Download presentation
Presentation is loading. Please wait.
Published byRoger Caldwell Modified over 8 years ago
1
1 0845 450 5555 www.swat.co.uk Welcome Making your practice compliant, efficient and profitable Top 5 Tips for Improving Profitability Presented by: Mike Sturgess Chairman SWAT UK Limited
2
22 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents
3
33 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents
4
44 Acquisitions still make sense if you can... Drop fees in with no additional overheads Cross-sell to client base But usually takes 3 years Fills a hole in your service offering Top 5 Tips for Improving Profitability Acquisitions
5
55 Score your whole firm on cross-selling 1 = only sell if clients specifically asks for a service 10 = every client offered every relevant service What is your current score? What would you like that score to be? If you achieved this improvement what fees would it generate? Top 5 Tips for Improving Profitability Cross-selling to clients 4 - 5 7 - 8 £10k per principal per point
6
66 Compliance 70% Top 5 Tips for Improving Profitability Compliance v non-compliance Non-compliance 30%
7
77 Payroll services – preparing the weekly or monthly payroll Management accounts Quasi-FD role Cash flow forecasts and projections Top 5 Tips for Improving Profitability Common non-compliance fees Tax planning Financial planning services Corporate finance activities Fees protection insurance Outsourcing... and now probate
8
88 Manage client referrals Actively ask 10% of clients seen each month Create a formal client reward system Top 5 Tips for Improving Profitability Client referral programme
9
99 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents
10
10 Prospective new client Turnover £4m+ Sage Line 50 detailed monthly management accounts – assume no book-keeping issues Prepare and file statutory accounts and corporation tax return Attend quarterly main board meetings Pre-year end tax planning meeting Top 5 Tips for Improving Profitability Quote for a new client
11
11 Average pricing differential quoted by partners is + or - 25% Maximum suggested: + or - 50% Create systems to avoid this Pricing wizard / fixed price model Second review of prices One-year only price if guessing! Top 5 Tips for Improving Profitability Pricing
12
12 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents
13
13 37 hours x 52 weeks = 1924 hours After holidays, bank holidays, sickness and training = 1665 available hours Top 5 Tips for Improving Profitability Remember...
14
14 PositionRange Bench mark Principal750 – 1,2501,000 Manager (with no admin duties) 1,300 – 1,6001,450 Qualified / non-studying 1,350 – 1,6501,500 Students1,000 – 1,5001,250 Top 5 Tips for Improving Profitability Productivity
15
15 Top 5 Tips for Improving Profitability Principal productivity
16
16 Top 5 Tips for Improving Profitability Principal productivity
17
17 Top 5 Tips for Improving Profitability Principal productivity
18
18 Top 5 Tips for Improving Profitability Principal productivity Partner Partner chargeable work Profits A£156,000£162,320 B£90,000£101,600
19
19 Use 6 minute units Record time in real time Meetings with yourself Set productivity targets Non-chargeable time must be authorised and explained Control non-chargeable time Top 5 Tips for Improving Profitability Increasing productivity
20
20 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents Pg 1
21
21 100% recovery is poor! Work on your pricing Round up, not down. Formal approval for 10% write-offs. Set budgets on all jobs. Set proper working standards in the office. Top 5 Tips for Improving Profitability Increasing recoverability
22
22 1.How to grow the business 2.Pricing for profit 3.Improving productivity 4.Increasing recoveries 5.Reducing lockup Top 5 Tips for Improving Profitability Contents
23
23 Clients rarely pay if you haven’t raised a bill Use standard billing paragraphs Delegate the billing Identify the top ten or twenty WIP clients Set WIP standards by partner and manager Use direct debits wherever possible Money in advance for urgent work Check books & records before starting work Top 5 Tips for Improving Profitability Work-in-progress
24
24 Use red paper or write in red ink for the ‘final demand’ Do not make threats that you are not prepared to carry out Delegate the raising of the follow-up letters and chasing debtors Consider using a discounting scheme Top 5 Tips for Improving Profitability Debtors
25
25 On ‘clock’ / fixed fee:£1,800 Add 1/9 (£200) and bill client£2,000 VAT on £1,800*£315 £2,315 If paid by 18 June, deduct £200, leaving £2,115. Otherwise, strictly 30 days net *From 1 April 15 VAT will be due on the actual consideration paid Top 5 Tips for Improving Profitability Discounting: Inv 4 June 14
26
26 Charge interest on overdue accounts Top 5 Tips for Improving Profitability Debtors
27
27 On ‘clock’ / fixed fee:£1,800 Add 1/9 (£200) and bill client£2,000 VAT on £1,800*£315 £2,315 If paid by 18 June, deduct £200, leaving £2,115. Otherwise, strictly 30 days net. Interest will be charged at 1.5% per month (APR 19.57%) *From 1 April 15 VAT will be due on the actual consideration paid Top 5 Tips for Improving Profitability Discounting: Inv 4 June 14
28
28 Consider using MasterCard and Visa Top 5 Tips for Improving Profitability Debtors
29
29 On ‘clock’ / fixed fee:£1,800 Add 1/9 (£200) and bill client£2,000 VAT on £1,800*£315 £2,315 Payment by MasterCard or Visa accepted. If paid by 18 June, deduct £200, leaving £2,115. Otherwise, strictly 30 days net. Interest will be charged at 1.5% per month (APR 19.57%) *From 1 April 15 VAT will be due on the actual consideration paid Top 5 Tips for Improving Profitability Discounting: Inv 4 June 14
30
30 Include your terms of credit in your letter of engagement Discuss payment methods with clients Offer a menu approach Clients should not be surprised by the amount of a fee note Notify clients in advance of changes... Top 5 Tips for Improving Profitability Debtors
31
31 Top 5 Tips for Improving Profitability
32
32 If all else fails... Partners’ capital must match same partner’s lockup! No billing? No cash collection? No drawings! Top 5 Tips for Improving Profitability Controlling lockup
33
33 0845 450 5555 www.swat.co.uk Welcome Making your practice compliant, efficient and profitable Top 5 Tips for Improving Profitability Was presented by: Mike Sturgess Chairman SWAT UK Limited
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.