Episode 28: James Lopiccolo on Selling Service, Not Hours, with Steven Sacks

With Steven Sacks for CPA Trendlines. The accounting profession is "stuck in a rut," says James N. Lopiccolo, founder and managing member of Capocore Professional Advisors, in Lake Orion, Mich. He says CPAs can't see "the challenges that are coming by from other non-CPA firms." Lopiccolo's answer is offering service agreements, instead of billing by the hour. Risky? Sometimes. But clients love it. In more than 31 years of public accounting, Lopiccolo has worked in business advisory, tax, and accounting for a multitude of industries including contracting, manufacturing, medical, professional service companies, and real estate. He serves on the Michigan CPA Association executive committee and the finance committee, and he is a two-time chair of the AICPA Small Firm Practitioners Task Force.

Key Takeaways:

-- CPAs should employ a minimum level of service agreement with clients because it will help to manage expectations as well as professional fees.

-- A proactive approach by CPAs is what clients desire.

-- Clients want their CPA to be a partner in their success.

-- CPAs are much 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.

-- Advisory services are practically the same with slight modifications for each client.

-- There is a trust factor in identifying and hiring the right staff in order to provide a level of comfort for providing each client with advice.

-- It is necessary to have confidence in your staff and let them know they have the opportunity to sink or swim.

-- There will be more competition for client accounting services, so advisory services should be the leading service CPAs provide.

-- CPAs need to leverage the CPA “brand.”
In the next five years, new businesses will arise, but at the same time, there will be greater competition from non-CPAs.