"Reza Hooda on the limitations of hourly billing and the benefits of value-based pricing"

Value-Based Pricing & Efficiency is definitely a hot topic of debate at the moment In finance and accounting, efficiency is often seen as cost-cutting. Value-based pricing shifts the focus from hours worked to outcomes delivered. A huge shift in mindset. With Efficiency gains automation, streamlined workflows etc. are implemented without reducing value Together, they can create a scenerio where firms can boost profitability and cement the relationship with the client. So what are the benifits: The Clients get transparency, predictability, and real impact Firms boost their healthy margins and can reinvest in better tools and skills thus helping them further boost gains The challenge however is Measuring and communicating “value” clearly — not easy and those that can do it are certainly setting themselves out from the crowd Is this just a fad, is it the future is a future that includes a mix of the old and new way? Whatever way it looks like a huge shift is starting to happen already driven by client demand.

Margins don’t lie—now you can see them. With Levvy’s new Profitability Reports, firm leaders get instant clarity into: ✅ Revenue, cost, and margin at the firm, client, and workflow level ✅ Which clients and services are driving growth—or eroding it ✅ How salary and pricing changes impact margins No more spreadsheets. No more guesswork. Just real-time insights that help you scale with confidence. 📊 Explore Profitability Reports → https://lnkd.in/e5iZ6QMq #Accounting #CAS #ClientAccountingServices #AccountingTechnology #Profitability #ProfitabilityReports #AccountingPracticeManagement #Levvy

Very interesting clawback rule update from Olga Usvyatsky . “Thus, the question: are companies with “Big R” restatements less likely to rely on accounting-based metrics in setting executive compensation? Or perhaps these companies have easier-to-reach performance targets that are met even if the actual numbers are restated? Similarly, does restructuring the executive compensation agreements to move away from (or rely less on) accounting-based metrics following the implementation of Rule 10D-1 signal potentially lower accounting quality concerns and foreshadow a future restatement?” I would instead ask the question: Are companies that use alternative non-accounting metrics for compensation more likely to have Big R restatements and poor accounting quality because no one at the company cares what the GAAP numbers say anymore? https://lnkd.in/eAd6K5ZC

Professional Services Firms Are Sitting on Billions - If They Dare to Rethink Pricing Even the best professional services firms often undervalue themselves. Not because of their work, but because of how they price it. Hourly billing was designed for a different era. It rewards time, not outcomes. It commoditizes expertise and turns intellectual capital into a cheap input. Yet, here’s the irony: professional services firms are sitting on billions in untapped value. What clients truly buy isn’t hours; it’s clarity, speed, and transformation. And those outcomes are worth multiples more than the billable hour. A roadmap that accelerates growth by 6 months is priceless compared to the timesheet it came from. Firms that fail to re-price their intellectual capital risk being trapped in a race to the bottom. Firms that shift to outcome-based pricing will dominate the next decade. The future of services isn’t about selling time, it’s about selling value. If you’re a founder or partner, ask yourself: · Are we being paid for outputs, or just hours? · What’s the ROI our clients actually walk away with? · How much value are we giving away for free? Answering these honestly is the first step to repricing your expertise around outcomes, not hours. Billions are left on the table every year. The firms that capture it will be the ones bold enough to change the rules. #SaaSFinance #FractionalCFO #CFOInsights

Most of the problems I help clients fix started the same way: with “good enough.” Good enough bookkeeping. Good enough documentation. Good enough tax planning. It works for a while, until it doesn’t. By the time I get involved, that shortcut has usually turned into a penalty, an audit risk, or a pile of cleanup work that could have been avoided. I understand why it happens. When you’re running a business, it feels easier to move quickly, push things off, or assume close enough is good enough. But those cracks always show eventually, and they cost more to repair than they would have to prevent. That’s why I’ve never believed in cutting corners, even if it means slower growth or harder conversations. The long-term cost of “good enough” is always higher. The standard has to be better than that. And that’s the standard we work toward every day. #BusinessLeadership #BusinessStandards #CPAInsights

💡 The Subtle Art of Accounting Jugglery: Inflating Profits on Paper In corporate finance, numbers tell a story. But what happens when the story is “massaged” to look better than reality? Some companies resort to accounting jugglery—using legitimate principles in creative but questionable ways—to inflate profits. This could mean: 🔸 Recognizing revenue earlier than justified 🔸 Deferring necessary expenses 🔸 Overstating asset values 🔸 Underestimating provisions or liabilities On the surface, it creates an impressive picture for investors and stakeholders. But behind that gloss lies a risky game: one that can erode trust, damage reputation, and invite regulatory scrutiny. 👉 As finance professionals, our responsibility isn’t just compliance with accounting standards—it’s upholding the spirit of transparency and ethical reporting. 📌 Question worth reflecting on: Are we using accounting principles to reflect the truth, or to distort it? #Accounting #CorporateGovernance #EthicsInFinance #Transparency #FinancialReporting

Is your accounting method agile enough to thrive in a rapidly changing world? Our latest blog explores why agility is crucial for finance professionals to thrive and stay competitive. https://lnkd.in/d8jsCSEh #finance #agility #cfo #strategy

💬 When accountants talk, it’s about more than numbers. It’s about helping their clients stay in business, grow, and sleep at night. ⚠️ One of the most prominent themes in those conversations? 👉 𝐂𝐚𝐬𝐡 𝐟𝐥𝐨𝐰 𝐢𝐬𝐬𝐮𝐞𝐬. Clients are waiting too long to get paid. Suppliers are demanding upfront. ATO deadlines that don’t move. That’s where 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐟𝐨𝐫 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 steps in. We partner with accountants to: ✅ Identify the cash flow roadblocks ✅ Recommend practical finance solutions ✅ Implement them so clients see real results When accountants want their clients to succeed, they look for partners who can deliver outcomes — and that’s precisely what we do. Because when clients have healthy cash flow, everybody wins. 🙌 #FinanceForBusiness #MartinCattach #WorkingCapitalStrategist #CashFlowFreedom #SMEFinance #Accountants

“Quality of Earnings” = the financial colonoscopy of M&A. Third-party accountants spend 2–3 weeks crawling through your books looking for: Revenue sustainability Margin consistency Owner adjustments and add-backs Seasonal trends Red flags in reporting But they’re not just reviewing what you send. They’re rebuilding your financials from the ground up, on an accrual basis, close to GAAP-compliant. They want to see how the business really performs, not just how it was booked. And here’s the deal: Clean books = smoother diligence + stronger deal terms Messy books = delays, distrust, and a discounted purchase price If you wait until you’re under LOI, it’s already too late. Start cleaning before you’re on the clock.