A few weeks ago, we kicked off the blog series 5 Questions that Might Make Us #beEvenBetter to address the challenges facing accounting firms today. A supercell of technology-fueled disruption is headed our way, and we must figure out how to plot safe passage through what promises to be rapid and radical transformation.
This gathering storm has inspired me to seek advice from some of the top leaders in our profession and, in the process, develop a routine of considering key questions regarding the future.
We've already discussed:
- Are we really moving fast enough?
- What would have to be true for us to change our direction, mind, or assumptions?
- What legacy KPIs are we measuring that slow us down?
This week, let's address the fourth question, Does Our Pricing Reflect the Impact or Worth of Our Services and Advice?
The AICPA’s 2018 Private Companies Practice Section’s Management of an Accounting Practice survey, among other reports, has found that while accounting firm profit margins are solid, they are trending downward. If they slip too far, firms won’t have the resources needed to retain our best talent or make significant investments into technology, partnerships and resources to be successful in the future.
Regardless of which side you take in the debate over whether it’s appropriate for time to be the profession’s primary revenue driver, pricing has to be continuously assessed for the appropriate return on investments, risks, costs and rewards to be a high performing organization.
In the coming weeks, we'll explore the final question and explain why all of these questions are essential to consider as you plot your firm’s course forward.
Until then, I encourage you to share your comments or questions below to help us navigate a better future for our firms and team members, together.