Accountants: How to Stop Leaving Money on the Table

One big challenge that accountants, medical practitioners, lawyers, and all independent contractors and consultants share is balancing billable and non-billable hours.  

As a business owner, you want to bill as many hours as possible, but nurturing leads and building your client base to get paid more requires non-billable work like marketing, internal branding, and recruiting.   

For accountants facing this challenge, there’s only one solution: Generate enough billable hours and charge enough for them to cover your non-billable activity.  

Of course, this is easier said than done. But our CPA time and billing software company can help! Here are some tips to help you get the most value possible from every minute you spend on the clock. 

Raise your rates after tax season 

Recovering from the whirlwind of April’s tax season can leave you feeling that you aren’t compensated enough for the value you provide. Raising your rates post-tax season is a strategic move to get properly rewarded for your expertise, but you don’t want to burn bridges with existing clients.  

You have to strike the perfect balance between acknowledging your worth and appreciating your clients’ loyalty to achieve client retention. The good news is that with the right approach, you can raise your rates without diminishing your client base. 

Keep communication open and transparent 

One of the most effective strategies for raising your rates without alienating your client base is being completely transparent. Start by notifying your clients well before the rate increase and explaining the reasons behind the change.  

For example, you might share that your new rates will reflect: 

• Enhanced quality of services 
• Additional new features 
• Increased costs of maintaining high-quality services 

Keeping your clients up to date can be a time-consuming process, but there are efficient ways to get the message out. Use the secure email communication feature within Mango’s practice management software to send personalized, detailed explanations and eSignature requests for new contracts for enhanced clarity and mutual agreement.  

Staying open and transparent helps you build trust with clients and shows them you value their business. 

Offer value-added services 

Introducing value-added services can also significantly soften the blow of a rate increase. Consider what new services or improvements you can offer to justify higher rates to your clients, such as: 

• Complimentary annual strategy session 
• Quarterly account reporting 
• Guarantee of faster turnaround times 
• Free financial webinars 
• Access to client collaboration tools like a secure client portal for real-time project tracking 

Improving your service offering lets you increase rates while also increasing the value proposition for your clients. You can use Mango’s reporting and analytics software to identify which services your clients value the most so you can focus on these areas and make the price increase worth it. This will go a long way toward promoting client retention. 

Implement customized pricing models 

Instead of taking a one-size-fits-all approach to increases, consider implementing customized pricing models tailored to the needs and usage patterns of individual clients. It may take a little work upfront, but it’s well worth it.  

Analytics and reporting software can make customization infinitely easier. It allows you to gain insights into how different clients use your services so you can create personalized pricing plans reflecting the value they receive.  

For example, clients with more complex needs or who require more hands-on support might be more understanding of a rate increase if it’s tied to the specific services they use. Offering tiered or bundled services can also help clients see the direct correlation between what they pay and the value they get, making the rate increase feel more reasonable and justifiable. 

Set targets for employees 

Raising your rates is one of the first steps to take if you’ve been leaving money on the table, but employee management is just as important.  

Setting utilization goals for your team members can optimize employee and manager performance. The key to making it work is to set reasonable benchmarks. First, use time-tracking software to assess how much time each employee spends on each item. Then, set future benchmarks based on those timeframes.  

It’s important to recognize that executives and other members of the leadership team will likely have a lower utilization rate than a junior-level employee who is grinding out client work every day. Conversely, junior members who are just starting out may need extra time allotted to learn new processes and correct mistakes.  

As we’ve said before, if you use your time tracking tool to assist rather than control, your firm can yield positive benefits.  

Manage the time your team is spending 

When trying to maximize profitability and minimize financial leakage, one area that often gets overlooked is effectively managing your team’s time.  

The key to unlocking this potential? Capacity planning.   

Capacity management isn’t just about doing more in less time—it’s about doing the right things at the right time with the right resources. The goal is to balance your processes, team, and technology without burning out your team members.  

To start capacity planning, evaluate your data on how each team member has spent time across different tasks and projects. Then, optimize each member’s workload accordingly. 

For example, if you notice that a senior accountant is spending too much time on tasks that a junior accountant could effectively handle, you can reallocate responsibilities to boost efficiency. Conversely, if a junior accountant is overwhelmed with complex tasks that extend beyond their capacity and working overtime without proportional productivity, you can redistribute these tasks to more experienced team members. 

Once you’ve redistributed tasks, you can utilize Mango’s comprehensive project management software to: 

• Allocate tasks based on their expertise and capacity. 
• Evenly distribute work among team members to avoid burnout. 
• Meet deadlines without overburdening any single team member. 

By analyzing these patterns and adjusting accordingly, you can tailor work assignments to match the skill sets of your team members. As a result, everyone can work on tasks that maximize their efficiency within a balanced 40-50-hour workweek.