improving your firm’s cash flow show me the money! ©2013 sandra g. johnson, cpa, pc
TRANSCRIPT
Improving Your Firm’s Cash Flow
Show Me the Money!
©2013 Sandra G. Johnson, CPA, PC
Billing
Time billing
Billing on retainer
Value added billing
©2013 Sandra G. Johnson, CPA, PC
Fees
Hourly rates
Minimum fees
How to determine tax preparation fees
©2013 Sandra G. Johnson, CPA, PC
Improving Cash Flow
Define payment expectations in advance Have a signed engagement letter Look at your Aged Accounts Receivable Enforce your payment procedures Make collections a priority Issue invoices promptly
©2013 Sandra G. Johnson, CPA, PC
Improving Cash Flow
Send out monthly statements Accept alternate forms of payment Request money in advance Auto-pay Stop work Dismiss deadbeats
©2013 Sandra G. Johnson, CPA, PC
Improving Cash Flow
Charge for re-runs
Charge for extensions
Charge to respond to notices
Charge for a rush job
Charge for receipt of late work
©2013 Sandra G. Johnson, CPA, PC
Collections
If possible, have someone else make collection calls Stay calm It’s not personal Collecting for tax returns The Satisfaction Curve
©2013 Sandra G. Johnson, CPA, PC
©2013 Sandra G. Johnson, CPA, PC
Billing Myths
©2013 Sandra G. Johnson, CPA, PC
Myth: Accountants should do the job first and worry about money
later.
©2013 Sandra G. Johnson, CPA, PC
Myth: Inexperienced or inefficient staff usually causes
write-downs.
©2013 Sandra G. Johnson, CPA, PC
Myth: All clients are very price-conscious and always think our prices are too high. If we raise
prices, many clients would leave.
©2013 Sandra G. Johnson, CPA, PC
Myth: If you do good work, your client will appreciate the quality
and will pay for it without prompting.
©2013 Sandra G. Johnson, CPA, PC
Myth: If you do not charge a client for all the work you did, they will be more likely to pay
the bill.
©2013 Sandra G. Johnson, CPA, PC
Myth: Last year’s price is a good guide for this year’s price.
©2013 Sandra G. Johnson, CPA, PC
Myth: If you charge lower prices than the competition,
you will get more clients.
©2013 Sandra G. Johnson, CPA, PC
Myth: Slow payment is the price of keeping clients. Asking clients to pay is
unprofessional.
©2013 Sandra G. Johnson, CPA, PC
Myth: If you ask clients to pay, they will take their business
elsewhere.
©2013 Sandra G. Johnson, CPA, PC
Myth: Clients will appreciate it when you delay sending them
their bills.
©2013 Sandra G. Johnson, CPA, PC
Myth: The amount on your time-and-billing system indicates the fair price.
©2013 Sandra G. Johnson, CPA, PC
Myth: What you do cannot be very valuable, because it is
easy for you.
©2013 Sandra G. Johnson, CPA, PC
©2013 Sandra G. Johnson, CPA, PC
Any Questions?
Sandra G. Johnson, CPA, EA, CFE
Sandra G. Johnson, CPA, P.C.206 Pettit Avenue
Bellmore, NY 11710516-409-1120