This firm did. Here’s how…
Wall, Einhorn & Chernitzer formed its Revenue Enhancement Committee (REC) about 18 months ago to focus on client retention and acceptance, and on pricing, reports marketing whiz Jean Caragher (pictured).
As a result:
- the firm improved pricing,
- more discussions were held with clients regarding preparation they can complete to make the firm’s work more efficient,
- there were more upfront understandings with clients about fees, and
- there was improved management of fees incurred while work is ongoing.
The committee’s mandate includes:
- Establishing client acceptance criteria.
- Strategizing pricing options for clients and new business prospects.
- Evaluating the lowest realization clients (largest write-offs) for each partner and manager and brainstorming ideas to improve work efficiency and job profitability.
- Developing a Client Evaluation Form (and process) for use by managers to identify problem clients and solutions.
- Reviewing WIP adjustments.More input from managers on client billing and about clients, in general.
- Many procedural features that improved WEC’s own quality control.
- Identifying additional service opportunities that were communicated to clients resulting in better client service and extra fees.
“What I’ve learned so far is that marketing plays a role in enhancing a CPA firm’s revenue,” Caragher says here. “Understand how your firm works and how it makes money. Know your firm’s client base. Assist your firm’s partners and managers with revenue-enhancing ideas and implementation.”