Existing Clients Are Vital to CPA Firm Growth
They represent a major source of additional work and potential referrals. Yet, so few firms have formalized client outreach efforts in place. A CPA firm has everything they need right in front of them to see how they can help their clients. They see if there are cash flow issues, if a client is growing or shrinking, how old they are, which may be a trigger to look at exit planning or family succession, and a vast variety of other information.
Client Retention is a Major Component of Growth
The average CPA firm experiences 7% of client runoff due to clients selling, moving, relationship changes, sometimes service issues or fee disputes. That means for every $1M in revenue, the average firm starts each year with $70,000 less in revenue. If a firm does significant consulting work, their runoff may be much higher. Minimizing client runoff helps increase firm value. Add to the equation an effective client cross-selling program and the organic growth starts to flourish.
Are You Helping Each Client Build Their Company’s Value?
If not, you probably are missing the point. Be aware of the perception trap. If you are viewed as the tax provider or auditor, work hard to change that perspective. Compliance providers are subject to fee pressure and can be easily replaced. Trusted advisors can charge premiums and are difficult to replace.
Visionary Develops a Structure Mining Effort
First, we identify potential growth opportunities within your existing client base. Then, we determine how to begin approaching each client. Most clients are not aware of other services a firm offers or that they even need other services. Utilizing client mining in conjunction with the Visionary CPA Resource Network offers a chance to empower your staff with a deeper connection and more fulfilled relationship with clients. It eliminates excuses for your clients to leave and creating reasons for your staff to stay and grow with you.