Improving Your Firm’s Cash Flow Show Me the Money! ©2013 Sandra G. Johnson, CPA, PC

Billing  Time billing  Billing on retainer  Value added billing ©2013 Sandra G. Johnson, CPA, PC

Fees  Hourly rates  Minimum fees  How to determine tax preparation fees ©2013 Sandra G. Johnson, CPA, PC

Improving Cash Flow  Define payment expectations in advance  Have a signed engagement letter  Look at your Aged Accounts Receivable  Enforce your payment procedures  Make collections a priority  Issue invoices promptly ©2013 Sandra G. Johnson, CPA, PC

Improving Cash Flow  Send out monthly statements  Accept alternate forms of payment  Request money in advance  Auto-pay  Stop work  Dismiss deadbeats ©2013 Sandra G. Johnson, CPA, PC

Improving Cash Flow  Charge for re-runs  Charge for extensions  Charge to respond to notices  Charge for a rush job  Charge for receipt of late work ©2013 Sandra G. Johnson, CPA, PC

Collections  If possible, have someone else make collection calls  Stay calm  It’s not personal  Collecting for tax returns  The Satisfaction Curve ©2013 Sandra G. Johnson, CPA, PC

Billing Myths ©2013 Sandra G. Johnson, CPA, PC

Myth: Accountants should do the job first and worry about money later. ©2013 Sandra G. Johnson, CPA, PC

Myth: Inexperienced or inefficient staff usually causes write-downs. ©2013 Sandra G. Johnson, CPA, PC

Myth: All clients are very price- conscious and always think our prices are too high. If we raise prices, many clients would leave. ©2013 Sandra G. Johnson, CPA, PC

Myth: If you do good work, your client will appreciate the quality and will pay for it without prompting. ©2013 Sandra G. Johnson, CPA, PC

Myth: If you do not charge a client for all the work you did, they will be more likely to pay the bill. ©2013 Sandra G. Johnson, CPA, PC

Myth: Last year’s price is a good guide for this year’s price. ©2013 Sandra G. Johnson, CPA, PC

Myth: If you charge lower prices than the competition, you will get more clients. ©2013 Sandra G. Johnson, CPA, PC

Myth: Slow payment is the price of keeping clients. Asking clients to pay is unprofessional. ©2013 Sandra G. Johnson, CPA, PC

Myth: If you ask clients to pay, they will take their business elsewhere. ©2013 Sandra G. Johnson, CPA, PC

Myth: Clients will appreciate it when you delay sending them their bills. ©2013 Sandra G. Johnson, CPA, PC

Myth: The amount on your time- and-billing system indicates the fair price. ©2013 Sandra G. Johnson, CPA, PC

Myth: What you do cannot be very valuable, because it is easy for you. ©2013 Sandra G. Johnson, CPA, PC

Any Questions? Sandra G. Johnson, CPA, EA, CFE Sandra G. Johnson, CPA, P.C. 206 Pettit Avenue Bellmore, NY