valuable servcies for consumers or, in the case of AWS, for web-based companies around the world. And yet, these services are inexpensive or even free - but still drive significant profitability for Amazon and Google. Why? Because those companies found ways to innovatively use the cloud to create exceptional value.

Accountants can do the same thing—build value for their practices by innovatively using the cloud.

Here are some ways to apply cloud innovation to boost your profits.

Transform your client accounting practice

The right cloud solutions can help accounting firms convert commodity accounting services into higher profits. Accounting is marred by numerous problems and inefficiencies for one simple reason: because it is led not by accountants, but rather by a “DIY” program sold directly to small businesses.

The solution: cloud-based professional systems that put accountants back in the driver’s seat. Using Accountant-Centric systems such as Accounting Power, CPA firms have turned Client Accounting Services into a highly profitable and sought-after service. And solutions with automated bank feeds can transform write-up from a low-margin, highly manual service to a reliable source of profits with up to 80% reduction in staff time.

Profit from payroll

The same principle of turning commodity into a competitive advantage also applies to payroll processing. Cloud-based payroll systems have made payroll processing highly profitable for accountants by giving them capabilities that only payroll service bureaus could previously afford—namely, high levels of automation.

The award-winning Payroll Relief system can perform direct deposit, tax payment, tax-form e-filing, and child support-related tasks automatically, on time, with 100% guaranteed accuracy. You can even eliminate data entry and check printing in your office. The result: over 60% of customers have experienced at least a 25% improvement in their payroll practice since switching to Payroll Relief.

To capitalize on these innovations, you have to discard hourly billing

We know many accountants won't like to hear this, but hourly billing is totally irrational for accounting practices in the digital age. If you use cloud technology to perform accounting and payroll more efficiently, hourly billing actually punishes you financially for your innovation and efficiency! Instead, accountants should charge clients a fixed monthly fee for most services. You'll earn the same amount (or more) from each client, all while using the cloud to complete that work in fewer staff hours.

And it’s easy to transition from hourly fees to a fixed fee, because given the choice, clients invariably prefer the greater certainty of a flat fee. Moving to a flat monthly fee model can help them better budget their monthly expenses and manage their cash flow. While their total yearly expenses would remain pretty much the same as before, switching to a fixed fee model is another way you provide extra convenience to them.

 

 

 

Wednesday
Jul052017

Chandra Bhansali speaking at 2017 NY Accounting Show

 

Dr. Chandra Bhansali, CEO and co-founder of AccountantsWorld, will be speaking at the 2017 New York and Northeast Accounting Show and Conference. The show will take place July 12-13 at the Pennsylvania Hotel in New York City.


Dr. Chandra BhansaliDr. Bhansali will be speaking on Thursday, July 13, at 11 am, along with Rick Telberg, publisher of CPA Trendlines. Their topic: How to Put Cloud Computing to Work in Your Practice. Dr. Bhansali and Mr. Telberg will discuss:

 

  • four ways to ensure that your firm experiences the full benefits of the cloud
  • how the right cloud approach can help you build sustainable value in your practice - without adding new clients or staff
  • the differences between various approaches to cloud adoption and migration
  • how to identify and implement the right cloud strategy for your firm's specific needs

 

 

Click here to register for the 2017 NY and Northeast Accounting Show. 

 

Tuesday
May232017

How we partnered with Ledgersync to make write-up more efficient (VIDEO)

We are pleased to announce that Ledgersync is now an accepted Bank Data Feeder to Accounting Power from AccountantsWorld. 

Accounting Power is the first cloud-based professional accounting system that gives accountants unprecedented control over client accounting. It includes everything you and your clients need, including write-up, trial balance, customized financial statements and a comprehensive bookkeeping module. Accounting Power is designed to help you work collaboratively with your clients.

Ledgersync is a Bank Feeding software solution that allows accountants and bookkeepers secure read-only access to a client’s:

  • Bank / credit card statements
  • Bank / credit card transactions
  • Bank check images

Accountants who are using the integration of Ledgersync.com with Accounting Power are realizing significant improvement in their productivity, thanks to:

  • Significant reductions in manual data entry
  • Far greater accuracy. Ledgersync imports check images and PDF bank / credit card statements, to prevent manual error or inaccuracies

 

Below are three videos that Ledgersync has created to detail the bank feed process within Accounting Power. For more information, please contact an Accounting Power practice consultant at 888-999-1366.

 

 

 

For more information about LedgerSync bank feeds in Accounting Power, please contact a practice consultant at 888-999-1366.

Wednesday
May102017

Why value billing doesn't work in accounting

Five ways to build sustainable value for your practice


We’ve all heard a lot of buzz about value billing. It sounds like a great way to boost a firm’s bottom line, but have you tried it? Chances are you haven’t.

First of all, although value billing is a great concept in theory, it’s too complex to use. Second, there's no easy way to apply it to core services like tax, accounting, audit and payroll, which make up more than 80% of most CPA firms’ work. These are either compliance services, or services that are considered commodity services. Therefore, these services are obviously not the right candidates for value pricing. Finally, the fees that you and your peers have traditionally been charging for these services have already set a precedent for the “right” fee for these services in the minds of your clients. That’s very hard to change.

So if the answer to growth isn’t value billing, what's the alternative?

There are simple techniques that virtually every CPA firm—large or small—can use to make their practices more profitable. We have to draw from parallels in other industries.  

Take the examples of Amazon Web Services, the largest Web hosting platform in the world, or Google Maps. These services are inexpensive or even free, and yet drive significant profitability for Amazon and Google—because those companies found ways to innovatively use the cloud to create exceptional value.

Accountants can do the same thing—build value for their practices by innovatively using the cloud.

The right cloud solutions can assist accounting firms in converting commodity accounting and payroll services into higher profits. Accounting is marred by numerous problems and inefficiencies because it is not led by accountants, but rather by a “DIY” program sold directly to small businesses. The solution: cloud-based professional systems that put accountants back in the driver’s seat. Using Accountant-Centric systems such as Accounting Power, CPA firms have turned Client Accounting Services into a highly profitable and sought-after service. And solutions with automated bank feeds can transform write-up from a low-margin, highly manual service to a reliable source of profits with up to 80% reduction in staff time.

And the same principle applies to payroll as well. Cloud-based payroll systems have made payroll processing highly profitable for accountants by giving them capabilities that only payroll service bureaus could previously afford—namely, high levels of automation.

OK, so if value billing can't be used effectively in accounting practices, are hourly fees a better answer for growth?

Absolutely not. Hourly billing is totally irrational for accounting practices in the digital age. If you use cloud technology to perform accounting and payroll more efficiently, hourly billing punishes you financially for your innovation and efficiency. Instead, accountants should charge clients a fixed monthly fee for most services.

And it’s easy to transition from hourly fees to a fixed fee, because given the choice, clients invariably prefer the greater certainty of a flat fee. Moving to a flat monthly fee model can help them better budget their monthly expenses and manage their cash flow. While their total yearly expenses would remain pretty much the same as before, switching to a fixed fee model is another way you provide extra convenience to them.

What is AccountantsWorld doing to help firms build sustainable value?

We built Accounting Power —the first cloud-based professional accounting system that puts accountants back in the driver’s seat. It includes everything you need for your professional work, along with a comprehensive general ledger system.  Now your staff can do everything that your clients’ staff currently does—only much faster, easier, and more accurately, all right from your office. That means you can offer highly profitable Client Accounting Services. 

We also developed Payroll Relief, our award-winning payroll processing system. Payroll Relief automates most compliance tasks, minimizes data entry, and is affordable for firms of all sizes. The result: a high-margin, perpetual revenue stream.

 

AccountantsWorld Value Building webinar


Thursday
May042017

AccountantsWorld Endorsed by Maryland Association of CPAs as Preferred Software Provider

AccountantsWorld is proud to announce a strategic endorsement from the Maryland Association of CPAs (MACPA). AccountantsWorld is the newest preferred provider of accounting practice management and software for the MACPA.

 

The MACPA is committed to helping CPAs adapt to an ever-changing business climate, and has aligned with a partner in AccountantsWorld who shares the goal of empowering accountants for the future.

Tom Hood, MACPA

 

"Our members rely on us to keep them updated on the latest technological improvements and issues facing the accounting industry," said Tom Hood, CEO and executive director of MACPA. "AccountantsWorld is a client accounting platform that should be on their radar. With this partnership, we hope to advance and educate more than 9,000 CPAs across the state about this new solution."

 

 For more than 17 years, AccountantsWorld has transformed the accounting profession with its cloud-based solutions designed exclusively for CPAs and accountants. The company's flagship solutions for accounting and payroll help CPAs grow their practices and foster closer collaboration with their clients. AccountantsWorld puts professional accountants first by never selling its products or services directly to their clients.

"Our mission is to help them take back control of client accounting," said Chandra Bhansali, co-founder and CEO of AccountantsWorld. "We're excited to serve members of MACPA as a preferred provider and trusted advisor for their accounting software needs."

AccountantsWorld continues to receive recognition for its cloud-based offerings for professional accountants. AccountantsWorld's full-service client accounting solution, Accounting Power, has consistently received five-star ratings by CPA Practice Advisor. Additionally, the company recently partnered with TAG Resources and Transamerica Retirement Solutions to add retirement capabilities to their signature product, Payroll Relief.

 

Click here to learn how Accounting Power is helping accountants regain control over client accounting.