CPA_Practice_Advisor_July_2020 - 20
FEATURE
How to Implement an Effective
Value Based Engagement System
By Jason Lawhorn, CPA, CITP, CGMA
THE PROFESSION HAS been talking about the Value Based
Engagement for twenty years now. A small percentage of
firms (think 4%-5%) have successfully implemented this pricing
structure in their operation. The majority struggle with how to
move from hours times rate to a Value Based Engagement or
even a subscription-based model to identify, bill for and collect
for services in our highly technical field.
THE ELUSIVE VALUE-BASED
ENGAGEMENT: WHERE AND
HOW TO FIND IT
If it were as easy as flipping a switch
everyone would have done it already,
and then I'd be writing about something way less interesting like the state
of affairs with revenue recognition. But
20
JULY 2020 ■
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the transition to Value Based Engagements isn't quite as easy as the flip of a
switch. Make no mistake, it absolutely
can be done and the benefits for making the commitment to updating how
your firm values and delivers service to
your customers is an enormous benefit
to moving forward into perpetuity.
To understand any elusive creature, you must understand it and it's
environment. You aren't going to be
successful in capturing or even seeing
it if you lack a basic understanding of
what it is and is not. So, what is Value
Based Pricing which is the core of
Value Based Engagements?
Value Based Pricing is the point
where the firm's expectation and the
customers perception of value meet.
So, based on this definition one would
have to acquire the ability to:
* Identify and create the firm's expectation of value for any given level of
service, and
* Do so in such a way where the customer
perceives the value of the services at
the highest level possible.
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CPA_Practice_Advisor_July_2020
Table of Contents for the Digital Edition of CPA_Practice_Advisor_July_2020
From the Editor
CAS Practices Meet the Moment
Do You Have a Clear CAAS Vision?
Small Business Accounting Product Review
Apps We Love: Augmented Reality
The Post-Pandemic Workplace
Point-of-Sale Systems Product Review
The Proadvisor Spotlight
An Email Automation Process That Works Like a Charm
How to Get More from Your Zoom Meetings
How to Implement an Effective Value Based Engagement System
Hiring & Managing Paraprofessionals in the Age of Remote Working
AICPA News
The Great Leap: Convergence & Acceleration
CPA_Practice_Advisor_July_2020 - 1
CPA_Practice_Advisor_July_2020 - 2
CPA_Practice_Advisor_July_2020 - 3
CPA_Practice_Advisor_July_2020 - From the Editor
CPA_Practice_Advisor_July_2020 - CAS Practices Meet the Moment
CPA_Practice_Advisor_July_2020 - Do You Have a Clear CAAS Vision?
CPA_Practice_Advisor_July_2020 - 7
CPA_Practice_Advisor_July_2020 - Small Business Accounting Product Review
CPA_Practice_Advisor_July_2020 - 9
CPA_Practice_Advisor_July_2020 - 10
CPA_Practice_Advisor_July_2020 - 11
CPA_Practice_Advisor_July_2020 - Apps We Love: Augmented Reality
CPA_Practice_Advisor_July_2020 - The Post-Pandemic Workplace
CPA_Practice_Advisor_July_2020 - Point-of-Sale Systems Product Review
CPA_Practice_Advisor_July_2020 - 15
CPA_Practice_Advisor_July_2020 - 16
CPA_Practice_Advisor_July_2020 - The Proadvisor Spotlight
CPA_Practice_Advisor_July_2020 - An Email Automation Process That Works Like a Charm
CPA_Practice_Advisor_July_2020 - How to Get More from Your Zoom Meetings
CPA_Practice_Advisor_July_2020 - How to Implement an Effective Value Based Engagement System
CPA_Practice_Advisor_July_2020 - 21
CPA_Practice_Advisor_July_2020 - Hiring & Managing Paraprofessionals in the Age of Remote Working
CPA_Practice_Advisor_July_2020 - AICPA News
CPA_Practice_Advisor_July_2020 - The Great Leap: Convergence & Acceleration
CPA_Practice_Advisor_July_2020 - 25
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