MASS REDUNDANCIES FORECAST?

MARK LLOYDBOTTOM

PRACTICE MANAGEMENT ACADEMY NEWS 2016

MARKLLOYDBOTTOM

I REFUSE TO LEAVE THIS PROFESSION THE WAY I FOUND IT...

We all see and hear the clamour for space and voices that wish to be heard when it comes to forecasting the future of the profession… and how they can

help. But where to go and how to get there are questions many are addressing.

A few facts:

• The new audit exemption threshold parameters came into force for accounting periods commencing on or after 1 January 2016

• The annual tax return is to be consigned to history

• Digital tax accounts are around the corner

• Some members of the Big 4 (e.g. KPMG) are now actively recruiting clients in the SME marketplace, and

• Government is collaborating with technology companies and their online reporting capabilities.

(continued on page 2)

Mark is acknowledged as a leading accounting firm futurist. He specialises in planning and strategy relating to firm management and profitability. His management programmes and consulting are based on over 30 years of experience partly as a consultant. He has worked with accounting firms from more than twenty foreign countries and has lectured for Institutes and accounting associations throughout Europe, North America and South Africa. Mark was a practitioner for 20 years who started his own practice in Bristol in the 1970s. He is the founder of PracticeWEB and Practice Track. He is devoted to researching and identifying strategies to enable accounting firms to build the top and bottom line. He achieves this by delivering high-quality consulting and lecturing that address how accounting firms can improve their performance.

COULD IT REALLY HAPPEN? WHAT DOES THE FUTURE LOOK LIKE AND WHAT CHANGES WILL IMPACT THE ACCOUNTANCY PROFESSION AND YOUR BUSINESS?

Any further developments? Probably. One thing is for sure and that is that a profession that has seen relatively little threat to its trilogy of compliance services can now see their evaporation and the ongoing incursion of alternative service providers.

Redundancies? Not if you plan and adapt to the changing world order.

IS THE END NIGH?NO. But certainly some will fail to address and implement the changes necessary to ensure a profitable and exciting future, but many will. Some will succeed more than others. But then, hasn’t that always been the case?

DO YOU HAVE AN UP-TO-DATE BUSINESS PLAN?A question I have asked at my management training seminars since 2000. Based on this empirical evidence less than 1 in 4 accountants has an up–to-date business plan. It is oft said that if you don’t know where you are going any route will get you there.

Change is a challenge BUT NOT changing is ALSO a challenge. So, my recommend – strategise and develop your business plan – define your value proposition, your client service solutions and so on.

WHAT HAVE YOU BOUGHT IN THE LAST 12 MONTHS FOR WHICH YOU DID NOT KNOW THE COST IN ADVANCE?Benchmarking surveys repeatedly report that accounting firm’s lock up is between 20-35 per cent of annual fees. That never was best practice and it certainly looks like worst practice going forward. There might be a tacit understanding but, from the client’s perspective, they can only guess unless you have an agreed fee.

Many leading edge firms use monthly direct debits to dramatically reduce their lock up to 15 per cent or less. This is a win-win for accounting firms AND for clients as agreeing a fee and this being paid

Strategise and develop your business plan - define your value proposition

ATTENDING DOUBLE YOUR INCOME HAS CHANGED THE WAY I VIEW AND MANAGE MY PRACTICE PROFOUNDLY. I attended a full day session with Mark Lloydbottom, with the purpose of creating more order and control in my demanding life of fulfilling the dual roles of a professional accountant delivering services to clients as well as an executive managing my business.

I found Mark to be extremely knowledgeable, inspirational and passionate about the subject material while still being practical. Mark has a deep understanding of the professional environment and the challenges one faces as an executive. He taught me techniques and new ways of thinking about problems and my approach to my work that my team and I are already applying successfully. I feel that I am much more in control of my practice even though the environment is still as dynamic and challenging as it has always been.

Following the seminar I purchased Mark’s Double Your Income seminar CDs and manual – truly inspiring.”

THE POWER OF DOUBLEYOUR INCOME

ODDETTE BOSHOFFMANAGING DIRECTOR UNIK PROFESSIONAL SERVICES CAPE TOWN

PRACTICE MANAGEMENT ACADEMY NEWS 2016

by direct debit brings financial certainly into the relationship. Key point: When using direct debits or when agreeing a fee in advance it is essential to include a 4 - 6 point confirmation of what has to be delivered for that fee to be adhered to. In the future, if not already, time taken to do the job is irrelevant. All your clients want to know is, “What is the cost” and not, “It depends on how long it takes.” Easy fee and easy payment.

The problem with the billable hour is that there is an inherent fault line in that the greater your inefficiency, the greater your reward.

Recommend: Plan to upgrade your accounting and introduce payment by direct debit. Where to start? Look initially at all clients who have balances in your 90 day column and all new clients.

USE THE POWER OF AGENDAYou probably never go to any seminar without knowing what is on the agenda. An agenda establishes your expectations and respects how you intend to invest your time. Many firms I work with report that using my four part client meeting agenda approach enables them to SIGNIFICANTLY improve client service. This involves engaging clients in a step process that brings breadth to

meetings and gives the platform to advise, and charge, for advice beyond compliance.

HOW MANY CLIENT MEETINGS WILL YOU HOLD IN THE NEXT 12 MONTHS?Feedback from my seminars highlights the impact of my methodology for client meetings. Consider: an iceberg has a visible mass in the region of 10-15% of its total mass. This percentage approximates to the quantum of visible time spent face-to-face with clients. BUT, clients derive at least 80 per cent of their value from the time they spend with you – the accountant.

My training programs address what to do and how to do it. Being more visible is an essential component of being more profitable in the future.

ONLINE AND CLOUD SERVICESYou probably recognise the importance of developing service capabilities using the latest technologies. But have you started yet? The future is NOW and, from my recent visit to Accountex, it is clear that there are a multitude of vendors ready to sell you their solutions. Be careful, do your research and take much advice before committing. BUT, don’t delay. Cloud services enable others to breach geographic boundaries; so beware competitors may be from beyond your locality or even beyond our shores.

Clients derive at least 80 per cent of their value from the time they spend with you

PAUL BERLYN, MANAGING PARTNER, ABG, LONDON

MARK'S COMMON SENSE, INSIGHTFUL APPROACH, PASSION AND INTEGRITY HAVE HELPED US IN GROWING OUR FIRM

HOW DO YOU COMPARE? HERE ARE SOME EXTRACTS FROM A RECENT BENCHMARKING SURVEY OF OVER 400 LEADING EDGE ACCOUNTING FIRMS:

1 Days in lock up WIP – 25 daysDebtors – 55 daysTotal – 80 days (22% of gross)

2 Chargeable hours p.a.

Equity partners – 962 - 1168Non equity partners – 900 - 1400

3 Total hours p.a. Equity partners – 2200 - 2400Non equity partners – 2000 - 2200

4 Percentage charge rates compared to equity partners (sample)

Salaried partners 95%Professional staff with 6-8 years experience 55%

5 Leverage 8.1

6 Do you have a signed partnership agreement?

100% YES

In the Double Your Income seminar we highlight the 8 characteristics of a ‘Successful’ firm and contrast with one that is ‘Complacent.’ The idea came from playing snakes and ladders with my granddaughter!

Here is a brief summary of these firm types.

A COMPLACENT FIRM:1. Is good, maybe really good, at compliance work2. Keeps up-to-date with compliance changes3. Performs a good job and delivers best results4. Has owners who are busy and as a result has

minimum client visibility 5. Sees its owners end up finishing the job off6. Has little time to innovate7. Experiences pricing issues with clients8. Does not sufficiently invest in marketing.

A SUCCESSFUL FIRM:1. Offers distinctive niches- both by service line

and sector2. Commits to up-skilling the team in service

development and I.T.3. Has a laser like focus on the present and future

service advice4. Focuses on high client visibility5. Prioritises delegation6. Innovates, innovates, innovates7. Delivers clear value and on time8. Has a brand with impact and marketplace

resonance.

HOW ARE YOU PERFORMING?

PRACTICE MANAGEMENT ACADEMY NEWS 2016

CONSULTING SERVICESMy work encompasses working with firms in the area of solving problems and improving profitability. What that work encompasses will be agreed as we work together to achieve your goals and objectives.

THE FOCUS OF MY CONSULTING IS ALWAYS ON RESULTS.

Many firms find my Accountants Insight diagnostic tool to be an invaluable approach to analysing the firm in all areas and preparing a diagnostic framework for identifying which problems to solve first and how to address the problem solving.

MARK LLOYDBOTTOM’S GUARANTEEIf our clients are not satisfied with the quality and value of our consulting services we will happily accept a fee that equates to our clients’ perceived value of the engagement.

MANAGEMENT TRAINING SYSTEMSFROM MARK LLOYDBOTTOM CONSULTING

DES O’NEILL

EXPERT ADVICE FROM A BRILLIANT

CONSULTANT

FIRM OWNERS

ONE-ON-ONE PARTNER TRAINING

FUTURE PARTNER TRAINING

I have developed a series of consulting books, manuals and services based on over 30 years experience of working with firms across Europe, North and South America and South Africa. Here are just a few of the ways in which you can avail yourself of my expertise and teaching programs.

UPGRADEThis is a comprehensive one-on-one firm owner/prospective firm owner training programme.

CONTENT INCLUDES

THE MARKETPLACE Exploring threats and opportunities What successful firm owners are doing

FIRM PROFITABILITY Exploring how the accounting firm can increase profitability

CLIENT SERVICE The power of client meetings including the essential client meetings How to personally deliver outstanding client service – and derive greater job satisfaction

BILLING How to discuss prices with clients – avoiding the trap of under billing

JOB PROFITABILITY The essential ways to drive efficiency and improve job profitability

SELF MANAGEMENT Benchmarking and KPIs that drive results

ADVISORY SKILLS Essential [new] skills for giving business advice (4 hours): Understanding and engaging with the four roles of management The lifecycle of a business Questions that open up the client to want more from you

MARKETING Mind the gap – How to build valuable personal relationships Personal marketing that guarantees to win new business

STAFF Improving one-on-one staff management

IMPLEMENTATION Developing the personal plan

45 CHAPTERS AND TRAINING FILMS

(TOTAL ABOUT 9 HOURS)

FIRM OWNERS

DOUBLE YOUR INCOME - NEW IN 2016!This seminar focuses on laying the foundations that will enable you to maximise your profitability potential.

CONTENT INCLUDES · How one firm increased realisation from 65% to 85% in six months · How one London-based firm increased profits by over 100% in less than a year · Key ways to get more chargeable hours without more overtime · An essential future accounting firm model · Learn the lessons from the eight ladders of success and avoid the

eight ladders of complacency · Learn how to massively eliminate time on jobs · Essential keys in strategic planning · Marketing –forward to some great basics · How to bill more for the same work · New twenty first century pricing strategies · How to increase your minimum tax return fees · How to increase profitability of serving existing clients · Six steps to increasing client loyalty · Effective strategies for gaining new clients · Key laser like metrics that will enable you to manage smarter – rather then harder

160+ PAGE MANUAL AND 3 POWER-PACKED CDs

PRACTICE MANAGEMENT ACADEMY NEWS 2016

FIRM OWNERS

DEEPER: ADVANCED PRACTICE MANAGEMENT STRATEGIESDeeper is a comprehensive programme designed to enlighten and empower you to exponentially improve what and how you manage. In so doing this programme will help you to improve profitability, reduce lock up to 15%, and achieve better firm-wide results.

CONTENT INCLUDES · Calculate the financial cost of poor service · Calculate the financial value of delivering

outstanding service · Learn from our four quality case studies · Some essential client care KPIs - follow

these and client service WILL improve · Over 100 service-opening questions that will help lay your clients

problems out in front of them · Over 35 services you can deliver to your business clients · The advanced LUBRM model and how to ‘better manage the gap’ · How to downsize your lock up to 15% and have your clients

welcome the change in your billing practices · More than 25 essential benchmarks – compare your firm · Insights for managing partners · All of my key notes from attending management conferences for

25 years · How to build your relationships and the firm’s reputation · Essential core marketing strategies that will deliver new business

PLUS – Chapters from more than 10 leading consultants covering such topics as profit sharing, negotiating skills, lessons from the best of the best, bringing on your talent and research-proven steps to excellence.

INCLUDES 3 CDs, 1 DVD, 200+ PAGE FULL COLOUR

MANUAL, 3 SAMPLE SERVICE CARDS FOR YOUR FIRM TO ADAPT,

AND MARK LLOYDBOTTOM’S BOOK RECOMMENDATIONS

MARK HAS BEEN A TRUSTED CONFERENCE FACILITATOR FOR CHARTERGROUP WHO HAS OVER A NUMBER OF YEARS DELIVERED SEMINAR AND CONFERENCE PRESENTATIONS. HIS INSIGHT AND WISDOM HAVE ALWAYS BEEN DEEPLY CHALLENGING AND THESE HAVE CONTRIBUTED TO OUR MEMBERS BEING ABLE TO BRING A ‘DEFINING EDGE’ INTO THEIR UNDERSTANDING OF HOW TO BETTER MANAGE THEIR FIRMS.GARY CORBETT, HEAD OF CHARTERGROUP

FIRM OWNERS

DEFINING EDGEDefining Edge is the first of Mark’s two-part Accounting Firm Management Training Programmes for Firm Owners.

CONTENT INCLUDES · Our LUBRM accounting firm model – how you can increase profitability · Your personal development plan – the challenge and opportunity · Delivering outstanding client service pays – turn your clients into powerful advocates · Powering up your client planning meetings · Enhancing the value of what you deliver · The iceberg and rear view mirror models · Why quality doesn’t cost – it pays big dividends · Billing myths – don’t get caught out · Improve utilisation - time on can increase · Increase realisation or maybe reduce - and still increase profits! · 10 ways to improve billing · How to minimise write downs - a powerful case study · How guerrilla billing reduces lock up · The power of the 85% rule · Marketing – what to make sure you do to win new clients · How to build your relationships and the firm’s reputation · Essential core marketing strategies that will deliver new business

INCLUDES A 160-PAGE COACHING MANUAL AND

EITHER 6 CDs OR DVDs

PRACTICE MANAGEMENT ACADEMY NEWS 2016

FIRM OWNERS

FIRM OWNERS

FIRM OWNERS

STAFF TRAINING

STAFF TRAINING

STAFF TRAINING

POWER UP YOUR GROSS MARGINThis programme is based on my work with accounting firms over the last few years. It unlocks the secrets of how you can improve your gross margin on your jobs. Discover the steps you can take to improve profitability and how to eliminate some of your lost, non-chargeable time.

CONTENT INCLUDES · What to monitor and manage to improve profits · Gap management – managing what you can’t see results in big dividends · The powerful impact of client visible time · How to get 1200 chargeable hours or more a year · How to reduce write-downs · Twelve lessons I learned from managers and how they impact your firm · Fifteen strategies you can use to improve margin · How to get paid in your client’s financial year · How to gain client approval for fees

DELIVERING OUTSTANDING CLIENT SERVICEThis two-part DVD training programme and manual provides a comprehensive overview of the power and potential of focusing on improving client service. Clients are the lifeblood of your business. Join Mark for a transfusion and powerful lessons that really will deliver outstanding service to you and your team.

CONTENT INCLUDES · The cost of poor service and the reward of being outstanding · Escalate your performance and improve your client report card · The power of leveraging client meetings and how to do it · Learn from one of the UK’s most successful independent car dealerships · Learn some innovative ideas from a self styled crazy New Zealand dentist · Some insightful and highly impactful client care KPIs

BETTER BILLING. BETTER COLLECTIONS.LOWER LOCK UP. GUARANTEED. This two-part DVD training programme and manual provides insights into the major 21st century changes that are impacting the profession today. These changes are occurring in other businesses – now it’s the turn of accountants.

CONTENT INCLUDES · An in depth look at an insightful accounting firm financial model · Dispelling the anchor of billing myths · How to downsize your lock up (debtors and work in progress) · New billing and collection horizons – start sooner rather than later. · Discussing prices with clients – an end to low balling now · Taking action and getting the desired results

TWO-PART CD AND 64 PAGE MANUAL

84 PAGE MANUALAND TWO TRAINING DVDs

80 PAGE MANUALAND TWO TRAINING DVDs

MARK HAS CONSULTED WITH ABG AND THROUGHOUT THIS TIME GAINED THE TRUST AND RESPECT OF THE PARTNER GROUP. HIS COMMON SENSE AND INSIGHTFUL APPROACH COMBINED WITH HIS PASSION AND INTEGRITY HAVE BEEN OF GREAT VALUE IN HELPING US ALL FOCUS ON WHAT TO DO TO GROW OUR FIRM. PAUL BERLYN, MANAGING PARTNER, ABG, LONDON

PRACTICE MANAGEMENT ACADEMY NEWS 2016

Practice Management Academy

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Double Your Income - NEW IN 2016! £144

UPGRADE £192

Deeper £162

Defining Edge with 6 CDs £144

Defining Edge with 6 DVDs £144

Defining Edge with 6 CDs and 6 DVDs £170

Power Up Your Gross Margin with 2 CDs £60

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Better Billing. Better Collections. Lower Lock Up with 2 DVDs £72

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