This article is part 2 of 2 looking at Fixed Price Agreements in Accounting Firms.
While Part 1 looked at the #1 mistake most firms make with FPA, Part 2 focuses on how to avoid this mistake and properly integrate FPAs as a tool to maintain future practice growth.
If you missed Part 1, you can read it here.
You’ll recall our rural firm from last week who:
- Needed to get more fees & bank more profit
- Needed to fix WIP & Debtors
- Wanted more engagement with clients
- wanted an easier process to follow
We basically hunkered down in a two day retreat to nut out the underlying issues. Together, with the firm partners and the team, we were able to design a solution that was a perfect fit for the entire practice.
Here are some of the key points that you can apply to your own firm:
- get clear on your base packages
- get clear on 9 or 12 products (I draw a grid to plan these)
- create a client presentation around each product – specifically addressing the benefits & value to the client (consider price last)
- Hold a meeting with your client and have them select the products they want
- now attach the package & product template (with client selection marked) to the front of each client’s file for quick reference to all team members
Following this rough process will have multiple benefits, including:
- clarity for the Client around what they are receiving, and what is on offer
- clarity for every team member around the package the client is on
- clarity for Partners on what needs to be done to deliver value to clients.
Additionally, firms experience higher profit margins as scope creep is easily managed and resources quickly diverted to the activities required to service clients most efficiently.
Whilst our rural firm was able to invest two whole days with me in an intense session, there are many firms out there who can benefit from a workshop environment.
We have specifically built a three day training around the principals we believe are necessary for practice growth. This format will take 15 partners through the process of increasing conversion and average client fees, selling more innovative value add services and training your team to proactively seek out the opportunities available within your existing client base.