The accounting industry is facing a shortage of qualified professionals, and part of the problem is due to the scarcity mindset of some CPAs.
Some of ReNew’s worst enemies are scarcity mindset CPAs who are willing to work for very little.
This is a mentality that limits one's potential for growth and success, often leading to lower fees and reduced earning potential. Many CPAs have few hobbies and an unhealthy lifestyle, which can negatively impact their work and personal life.
One alarming statistic shows that the median salary for a CPA with 7-10 years of experience is $94K, which is significantly less than the average salary of a software engineer with the same experience. This is partly due to the accounting industry's failure to adapt to changing business models, resulting in a lack of innovation and a shortage of qualified professionals.
However, this presents an opportunity for CPAs who are willing to adopt a growth mindset and embrace change.
The Federal Reserve's recent announcement of a 6.8% annual inflation rate can serve as an anchor for pricing, with a minimum fee increase of 7% to keep up with rising costs. CPAs who provide value-added services and prioritize consultation and advisory work can charge even higher fees, with a suggested minimum of 10%.
It's important for CPAs to recognize that they are not limited by the scarcity mindset of their competitors. By leading with advisory services and ending with the tax return, they can provide significant value to clients and differentiate themselves from the competition. ReNew firms specialize in this approach and can offer guidance on how to successfully implement it.
Not all CPAs are created equal, and those who embrace a growth mindset and prioritize value-added services have the potential to succeed in a rapidly changing industry.
By shedding the scarcity mindset and recognizing the value brought to clients, you can increase your earning potential and make a positive impact on your personal and professional life!
If you're interested in more insights like these, consider signing up for our Renewsletter: https://www.renewgroup.com/newsletter. Alternatively, if you'd like to discuss your CPA firm's specific needs, feel free to schedule a call with us: https://www.renewgroup.com/contact.
About the Author:
Shannon Vincent has dedicated his entire career to working with accountants in various capacities. He has consulted with Top 100 firms to Sole Practitioners, helping them create sustainable and profitable businesses. A member of the California Society of CPAs, he received a Bachelor’s Degree in Economics with an emphasis in accounting from University of California, Santa Barbara, and now resides in the San Francisco Bay Area. Shannon is passionate about helping accountants reinvigorate their pricing and rid themselves of the detrimental scarcity mindset.
About Renew Group:
Are you tired of being on the diet but not seeing results? Most consultants to the CPA Profession do lots of talking and deal in 'fluff'. But there's no accountability and no focus on RESULTS.
At Renew, we start with your numbers. Our firms complete a Pareto for Profit analysis EVERY YEAR, set new targets to improve their profitability and then 'weigh in' regularly. We give you a roadmap to transform the profitability of your accounting firm by accessing our content, collaborating with other firms on a similar path and being held accountable by our coaching team and your peers.
Get paid what you're worth, create a better life based on a scalable business model and eliminate tax season insanity once and for all!