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The pricing of accounting services is a big concern and it should be. My definition of pricing services properly is that if, at the end of the year, you’ve made your living, funded your retirement account, and had money left over to maintain and build your infrastructure, you’re pricing your services OK. If you have something left over after that, then good for you, you are doing it right and you should enjoy that profit. But the minimum is the first three things.

I get frequent calls about this. My advice is to increase fees at a uniform percentage to make up for the shortfall going forward. Here is how to go about this.

The first step is to calculate the shortfall. By way of illustration assume you are grossing $250,000 and have a $30,000 shortfall. $30.000 ÷ $250,000 = 12%. This means your fees need to be increased 12% in total. This assumes these are your numbers for the current year. If these are last year’s numbers, then project your shortfall for the current year and use that. 

The second step is to increase the fees for every client immediately by 12%. If you have contracts, you might not be able to do this, but if you have an arrangement that doesn’t lock you into a price no matter what, then increase those clients, which should be most of your clients. If the contractual fees are substantial, then factor that in and you might need a larger percentage increase than the across-the-board calculation.

The third step is to start contacting your larger or more important clients. Start with them but plan on contacting every client. I personally call everyone. They all pay your salary, so make the call. If they were a new client, you would do somersaults to get them. Here, all you need to do is call them. I suggest telling them something similar to this:

“I regret that I have to increase my fees with you. My overall fees are too low and I am not making what I need to provide my living, fund my retirement account and have sufficient funds to maintain my practice with needed maintenance, technology changes and technical update notifications. Accordingly, as much as I hate to do this, I am forced to increase the fees for all of my clients 12% effective the first of next month. This is not something I like to do, but I have to do it so I can continue the level of services my clients are accustomed to and deserve. This is the only way that makes sense. I know you will understand, and if you want to think about it and have another discussion, please call me. I appreciate you being a client and know we will continue our successful collaboration.”

I used an illustrative amount, but this method works for any size practice, from a solo to a large multioffice practice. The reality is that if there is a shortfall, this needs to be done. 

Alternatives like getting more business is a way to grow your practice, but at your present level with the shortfall from your established clients and existing workload, the issue isn’t growth but maintaining the status quo. Being immersed in tax season means now is not a good time, but neither is any other time. Delaying this inevitable action will just make the situation worse. You are a businessperson and need to act like one and your revenues need to reflect this.

Do not hesitate to contact me at [email protected] with your practice management questions or about engagements you might not be able to perform. 

Deloitte China has selected its first female chief executive officer from its local talent pool in mainland China, according to people familiar with the matter. 

Dora Liu will become Deloitte China’s new CEO on June 1 for a four-year term, according to an internal email in January seen by Bloomberg News. She will take over responsibilities from Patrick Tsang, who will complete his second term on May 31, Its unclear what Tsang will do next. 

Deloitte China didn’t respond to a request for comment. 

Mainland-born Liu joined Deloitte in April 1993 in Shanghai, the city where she is still currently based. She has worked with financial institutions including banks, securities, funds and insurance firms, according to Deloitte’s website. 

President Donald Trump expressed optimism about negotiations in Congress to push forward his agenda on taxes and immigration, declaring that his party’s political movement will have lasting staying power in Washington.

Trump reprised many measures of his first month back in the White House in a speech to the Conservative Political Action Conference, telling the friendly audience he’s confident the Republican Party will beat the historical odds and avoid a voter backlash in next year’s midterm elections.

“I think we’re going to do fantastically well in the midterms.” Trump said. “We’re going to forge a new and lasting political majority that will drive American politics for generations to come.”

Trump’s remarks on Saturday wrap up another CPAC that offered rapturous support for the Republican president. Attendees over the course of this year’s three-day conference were treated to a parade of Trump allies, including members of his administration as well as foreign leaders who are in ideological lockstep with the Republican president on key issues.

Much of Trump’s agenda hinges on a spending package currently being debated by Republicans on Capitol Hill to extend his 2017 tax cuts and funnel money to immigration enforcement agencies. GOP divisions have played out in the House and Senate, with the chambers diverging on a single-bill versus a two-bill strategy.

Even as lawmakers wrangle over the approach to key measures, Trump said Senate Majority Leader John Thune and House Speaker Mike Johnson “have done a fantastic job” so far. 

Budget hawks have set out to lower spending, although proposed changes to the tax code threaten to raise the nation’s deficit. Trump criticized lawmakers who disagree with the broader party’s approach, saying “every once in a while, you have one who wants a little action.” He added: “I just hate to see it, but they’re sticking together.”

The annual CPAC gathering outside Washington draws conservatives from across the world and has been friendly turf for Trump, including in the years when he was out of the White House. In 2023, he used an appearance there to fuel his reelection bid, even as polls at the time showed many GOP voters were open to an alternative, telling attendees that “I am your retribution.” 

Last year, he spoke at the event with the Republican primary contest all but wrapped up, using his address to pivot to the general election contest.

Billionaire Elon Musk, the face of the president’s initiative to slash the federal government’s workforce and spending, appeared on Thursday wielding a chainsaw and a black cap emblazoned with Trump’s signature “Make America Great Again” slogan. 

The chainsaw was given to Musk on stage by Javier Milei, the far-right populist president of Argentina, who has become a conservative icon for his efforts to use “shock therapy” to revitalize his country’s economy. He addressed the conference Saturday, saying he wants to be first in line to sign a free-trade deal with Trump.

Another Trump ally, Steve Bannon, sparked controversy during the conference when he extended his right arm with the palm down, in a gesture that resembled the Nazi salute. While Bannon denied making a Nazi salute, it led to Jordan Bardella, the president of the French far-right National Rally party, to cancel his speech.

Italian Prime Minister Giorgia Meloni, who has sought to position herself as a key Trump conduit to European leaders, spoke to the conference via video link.