Ultimate Accounting vCon Summer Intensives: How to Implement Value Pricing and Give Yourself a Raise

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CPE To qualify: > / 75 minutes / 5 polling Sandra L. Leyva, Inc. is registered with the National Association of the State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website

Agenda for This Session The four skills you need to implement value pricing The exact steps, plus lots of tips and examples on how to transition from traditional pricing methods to value pricing

Agenda for This Session How to write and deliver a value- price-based proposal

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Introductions Michelle Long, CPA, MBA – International speaker/trainer – Co-Host of QB PowerHour

Introductions Sandi Smith Leyva, CPA – Business coach to accountants – Founder of Accountant’s Accelerator

4 Skills Estimating This skill is not necessary but reduces your perceived risk

Estimating Receive order Determine scope of tax services Write engagement letter Send engagement letter Receive signed engagement letter Send intake form Receive intake form Set up client file Review intake Send of any missing data Send questions Data entry – basic data Data entry – complex data Review forms Perform checklist review – Prior years missing data – Carryovers Perform checklist review (cont’d) – Reconcile equity section, reports – Source docs needed to verify Send questions to client Any research to check on? Final review Set meeting with client Hold meeting – Collect fee – Present documents – Review action items – Upsell other needs Efile return Update file notes Update invoicing system Time spent vs. fee charged? Follow up items set up as tasks in system

4 Skills Communication – Especially listening and interviewing

Communications Create standard questions to ask – Who filed your return last year? – What prompted you to come to me? – What do you dislike the most about the tax process?

Communications Create standard questions to ask – How fast would you like your return filed? – Are you interested in having me handle any IRS correspondence you might get in the next year Are you able to provide me with 1-day turn on my questions? – Did you change jobs, get married, have a kid, buy a house, etc.

Polling question At which of these 4 skills do you feel most competent?

4 Skills Selling – Not just on you but on accounting and what it can uncover for their business

Selling Counter-intuitive – Don’t give away answers; say “I can help with that.” – Don’t act too smart; use everyday language, not accounting jargon – Connect with the client on a personal basis Divorce: “I’m so sorry – let’s get you taken care of”

4 Skills Negotiation Both parties should feel like they got a great deal

Negotiating Isn’t taking advantage of others Both parties need to feel like they came out better – “The results of our transaction should be both parties benefiting. I expect to be compensated fairly for my expertise, and you should expect an accurate and fair product with benefits we’ve outlined.”

Negotiating Black Friday deals – People give up their night to camp in front of the store – The store gives up a profit margin for publicity and volume “What would you be willing to give up in return for my lower profit margin?”

Polling question Which of these skills do you need to work on the most?

From Hourly to Fixed and Value Pricing Next Steps to Take

From Hourly to Fixed Pricing Process: – List your tasks in details (everything you will be doing for a client) – Put a time range on them – you may need to start tracking your time if you have no idea – List your current hourly rate in a column – Do the math – Double it (because you left stuff out)

From Hourly to Fixed Pricing Obtain history – Start tracking your time – How long does it take for you to do things? – Compute profit per client (job costing)

Process Receive order Determine scope of tax services Write engagement letter Send engagement letter Receive signed engagement letter Send intake form Receive intake form Set up client file Review intake Send of any missing data Send questions Data entry – basic data Data entry – complex data Review forms Perform checklist review – Prior years missing data – Carryovers Perform checklist review (cont’d) – Reconcile equity section, reports – Source docs needed to verify Send questions to client Any research to check on? Final review Set meeting with client Hold meeting – Collect fee – Present documents – Review action items – Upsell other needs Efile return Update file notes Update invoicing system Time spent vs. fee charged? Follow up items set up as tasks in system

From Hourly to Fixed Pricing Price the job – hourly with ranges – with a fixed fee – based on the client’s values Set the price based on the info above

From Hourly to Fixed Pricing Hourly with range Fixed price Value priced $0 $10,000s

Polling question How do you price now?

From Hourly to Fixed Pricing Deal with your fear – Just take it one at a time

From Hourly to Fixed Pricing Deal with your fear – Start with NEW clients not old ones

From Hourly to Value Pricing Skip the time stuff Ask the prospect questions – What do they value? – What’s it costing them? Because they never thought about it before TRUST is a MUST

Polling question What is your biggest block?

Value-Based Selling Process How to write and deliver a value- price-based proposal

Value-Based Selling Cycle Start with a situation analysis – What are they in pain about?

Value-Based Selling Cycle Start with a situation analysis – “What’s not working about your current accounting setup?” – “How do you do ___ right now?” – “What system are you using?” – “Are you caught up with your ___?” – “How do you get the data from _ to _?” – “How much time do you spend on __?”

Value-Based Selling Cycle Write it up: You have been doing the bookkeeping yourself and are 6 months behind. You do not have good metrics or updated financial statements. You are unsure of your cash balance. You are doing payroll manually which is taking 90 hours per year. Your shopping cart system does not interface with your bookkeeping system. You have not filed your 2014 taxes.

Value-Based Selling Cycle Possible scope of engagement: – Catch up 6 months of bookkeeping – Monthly financial statements – Help with reading the financial statements – Automate payroll to save 50 hours per year – Automate the interface between your cart and system – File 2014 taxes

Value-Based Selling Cycle Ask for objectives and measures of success: – Caught up on books and taxes “How will you feel when you’re caught up?” – Know where I am – Know I’m doing it right – Save time with payroll “How much time are you spending?”

Value-Based Selling Cycle Objectives: Catch up on the bookkeeping so that it’s up to date. Generate monthly financial reports. Automate payroll. Complete and file 2014 federal tax return.

Value-Based Selling Cycle Measures of Success: Books are current every month. Federal taxes are current. 50 hours or $1,000 per year is saved on payroll labor. Improved peace of mind knowing your books and taxes are current. Improved decision-making ability. Improved feeling of being organized.

Polling question Regarding proposals, choose what’s true:

Your Proposal You just wrote it.

Your Proposal Situation Analysis Objectives Measures of Success

Your Proposal Optional – Add a Values section – What do you do that’s added value not mentioned above Money-back guarantee Additional payroll automation benefits, such as software features, new hire report, employee portal Certifications Quality control Analysis, reasonableness, etc.

Your Proposal - Sample Value: Your employees will have their own payroll portal, which saves time during employee onboarding as well as helps the employee have more control. We annotate transactions and report balances in your accounting system to facilitate communication, ask questions, cut down on , and point out business opportunities or trends. We maintain our Certified QuickBooks ProAdvisor to help us maintain our expertise in QuickBooks technology.

Your Proposal Options Michelle will be spending the final webinar with you discussion options so you can complete your proposals

Tips

More Proposal Tips Add “prospect kit” pages to your proposal – Bios – Testimonials

When Value Pricing Does Not Work No trust When one party wants to take advantage of the other No value is exchanged

Polling question What will you need to do first?

Value Pricing for Micro-Clients Education is critical – They don’t know what they are missing – You may need to teach value

Value Pricing for Micro-Clients Intangibles are essential – How the experience feels – Comfort level – Confirmation they’re doing it right – “Protection” from IRS – Local person for systems support

Taking Action What one thing will you do from this webinar?