Economic and Ethical Issues of Pricing

Economic and Ethical Issues of Pricing

Most Certified Public Accounting firms and Certified Public Accountants (CPA) comprise a vested concern in ethics but determining how to keep professional codes of conduct and his or her ethics while increasing his or her business tends to be of great concern. The CPA firms and CPA's question how can him or her increase his or her pricing for the products and services offered throughout these current economic times. The contents of this paper will discover the ethical challenges of hiring non certified public accountants and the professional standards that a CPA firm should follow. A business is classified by the worth it builds for his or her clients. The pricing structure that a firm uses sets the tone for the proposition value of the firm. As a result of the economic times we are now in, it is important for a CPA firm to adjust the way they view pricing and billing by giving his or her clients the option of pricing unique to the needs of each client individually. A CPA sells a value based on his or her knowledge that covers auditing, accounting practice, ethics, accounting theory, and law, experience, intellectual capital, a license, wisdom, and a degree, CPA's do not sell his or her services based on time. Measuring the value of a firm by billing by the hour is not a good for any firm, if a firm wants to make more money billing by the hour the firm should hire work more hours and increase prices.

Ethical Challenges in hiring non-CPAs

The start of any new business causes an owner to have to make intelligent decision to make certain his or her company will grow and prosper. Economic issues cause key concerns when trying to make certain the business has success. Making important cutbacks like decreasing the price charged for products the business offers, will assist in making the business successful. Hiring non-CPAs with a good work history and an education can also assist in making the business successful. To develop into a CPA, an accountant has to take and pass a sequence of painstaking tests administered by the American Institute of Certified Public Accountants. All accountants are not CPA's but have met the same qualifications a CPA has but have not yet passed the exams required to obtain his or her certification. Accountants that are not CPA's can still provide the daily accounting functions needed by his or her employer. When dealing with economic issues like pricing, a business should try to follow these steps; produce an esprit de corps which basically means to not set yourself apart from the market you are targeting. Try to find a way to show the people in your target market that you are in the same boat as them and feel the same way they do emotionally. Show them that you have experienced the same ups and downs as they have as a result of the current economic issues. Make certain