Public Practice Accounting – is it worth it?

How many of us don’t sometimes wonder if we might have been better off opting for the high rise commerce world of the big city?

Oh, for that easy money … the guaranteed pay cheque every month. It sure would have made for smoother sailing. But then again, what about the big payout we’d miss out on just before retirement?
After all, isn’t that what partners of accounting firms are holding out forselling the practice for a sum that makes it all worthwhile?
But we live in ‘exciting times’, and the promise of a rewarding payout is no longer as reliable as it was only five or ten years ago.

Sadly, accounting public practices are diminishing in value at an astounding rate, as online solutions and ATO automation (along with many other factors) put more and more pressure on the ‘stick-ability’ rate of clients who come to us for compliance and tax returns.

Public practice partners are well aware of the need to act now to make sure that all our years of blood, sweat and tears don’t come to nothing. That we don’t just stand by helplessly watching our future and the value of our practice dwindle away.phycology of sales

So what’s the best way to boost the value of your professional practice?

When it comes to preparing for sale, we can find a lot of advice online and in our old accounting textbooks about business valuation formulaes; and we could get into a debate about which methods are best.
But let’s cut to the chase.
The most highly valued asset for any business on the date of sale is the client data base. Even more important is the repeat revenue from that client data base.
The easier a potential buyer would find it to earn money without the effort of marketing for new clients, the more likely you are to hear “Let’s talk” from a prospective buyer.
So we need to get more adventurous.

We need to explore recurring revenue opportunities beyond the annual compliance and tax that we’ve been so heavily counting on.
The key word to look at again here is ‘annual’.
What if we changed that to ‘quarterly’ … or even ‘monthly’? How far would that go to solidifying the value of your practice?
Quarterly or monthly recurring revenue – it’s a world of new opportunities!
And, as times change even faster, it means we no longer need to be buried in compliance and tax.

Welcome to the realm of Business Advisory – or, as I prefer to call it, Financial Performance Consulting.
It’s been proven that regular financial performance reviews can produce twelve times or more the revenue of SME compliance and tax.
Isn’t that something you want to get in on?
Even better, you only need a small handful of clients to achieve it.
And they may already be in your data base.

What exactly does a Financial Performance Consultant do?

Financial performance reviews include the following types of service:
1. Regular gross profit and net profit check-ins
2. Regular actual vs budget check-ins relating to
a. Revenue
b. Costs
c. Profits
3. Regular cash flow forecasting

Financial performance in an ever evolving world which is affected by a clients’ seasonal changes, a client’s economic changes and business changes. And all of these changes bring opportunities for reviewing and re-setting
• goals
• pricing
• profitability
• cash flow

This seems to fit into the definition of “repeat”..doesn’t it?

Is Financial Performance Consulting for you?

With nothing remaining constant in life or business these days, we can help SMEs steer a safe course to prosperity AND ensure that vital element of longevity for our own business.
Want to find out more about the repeat revenue value of Financial Performance Consulting and how to apply it in your business?

Join us for a LIVE webinar on 3rd March 2016 where we’ll be talking about diversifying your practice, improving your cash flow, and therefore (obviously) the REAL Value of your firm.
Click here : https://www.confidentcashflowsplus.com.au/event/diversify_and_improve/

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