What are the long-term, high-level goals for your business in North America? Whether it is the number of new client accounts, the roadmap towards an acquisition, or the annual revenue target, every owner of an accounting firm has their perspective of what success looks like.
For returns shortly, the growth’s building blocks have to start today. What are the next steps you can take to drive your firm along an upward track? To attain success and growth, joining the Padgett Business Services network is always a good idea.
Strategies to Grow Your Accounting Firm
In this blog, we are going to take a look at some essential rules for moving toward sustainable growth for every owner of an accounting firm.
- Comprehend the 80/20 Rule
The 80/20 rule, also known as the Pareto Principle, is essentially a business observation that 80 percent of the outcome results from 20 percent of the inputs.
The owners of the business need to identify the essential 20 percent of the work they do that has the most significant impact on the end output, and those activities need to be prioritized.
What does it mean for the account firm owners? Although it is not some mathematical law, it is a thought exercise meant to make you think about what matters when it comes to value creation in your business.
Bring it Into Practice
Take inventory of all results you deliver for clients. Can you track such deliverables back to the time you and your team spend on your day-to-day activities?
By excluding unnecessary steps in processes or minimizing time spent on such tasks that do not directly drive toward client outcomes, you can increase efficiency across the team.
- Productize Your Services
If you bill the clients on an hourly basis, you will always have a cap on the money you can make because time is essentially a finite resource.
An early step in ascending and increasing profit margins is exploring how to productize your present accounting services into packages or periodically repeated subscriptions your clients can buy.
Bring it Into Practice
What is that prevalent service that most of your clients presently get from you and your team? Could you standardize the delivery model or rate across your client base?
- Utilize Automation to Your Advantage
Automation is a huge factor in the ability of a company to scale. Your time and your team need to be allocated to tasks that only a human with a high level of expertise can perform. Everything else can potentially be automated.
About 70 percent of the workers say that automation could minimize time spent on repetitive work, and the top three tasks that they would suggest to be automated are:
- Approvals
- Data Collection
- Updates
Bring it Into Practice
Trace the time you spend on every single task. What tasks are you doing repeatedly? For instance, maybe you send invoices manually every single month. Or perhaps there is a set of checklists you follow when you bring a new client on board.
- Hire Strategically and Prioritize Skills
Many business owners commence the hiring process with a job title in mind for their first member of the team. But you are going to go further and faster if you first take the time to assess your weaknesses and strengths. The best leaders are honest about where their shortcomings lie and build a team to supplement their weak points.
Bring it Into Practice
Distinguish the role from the title, and create a complete list of skills you require on your time to deliver for your clients. Design a strategic job description that considers it.
Join the Padgett’s Network!
To establish an accounting firm, the owner needs to go through a plethora of difficulties. Some of them can easily be avoided by joining Padgett’s network, which will help you attain better growth rates, profit margins, and annual revenue.
