In the world of accounting, the term growth often conjures up images of single-digit increases in revenue and productivity. However, by employing a proven growth strategy, you can achieve greater gains and scale that can bring increased value to your firm. By applying the following eight growth strategies, you can improve your growth and profit performance over time, and these will help to elevate your accounting practice.
1. Own the Procurement Process
When accounting firms own the procurement process and oversee purchasing decisions, they can control their spending and increase profitability. For example, if the client asks the firm to purchase something which they don't normally include in their fee model, they have a more reasonable cost structure than they might have had in the past.
They can also use this procurement advantage to negotiate lower fees for client work, and therefore increase profitability, without significantly decreasing revenue. By owning the procurement process, you can reduce bid management to a minimum and drastically reduce the time and cost associated with procure-to-pay processes and ensure that you are processing compliant bids.
2. Showcase Quality
When accounting firms build their reputation through the highest quality of work and service, clients begin to see the value in that reputation. When clients are happy with the work you are doing, they'll want you to do it again. When you show your clients that you can deliver on the quality of work they have come to expect from your firm, you'll be able to maximize the return on that relationship.
3. Sell Accounting Outsourcing
As outsourcing continues to become a more viable option for many organizations, accounting firms must find a way to differentiate their services. One way that accounting firms can stand out in this increasingly competitive environment is by selling accounting outsourcing. With a strong outsourcing strategy, accounting firms can significantly increase their profitability, reach their customers outside of the office, and, ultimately, reach a larger number of clients. In today's business environment, you can reap the benefits of outsourcing without sacrificing any of your own talent, time, expertise, or money.
By outsourcing accounting work, you can build a long-term relationship with your client and establish the trust that is required to leverage the significant efficiencies that the service brings. Accounting outsourcing is a service that is in high demand by many companies today and accounting firms that can demonstrate they are a competent resource in this area will see increased profits.
4. Lean into Automation
Today, accountants need to be able to do more than do the work assigned and send an invoice. Technology has changed the landscape of what is now possible for accountants to provide for their clients. By shifting from a service-oriented mindset to an automation mindset, accounting firms can become more than just trusted advisors and consultative partners. Today, accounting firms can provide their clients with true automation services that can increase efficiency and reduce costs.
By moving beyond the service-oriented mindset and focusing on what truly makes them unique, accounting firms can give their clients everything they need to run their operations – from managing their books and taxes to managing their payroll, accounting, and even accounting compliance. With all of these services, accounting firms can build an even stronger partnership with their clients. The ability to drive down costs and offer services that truly help their clients manage their finances – often by delivering the same exact services themselves – makes accounting firms a valuable resource that their clients are willing to pay for.
5. Sell Other Services
Many accounting firms have carved out a niche by providing services that are more complex or specialized than just bookkeeping and doing taxes for individuals and small businesses. To stay competitive, many accounting firms have broadened their horizons by offering financial advisory services, for instance. Anytime you can offer your client more than they expect it is a winning proposition.
6. Align Sales and Marketing
Today, business owners are more keenly focused on their bottom line than ever before. They are keenly aware of how much time, effort, and money it takes to run a business. There is an expectation by the public that businesses will have clear information about the product or service, as well as clear, concise, and customer-centric messaging. Unfortunately, many businesses are not maximizing their potential by relying too much on traditional marketing channels to bring their message to the attention of the public.
That makes it more important than ever for companies to find ways to connect with the public in an engaging way. There are thousands of creative marketing strategies that companies can use to create a great experience for the public, which will create a loyal customer base and lead to higher customer retention. Many new marketing strategies can be used, including microsites that can deliver value to the consumer and of course, busy social media accounts. As online marketing efforts continue, so will the possibilities for businesses to connect with their customers in more meaningful ways.
7. Build your Sales Infrastructure
Building an outsourced sales team will be vital for most new firms and it's not a skill that most accountants are well versed in. As accounting firms continue to grow, finding individuals who can drive inbound leads is more critical than ever. Accountants who are willing to learn and are dedicated to putting in the time will be able to make a significant impact for their firm and help them attract more clients. You can't win the market share in accounting without generating a sales pipeline and sales team to bring in that pipeline.
Take a hard look at what types of clients are in your pipeline right now and see if they have a value proposition for you. If they don't, take a look at the list and see if any of the companies really are "giant markets" for your product or service. If not, you might want to consider adding new businesses into your sales pipeline. If you don't have a sales team, it's time to build one. Establish a strategy, assign people to the roles and develop a budget for their compensation. Your salespeople will be your greatest asset as you build your business.
8. Decide on a Financing Model
Whether you decide to run your business on the cash flow generated by your existing client base or you choose to approach an external investment capital source to supplement your revenue, you'll need to make a decision about how to finance your business – to some degree, whether it be internally generated cash flow or external financing. These are all valid options but each brings its own unique set of challenges.
As the accounting niche evolves so must your growth strategies for your firm. The accounting firms that embrace the above strategies will be the ones that best adapt to the future of the profession.
References:
- https://www.orangepegs.com/accounting/4-business-growth-strategies-every-accounting-firm-needs
- https://www.cpapracticeadvisor.com/2013/12/10/6-strategies-for-accounting-firm-growth/
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