Jason On Firms Podcast The Most Common Accounting Firm Money Trap
Oct 29, 2025
Discover how explicit annual renewals can revolutionize profitability for accounting firms. Learn why most firms shy away from them and the pitfalls of hourly billing. Jason critiques standard engagement letters and shares insights on safe upfront pricing. Find out how gathering payment information early enhances client experiences. Plus, explore innovative ways to design structured upsells and service libraries that align with client needs. Unravel the psychology behind pricing tiers and learn to justify premium offerings. Unlock continuous revenue growth through effective renewals!
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Turning Hourly Work Into Priced Engagements
- Jason Staats describes transforming a 1,600-client firm by moving off hourly billing to explicit annual engagements with set prices.
- That change was the biggest bottom-line driver in his firm and unlocked far better profitability.
Price Projects Upfront With A Scope Disclaimer
- Send clients an engagement letter with a price before doing the work, using last year as the scope assumption.
- Invoice that price automatically if actual time falls within an agreed tolerance range to protect partners and cashflow.
Collect Payment Info Upfront
- Take payment information up front as a condition of accepting the agreement so you can pull funds when the work is delivered.
- Use client notifications and soft pull timing to reduce friction and preserve relationships.