Increasing your accounting firm’s profitability doesn’t have to mean working twenty-four hours a day. You also don’t need to take on more clients and more work. Making simple changes in the way that you approach your work can prevent you from becoming burnt out while also helping you increase your firm’s bottom line. You know what they say — it’s far better to work smarter than it is to work harder. Here are some small changes that may make a big difference for your business!
Don’t Waste Time on the Wrong Clients
Just because a client isn’t necessarily “bad” doesn’t mean they can’t be bad for your firm. What does your ideal client look like? Maybe they work in a certain industry or generate a certain amount of revenue each year in their business. No matter the profile, an ideal client should at the very least be increasing your profits rather than eating into them. Learn to say no to potential clients if you don’t think you can add value to their business and vice versa.
Leverage Your Existing Clients
Finding new clients can certainly increase your profits, but don’t turn a blind eye to existing clients. The easiest way to increase your income without putting in more work is by taking a look at your existing contracts. Are there expenses or costs you can cut back on? Are there additional services or more advanced service packages that may be useful to your client?
Record & Store Your Procedures
Efficiency is key to increasing profitability. How much time do you waste trying to figure out the proper way to conduct a procedure? You can cut out the confusion by writing down your procedures and storing them in the cloud, where all of your team members can easily access them.
Automate Where You Can
“Work smarter, not harder” might as well be the slogan for automation. Many accounting firms are learning that automation is not an enemy. Rather, automation tools can be incorporated into your work life to handle simple, repetitive tasks. This will help free up time for your team so that they can focus on what matters and increase their productivity.
Take Care of Yourself
While increasing profitability should always be front of mind for your accounting firm, so should the well-being of you and your team. The good news is this: working smarter can help both your bottom line and your peace of mind. The better you feel, the better you’ll be able to assist your clients.
Using profitability as a metric for success is different from revenue-based assessments. Because profitability takes your expenses into account, you can increase your profitability through higher productivity, reduced scope creep, and cutting back costs where you can. In the long run, this may be a more sustainable way to approach your firm’s success.
More work and more clients will also mean more exhaustion, more burnout, and more difficulty remaining consistent in your success. Through increasing your profitability with smaller adjustments, you can enjoy continued success AND improved well-being.
