Starting your firm and growing your firm are two different challenges. The skills that got you up and running aren't necessarily the ones you'll need to grow. If you're aiming to become a leader in the accounting profession, you'll need to think and act differently than the average firm owner.
I've studied the fastest-growing U.S. accounting firms and identified seven key strategies any firm can learn to use. But before we dive into those, let's look at some common pitfalls firm owners often encounter:
- Lack of client criteria: Accepting any client, even those that aren’t a good fit for your firm.
- The people-pleasing trap: Thinking that client satisfaction means saying yes to every request.
- Delegation phobia: Having a hard time letting go of tasks, which can lead to burnout and missed opportunities for your team to grow.
- Passive growth: Leaving success up to chance instead of strategically planning for growth.
The top performers in the profession don't sit around waiting for things to happen; they make them happen. They are proactive about building a firm that's ready for expansion. Let's look at the strategies these successful firms apply.
1. Aim higher
The most successful firm owners aren't afraid to deviate from the status quo. They want to stand out rather than blend in. They realize perfection is impossible and doubts are normal, but they don't let these hold them back. Instead of worrying about losing clients, they consistently seek ways to improve their firm.
Growth involves some calculated risks, but with good planning, you can speed up your firm's expansion.
Ask yourself: What could you do to take your firm to the next level that you haven't tried yet?
2. Build a strong team
Hard work matters, but it's not the only key to success. If it were, every tax preparer working long hours during tax season would be rich. The leaders of top firms understand the power of leverage. They build teams to handle day-to-day work, freeing themselves up to focus on high-value activities such as business development and leadership.
Think about it: What growth opportunities would you pursue if you had more time on your hands?
3. Rethink your approach to money
Are you working to live or living to work? If your income is directly tied to the hours you work, there's a limit to how much you can earn. Once your calendar is full, your revenue hits a ceiling.
On the other hand, forward-thinking firm owners want their money to work for them. They use strategic pricing that's based on value, not time. This approach rewards speed and expertise, allowing profit margins to grow even as you work more efficiently.
Consider this: What changes in your pricing or business model would significantly boost your firm's profit margins?
4. Invest in growth activities
Average firms wait for clients to contact them, relying on chance encounters and referrals. But this approach can be risky, leading to inconsistent growth and missed opportunities.
For steady, predictable growth, focus on understanding and meeting your clients' needs. By tailoring your services to address their key concerns, you can chart a clearer course for your firm's future.
Consider specializing in specific industries or sectors that align with your firm's strengths. By becoming the go-to expert in these areas, you'll attract quality clients who are a perfect match for your expertise.
Ask yourself: What two business development activities will you commit to doing consistently?
5. Leverage technology
Is technology your friend or foe? Resisting change will limit your firm’s potential. As technology advances, many day-to-day tasks can now be automated. Leading firms are investing heavily in AI and software to streamline their operations.
From cloud computing to process automation and AI accounting tools, technology can increase your capacity for more clients without needing to hire more staff. For example, KPMG uses AI for tax work, allowing junior accountants to handle tasks that used to require more senior staff. This saves them up to 15 hours per worker every month.
Assess your tech stack. What tools could you add to automate repetitive tasks, improve collaboration, and enhance your client services?
6. Make data-driven decisions
Numbers and financials are at the core of what you do, but as a busy firm owner, you might not spend enough time looking at your own numbers. If you want strategic growth, pay attention to what’s going on inside your firm.
Set aside time to regularly review key performance indicators (KPIs), analyze the results, and adjust your strategies based on those insights.
Ask yourself: What three KPIs would help you make informed decisions about your firm?
7. Develop your signature system
All firms offer similar core services. If you look at a few random accounting websites, you'll notice they often focus on listing the various tasks they do, so nothing really sets one firm apart from another.
Top firms stand out by highlighting their unique approach—it’s what I call a signature system: Your specialized way of delivering accounting services. Instead of just listing tasks, your signature system outlines a step-by-step approach that focuses on the benefits to clients.
Think about this: How can you set your firm apart with a strategic framework like this? A well-defined process appeals to quality clients. Rather than just talking about tasks, educate your clients about the outcomes you can help them achieve.
Every firm, from solo practitioners to the Big 4, has a signature system, even if they don't call it that. For example, PwC created their Business Transformation System that appeals to businesses looking to stay relevant in changing times.
Consider these questions:
- What's the client journey like from first onboarding to ongoing services?
- What steps do you take to navigate their business financials?
- How does your firm help their business transform over time?
Your answers to these questions will start to reveal your firm's unique signature system.
Learn from leaders in accounting
Remember, strategic growth is a long-term game. Top-performing accounting firms are always adapting and revising their plans to maintain a competitive advantage. Success requires commitment, steady progress, and the ability to embrace change.
Look to the top 1% of firms for inspiration, but start small. Try adapting one or two of their strategies to begin with. Regularly invest in learning, refine your processes, and prioritize communication with your clients. These steps, combined with your dedication, will make your firm a magnet for businesses seeking proactive, client-centered accounting services.
By focusing on these strategies, you'll be well on your way to scaling your firm and outperform your competition. It's not about working harder It’s about being strategic and effective.
