The last several years have seen unprecedented growth in the accounting industry. The profession is being threatened by various factors, including cost-cutting measures, outsourcing, and the increased use of technology. One might be tempted to think this is a good thing, but it’s not long before those thoughts are replaced with apprehension.
As an accountant, how do you ensure the growth continues? Scaling your accounting firm might seem intimidating initially, but there are ways to make it happen successfully.
How can you successfully scale your firm?
Advertising your firm externally is the first and most obvious step in scaling a firm. In many cases, a firm might start with only one or two partners as owners, but it is typical for that to change over time because more people buy into the mission, and there are more opportunities to expand the practice.
In scaling a firm, it is crucial to consider the kind of staff needed as the business grows. It is also essential to consider the total number of staff that should be employed.
3 Ways How to Successfully Scale your Accounting Firm
Divide and conquer
Being a sole proprietor, the owner of your firm is usually the only one who takes care of everything. Though this might work for a small firm, it is not sustainable as soon as it grows beyond a certain size. A partnership model provides additional partners through whom the business is run equally.
This means that larger clients should be broken down into smaller groups so less than ten employees can handle them. This will help prevent the firm from getting lost amidst all the other employees involved in the process.
Structuring your firm
The structure is not only important in scaling your accounting firm, it’s also important for ensuring that growth does not end up being a stressful experience. A small business can still continue working with its sole proprietorship or partnership structure until they find the need for additional growth.
One should consider structuring their practice accordingly to enable a firm’s growth. A sole proprietorship structure should strictly be kept for those who are beginners who need a small structure that allows them to grow without facing too much pressure. A partnership would work best for larger firms that are looking to expand their services and reach out to new clients because it allows for more members within the firm.
Staying ahead of the curve
Scaling your accounting firm might seem easy initially, as your services are being sought after by clients. However, scaling can be taken to a whole new level when you become proactive in its management. Under-promotion usually results in failure, which has very little to do with your competence as a professional but rather the amount of effort you might be putting into marketing yourself.
A great way to ensure you’re always ahead of the curve is by investing in learning new skills and expanding your knowledge base. Becoming aware of new trends in the industry helps budding accountants make educated decisions, even if it does not appear at first that they will be helpful for a business.
Conclusion
Scaling your firm successfully requires a lot of hard work and effort. However, it’s not something that is impossible to achieve. Taking the first step towards scaling your firm, especially if you’re an entrepreneur on the fence, is important.
It’s a challenge but it can be done with the right planning and structure. First, you need to know what is going to happen when you scale your business so that you can plan accordingly. An accountant needs to have clear goals and a realistic assessment of what they can achieve in a short period before they embark on this journey towards success.s
