Accounting firm owners deal with numbers daily. But are your business numbers adding up? Growing your accounting practice keeps you busy and helps you boost your profits and excel at client management. You can achieve this by creating a profitable accounting business. Let’s have a look at the following guidelines.
with Automated Workflows
The right business model
Develop the right business model for the right client. Define the workflow for each model by creating a map that enables you to pinpoint potential inconsistencies. You can use workflow software to assist. Observe where the process could slow down or fail, and adjust when needed.
It’s critical to have a reliable process and the right accounting solution to track work across roles and departments. This includes staff assignments, capacity, due dates, task status, engagement details, reporting, and more. An accounting practice management software like Quickbooks Online Accountant can help with this.
It takes just one data breach to bring a business to its knees. Regular training for yourself and your staff on how to spot phishing emails and suspicious links is not overkill. It’s essential. Ensure your accounting firms data and your clients' financial data is stored safely with a secure accounting system that ensures your accounting cybersecurity.
Set up a simple website. Offer a place where prospects can easily learn the value your firm brings to the table. Define what you sell and who you want to sell it to, and ensure that you make a great first brand impression.
Communication is critical
Stay connected with current clients by offering timely, seasonal, and frequent communication, including important tax information, helpful business tips and tactics, and estimated tax payment reminders. Taking care of your current clients is just as important as finding new ones.
Create a marketing plan
Marketing plans create direction and strategy and identify the resources necessary for your firm to reach its goals. Be specific about the goals you would like to attain from the very start. Create particular marketing objectives that feature quantifiable results, such as a percentage increase in sales or a certain number of new clients.
Once you’ve outlined your goals, set specific actions and define targets to focus on to achieve each one. Without formally defining these actions, you will likely neglect your marketing activities in the day-to-day pressures of running the practice.
Narrow Your Niche
Some accountants try to be everything for everyone. That works for bigger firms. But smaller accounting companies usually have better luck specializing in a certain area. Finding an accounting niche such as managerial accounting lets you get to know the target audience. You can customize what you offer to fit the needs of that niche. And you become the go-to accounting guru for people in that niche.
What are the niche possibilities? One option is targeting business owners in a specific industry. Maybe you have experience in the tech world. Customize the accounting services you offer with tech businesses in mind.
Another route is targeting a certain type of entrepreneur. Market to new business owners or focus on franchise owners. Still not sure of a niche? You can offer your services to businesses of a specific size or specialize in accounting tasks like payroll or taxes.
Whatever niche you choose, learn everything you can about it. Become the expert. Working your specialization into your website, and marketing materials makes it easier for people to find you.
Change Your Pricing Strategy
How do you bill clients? Do you charge an hourly rate? Say you give your client a price based on your hourly rate. You estimate how long you think it should take you, but it takes longer than you plan, which cuts your hourly wage. You could charge after the fact based on how long it takes. But your client might wonder if you’re intentionally taking longer to bill more.
Look for alternatives that secure your profits. One option is a flat monthly rate. Your clients know what to budget for accounting services. You know you’re getting a steady amount each month. Plus, you’re not racing the clock and potentially letting minor errors slip through the cracks.
You can also create service packages. Instead of pushing individual services, group them in a logical way. Clients love getting a package deal. It’s like one-stop shopping for them.
Another approach is cutting your client list but increasing your prices. You can charge higher rates when you specialize and make yourself an expert. That means you don’t need as many clients to make the same amount.
Get rid of your problem clients or the ones always looking for a deal. Focus on the serious clients who understand your services are worth paying more.
Master Accounting Technology
Older businesses are often slow to adopt technology. But more business owners realize its importance. Embrace technology like accounting firm practice management software.
It also lets you better serve your clients. Cloud-based accounting software for accounting firms, such as QuickBooks Online Accountant, has features for accountants to enable you to work efficiently by managing your accounting business, work, and clients in one place.
You can also help your clients give you essential information using accounting firm software like QuickBooks Online products. Automating as much as possible with available technology makes life easier for everyone.
Small accounting firm owners or partners can make a few tweaks to how they run their accounting business by migrating their accounting practice to a cloud based accounting software. This can make a huge difference. Hone in on your specialty area, then work as efficiently as possible to maximize your profits.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.