A recent trend has been to try to “upgrade” clients. Changes in the Big 4’s strategies have been making many firms dream of the bigger and better client. After all isn’t one $50,000 client better than fifty $1,000 clients? They generate the same amount of revenue, so isn’t is easier to manage one client as opposed to fifty.
There is an interesting logic being applied to “upgrading.” Some of the reasons cited for following the “upgrading” philosophy are “we are short on staff so we cannot afford to do this work during busy season”, “we can no longer afford to service low fee clients”, or “it’s the type of work we prefer to do.” All good reasons, but isn’t the primary objective of your business to maximize your personal net wealth? Assuming that the profit generated by the one large client and the fifty small clients are the same, your net wealth will be increased with a whole lot less risk and possible write downs with the smaller clients. So bigger, may not be better.
Wealth management opportunities are limited by two factors:
The volume of qualified clients available to service . The more opportunities to interact with people the greater the chance of identifying prospects that require investment planning, asset management, estate and retirement planning, insurance or other financial service needs.
The time to service them. The number one complaint of most CPA firms is lack of time.
Xpitax is a tax outsourcing and workflow resource that can accelerate wealth management opportunities for the CPA profession. They accomplish this by:
Providing an outlet to service more returns. By outsourcing tax return preparation a firm can absorb additional returns through aggressive marketing or the acquisition of other accounting practices. Growth is limited by the amount of volume that can be processed internally. If the internal resources are supplemented with a trained outsourcing staff, additional tax work can be serviced without over burdening full-time resources.
Giving time back to professional staff. By automating workflow, even if a firm elects not to outsource, they can utilize the Xpitax Client Manager (Xcm) to internally process and move returns throughout the firm – resulting in less non-billable hours. Xcm introduces an array of automation, tracking, embedded email correspondence, and control in the return preparation process.
A recent trend has been to try to “upgrade” clients. Changes in the Big 4’s strategies have been making many firms dream of the bigger and better client. After all isn’t one $50,000 client better than fifty $1,000 clients? They generate the same amount of revenue, so isn’t is easier to manage one client as opposed to fifty.
Wealth management opportunities are limited by two factors: 