Like many Americans, I have reevaluated my personal spending in areas such as my Jeep’s gas consumption, my credit card usage and my entertainment spend (i.e., my late night dinners and adult beverages at the local pub). As you can probably guess, I have not stopped driving, I have not stopped using my credit card and I have not eliminated FUN! What I did do was drive a little less, watched what I spent and had fun at home with my wife and friends more often. Think about what you do with your personal finances when times are tough. Cutting an entire line item, in many cases, does not make sense when looking at the big picture in regards to the goals and objectives of your accounting or law firm.
As we know, over the last two years there has been a trend in cutting marketing and firm budgets by accounting and law firms. The more popular ones we all hear in the media are cutting learning and development, laying off staff, cutting the number of people attending events and cutting sponsorship and advertising from the budget. Rick Telberg, CPA Trendlines, recently interviewed Sally Glick, principal at Sobel & Co., LLC, on marketing in tough times. Sally speaks to how firms are paying more attention when time and money are finite. She asks the questions, Are we spending our best resources in the best places when they are scarce? Are the activities we are embracing attracting and retaining new clients? For more on this, check out the video interview at the Accounting Marketing Blog.
Being in the black is important for any firm regardless of the industry. Rather than immediately cutting spending in certain areas, consider measuring the ROI and the importance of what you are cutting. Evaluate where you need to be, your target audience and new business opportunities, and cut or reduce all other non-essential costs.
