Transitioning to a Radical Business Model
So, you’ve been running your firm the traditional way — billing by the hour, struggling with staffing issues and feeling like you’re stuck in an endless compliance loop. But deep down, you know there’s a better way, a way that’s continuing to evolve with AI.
There is a roadmap for being Radical. But you’re going to have to get comfortable with being uncomfortable. Because shifting to a Radical business model isn’t just a tweak; it’s a transformation. And it will make your firm future-ready.
The Tenets of a Radical Firm
Before we talk transition, let’s get something straight: the Radical CPA movement is built on tenets that have stood the test of time. These are what make a Radical firm. Period.
Cloud Technology – By now your firm should be 100% cloud-based. If not, you know you’re behind. But it’s more than simply being in the cloud. Today, you have to protect client data and back up the cloud. When you ensure clients have the right data at the right time, you can collaborate in real time, automate and eliminate bottlenecks. This is what sets the stage for advisory to happen.
Social Business – No, this isn’t about posting memes on LinkedIn. Social business is about transparency, communication and building relationships digitally. It’s about meeting clients where they are and using technology to create a connected, engaged experience.
Value Pricing – Forget the billable hour. Your clients don’t care how long something takes; they care about the result. Value pricing means pricing based on outcomes, not hours. It’s a radical shift in mindset, but once you make it, your firm will never look back.
Customer Experience – This is the biggest differentiator of all. A Radical firm doesn’t just do accounting — it creates an experience that clients actually love. Your clients should feel like your services were designed just for them (because they were!).
AI-First. The newest tenant of a radical firm is operating AI-first. AI isn’t just another tool; it’s a fundamental shift in how firms operate, interact with data and serve clients. Firms that embrace an AI-first approach will gain efficiency, improve decision-making, and unlock new value from data in ways never before possible.
By following these tenets, firms create a more efficient, scalable and client-centric model. That means increased profitability, stronger client relationships and a reputation that attracts forward-thinking businesses.
Firms that transition to value pricing often see higher revenue per client while also reducing the friction of billing disputes. Meanwhile, cloud adoption means staff can work remotely, increasing flexibility and access to top talent. These changes aren’t theoretical — they have propelled firms into a new era of success.
How to Transition to a Radical Firm
Here’s your step-by-step guide to breaking free from the old-school firm model.
Get buy-in. If you’re in a partnership, getting buy-in from your leadership team is the first (and sometimes hardest) step. Not everyone is going to be on board, and that’s okay. The truth? Some firms will need to lose a few traditionalists to gain a future. If you’re a solo firm owner, congratulations, you just saved yourself a lot of headaches. Now, it’s all on you to make the change happen.
Start with one service offering. You don’t have to overhaul everything at once. Pick one service to transition into a productized, value-priced model. Maybe it’s monthly advisory services. Maybe it’s tax planning. Maybe it’s CAS. Whatever it is, define it, price it and standardize the process.
Automate everything you can. Radical firms don’t waste time on manual processes. Use cloud-based accounting platforms, automate data collection and integrate workflow tools to streamline operations. The less time you spend on low-value tasks, the more time you can spend on delivering real value to clients.
Ditch the billable hour. This is the hardest part for most firms, but it’s also the most important. Clients want predictable pricing. They don’t want to feel like they’re on a taxi meter every time they call you. Develop fixed-price packages, clearly define deliverables and set expectations upfront.
Create a customer experience that turns clients into raving fans. This is more than providing good customer service. It’s about designing an experience that makes clients feel valued, understood and excited to work with you. When your firm operates with transparency, responsiveness and a client-first approach, your customers become your biggest advocates.
Build a team that thinks differently. That means hiring people who embrace technology, creativity and problem-solving over rote compliance work. Training should be ongoing, and learning should be part of the culture. If someone isn’t aligned with this vision, they’re not the right fit.
Make change a constant. There’s no end to this transformation. A Radical firm doesn’t “get there” and then stop. Innovation is baked into the culture, and change becomes part of your firm’s DNA. You’re always improving, always evolving and always staying ahead of what’s next.
Transitioning to this model could take years, depending on the firm’s size and complexity. Setting realistic expectations is crucial. Firms should measure success by tracking client retention, revenue growth, efficiency improvements and overall client satisfaction. Small wins like successfully implementing value pricing for a segment of clients or automating a key workflow signal progress.
Keep moving forward, and soon enough, the transformation will take hold.
It’s Still Radical
You’d think by now, more firms would be operating this way. But the truth is, the majority of accounting firms are still stuck in the past. They’re resistant to technology, terrified of pricing outside the billable hour and clinging to outdated models that are quickly becoming obsolete. This is being exacerbated by firms ignoring AI or adopting a wait-and-see approach, ensuring they remain stuck in compliance and fall behind those AI-first firms that are making data-driven proactive decisions.
Radical isn’t a better way to work — it’s the only way to future-proof your firm. The profession is changing, client expectations are shifting and firms that refuse to evolve will get left behind. But the ones that embrace this new way of working will be the ones shaping the future of accounting.