Episode 417: CPA Subscription Services: Is This Approach Here to Stay?

Jamie Lopiccolo with Steven Sacks for CPA Trendlines Lopiccolo is the owner of a small Midwest firm that has been employing a subscription-based model to invoice clients for services rendered. The approach manages expectations by the client and ensures a normalized cash flow for the firm. Additional benefits include a more strategic approach to dealing with new clients because they are getting the full picture of their business’s needs. KEY TAKEAWAYS ·      One of the goals of the subscription pricing model (aka minimum level of service agreement) is to manage client expectations while managing the firm’s cash flow. ·      CPAs can position themselves as the client’s partner for success.·      CPAs are too fixated on getting as much money as possible from clients rather than providing real value in each client interaction.·      Make sure the client onboarding process is consistent from one client to the next with certain necessary customization during the initial client meeting and CPA research.·      There will be more competition for client accounting services and advisory services and more revenue opportunities, which is why firms should reduce the amount of time allocated to administrative functions.·      The subscription model also helps to determine which clients are not profitable, potentially leading to the firing of clients.·      More strategic planning can be offered to clients so they understand and better appreciate the services they are going to get.