Create Sustainable Growth For Your Accounting Firm
Whether you’re running a tax firm or not, there’s a good chance that your work cycle is centered around IRS deadlines. You can blame it on the IRS and let your firm continue to stagnate OR you can move to a monthly recurring revenue model (MRR) and create sustainable growth for your accounting firm. It may seem like a daunting process, but it’s well worth any of the initial, extra effort because it makes you and your firm valuable year-round and generates consistent profits.
What Is Monthly Recurring Revenue?
HOW DO YOU CALCULATE MRR?
Calculating MRR involves summing up the monthly recurring revenue from all customers. This is done by multiplying the average revenue generated per customer per month by the total number of active customers during that month. The methodology may vary depending on the pricing structure and billing practices of each business, but you get the gist.Why Is A Monthly Recurring Revenue Important For Your Accounting Business?
How to Transition Your Accounting Firm to MRR
Transitioning to a monthly recurring billing model offers consistent cash flow throughout the year, increased clarity for clients regarding costs, and reinforces the idea of ongoing support and partnership. While implementing these changes may seem daunting, taking them step by step and seeking client feedback can lead to increased revenue and a more sustainable business model.
If you need help automating your billing processes along the way to an MRR model, check out the Ignition App.