Growing a successful accounting practice means providing a valuable service with high-yielding products.
Successful accounting practices have no glass ceiling to break through because the sky really is the limit.
However, growing a business is hard. The latest statistics from the U.S. Bureau of Labor Statistics reveal 20% of small businesses close their doors permanently during their first year.
So, how do you survive and thrive as you build your new accounting practice?
7 Tips For Successful Accounting Practice:
1. Anticipate Your Future Hiring Needs
Most of the focus on growing a successful practice revolves around acquiring new clients. Of course, filling your pipeline is crucial, but who will service all those new clients?
Your existing team only has so much capacity. Unfortunately, too many accounting firms fail to anticipate their future hiring needs and become overwhelmed. Extended periods of crushing workloads will only lead to a decline in quality and consistency.
As part of your business plan, set a rough trajectory for when you will start the hiring process. You don’t need exact numbers, just a basic idea of when the time is right to expand your team.
While your client base grows, your team must grow in parallel.
2. Invest in Automation
Automation technology has impacted every industry. Think about how much time you spend on manual, repetitive tasks daily. How much time could you win back by automating relentless formfilling, for example?
Investing in accounting practice management software empowers your business to supercharge its growth through the following:
- Automating basic tasks
- Making organization easier
- Bolstering your security
- Providing remote access to work
- Digitizing paper forms
No software solution can automate the more complex tasks a qualified accountant will complete, but you’ll have more time to work on them.
Reclaim your time and transfer those resources to marketing, customer service, and onboarding new faces.
3. Ask for Referrals
Online marketing will take up a massive portion of your business activities. It’s the number one way to acquire more clients. However, there are other avenues you can explore.
Traditional word-of-mouth marketing remains highly effective at raising brand awareness and attracting more clients to your firm. According to the industry, 64% of marketers say word-of-mouth is their best form of marketing.
Encourage your existing clients to market your business for you. Offer referral rewards for clients who successfully net you a new client. A small reward is worth the investment in a potential new long-term client.
4. Look for More Business from Current Clients
New clients are only one source of business. Think about the financial value of your existing clients.
Strengthening and broadening those relationships generates loyalty to your accountancy brand. Loyalty is vital for maintaining existing business and producing opportunities for upselling and cross-selling.
Building client relationships take time. Train your team to learn about your client’s goals, challenges, fears, and opportunities for your business to resolve them.
Develop and/or revamp your client engagement plan. Let your clients do most of the talking and think about ways you can be more valuable.
5. Be More Accessible
Accountants who are slammed, especially during tax season, can slip when it comes to accessibility. In today’s ultra-competitive business landscape, you cannot afford to let your clients wait for days to receive a response to their emails.
After all, 90% of Americans use customer service to decide whether to work with a company. Quick responses create a positive first impression and move the workflow along, which all clients appreciate.
It might sound simple but managing your time when you’re working long hours the week before a tax deadline is easier said than done.
6. Network with Other Businesses
How businesses are run has changed, but one thing that hasn’t changed is the importance of networking.
Growing a service-based business requires you to network with other businesses. Accounting practices are no exception to this rule. The more business owners you build relationships with, the better.
Networking keeps you informed of the movements within the industry, gives you access to new clients, and ensures you stay fresh.
Focus on making quality in-person connections. Talking to someone on LinkedIn should serve as a launchpad for these relationships rather than form the focal point.
Friendly businesses often exchange services and products with local professionals and refer interested parties to each other.
Here are some of the ways you can get started with in-person networking:
- Volunteer for the IRS VITA program.
- Join your local chamber of commerce.
- Look for networking events in your area.
Like any good relationship, establishing and maintaining them takes time and effort, but it’s an investment well worth making.
7. Have the Right Team at Your Back
If you’re like most accountancy firms, you likely started with just you managing everything. However, a growing accountancy practice will quickly move beyond what a single person can accomplish. So you need the right people behind you.
Be selective about who you bring on board. Look for shining examples of character and leadership. You want someone who will stick with you for the long haul.
Write down what you want in a new hire. It could be someone with a specific skill in a particular area or someone with the soft skills to add to an already working team.
Attracting the brightest and the best talent isn’t just about salary. Culture, benefits, and professional development opportunities also determine whether you have an attractive proposition.
Remember, you are only ever as good as the team behind you.
Conclusion
Running an accountancy practice means going beyond your work as an accountant. You must learn to wear multiple hats simultaneously to cover all the bases.
Surrounding yourself with the right people, making connections, and offering a quality service are the three pillars of building your accountancy firm. Try to scale slowly to avoid overwhelming yourself or risk compromising your service.
What is your plan for growing your accountancy brand?
Additional:
