News for Small Firm Practitioners

Are Your Fees too Low?

by Brannon Poe | Jan 06, 2015   ()

A firm’s pricing doesn’t just affect its profitability. It touches every aspect of a practice, from staff compensation and workload, to which clients the firm serves, to the mix of services provided. Another crucial aspect that is sometimes overlooked is the impact that pricing has on a firm’s sale price.

As a CPA firm broker, I constantly see this issue having an impact on owners looking to sell. The reality is that pricing can vary widely at small CPA firms. In fact, practices in the same towns, with similar clients, often charge vastly different fees. Many practice owners that I talk to freely admit that they could probably charge more. Let’s take a look at why this happens, the problems it can cause, and how to begin to make some changes.


Source: AICPA
Source: AICPA

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