Running an accounting firm is not easy. There’s a lot of competition for your business, and the work is demanding, especially around the tax season when workloads are higher than normal.
Completing work isn’t your only problem. There are numerous challenges which you could face daily that could be harming your accounting firm’s bottom line. Here are some of the challenges your firm might be facing and how you can solve them.
Technology is progressing fast, and in some cases, it’s making some jobs obsolete. For instance, cloud accounting means that files and paperwork no longer need to the be transported. This has a knock-on effect of reducing billable hours and can lower your monthly income.
One way to get around this is to start charging a fixed-rate service. Some have found that this is improving customer service and offering better value to clients. Some accountants have even seen their work change to higher-end work which is more valuable.
As mentioned in the previous point, some accountants are finding their efficiency and technology use is cutting their billable hours. Other accounting firms are finding it tougher to attract new business to them. This can be deadly, because if there isn’t enough inward business, you aren’t going to be able to sustain the business.
Marketing is key here and should be both online and in-person. Ensure you have the best website. Move away from a shared server to a VPS and ensure your design is optimized for search engines and mobile devices. Also, you should network with current clients and at networking groups.
Technology has changed how accounting firms can hire the best talent. Most prospective employees, and certainly the best employees, are looking for more flexible working conditions. The best ones can almost demand it because they know if you won’t give it to them, someone else will.
Using the best technology is certainly one way you can attract top talent. But you need to ensure you can negotiate a working relationship where you can both be happy.
Conclusion
Technology is rapidly changing the accounting world. No longer will you find yourself travelling between clients on a regular basis. Instead, you will be working most of the time remotely to help clients achieve the best results.
This will require a change in your working behaviors and how you use technology. But in the end, it will help you deliver a better service to clients.
What challenges does your accounting business face? How has technology impacted your business practices?
Let us know in the comments below.