Question

Many CPAs have complained that lots of CEOs and CFOs consider audit service a "commodity". As a result, corporate executives don't care much about the quality of audit service, and all they want is clean opinion from any auditors at the lowest audit fee (opinion shopping). How would a CPA firm differentiate itself from other firms when the firm is approached by a CFO shopping opinion?

Answer 1

CPA Firm has to standout their firm from other firms in the market so that client won't think about cost. This can be done in following ways:-

1. Guarantee timeliness — Financial information is useless unless it’s timely and reliable, so guarantee accurate, timely information to clients. Make sure firm promote this aspect of service and how their staff stands by your work.

2. Global Presence— Firm should develop a global firm which has the presence across the globe because these days clients are looking for the firm which has presence globally so that can bank on one firm for their global operations. In this case, CFO won’t ask about money and would be happy to engage with the global firm.

3. Enhance the current offerings — If offering business tax preparation, rename it “business tax savings” service. If offering annual compiled financial statements, promote it as an “annual financial check-up” service. Just by changing the name of the service and adding a simple step to the process, the firm is creating a lot more value for the clients, and have services different from your competitors.

4. Become a non-traditional accounting firm — While the firm may provide traditional accounting and tax services, it can become a non-traditional firm by providing those services within the “new” culture—one that is technology-driven, where firm leaders embrace creative marketing and understand how to promote a strong brand image. Clients tend to view CPAs as stuffy or boring. The profession gets a bad rap here because, the fact is, there are many progressive firms out there. Be one of the new firms; be different; let your personality come out. And then allow your clients to see you and tell all their friends.

5. Identify your three greatest-value services — And only do these three things. Whatever the solution is — whether its related to a particular type of client, a type of service, or a type of product – focus on these 3 things and don’t waiver from them. Don’t succumb to taking on just any client that comes through the door. That “anything work” can be done by “anyone.” Stick to the three services that the firm performs exceptionally well and build the client base around that work. This can show that the firm is professional and is serious about its work.

it’s important to remember that whatever you claim as your key differentiator, it must adhere to the following three rules:

1.       Your differentiator must be true – Firm should follow its principles. It should not be theoretical.

2.       It must be important to your client.- If whatever the firm claims is not important to the client then it everything is wasteful.

3.       It must be supportable- Firm should be able to support its claim. That is the challenge that every differentiator must overcome. It may be true and it may even matter to your clients, but if no one believes you, it will never fly.