Where do we go from here?
Here’s two ideas for you to consider
- Offer annual accounts prep and a business tax return for free, and
- 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.