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.