Joe Kaleb’s Post

I watched a CPA firm lose a $50K client because of a $2K discount. They panicked when the prospect hesitated. Dropped their price to "win the deal." Client signed, then ghosted after 3 months. Here's what actually happened: The firm never anchored their pricing to outcomes. They listed deliverables instead: - Monthly bookkeeping - Quarterly tax planning - Annual compliance But the client didn't care about tasks. They cared about avoiding a $200K tax penalty. They cared about finally understanding their cash flow. They cared about sleeping at night during audit season. The firm made it sound like a cost, not an investment. When you underprice, you signal low value. When you present one option, you force a yes/no decision. When you lead with price before value, everything feels expensive. What works better: Give them 3 tiers. Essential: Monthly accounting + annual tax prep. Premium: Add quarterly CFO strategy sessions. Comprehensive: Full controller services + proactive tax planning. Most pick the middle. But having options increases close rates by 30%. Frame it around their ROI. "This $15K service prevents the $200K penalty you almost faced last year. It also frees up 10 hours a week you're currently spending in QuickBooks." Suddenly it's not $15K. It's $200K saved + 520 hours back. Break payments into terms. $15K feels heavy. Three payments of $5K removes the psychological barrier. Be crystal clear on scope. What's included. What's not. No ambiguity. Stop hiding behind "custom pricing." Give ballpark numbers upfront. Stop listing tasks. Start selling outcomes. Your pricing isn't the problem. Your framing is. #proposal #pricing #CPA

The Financial Accounting Standards Board has reviewed feedback it received on whether it should update standards on intangibles but made no decision, according to a release on its website. https://lnkd.in/eZyKhDx9

The FASB has introduced ASU 2025-05, updating the guidelines for estimating expected credit losses on current accounts receivable and contract assets under Topic 606. These revisions offer companies a practical expedient and an accounting policy election, granting flexibility in complying with the guidance under Topic 326.

Good accountants close the books. Great ones close M&A deals. Everyone loves a good story. But investors love to read the footnotes. Here are 8 numbers that quietly make or break your M&A deal. 1. Revenue Growth What it is: Proof the world still cares enough to pay you. Why it matters: Momentum matters - even if it’s mostly theatre. Investor red flags: “Explosive growth” from one client, or one lucky quarter. 2. Recurring Revenue What it is: The blissful sound of money arriving uninvited. Why it matters: Predictability turns good businesses into valuable ones. Investor red flags: “Recurring” that really means “until they find someone cheaper”. 3. Opex Profile What it is: A guided tour of your spending habits. Why it matters: Smart spending is a better strategy than frugality. Investor red flags: Starving R&D, or splurging on ineffective sales resources. 4. Profitability (EBITDA) What it is: A proxy for cash flow, which investor love. Why it matters: The measure of whether you can pay all your bills. Or not. Investor red flags: One-off cost add-backs, profit vs cash flow mismatch. 5. Customer Concentration What it is: A polite way of asking, “Who can ruin you with one email?” Why it matters: Dependency might be romantic, but it’s dreadful strategy. Investor red flags: One logo repeated across the deck. 6. CAC & LTV What it is: The economics of dating and staying married to your customers. Why it matters: Loyalty beats lust - every time. Investor red flags: CACs built on fantasy, LTVs that assume immortality. 7. Revenue Recognition Policy What it is: The theatre of when your bookings transform into income. Why it matters: It’s partially art, part-science - and bad art loses trust. Investor red flags: Vague policies, unclear disclosure, timing that smells “too creative”. 8. R&D Capitalisation Policy What it is: The line between “we were brainstorming” and “we built an asset.” Why it matters: Overcapitalisation flatters the present and betrays the future. Investor red flags: inflated intangibles and mysteriously thin R&D. Final thoughts: In the end, investors don’t just buy your story. They buy your discipline. Charm opens the door. But numbers close the deal. Follow Martin Luen for more ways to make due diligence slightly less painful.

Financial crises as a test of accounting conscience (7) In ordinary times, accounting and auditing may appear to be nothing more than routine tasks: numbers recorded, reports drafted, signatures approved. Yet when major financial crises strike, the true face of these professions is revealed. A crisis, by its very nature, does not merely test institutions’ resilience; it also tests the conscience of accounting itself: were the entries in the ledgers a truthful reflection of reality, or were they merely a fragile construct collapsing at the first tremor? Consider the subprime mortgage crisis of 2008, which shook the world to its core. The problem lay not only in the loans themselves, but also in financial reports that obscured risks, and in auditing systems that overlooked massive manipulations. The figures appeared “reassuring” only weeks before the collapse, while in reality, the system was on the verge of implosion. At that moment, it became clear that numbers can lie, and that accounting can shift from being a tool of integrity into an instrument of deception—if stripped of the conscience of those who practice it. Crises expose our moral fragility more than our economic fragility. ·      An accountant who agrees to conceal losses or embellish profits is not committing a mere professional error but contributing to the deception of an entire society. ·      An auditor who turns a blind eye to clear warning signs is not merely negligent, but complicit in the making of a catastrophe. Thus, at the heart of every crisis lies the fundamental question: where was the conscience? Yet crises do not only reveal the darker side; they also provide an opportunity to reclaim the true meaning of the profession. When trust collapses, societies seek honest voices to restore it. In that moment, accountants and auditors can reclaim their role not as partners in complicity, but as guardians of integrity. A crisis places the profession before two stark choices: To be exposed as complicit in deception, Or to prove its worth as a shield protecting society from chaos. Here lies the profound dignity of accounting: it is not merely an economic activity, but an ethical practice, tested most severely in times of upheaval. I would argue that the conscience of accounting is not measured in ordinary times, but in moments of collapse. Only then does the difference emerge—between an accountant who writes numbers to polish reality, and one who writes them to confront truth, however bitter. Between an auditor who softens his report, and one who sees himself as a judge seated on an invisible bench of justice. The enduring question remains: have we truly learned from past crises that the accounting conscience is not a luxury, but a condition for the survival of the economic system itself? Or are we destined to keep circling within the same loop—where numbers are written to please, not to tell the truth?

Accountants know they're undercharging, but unsure how to resolve that. Scope creep, legacy discounts, and long workdays contribute to razor-thin margins. Janet Berry-Johnson, CPA, CFEI with The Net Gains Newsletter explains why this happens and what to do about it. Including: • Signs you’re undercharging • How to raise rates without losing clients • Packaging services so they work for you and your clients If you’ve ever asked, “How do I charge for my value?” this conversation is for you. #AccountingGrowth #ValuePricing #AccountingAdvisors #ProfitabilityStrategies #ClientSuccess Check it out at https://lnkd.in/gygqejq2

Accounting Update of the Day: New self-assessment rules directors need to prepare for: From 2025–26, HM Revenue & Customs is introducing mandatory new reporting requirements for directors of UK resident close #companies (typically small and family-owned businesses). #Directors will need to disclose: - Company name and registration number - #Dividends received (separately reported) - Percentage #shareholding (highest held during the year) Other changes include mandatory start/end dates for new or ceased businesses and a new £60 penalty for each failure to provide the required information. While these rules don’t change who needs to file a return, they do mean more detail will be required – and some areas, such as shareholding calculations for different share classes, remain unclear. 👉 With the risk of penalties, early preparation is key. If you’d like support, get in touch with Fynax - or simply help spread the word by liking, commenting, or sharing this post. https://www.fynax.co.uk/ #Fynax #SmallBusiness #MediumBusiness #Tax #TaxReturn #TaxRefund #AccountingNews #Accountingupdates

Trust yourself and clients will trust you... A CPA called me to talk about pricing. He described his pricing practices including his Terms and Conditions. “We charge 50% up front, and 50% upon completion.” “Why is that?” I asked. He seemed stumped, then muttered something about clients “don’t want to pay in advance before they get what they want.” What followed was a deep conversation about trust. These T&Cs scream “no trust.” But not the lack of trust you might think. I see T&C that delay the final payment until completion <not> as clients lacking trust in your firm, but in you lacking trust that your firm will deliver on its promises. Huh? The small or solo professional firm often is light on systems or processes and doesn’t have any consistent way to ensure that work gets done in an orderly manner. I understand this, being a solo practitioner myself. The best thing I ever did for my company was to create 3 simple systems that ensure I track my work and deliver on the promised timetable. These practices have built my trust in myself… Which in turn builds trust in me by my clients and prospects. How does this affect T&Cs? When we have moved through our conversations and a client gets their business growth strategic plan, they see my T&C. For a 3 month engagement, payment in full is required at time of purchase. For a longer  engagement, I will offer to automate payment of 1/3 of the fee on the 1st of the month for the first 3 months. Therefore, the fee is paid in full before our work is completed. This works without fail because I trust myself. The client feels that and has no doubts. If your company can’t accurately predict the schedule of client work, you need to fix that now. A lot of CPA firms are getting ready for the upcoming tax return season (Yes, it will be here before you know it). Take the time in October and November to adopt simple systems for tracking your work. You don’t need big “tech stacks” or costly platforms, Create a system that works for your company’s rhythm and cadence. For example, use the date the client signs as the start date. From there, what schedule will ensure that you get all their documents? You need a robust process for requests and follow up. Automate this for frequent and urgent reminders. You can set a deadline. Once that’s passed, the client will have to file an extension. Your system needs to help you and your associates move through the work. Do you do all the easy ones first, or all the complicated ones? Or all the returns for one industry or other commonality? These decisions are up to you. but they don’t make themselves. Decide, write it down, and follow it! When you're confident your system is designed to ensure you meet your promises, you'll then write T&Cs requiring payment in full in advance. Only then will you be ready to decide on the actual fees you’ll charge. That’s a topic we can discuss this fall before the onslaught begins. DM if you’d like that conversation.

THE NUMBER OF TIMES I HEAR "MY ACCOUNTANT SAYS BLAH BLAH BLAH - SO I HAVENT DONE THAT" STILL SURPRISES ME As the owner of a financial planning Company I have to be regulated by the Financial Conduct Authority. This means I have to adhere to a code of professional conduct and I take that very seriously. Accountancy isn't a fully regulated industry in the UK yet people place enormous trust into this position. I speak from experience after spending 3 years as an exec director within an accountancy practice in saying..... NOT ALL ACCOUNTANCY PRACTICES ARE EQUAL. A good accountant can help provide high quality tax saving advice in a business environment. Some even offer a level of business help but what they don't do is provide a fully comprehensive plan on tax mitigation, wealth growth and profit extraction and family oversight because it's not their speciality. However the amount of times I hear "my accountant says I cant do that" still surprises me. This isn't a dig at accountants but I have experienced many times where business owners have and are being significantly disadvantaged through getting crap advice and tax support from their accountant. If the industry was regulated then perhaps there would be higher standards but thats not for me to decide. The vast majority of accountants do hold themselves to a professional standard and they are very much needed so couple that with a quality financial advisor (and don't get me wrong although this is a regulated industry I have experienced my fair share of unprofessional behaviour in this world too) and you have all bases covered for lasting financial freedom. One property developer I spoke with had missed out on a pension pot of £240,000 over 4 years and massive savings in corporation tax simply because he didnt know any better.

SALT (state and local tax) consulting is becoming one of the fastest-growing revenue lines for mid-market accounting firms. Here's why. State and local tax obligations don't wait for year-end. They don't pause when a partner exits mid-year or when an LP gets disqualified. And most firms, especially those serving fund administrators and family offices, are sitting on the data needed to provide SALT advisory. They just don't realize it yet. Here's what's changed: Fund structures are more complex. Cross-jurisdictional investments are the norm. Multi-state exposure is happening at every level of the structure. That complexity creates risk. And risk creates advisory opportunity. The firms capitalizing on this aren't waiting until April to have tax conversations. They're using aggregated K-1 data to identify SALT exposure and opportunities in real time. Which LPs have unexpected withholding obligations? Where are mid-year exits creating state tax liabilities? What planning opportunities exist before year-end? Those aren't compliance questions. They're consulting questions. And they command advisory fees that compliance work never will. The constraint isn't client demand. Clients need this guidance whether they know it or not. The constraint is data infrastructure. In the typical 9-month cycle, can you surface these insights quickly enough to be proactive instead of reactive? The firms that solve for that are building revenue streams that didn't exist two years ago. How is your firm thinking about the shift from compliance to SALT advisory?