July 19, 2018

It’s got to turn around at some point

Is Low Bidding by Your Firm Going to Bite You in the A$$?

Sale.jpgBy now it’s no secret that accounting firms are getting all Wal-Mart with their bids/fees in order to drum up desperately needed new business and keeping current clients happy.
Offering or renegotiating lower fees, while an excellent “client service” tool, can cause all kinds of problems with staffing and the feasibility of engagements.


If you’re working on a small engagement with a tight budget, things could tricky (read: impossible) to reconcile mandatory hour work weeks to the budgeted time on your engagements.
One reader is curious as to the repercussions of all this:

[They are] low bidding jobs, taking audit clients at rates < $100/hour when average rates used to be $150 - $250/hour. Tell me they won't dump those clients when the economy turns around. Or have people eat hours on the jobs. They are desperate for work right now.

Those numbers are relative of course but it does make one wonder how this will all pan out long term. As we’ve noted, if it gets to the point to where there’s simply not enough money coming in the door, closing up shop isn’t out of the question. If you’ve got concerns, thoughts, complaints, etc. on how this latest trend will affect you and your office, discuss them in the comments.