Practice Paradox

How does The Practice Paradox affect accounting firms?

// August 4th, 2009 // The Practice Paradox

In my dealings with hundreds of accounting firms over the past 18 years I have noticed this consistent phenomenon: The value-adding services that most accounting firms would love to provide to more of their clients, and which are of great benefit to their clients, accounting firms don’t know how to sell. I call this The Practice Paradox™.

It costs firms—and their clients—dearly.

These valuable services are optional services (wants), not compliance services (needs).

Unlike compliance-related services with lodgement and regulatory requirements (and looming deadlines with penalties for the client’s non-compliance), services such as tax planning and cash flow planning, for example, require the client to choose these services.

And therein lies the rub.

This means that accountants need to learn how to—dare we say it—sell. That’s a four-letter-word that most accountants don’t like to associate themselves with.

Selling—in the context of an accounting firm—is all about the communication of value, the management of clients’ perception of value and the ability to ’sell the intangible’. The successful formula is one part art, one part science, and one part experience.

It’s a fascinating area intellectually, and a high-payoff skill financially.

This blog will explore with you the various aspects of the psychology, the skills and the systems required to overcome The Practice Paradox in your accounting firm. I encourage you to enter your Comments regarding the various articles as I post them in the coming weeks and months. Your feedback will help shape the book I am currently writing and which will be released in November 2009.

As I complete each chapter I am releasing an updated Book Preview in PDF format, free for you to download. You can download the current version here.

I look forward to feedback and discussion about The Practice Paradox and how to overcome it …

Michael ‘MC’ Carter
Founder – Practice Paradox™ Group