Tips to Increase Profitability at your Accounting Firm
Is your accounting firm struggling to make ends meet? If so, you're not alone. The majority of small businesses struggle with profitability and many fail within five years. In our latest blog post, we highlight some tips for increasing profitability at your firm. We hope these tips will help your business flourish!
Offer a variety of services to your clients.
A diversified offering will allow you to charge premium fees while increasing your value. Accounting firms usually offer services such as accounting, bookkeeping and payroll, accounting software implementation and training, taxes and tax planning, monthly accounting service packages, consulting on finance topics like treasury management or cash-flow forecasting.
Take advantage of new technologies, such as cloud computing.
Group accounting firms can use accounting software to streamline accounting operations across their offices.
Accounting software allows for better transparency between accounting teams and eliminates the hassle of information transfer between accounting teams due to a lack of technology infrastructure.
Cloud computing allows you to access online accounting tools that increase your efficiency, reduce your expenses and improve customer satisfaction. There are many options available out there such as Xero, Sage, Quickbooks, etc.
Invest in training for employees so they stay current with changes in the industry.
As accounting practices evolve, so must you. By investing in ongoing training, accounting firms can ensure that they are complying with changing industry standards and producing high-quality accounting reports for their clientele.
Training your employees will provide them the skills and confidence to handle accounting procedures on their own, which will ultimately save you money. These training can vary from accounting software updates to accounting standards changes.
Train your accounting team on how to navigate accounting software like Xero, Sage, Quickbooks, etc. If a current accounting firm employee is not familiar with accounting software, it can slow them down and cost you extra money in the long run.
Create relationships with vendors who offer discounts on supplies and equipment.
When you buy accounting supplies at a cheaper rate, you will be able to use the accounting funds for other important things.
Re-evaluate your accounting firm's workflow structure and see what changes need to be made in order to create less stress during peak accounting times. For example: You can eliminate the need of back transferring accounting data from one site to another by using automated accounting software and technology.
Have a review of your existing supplies or equipment and work with your vendors for a better price. Buy supplies in bulk or only buy the things that you can use immediately. A lot of accounting firms don't end up using all the supplies that they have bought and sometimes these supplies are expired or unopened.
Hire an offshore remote staff.
There are many benefits to hiring an offshore remote staff for your accounting firm. Some of those benefits are reducing the cost of labor and operations, increasing your capacity, and helping you scale your business much faster. We have an article about the benefits of outsourcing for accounting firms. You can read all about it here.
When you hire a remote finance and accounting staff, you can save a lot on accounting costs. Some accounting firms use remote accounting teams to do accounting for small businesses or where they don't need an accounting specialist at the firm.
Just like any other business, accounting firms also need to increase their profits. Businesses always want to increase profits and reduce expenses and hiring an offshore team helps to do just that.
These are sure ways to make your accounting firm more profitable. If you want help implementing any of these tips in your business, schedule a free call with our team today! We’re happy to provide insights on how an offshore remote staff can be helpful for maintaining profitability as well.