CPA - Accounting
Firm Marketing Newsletter:
Find big clients outsourcing their accounting functions
This issue
discusses the horn of plenty of the accounting industry outsourcing
market — finding large businesses to outsource their accounting
functions over to your CPA firm or accounting practice.
It's a veritable
treasure hunt of respectable proportions for ANY CPA
or accounting firm, regardless of size or resources.
New research
has come up with methods of finding and signing on larger businesses
when they outsource their in-house accounting functions.
It's quite
something...
Once you've
read this newsletter issue, please consider reading a web site
article on the subject by clicking this link: "Finding
those bigger companies looking to outsource their Accounting
functions"
All right,
let's get to it then..
Outsourcing
accounting functions: The inefficiecy of large organisations
We've known
for quite a while now that the efficiency ratio of the average
employee decreases in direct proportion to the GROWTH of the
organization. With expansion comes more staff and with more staff
comes confusion, administrative tasks and whatnot.
In a big organization,
people talk with each other during the course of a day a lot
more than in a small group. Any action takes longer as more people
are consulted. Whether or not it is necessary to consult those
other people, is beyond the point here.
Human interaction
dictates this behavior; it's a fact of life.
There was a
time when every company worth its salt had an Accountant. With
the increase of rules and regulations governing business, more
people were hired and, as companies grew, in-house Accounting
departments came to be.
With the development
of Accounting software, things started changing. A lot fewer
people were needed and especially mid-sized companies didn't
really analyze their need of personnel, retaining too many bookkeepers
as a result.
With the increase
of competition profits were lowered.
Continuous
increase of the cost of living index required continuous upping
of salaries. Employer fees increased, laws were passed requiring
the employer to provide this and that for his personnel.
With continuous
improvement to the legal rights of employees, comfort zones increased
and people knew they couldn't be fired that easily.
I'm not taking
sides, merely explaining the development of things that have
made the market for outsourcing open up. Right or wrong, needed
or not, these things have influenced how the situation is in
present time.
During the
past decades, companies have grown and the efficiency of their
Accounting departments has fallen on the average.
And now, with
crackdown on cost, the situation has come to a breaking point.
Accounting firm:
Small, effective and very service-oriented
Where previously,
bigger companies wanted similar-sized trade contacts, today the
emphasis is on finding smaller and more effective units. Nowadays,
bigger companies know that if they want cost-efficient, good
service, they have to turn to smaller Accounting & CPA firms.
Good, loyal
and keen SERVICE ATTITUDE is the keyword in what these bigger
clients are looking for.
A big accounting
firm doesn't have the same competitive edge as it also suffers
from the lack of entrepreneurship brought on by extended infrastructure.
There's not
much point in hiring a firm if the personnel whose task it is
to implement the service is likewise distant from the management
as in the client's own organizations, right?
When we're
speaking of outsourcing assignments, cost-efficiency is a relative
concept. In reality, there's so much margin here - the cost of
in-house solutions is often exceedingly heavy - so you can get
through quotes with a fair profit margin IF you can convince
the client that YOU are his best choice.
Obviously,
the INCOME from a single outsourcing client can equal that of
tens of average business clients.
Usually we're
talking about thousands of dollars worth of monthly fees here.
Thus, a single
new client of this type can DOUBLE your revenue.
In most cases,
outsourcing occurs by way of not hiring new personnel once the
existing ones leave.
Thus, the likeliest
scenario is that your counterpart within the client's organization
is an accounting professional - the head of the in-house accounting
department.
This makes
the work much more fluent and effective as compared with a layman
client.
Obviously,
with the changing wind, there's a tremendous market for ANY CPA
or Accounting firm to obtain several bigger clients.
But how does
one acquire and secure these big clients?
Creating Outsourcing
Stragegy for your CPA firm
For the first,
you must ensure that you have correct facts about the project
so that your strategy builds on those factors which influence
the selection process most.
In other words,
you want to make sure you're building on just the right foundation;
otherwise, your attempts will not get results.
Secondly, you
need to know the exact TIMING for approaching bigger companies.
There are very few "windows of opportunity" available
in outsourcing.
You have to
know the right place and time to make your move.
Thirdly, it's
vital that your approach is such that it makes a BIG impression
on the KEY ELEMENTS of what these bigger clients are looking
for.
That's to say,
you need to concentrate exactly on those things they WANT, providing
them with just the right answers so THEY will realize that your
service is the one that will handle the problems they've had
with in-house accounting.
The monthly
cost of the solution is one, of course.
But you don't
want to compete on price alone for there's little point in taking
on a client if the profit doesn't correspond with the amount
of work (and the higher level responsibility) you take on.
Thus, it's
essential that you can impress the client on the QUALITY of your
service. You also want to get HIM to realize that your SERVICE
ATTITUDE is that of a private entrepreneur... you want him to
seel that "you'll deliver it or die trying."
Fourthly, you
want to use just the right GO-BUTTONS in your approach, presentation
and sales closing.
It's absolutely
vital to know his biggest problems and the solutions & benefits
that he wants... and you must weave these into every phase of
your marketing and presentation so they'll be repeated over and
over again.
If you want
to learn more about outsourcing, please note that Part 9 of your
Modern
Accountancy Marketing & Sales Course is all about finding outsourcing clients
and offers ready-to-use tools to do so successfully.
It's quite
an amazing system... so hold onto your hat, for outsourcing is
the biggest and fastest method of all for expanding revenue and
profits!
Last but not
least, you need to BELIEVE IN YOURSELF.
Don't think
bigger companies aren't interested in your services.
They are.
You've got
the best service attitude, the highest efficiency ratio and you
can provide them with a professional outside viewpoint on which
they can make MILLIONS.
Your true potential
in providing consulting and knowledge for bigger companies is
FAR BIGGER than you EVER believed - guaranteed!
Keep up the
good work and have a week of positive thinking,
Best wishes,
Harry Kafka
HDK Consultants
Ltd
32 Manning Close
Richmond Square
East Grinstead RH19 2DR
West Sussex, United Kingdom
Tel. 01342-328 116
From U.S: 011-44-1342-328-116
CONTACT
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