The return on investment of getting paid for the work you do
Trent McLaren pinpoints the cause of 99% of all debtor problems in accounting firms.
When I speak to an accountant about the biggest challenges they face in practice, I typically get a few candid responses. We need to improve our marketing to get more leads, we think we might be too cheap and need to evaluate our pricing, and the list goes on.
The one that always surprises me is the number of firms that would just love to get paid for the work they’ve already completed for their clients.
Sadly I’m not just talking about a couple of grand either. I’ve seen debtors sitting in the £100,000 and beyond territory in some really notable firms.
This can only happen when there is a breakdown in your process of getting paid. And it’s actually a really easy one to fix if you know where the hole in your process is.
When you meet a new prospect, things seem great. They’re nice, you’re nice, you all get along and everything feels like it’s off to a great start. You didn’t bother putting them on a payment plan because they were so nice, and you were so nice so why would they intentionally not want to make sure that you get paid, so that you can keep running your business?
Except because you’ve done this for every client, you’ve lost all control of your cashflow of your own business. You know that most of your clients should pay you around the invoice due date, but you can’t pinpoint exactly when they’ll pay because that’s up to them – not you.
This is the cause of 99% of all debtor problems in an accounting firm. If you’re owed money by a client, it’s because your process to get paid is broken and you’ve got no systems or framework in place.
ACCA has announced a partnership with Practice Ignition to specifically help accountants put in place processes that won’t break, ensuring that your engagement letters are created quickly, and you put in a strong payment plan and process in place – for every single client.
If you want to find out the ROI to take back control of your cash flow and implement a client onboarding experience that impresses all of your clients then you can take this quiz that will tell you how much your ROI would be to use Practice Ignition in your firm.
Good luck, happy hunting and let’s help you take back control of your cashflow! Let’s put better processes in place to help make sure you get paid on time – every time!
Trent McLaren - Head of Accounting & Partnerships, Practice Ignition
ACCA and Practice ignition
ACCA believes that the future of engagement letters lies in the integration of payment and engagement letters into a single onboarding process.
Our partner, Practice Ignition, has developed a version of its onboarding product that uses ACCA templates. There is more information about this partnership and Practice Ignition’s product here.