Should Your PA Accounting Firm Utilize a Subscription or Membership Model for Clients?

We’re all familiar with the subscription or membership model of services, and we may even engage some ourselves: Amazon Prime, for instance, or a local gym. But more and more professional organizations, including Pennsylvania accountants and CPAs, are developing subscription or membership plans for their clients. 

The key benefit of a membership program (also called a subscription) is that you are able to develop a strong relationship with each client. With a membership, your clients pay a fixed monthly fee to receive the agreed-upon services. These services generally include more than reports and taxes; they include regular access to you, your general oversight of their company’s activities, and ongoing advice. You may choose to offer different levels of service for different levels of membership, with one level being an all-access membership.

The subscription model is not usually ideal for individual clients with simple taxes. The subscription or membership model best services companies, especially growing companies, and individuals with complex portfolios.

The subscription or membership model has all pluses and no real minuses. 

• Predictable accounting expenses

• Consultant-client relationship with a financial expert

• Proactive advice for tax planning, strategic planning, and business growth

• More reliable income stream

• More relaxed work environment

• Deepening relationships with clients, thus dramatically increasing retention

• Lower marketing costs, since client retention skyrockets

• Ability to offer more valuable services and proactive advice, making tax time easier and helping your clients limit their tax burden and grow their businesses

• Greater personal satisfaction in your accounting work 

A membership fee structure is not determined simply by adding up your service fees and dividing by 12. Your greatest service is your relationship with your client, which is immensely valuable. Charge for value, not for hourly services. The value that you offer your clients through an ongoing relationship throughout the year is at least three or four times greater than just the hours spent creating reports. Price your membership as such.

In developing your membership model, evaluate your target audience or choose a niche. If your firm has deep expertise in a particular profession, such as dentists or lawyers, you will be able to command even higher fees because your clients will be able to completely depend on you for all their unique needs.

Commit to the change to subscription services and begin to develop your membership package levels, considering the service levels of your current clientele. If you have a wide range of clients, from those who provide you with $100,000 yearly income to those who provide $1,000, provide a few service packages directed toward those in the middle and upper range. 

Consider your best clients, those you would like to work with more, and begin with them. Looking at them individually, take some time to review past service for them and evaluate what more you could have done for them, what problems could have been averted, and how you could have helped them grow if they’d had a subscription. Then approach these clients, present your thoughts, and invite them to switch to a subscription.

Do this with a number of your top clients. Once you are feeling confident in this model, open it to a wider audience. Designate a firm champion, someone who can keep the firm on track in the transition to an all-subscription model.

The subscription/membership model for accounting services is the future for growing CPA and accounting firms. PSTAP offers our members the opportunity to interact with other accounting and financial professionals, who are always willing to share their knowledge and expertise with other members. Reach out to fellow members for more ideas about switching to this model of service.