You achieved your goal of opening your own accounting practice and are now ready to expand it to the next level. Balancing a sufficient number of clients to sustain a healthy bottom line without compromising your high standards can be challenging.
As your firm expands, hire administrative professionals to maintain organizational efficiency and keep your company running smoothly while you focus on your service delivery.
Rely on automation
Embracing technology is necessary to manage day-to-day operations and to ensure scalability. Automation needs can vary across firms, but one way to start an integration is to identify repetitive, time-consuming tasks such as data entry, reconciliation, report generation, client scheduling, and more. Once you’ve created your shortlist of the tasks you want to automate, the next step is to research software and tools to help you meet your goals. With technology continuing to evolve rapidly, there are many solutions to choose from. While efficiency is the goal, it’s essential to maintain a balance between automated processes and human insight, as the nuanced judgment of experienced professionals remains irreplaceable.
Form strategic partners
Look for partners, not necessarily
business partner[1] - although merging with a fellow small business owner is a growth strategy - but other business owners and entrepreneurs to whom you can refer your clients. Direct your client to a web developer or marketing consultant, for example, who will repay the favor when their clients need an accountant.
What are some proven accounting firm growth strategies?
The 2023 National Management of an Accounting Practice (MAP) Survey[iii] results are in, and American public accounting firms reported a median growth rate of 9.1% in net revenue in 2022. Accountants are in demand, so tapping into that demand will help you grow your client base.
Some of the key takeaways include:
- Think beyond hourly billing. Although hourly rates[iv] are rising, hourly billing as a share of revenue dropped 5% in the last three years. Companies that offer bundled packages and subscription services realize higher profits.
- Create an attractive compensation package. To deliver high-quality, specialty services, you need high-quality employees. MAP survey firms reported a median annual average base salary compensation increase of 6.1%, up from 4% in the 2021 survey. Even with higher salaries, firms report growth.
- Think outside the box. Successful CPA firms have moved beyond traditional service offerings. MAP respondents report strong revenue growth in client advisory services (CAS) and business valuation. Other practice areas include information management and technology assurance, not-for-profit support with compliance and governance, and financial forensics.
How can you successfully promote a CPA firm?
The best marketing strategy for you involves identifying the most effective ways to convey your firm’s unique
value proposition[v] to your target audience. Expanding your clientele can only be achieved by getting the word out.
Although considered "old-fashioned," networking, word-of-mouth referrals, cold calling new businesses in the area, and print advertising are still effective for reaching local prospects. However, email blasts and social media posts can reach significantly more potential clients at once and allow you to engage with your audience via comments and messages to foster client relationships.
Educating your audience through content marketing is another effective promotion technique. Leverage your website by offering high-quality content such as blog posts, articles, and insights on financial strategies, highlighting your firm’s expertise.
What strategies can be employed to attract new clients to a CPA firm?
Marketing gets the word out about you, but attracting new clients requires the proper messaging to the right audience.
How can you identify client needs and target the right markets?
To identify clients’ needs, nothing beats asking them. Start with your current clients and ask if they need a service you aren’t providing. Also, ask if they are members of any national or local organizations you can tap into. Scout your competitors – visit their website and LinkedIn pages – to find out what they offer and what their clients say.
Fortunately, various organizations have researched industry trends and the competitive landscape; you only need to analyze the data. Access the
U.S. Census Bureau for business and economic data. For industry trends, the
Journal of Accountancy and
AICPA are good resources. Request local data and business forecasts from service bureaus, Rotary organizations, and news sources.
What are the best methods for differentiating services in a competitive market?
Make it personal and all about your firm and your team.
- Distinguish your firm with a client-centric mission.
- Highlight your unique areas of practice and specialty services.
- Use testimonials to demonstrate exceptional client service.
- Showcase your staff and their certifications, expertise, and accomplishments.
What are the best methods for differentiating services in a competitive market?
Aligning your employees’ skills with your offerings helps ensure high-quality service delivery. When you identify your service offerings, clearly define the skill set required to deliver the service effectively.
Fill any gaps through training or hiring. Offer ongoing training and development for all your team members and partner co-workers on projects to foster cross-training and mentoring and empower your employees to suggest new offerings based on client interactions.
Strategic hiring and ongoing training can help you position your firm as the community’s premier provider of specialized services.
What additional services can accounting firms explore and offer to clients?
Accounting is intricately tied to business operations. When you look beyond the numbers, you may find other areas of practice into which your company can expand.
Service offerings to help meet the evolving needs of your clients can include:
- Consulting and advisory services to help clients formulate business goals and overcome challenges.
- Integrating Environmental, Social, and Governance (ESG) goals into the client’s business operations to help attract ESG-focused investors.
- Provide Chief Financial Officer (CFO) services[vi] to supplement your clients’ E-Suite, contributing to strategic financial decisions.
How can industry trends and data inform service diversification?
Whether reviewing company or industry data, you will find valuable information you can use to develop services to separate your firm from your competitors.
- Look for emerging trends and changes in the accounting industry and adjust your services before they become obsolete.
- Integrate new technologies into your service offerings.
- Stay abreast of IRS regulatory changes and advise your clients to prevent bottlenecks at tax time.
- Economic upturns can point you to high-growth business sectors.
Ready to grow your accounting practice?
A clear vision, some research, and a knowledgeable, professional team can help you achieve your growth targets. Do you still have questions about how you can expand your CPA practice? Download our ebook now to learn more about expanding your clientele and services.