If you’re an accountant with your own firm, while you might be great with figures and even enjoy number crunching for your clients, there can be little doubt that you established your company in order to make money; you didn’t do it for the fun of it. And, if you want your firm to make more money, you will need to explore some other options.
Tax outsourcing services can certainly help busy CPA firms lighten their load while still providing clients with the services they expect, as can the following legitimate tips:
Up-selling and cross-selling to current clients
While finding new clients is a fantastic way to boost the revenue of your business, existing clients often offer a lot of potential, too.
Up-selling and cross-selling are two great ways to increase the income generated by your current clients, and here’s a brief breakdown of the difference between the two:
- Up-selling – this is when a more expensive, or upgraded service is sold to a client; such as a full payroll service sold to a client interested in those services
- Cross-selling – this is when an additional service that’s related to the one already being sold to a client, is sold; such as bookkeeping services sold to a client already buying tax services
If you’re not already employing this technique, it’s certainly worth a try.
Assessing your prices
No accountant should raise their prices simply to gain more revenue, but if you feel as if you may not be charging enough for the services you provide, a price review could be called for. Price rises can help CPA firms remain competitive, while being able to manage rising costs.
When trying to determine the best pricing strategy for your firm, look closely at what other, similar companies are charging their clients, the services you offer, where you’re based, and the size of your clients.
Expanding your credentials
By doing this, you could secure new clients or find it easier to justify an increase in your prices. Below are some of the ways in which you can expand your credentials (if you haven’t already) and boost your revenue:
- Qualify as a certified public accountant (CPA)
- Become a certified management accountant (CMA)
- Obtain a Master’s degree (such as Master of Science in Accounting)
- Become a certified fraud examiner (CFE)
- Qualify as a certified financial analyst (CFA)
While this isn’t a quick fix to profit worries, it definitely has long-term benefits.
Adding recurring services
Some services, such as payroll, give you a recurring stream of revenue, and when added to your repertoire, could help you enjoy healthier profits, meet the needs of your clients better, and even expand upon your existing client base. And, by outsourcing the payroll requirements of your clients, you can forget all about the extra workload and stress, and simply sit back and enjoy watching the money come in!
Earning passive income
Requiring little to no labor since you’re not directly involved in them, there are a number of different ways in which accounting professionals can earn passive income without encroaching on their business, such as by way of:
- Blogging and affiliate marketing
- Rental properties
- Peer-to-peer lending
- Dividend stocks
You may even be able to take up some freelance accounting to generate more revenue, or tutor an accounting student.
With such things as CPA firm outsourcing, up and cross-selling, and adding recurring revenue services, among several others, your CPA firm can enjoy legitimate revenue that makes you feel your choice of career path was a worthy one!