Breaking the Hourly Model: How Accountants Are Scaling with Subscription-Based Services

Why the Traditional Revenue Model No Longer Works for Growing Firms

Trading time for money is a common practice with professional service providers that can substantially limit an accounting firm’s growth.

By relying mostly on transaction-based relationships, particularly those that primarily only generate income in the first two quarters of the year, can be detrimental to accountants in several ways:

• It devalues an accountant’s role in their clients’ business success
• A firehose of work crammed into a short amount of time can cause team burnout
• The disproportionate number of clients from January through April leads to a “feast or famine” revenue stream that creates cash flow challenges during the rest of the year

Fortunately, accounting firms can break this harmful cycle.

Modern business clients have increasingly varied needs and want year-round support rather than once-a-year tax preparation services. Successful firms have realized this and have been shifting to a subscription-based business model to gain more control over their cash flow, capacity, and client experience.

Transitioning from predominantly transactional interactions to relationships focused on client advisory services (CAS) doesn’t mean you have to overhaul your firm. Simply rethink your service delivery model and become proactive in anticipating and addressing your clients’ ongoing needs versus only reacting to one-off and sporadic requests for service. An accounting firm that offers CAS can transform their practice from number-crunching tax return preparation and bookkeeping center to a hub for high-value professional guidance.

This guide offers the following:

• Benefits of a subscription model
• Examples of services that can be easily implemented on a subscription basis
• Pricing tips and suggestions
• Real-life examples of accounting firms succeeding with this approach