The days of providing services first and billing later are
dwindling. As this blog post by Jim Boomer, CIO of Boomer Consulting, Inc.
indicates, an increasing number of
accounting firms are moving into the digital age and transitioning their
practices from billing in arrears to value pricing strategies, in order to
better align their interests with those of their clients.
Billing: Where's the Real Client Value?
Accounting firms have been billing
for, well, forever. Billing may
make sense to you as a practitioner, but it may not to your clients. The truth of the matter is, clients are often
baffled by that final bill―which can result in them questioning the real value
of your services, or even worse, causing them to look for a better deal
Clients explain the scope of their
project (taxes, auditing and the like), firms do the work, tally up the hours spent
by partners, junior associates and administrative assistants and send out a
bill for services rendered. However, as most firms can attest, a client's
reaction to that bill is rarely, “Well that's not so bad at all!” Instead, it will
result in an angry client creating perceived indifference between the firm and
the client—the number one reason why clients leave. It isn’t about the
price, it’s about the surprise of the price. Then before you know it, the