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Year-Round Clients For Your CPA Practice?

The delicate balance of the competition for local accounting clients

Most accounting clients prefer a local accountant or CPA. Equally, the rivalry for accounting clients between firms is fiercest LOCALLY.

And although the Internet, e-mail and accounting software have made it possible to deliver long-distance service in all matters financial, the fact remains that geographical proximity still rates highly within the criteria for choosing one's CPA and/or accounting firm.

Thus, even if you have excellent additional financial and accountancy services to offer, your future success depends some 80-90% on how well your accounting practice or CPA firm establishes itself locally.

In local competition within the accounting industry, the law of supply and demand dictates certain rules that govern the viability of any accounting professional in public practice.

The first rule is that there's more SUPPLY available in any geographical location than the DEMAND for accounting services in that area.

The supply outstrips the demand by a wide margin.

This then stipulates that the olden strategy of "being there and announcing one's availability" that most practices have relied on doesn't work any longer.

One can wait but one won't automatically receive his or her share of the accounting clients as there just aren't enough clients or income to go around for everyone any longer.

The second rule or observation from this is that the marketplace for accounting services is quite constricted. Businesses just aren't utilizing the expertise of the accounting professional anywhere NEAR the degree they could and should... and WOULD if you can jiggle the pieces of this puzzle into correct alignment.

1st category: Clients who don't care and accountants who've given up trying to help

The bulk of accounting clients are those who do NOT understand the value of financial expertise of their accounting firm.

Not only are they oblivious of the benefits available from a CPA or accountant, but they react with FEELINGS to all matters relating to taxation and accounts.

They consider the accountant or CPA an extension of the long arm of the tax man.

They dislike the accounting professional for telling them bad news, they withhold facts from their CPA... well, you know the score.

These clients are then mirrored by those accountants who've grown to look upon their own work as mechanical performance of compliance services, for whom the term "accounting" means only bookkeeping, spreadsheets, ledgers, accounts receivables, writeups, yearly accounts, tax filing and other such tasks included in the mandatory keeping of financial records of a business activity over the fiscal year.

2nd category: Appreciative clients and consulting accounting professionals

The second type of client is the business owner or executive who has realised that the EXPERTISE of the accounting professional is by far the most valuable resource for the proprietor.

This type of client understands how absolutely VITAL it is to receive accurate and timely financial information and to have an expert stand by to help with ideas.

This client comprehends that his success depends on making CORRECT DECISIONS AT THE RIGHT TIME, which in turn completely hinges on receiving correct information and sound advice from experts.

This client type values the knowhow and expertise of the accounting professional.

This CPA sells a lot more services per client than his competitors as a rule. This accounting professional RETAINS clients far longer also and, as a rule, receives far more REFERRALS than the accounting industry average.