Imagine, building your firms profits while also increasing client satisfaction. There may be some psychology to this. Consultant Ron Baker explains to Chris Baysden (for the AICPA) how offering different pricing options can help firms do just that in this Q&A. Find out more in the Journal of Accountancy® article, Q&A: To boost revenue, try offering these pricing options.
-
-
The theme of NACVA and the CTI’s 2015 Annual Consultants’ Conference was: Cultivate, Venture, and Achieve. It did not disappoint. On June 21, 2015, NACVA released its updated professional standards. Mark Hanson, Mark Kucik, and Carl Sheeler unveiled the updated standards, which become effective August 1, 2015. The new standards include: Articles VI, Business Valuation Review, and Article VII, Review Engagement Development Standards. Kucik notes that these standards will apply to reviews done by credentialed IRS (Service) members holding the CVA accreditation. In his presentation, The Strategy of Hope: A Poor Choice for Business Development, the keynote speaker, Sam Allred,…
-
In 2014, a study by Chicago United documented a lack of diversity in leadership roles within American companies noting that more than 75 percent of executives are white. This fact should be of concern to big businesses because diversity in leadership roles has real benefits including better customer relationships, increased employee creativity, and improved quality of work. In this article, by Peter Gomez and Susan Medina for Talent Management Magazine, they discuss six ways companies can attract more diverse employees. Read how to diversify your company at Diversity Executive online.
-
Scenario planning, an effective decision-making tool under uncertainty, is underutilized by organizations primarily due to deep-seated cognitive biases that exist. Drew Erdmann, Bernardo Sichel, and Luk Yeung of McKinsey & Company tell managers how to address these common biases and provide guidance along with a practice cheat sheet on the dos and don’ts of scenario planning. Read more on scenario planning and how to make it a successful tool for your organization in the McKinsey article, Overcoming obstacles to effective scenario planning.
-
An increasing number of industry pricing experts are advising CPA firms to consider replacing their billable hour pricing with a fixed pricing or value pricing model. Author and consultant Ron Baker and the Journal of Accountancy have a question and answer session to discuss the conversations that firms must have in order to implement value pricing. They talk about questions CPAs should ask during the conversation, the parties that need to be involved, both internally and externally, when conversations should take place, and more. For more information on implementing the value pricing model, read this article, part of a three…
-
Advisors often ask how they should defend their fees when working with small clients who contribute the least revenue to the firm. Beverly Flaxington, a practice management consultant, suggests firms use a tier approach that classifies clients and outlines services and fees provided at each level. Remind clients during consultations of the services and values provided by your firm. [button color=”blue” link=”http://www.advisorperspectives.com/newsletters15/How_to_Defend_Your_Fees.php” target=”_blank” font=”arial” align=”left”]For more suggestions on ways to discuss fees with clients, click here.[/button]
-
Big data offers unlimited potential to change the way business is done, for almost any type of company says Arleen Thomas, Senior Vice President of Management Accounting, at the AICPA. Management accountants can use the ever-growing amount of data to make decisions that will increase the competitive advantage of clients’ businesses. This article discusses not only the sources of data available to the finance professional but also how it impacts companies of every size. [button color=”blue” link=”http://blog.aicpa.org/2015/02/big-data-big-opportunities.html#sthash.NC2caTSv.FdFzO28x.dpbs” target=”_blank” font=”arial” align=”left”]To learn more about big data, click here. [/button] Image courtesy of nokhoog_buchachong/FreeDigitalPhotos.net
-
Modeling Uncertainty to Gain Better Insight and Create Value Gary Lynch, founder and CEO of The Risk Management Project, proposes that uncertainty is the new normal and that firms that espouse risk management can create and preserve value. In this article, Lynch describes how his firm used quantitative models to assist a manufacturer assess how it should respond to a competitor’s price-reduction strategy and how the strategy would impact the supply chain. The analysis enabled the manufacturer to share the insight with suppliers that challenged the sustainability of the competitor’s strategy.
-
Thoughts on How Valuation Professionals Can Recognize and Quantify the Value of Strategy What is strategic planning? How does a valuation professional adding value to the client recognize strategic planning? Quantify strategic planning? Michael Porter observes that the whole subject of strategy has become too confusing. It seems that everything is strategic; otherwise, it is not really that important. We have become overwhelmed with strategic plans, strategic vision, strategic thinking, strategic insight, strategic management, strategic information, strategic marketing, strategic branding, and strategic positioning. In this article, David Axson shares his views on what is truly strategic and how to incorporate…
-
How to Implement Value Pricing in Your Firm, Part 3 In this third article of the three-part series, Ronald Baker discusses how to implement a value pricing model and the advantages this model presents over the hourly billing model. Again, the focus is on the value provided to the customer and communicating this to clients. Read Part 1 and Part 2.
-
How to Implement Value Pricing in Your Firm In this second article of the three-part series, Ronald J. Baker challenges professionals to move from value billing to value pricing. Value pricing inverts the hourly billing model by recognizing the economic facts that it is the customer who is the ultimate arbiter of value. If value is created, the customer understands that cost is secondary.
-
In this first of a three-part article, Ronald Baker challenges professionals to rethink how they market and price professional services. He reminds us that “[c]ustomers buy value, not hours.” Many practitioners and firms are locked into the current pricing myopia of hourly billing, which prevents professionals from getting paid what their customers believe they are worth. In this first article, Mr. Baker offers some compelling reasons why professionals should make the switch from hourly billing to value pricing.
-
So, You Want to Become a Venture Capitalist? In this article, Edward Mofrad shares his views on what it takes to become a successful venture capitalist.
-
Benchmarking the firm’s performance We all know financial ratios are a barometer of the health of a company. Now, let’s help our client’s unleash the power of these ratios to improve their businesses. Here’s how.
-
Understanding the different aspects of an industry is key to evaluating a company’s future performance Understanding a subject entity’s industry is a hallmark of any good valuation report. Conducting a very detailed and intense industry analysis can provide valuation analysts with specific knowledge needed to determine an appropriate conclusion of value. As a general rule, a company’s performance is commensurate with the industry to which it belongs. Understanding the different aspects of an industry is a key component to evaluating future performance and the overall value of a company. This is an aspect of business valuation that warrants greater attention…
-
FASB has voted to endorse a GAAP alternative to exempt private company lessees from a requirement to consolidate variable interest entities (VIE) in common control leasing arrangements. Initiated by the Private Company Council (PCC), the exemption would be allowed under specific conditions including: Private company lessee and the lessor entity are under common control Private company holds a leasing arrangement with the lessor entity All activity between entities is substantially related to the leasing activity between the lessor and private company Obligations of the lessor that are being guaranteed or collateralized by the private company could, at the inception of…
-
In an enlightening article by McKinsey & Company, a compelling case is put forward for something you always felt was true, but couldn’t quite prove. When it comes to marketing professional services or products, good old-fashioned email is much more effective than social media. How much more effective is it? The report states that email is so significant in generating new business that it’s 40 times more effective than Facebook and Twitter combined. That isn’t a license to bombard potential clients or customers with spam. McKinsey lays out an explanation of how to maximize the benefits of email without alienating…
-
The Frontline of Fraud Risk Management Internal fraud occurs as the result of a series of weaknesses within internal control systems, which are at the top of the fraud risk management pyramid. This article defines the three essential types of internal controls, their five interrelated components, and how they can be instituted for maximum protection.
-
How to build more personal power At some point in their careers, many executives find themselves short of the power and influence they need to get their jobs done effectively. Fortunately, these problems can usually be remedied as this article by Leslie Brokaw explains.
-
With the explosion of new social media platforms over the last five to seven years, a dilemma has arisen for business owners in search of new customers or clients. Is the standard company website obsolete? Should businesses be reaching out to potential prospects through platforms like Twitter and Pinterest? With Facebook standing at 500 million accounts, many companies are abandoning their standalone websites in lieu of a page on the social media giant’s site, but is this actually good for business? In an interesting article for Search Engine Watch, Rebecca Murtagh explains how social media is best used as a…