If you participated in this year’s MAP Survey, you can take part in live 30-minute MAP Survey Platform demonstrations to help make the most of the platform and its dynamic reporting options.
You can register for one of the two sessions (1 p.m. on Tuesday, Dec. 11 and Tuesday, Dec. 18) here:
Host Shelly Guzzetta, PCPS manager and MAP Survey lead, will show how to access your firm’s customizable results. You will be able to create filters, download charts and graphs in PowerPoint and Excel reports, and more.
Firms Continue to Enjoy Solid Growth
According to the MAP Survey, most firms have increased net client fees — up 4.2% across all firms since the survey results of 2016. Given the continuing demand for CPA services, there’s more incentive to make sure your practice is working at peak efficiency. Benchmarks are an important way to assess your firm’s inner workings, set priorities and establish goals.
Four Practice Management Trends You Should Consider
Is your firm operating at peak efficiency?
Now you can leverage insights around approaches to practice management that could help you become more effective and profitable.
The AICPA’s Private Companies Practice Section (PCPS), in collaboration with CPA.com, invited firms of all sizes across the country to participate in the National Management of an Accounting Practice (MAP) Survey. More than 1,900 firms responded, and the findings revealed important practice management trends. Consider:
Engage Clients Outside the Hourly Billing Box
More firms are strengthening client relationships by shifting the conversation from time spent on services to the value of those services. Value pricing/value billing and fixed pricing allow you to expand your service offerings and become an even greater trusted adviser to your clients. These billing models might help minimize stress on your staff members while promoting a healthy work/life balance.
According to the MAP Survey’s results on value pricing/value billing and fixed pricing:
- There were big increases in the number of firms of all sizes using these models, with smaller firms leading the way
- Firms with less than $200,000 in revenues increased their use of these billing models by 10%
- Firms with $200,000 to $750,000 in revenues more than doubled their use of value pricing and value billing from the 2016 survey
- Most firms had increased their use of fixed pricing
You Have Cyber-risk, Regardless of Your Firm’s Size
Some smaller organizations believe the risk doesn’t apply to them. In reality, 61% of data breaches happen at small businesses. Help your small business clients be prepared to handle a cyberattack and assess your cyber risk with these resources. If your firm is a member of PCPS, this toolkit explores cybersecurity client opportunities.
Accounting firms are not immune from cyber risks, and the MAP Survey found a growing number of firms are insuring against cyber liability risk:
- Among firms with under $200,000 in revenues, 60% now have insurance, compared with 41% two years ago
- In firms with $200,000 to $500,000 in revenues, 67% were insured, up from 53% in 2016
- For firms with $500,000 to $750,000 in revenues, the percentage went up to 70% from 47% in 2016
Invest in Time-Saving Technology
CPAs who aren’t regularly upgrading and enhancing their technology assets should give it serious consideration because the benefits for productivity and profitability are immeasurable. As more firms invest in technology, you must keep up with the pace to remain competitive.
Diversify Your Services to Keep Up with Your Competition
Traditional services may be a firm’s bread and butter, but many firms also are making solid inroads into client advisory services. More than half of firms in almost every size category are providing some form of these services. If you don’t already have a foot in the water, now’s the time to distinguish your services from your competition.