What’s next? An optimistic outlook.

I would suggest that as advisers to the UK business community we can offer constructive advice that will impact clients ability to weather the expected fallout from our likely exit from the EU, or indeed to exploit any longer term advantages that may arise. But rather than focus on the will-it won’t-it happen unknowns, could we not prepare for either outcome?

Business fitness

We are ideally placed to promote business fitness, and there is no logical reason for not pursuing this course of action. The question is, are we?

Are you lobbying your business clients to engage in a constructive “business fitness” program, such that, whatever the Brexit outcome (or projected economic downturn), your clients will be in good shape to weather any turbulence?

I’m thinking common-sense issues, converting current assets into cash, utilisation of resources, etc, etc.

Fee building 2019-20

One likely spin-off if you promote business fitness is an increase in your recurring fees. Another is converting purely compliance activity into services that have perceived value.

In my recent Fee Builder publication, the promotion of Business Fitness programs with clients is just one of a number of service options that I believe you could introduce during 2019-20.

Eleven ideas to super-charge your recurring fees for 2019-20

If you are interested in taking a fresh look at your service offerings, and thus providing clients with more choice and value, then I have written up eleven suggestions for how you could develop new income streams this year.

Take a look at my Fee Builder options here>

Eleven strategies for leveraging existing and new services into recurring services for 2019-20

 

 

Where do we go from here?

Where do we go from here?

Here’s two ideas for you to consider

  1. Offer annual accounts prep and a business tax return for free, and
  2. Offer your management accounting skills to high net-worth individuals.

And before you reach for the delete button, consider these alternatives.

Downward pressure on compliance fees

This is no urban myth. Those of you who rely on compliance fees to bolster your fee income will be acutely aware that this is considered to be a “grudge” purchase by clients.

Accordingly, the only real value of these services is to ensure accounts are prepared and filed before filing deadlines and tax is paid on or before the due date.

And there seem to be an ever growing group of super-charged bookkeeping firms that are willing and able to do this work at ridiculous rates.

Last, but not least, is the emergence of AI, or more particularly, accounts software companies who will start to add annual accounts and tax compliance to their accounting products.

And so, if the value is dropping out of number-crunching, where are specialist, and highly qualified firms going to create their recurring income streams in years to come?

Back to the future

Any change process encourages the emergence of pathfinders, those individuals who can sense that the wind is changing and that sails need to be reset, and while the majority blissfully do what they have always done, these pathfinders gather in the low-hanging fruit.

By the time the rest of us have woken up to the new opportunities this low hanging fruit, and much else, will have disappeared. And the pathfinders will be moving on to exploit new opportunities.

Eleven ideas to super-charge your recurring fees for 2019-20

If you are interested in taking a fresh look at your service offerings, and thus providing clients with more choice and value, then I have written up eleven suggestions for how you could develop new income streams this year.

Take a look at my Fee Builder options here>

Eleven strategies for leveraging existing and new services into recurring services for 2019-20

Add new income streams to your practice

AI and the mechanisation of manual processes are likely to lead to downward pressure on the pricing of repetitive services.

No where is this more apparent than when considering the delivery of compliance services to clients. Your fees for preparing accounts and returns to meet HMRC and Companies House obligations are generally considered to be “grudge purchases” by your clients.

The demise of pure compliance services

Will this automation of compliance activity continue to drive down prices? In my opinion, yes it will. The solution is to side-line accounts preparation and tax return submission into a free service!

Fee Builder 2019-20

I have recently written a workbook that illustrates how this can be done.  The workbook includes eleven strategies for re-creating existing services, and creating a number of new recurring services.

One of the strategies promotes the repackaging of bookkeeping, compliance work and periodic reviews as a Business Fitness and Planning Review service. A description of the service would be something like this:

We can take over all your paper-work chores, produce regular management accounts, deal with any issues arising and handle your VAT and payroll filing requirements. And if you sign up for this service, we will produce and file your annual accounts and business tax return FREE OF CHARGE.

This places the value and cost on the benefits instead of just dealing with pure compliance obligations.

The workbook also promotes a new look at the following services that can be reviewed annually:

    • TAX PLANNING REVIEWS
    • COMPANY SECRETARIAL SERVICES
    • CGT FORECASTING AND PLANNING REVIEW
    • IHT FORECASTING AND PLANNING REVIEW
    • BUSINESS EXIT PLANNING

And the following “new” service delivery ideas:

    • PERSONAL “END OF LIFE” OR DISABILITY PLANNING
    • PERSONAL FINANCIAL ACCOUNTING REPORTS
    • GDPR REVIEWS
    • BUSINESS SYSTEM CHECKS, and finally
    • REGIONAL TAX PLANNING

Also included in the Fee Builder bundle

Fact sheets that highlight the above, that you can adopt and send to clients and prospects as part of your marketing campaigns, and an updated copy of my TAX PLANNING ROAD MAP for 2019-20. This latter publication has a wealth of check lists and draft emails that can be used to approach businesses, personal tax clients and property owners about tax planning opportunities.

I will also give all purchasers of Fee Builder 30 minutes of my time to settle on at least one application of the ideas shared that can be integrated into your service offerings for 2019-20.

Interested in Fee Builder?

Visit our Fee Builder page for more information about the product.

Obviously, I cannot disclose too much detail online otherwise the intellectual property that makes up this service would be compromised. If you are still uncertain if Fee Builder would be of value to your practice call me anytime on: 07879 896073.

Bob Edwards – April 2019

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