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Intuit’s 2016 Average Billing Rate Survey – Initial Results

I’m thrilled to share the initial results of Intuit’s Billing Rate Survey again this year. The survey included questions about billing rates, billing practices and more. The survey respondents were a variety of accounting professionals (i.e. bookkeepers, accountants, tax professionals, etc.) with various levels of education, experience and expertise. Keep this in mind and use the survey results to provide some insight and information for your consideration when establishing your own billing practices and rates.

Keep in mind, this article has the initial survey results. Watch for upcoming articles with more detailed breakdowns, billing practices and more.  Plus, for a white paper you can download with all the results, make sure you are subscribed to this blog.

Possible Action Items

As I reviewed the survey results, I noticed a few things which many accounting professionals may want to include as possible action items for themselves or their firm.

1. Increase your billing rates. Only 20% of survey respondents reported increasing their rates every year and 45% have no set schedule for increasing rates. Assuming you are working, then every year you have more experience and expertise. Plus, many of us have continuing education, obtain or renew certifications, attend webinars or conferences and more. Thus, each year we are more valuable and our rates should increase to reflect your additional experience, education and expertise. Besides, don’t you deserve an annual raise? If you increase the rates a little every year, then you avoid large increases or rates that are too low. If you haven’t increased your rates in awhile, now is the time to do it. You may lose a few price sensitive clients, but they probably are not great clients anyway and usually wind up leaving when they find someone cheaper anyway. Focus on clients who value the services you provide and are ‘A or B’ level clients.

2. Allow clients to pay online (only 42% currently per the survey results) and/or set up recurring charges to automatically charge monthly and/or payroll clients (only 39%). A large percentage (79%) are emailing invoices to clients, however many of us need to take the next step with online payments and/or recurring charges. I use (and love) QuickBooks Payments which allows clients to pay online via credit card or ACH bank transfer (which is now free!). Plus, the payment is automatically recorded in QuickBooks, applied to the invoice and the credit card fee is recorded as well. This is a huge time saver for me and often clients want help to implement it for their business too. (Note billing practices will be covered in more detail in an upcoming article.)

Respondents to the Survey

Most the responses were from ProAdvisors (82%), QuickBooks Desktop users (64%) and were solopreneurs or had 1 Full Time Equivalent person working with them (53%). Below are charts with the details on the survey respondents.

Average Hourly Rates

Advanced Certified ProAdvisors report the highest average rates (with one exception), then Certified ProAdvisor, ProAdvisors and finally non-ProAdvisors. This is what I would expect to see. It clearly shows that members of Intuit’s ProAdvisor Program charge higher rates than non-ProAdvisors. If you are not a ProAdvisor, I would encourage you to join now! There is free membership level which provides access to QuickBooks Online software, training, certification, support and more. You can learn more and sign up here.

Additionally, the survey results demonstrate one of the benefits to getting Certified and Advanced Certified – higher average billing rates. In addition to the self study training (recorded modules and supplemental PDF guides) in the ProAdvisor Portal, Intuit provides numerous free training opportunities to help ProAdvisors get certified – webinars, live in-person training events in numerous cities and virtual conferences too. Plus, most of the training includes free Continuing Professional Education (CPE) credits as well. Details on the free training for certification prep and other topics can be found here.  Note — click on an image / chart to enlarge it then back to return to this article.

Average Hourly Rates by Designation

As expected, CPAs report the highest average hourly rates (with one exception), then Certified ProAdvisors and finally Certified Bookkeepers. If you are a Certified Bookkeeper, I recommend you join Intuit’s ProAdvisor Program and become a Certified ProAdvisor as mentioned above.  Below are the average hourly billing rates by designation and service.

Average Hourly Rates by Firm Size

Again, the results of the average billing rates reported are as expected – the larger firms report higher average billing rates as shown in this chart.

Fixed Fee vs. Hourly Billing Rates

Improvements in technology and automation features in accounting software is allowing accounting professionals to streamline our workflow and operate more efficiently. Thus, many accountants and bookkeepers are switching from hourly billing to a fixed fee or value pricing method. As you can see in the following charts, currently it is almost evenly split between fixed fee vs. hourly billing. However, 34% of accounting professionals expect to increase their fixed fee billing in the next 3 years and it is higher among Certified ProAdvisors. This is what I expected based on the accounting professionals I talk with across the US and in various social media forums.


What are your thoughts about the initial survey results? Did anything surprise you? Did you discover you need to increase your rates?  Leave your comments as a reply below.

Watch for other articles with more details and discussions of the results of the average billing rate survey – including details about billing practices, discounts and more.

Stay subscribed for future articles and a white paper with all the results for you to download.

Note:  This article originally appeared on Intuit’s Firm of the Future website.

Last Call for Advanced Practice Management Boot Camp for Accountants and Bookkeepers

Last call for Boot Camp registration – discount ends Monday, July 11, 2016 at noon and course starts Tuesday, July 12, 2016.

Advanced Practice Management Boot Camp for Accountants and Bookkeepers

You’ve been asking for more hands-on training, and we’re delivering. The two award-winning accounting industry CPAs, Michelle Long and Sandi Smith Leyva, are teaming up again to present an advanced workshop on accounting and bookkeeping practice management.  Plus, there will be plenty of time for hot seat coaching throughout the workshop.

In this webinar series, we’ll take a more strategic approach, using Michelle Long’s foundational 5P formula.  We’ll cover:

  • Planning, showing you how to do a SWOT analysis like the large corporations do,
  • Product – what you sell and how you can make it a one-of-a-kind offering,
  • People, including your clients, vendors, and employees, and how they contribute to your success,
  • Processes, so you are not continually reinventing the wheel, and
  • Pricing, how to get what you’re worth and how to get paid every time.

You’ll get lecture, exercises, and extensive Q&A time on these essential components that will take your business to the next level.  And don’t forget, everything you learn in this course can not only be applied to your business but also your clients as you take on the role of trusted advisor.

The dates range from July 12, 2016 through July 28, 2016 and all webinar sessions will be recorded.

CPE provided: 12 hours group live

Michelle’s 5P session at the Ultimate Accounting vCon was the highest rated session of the entire conference, and now you have a chance to go deep with two well-loved coaches and trainers on these five business essentials.

More info: http://accountingvcon.com/

Register here:  https://ne220.infusionsoft.com/app/orderForms/bfefd319-342c-4f35-bd0e-6f02bfc4c5c5

Advanced Practice Management Boot Camp for Accountants and Bookkeepers

Hey everyone,

I just wanted to let you know about a great event coming up for you on July 12-28, 2016. Another chance to work “on” your business instead of in it.

Advanced Practice Management Boot Camp for Accountants and Bookkeepers

In this workshop-formatted webinar series, we’ll take a more strategic approach, using Michelle Long’s foundational 5P formula. We’ll cover:

  • Planning, showing you how to do a SWOT analysis like the large corporations do,
  • Product – what you sell and how you can make it a one-of-a-kind offering,
  • People, including your clients, vendors, and employees, and how they contribute to your success,
  • Processes, so you are not continually reinventing the wheel, and
  • Pricing, how to get what you’re worth and how to get paid every time.

Co-presented by two award-winning accounting industry CPAs, Michelle Long and Sandi Smith Leyva, this workshop series won’t be repeated and is a don’t-miss event.

You’ll get lecture, exercises, and extensive Q&A time on these essential components that will take your business to the next level. Starts July 12, 2016. Early bird price through end of June or until seats fill.

http://accountantsaccelerator.com/product/0712-practice-management/

Don’t Miss Firm of the Future and QuickBooks Online Certification Prep Seminars in Various Cities

There are two great training opportunities to help accounting professionals grow their practice in various cities across the US this May and June.  The events are Becoming a Firm of the Future and QuickBooks Online (QBO) Certification Prep (descriptions and details below).  In several cities, Becoming a Firm of the Future is in the afternoon and the QBO Certification Prep is the following day.  However, in some cities, only the QuickBooks Online Certification Prep is offered.  Get all the details and Register now to reserve your spot — the events are FREE!

The accounting industry is changing and we must change how we operate to survive and thrive.  Attend one or both; whichever fits where you are in your journey to an online practice:

  • Becoming A Firm Of The Future:
    Learn about the steps to take your practice to the next level. Get on the cloud and streamline your workflows, become a trusted advisor (including tips on implementing value pricing) and get connected with tips and tools to manage social media to help your firm grow.   
    Note: Only available in select cities.  Afternoon Training Course – 1:00-5:00pm

    • Details covered include:
      • What is a firm of the future and why it is important? What are the steps to become one? Learn which QuickBooks to choose and how to talk to your client(s) about moving to the cloud. Plus, how to convert to QuickBooks Online.
      • Understand how to automate and streamline workflows for you and your clients. Learn about time-saving features in QuickBooks Online and how 3rd party apps can save you and your clients time.
      • Learn about the QuickBooks ProAdvisor program (which you can join for free) and tools that help add value for your clients. Plus, the benefits of value pricing and how to start implementing it for your firm.
      • Learn about the Find a ProAdvisor directory where small businesses look for ProAdvisors, and how to improve your profile/search ranking.  Plus, we’ll discuss other social media sites (including Linkedin, Facebook, etc), who to connect with, the tools to manage social media efficiently and how to create and share content.
    • Please register to join me in these cities for Becoming a Firm of the Future:
      • Washington DC
      • Dallas, TX
      • San Francisco, CA
      • Irvine, CA
      • Minneapolis, MN
      • Miami, FL
      • Long Beach, CA
      • Portland, OR
      • Seattle, WA
  • QuickBooks Online Certification Exam Prep helps prepare you for the QuickBooks Online Certification exam. This course is not a “how to” and assumes you meet the prerequisites. Full-Day Training Course – 9:00am – 6:00pm
    • Who Should Attend? This course is designed for current QuickBooks ProAdvisors and accounting professionals who currently use or would like to learn more about working with QuickBooks Online software
    •  Agenda   2_proadvisor_online

      9:00am – 12:00pm

    • Event Kick-off (15 min)
    • QuickBooks Online features, setup and navigation
    • Money-in and money-out managing revenue, expenses & purchases
    • Company settings and customization

      12:00 – 1:00pm — Hosted Lunch

      1:00pm – 3:00pm

    • Reporting, resolving client data entry errors and troubleshooting
    • Payments, payroll and apps
    • Tools and wholesale billing options
    • 3:00pm – 6:00pm  — Time to take your certification exam

      Bonus: Earn up to 9 CPE credits. And, complete your QuickBooks Online Certification exam onsite to earn a reward!

      I’ll be presenting in these cities (Note:  There are several other cities but unfortunately I can’t do them all — although I would love to!)

      • Phoenix, AZ
      • Miami, FL
      • Atlanta, GA

I hope you’ll register for a city near you!  If you attend one of my sessions, please say Hi and introduce yourself!

Understand all the Options for Accessing QuickBooks Online

Join me and Intuit’s Micah Sampson, Senior Manager, Small Business Customer Care for QB Power Hour, Thursday 4/28/2016 to learn about all the options for accessing QuickBooks Online (QBO) including:

  • Desktop Browser QB PowerHour
  • QBO Desktop app
  • QBO Mobile app
  • Browser on Mobile devices

We will demonstrate each option and discuss the pros and cons of them.

Plus, Dan Lowell, Intuit Group Manager, Global Accountant Education….. will provide an update and answer questions about the recent changes for ProAdvisors to maintain their Advanced Certification status as mentioned in this recent post.

As always, you can earn up to 1 hour of FREE CPE for attending QB Power Hour live.  Can’t attend live?  register anyway to get the follow up email with the link to the recording.

https://attendee.gotowebinar.com/register/1652709285374804482

I hope to see you there!

 

 

Be Careful of Using ‘Your Books’ in QuickBooks Online Accountant as Playground / Testing Area

QuickBooks Online Accountant (QBOA) is designed for accountants, bookkeepers and others who work with multiple clients.  It helps improve our efficiency when working with multiple clients.  One of the benefits is a QuickBooks Online Plus subscription as ‘Your Books’ in QBOA.

Ideally, you will use it to maintain your own firm’s books.  Initially, this is a great way for you to practice and get familiar with using QuickBooks Online (QBO) using your own data.  You can convert your QuickBooks desktop file into Your Books quickly.  Then, set up your bank feeds and start working with it for more experience.  If you want to, you could continue using your desktop file (running them in parallel) while you are playing around and getting more experience with QuickBooks Online.  Then, when you are ready to convert your latest file to Your Books, you can -re-convert for up to 1060 days for companies without payroll (check with ProAdvisor support for details).  It will replace whatever was in Your Books.

When people learn about the ability to re-convert into Your Books for so long, they may be tempted to use Your Books for testing or as a playground for client files.  In fact, there was a recent blog post / article that suggested using Your Books to test setting up clients and integrating 3rd party apps.  According to that article:

“Testing the App in your QuickBooks Online Accountant ‘Your Books’ lets you connect an App without the client watching, thus giving you the opportunity to become an expert and provide them with a tested solution. Another benefit is that you can upload a specific situation, or set of books, and test how the App will work inside a controlled environment and monitor the books for a trial period.”

 I DO NOT recommend this! 

The Customers in Your Books syncs with the Client list on your QuickBooks Online Accountant (QBOA) dashboard.  When you add a new customer into Your Books, they will appear as a client on your QBOA dashboard (as shown in the image below).  Thus, if you are playing around with your client’s data, then you’ll see their customers on your QBOA dashboard!  This is probably NOT want you want to happen!

Similarly, some people ask if they can use Your Books for a client.  Again, the customers of your client would appear on your QBOA client dashboard so this is not recommended either.

QBOA Your Books syncs customers with Client Dashboard

Sample Company / Test Drive

Remember you can use the sample company or test drive as much as you want and your clients can use it as well.  It contains a sample company with data, downloaded transactions and more.  It is a great way for you or your clients to play with QuickBooks Online and get more experience, test out how it works and more.  Nothing is saved in it so every time you login, it is re-set.  Your clients (or you) can login via this link:  http://qbo.intuit.com/redir/testdrive or just Google QuickBooks test drive for the link.  If you want access to the Accountants tools, then you should open the sample company via QBOA as shown in the image below.

Sample Company with Accountant Tools

I hope this QuickBooks Tip has been helpful for you!  Please share it with others!

News for Advanced Certified QuickBooks ProAdvisors + QB Power Hour is an ACE-Approved Provider!

Intuit announced a new program for Advanced Certified ProAdvisors® to renew their Advanced Certification today.  If you are Advanced Certified in either QuickBooks® Online or QuickBooks desktop, you need to complete Advanced Certified Education (ACE)-approved training to maintain and renew your Advanced Certified status.  Advanced Certified QuickBooks ProAdvisor - Online

Specifically, effective May 22, 2016, Advanced Certified ProAdvisors must complete 9 CPE credits of ACE-approved training within 3 years of earning the Advanced Certified status and then every 3 years thereafter.  Details and FAQs can be found here.

QB Power Hour an ACE-approved Training Provider

I’m pleased to announce that QB Power Hour (hosted by myself – Michelle Long, CPA and Hector Garcia, CPA) is one the few ACE-approved training providers.  Currently, the other ACE approved providers include Mario Nowogrodzki, CPA of Mendelson Academy and Scaling New Heights.  QB PowerHour

QB Power Hour will be the only ACE-approved provider to provide ACE-approved training for FREE!  QB Power Hour webinars are generally every other Thursday and we cover advanced topics for QuickBooks Online, QuickBooks desktop, value pricing, practice management and more.  All webinars are eligible for CPE (for attendees who attend live and meet the requirements).  There will be selected webinars (noted as ACE webinars) eligible for ACE-CPE credit as well.

In order to provide FREE webinars, we will seek select sponsors (contact us if you’re interested in being considered for sponsorship).  QB Power Hour webinars are targeted for CPAs, accountants, bookkeepers, tax professionals, consultants working with small business clients.  Details and register for all QB Power Hour webinars up as a series of webinars so you can attend any or all by registering one time).

 

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