Improving Your Firm’s Cash Flow Show Me the Money! ©2013 Sandra G. Johnson, CPA, PC

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

www.sgjcpa.comsjohnson@sgjcpa.com