Total lack of understanding
Just in case you haven't noticed, over the years I've had some discussions with various members about Value Pricing (VP).
The members who disagree with me seem to think VP is about ripping clients off. They prefer a "time/cost plus notional profit" approach to pricing, sometimes using timesheets sometime not.
I come at this from the position that time/cost pricing is selfish/self-centred and effectively makes the profession unethical. Continuing with time/cost pricing will make the accounting profession irrelevant. The conclusion is that accountants will just do is more accounts/tax returns as they gradually become more efficient forced by prices falling.
Many existing practitioners may get out before they experience too much pain, but what about the future?
When you understand VP you appreciate it is the only approach to pricing that:
- Puts the client first
- Fully aligns the accountant and client
- Encourage and rewards innovation
- Drives down costs on low value work
- Maximises value for everyone (clients, practice owners, employees and society)
Pricing is fundamental to strategy so it seems sensible to me to understand as much as possible about such an important topic. At the end of the day being an accountant in practice requires much more that technical knowledge of accounts/tax. But, there is another reason to fully understand VP.
Business owners expect/need this extra knowledge (especially now) and an accountant who does not understand VP and just prices with cost/plus will probably only be able to talk to their client about things like job costing.
Over the years I have invested time and energy to build my knowledge of VP through:
- Reading books
- Attending seminars and Webinars
- Accountants (and other professional) who have adopted VP
- Using VP
I'm interested to know where you have gained your understanding. What have you actually done to build your knowledge of VP?
- Capital allowances anti-avoidance 62 3
- Goods Purchased for Rental 360 13
- builder's 'cost only' job 65 1
- accounts & tax software for small accountancy firms 658 23
- Myfirmsapp 600 13
- Valuation of business 248 4
- CGT implications for gift of shares to connected person 106 4
- Dividend Payments 345 9
- I.d for vat registration 110 6
- Filing past due corporation tax returns 269 1
- Completing Self-Assessment for a Director of Owner Managed Business 151 3
- CIS Deductions 103 2
- SA302's anyone?? 2,639 40
- Accounting for VAT not yet paid in year end 121 3
- Loan to Partnership is s455 tax relevant? 470 17
- Legal Counsel PC costs 69 1
- High Income Child Benefit 127 2
- Fees for sale 356 6
- Incorporation - any tax advantage? 2,617 24
- Share premium or Directors Loan 657 28
- Nil Rate Band Trust - index linked debt by way of charge over property 1,007
- International interest certificate 586
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 507
- NOVA 470
- Bonus Bonds 354
- Insolvency and whistle blowing 328
- Transfer of funds into recently set up company 257
- Payment for Promotional Samples 225
- TPR imposes first penalty notice fines 221
- Quickbooks 2015 146