Every accountant knows the key to a profitable business is productivity. The more productive your business is, the more capacity you have and the more fees you can generate.
Trouble is, many accountants either are too busy or simply don’t know how to generate the extra capacity to increase their income (and their profit).
With a few relatively minor changes to how you operate, you can drastically increase your firm’s capacity to take on more clients, do more value-add work and improve your bottom line.
Here are three steps you can take to increase the capacity of your accounting firm.
- Adopt a cloud-based platformThe cloud has brought about a lot of productivity improvements. Cloud-based platforms such as Xero let you and your clients work on the same ledger with real-time data. And because the software runs in the cloud, you’ll always be using the same version. No more dealing with backups from multiple versions of desktop programs!Xero’s simplicity will be a major benefit for you and your clients. And by linking it to other programs such as Receipt Bank and Chaser, your clients will not only reduce the time spent entering data but also improve their cashflow through better debtor management.
It’s easy to see how cloud-based platforms can improve the productivity of both your clients and your accounting firm.
- Automate as many processes as possibleHow much time do you and your staff spend on basic admin and other non-productive tasks? By automating these processes you can significantly reduce the amount of time spent on unproductive tasks and increase your firm’s capacity.Some things you can automate yourself, such as your website, emailing information and signing documents electronically. You can also use add-ons such as Practice Ignition, which lets you prepare and send engagement letters to your clients in one easy process.
Many cloud-based programs have Application Programming Interfaces (APIs) that allow them to ‘connect’ with other programs. Information clients enter on your website can be fed straight into your practice management suite, saving you the hassle of entering it yourself. Documents can be uploaded and filed away without manual intervention. And jobs can be created automatically when clients ask for work to be done.
- Delegate work that can be done cheaper elsewhereUnfortunately, you can’t automate every task in your firm. But that doesn’t mean you can’t make them more profitable. Tasks such as bookkeeping, data entry and file preparation can often be outsourced at a cheaper hourly rate (or a fixed price per service) than what you’d pay your internal staff to do the same thing. You can even delegate tasks such as preparing workpaper packs and uploading data from older desktop programs.By delegating or outsourcing these tasks you’ll have more capacity to focus on client relationships, higher-value tasks and growing your business.
By adopting these three simple steps you’ll quickly increase your firm’s capacity, leading to more business, higher fees and a better bottom line.
And here at Zerobooks we can help you plan and implement these three key steps. So get in touch with us today, and take back control of your business—and your life.