According to research, the accounting industry is one of the fastest-growing industries in the United States. It hit a staggering $110 billion in revenue in 2020 and is set to grow even higher in the future.
This growth is attributed to the ever-changing landscape of tax laws and regulations and the increasing complexity of financial reporting.
As an accountant, you may be wondering how you can effectively grow your accounting practice to take advantage of this growth. There are a few key things that you can do to grow your accounting practice.
In this article, we’ll discuss some of the most effective ways to grow your accounting practice. So if you’re looking to take your business to the next level, read on.
Increase Market Penetration
A more straightforward accounting firm growth strategy is to do more of the same work you’re already doing but with new clients. In other words, you penetrate deeper into your existing market.
The advantage of this strategy is that it doesn’t require much change. You can use your current marketing materials and processes to attract new clients.
You might, for example, decide to focus on a specific niche or industry vertical. By becoming known as the “go-to” accounting firm for that particular market, you can increase your market share.
You can also use this strategy to expand geographically. If you’re a regional firm, you might open new offices in other cities or states.
There are a few things to keep in mind when using this strategy.
First, you need to make sure you have the capacity to take on new work. If you don’t have the staff or resources to handle additional clients, you could end up doing more harm than good.
Second, as you expand your reach, you’ll need to ensure you have the systems and processes in place to deliver consistent quality across your locations. Otherwise, you risk damaging your firm’s reputation.
Differentiate Your Services From the Competition
Differentiation involves setting your company apart from the competition in a way that is meaningful to your target market. There are many ways to differentiate your accounting firm, but some common differentiation strategies include:
- Offering unique services that your competitors don’t offer
- Focusing on a specific niche or industry
- Offering a higher level of customer service
- Having a unique company culture
Differentiation is important because it allows you to charge premium prices for your services. It also makes it easier to attract and retain customers, as they’ll see your firm as being the best at what you do.
Listen to the Experts
For you to grow your accounting firm, you must be constantly learning and keeping up to date with the latest changes in the industry.
Listening to advice from experts is a great way to do this. There are many experts in the accounting industry who share their insights through podcasts, Facebook, articles, and books.
Business podcasts are a particularly valuable resource as they usually feature interviews with successful business experts. These experts share their insights and tips on how to grow a successful business.
By listening to these podcasts, you can learn from the successes and failures of other businesses. This will help you to avoid making the same mistakes and increase your chances of success.
If you want to grow your accounting practice, you need to staff it with the right people. This means hiring individuals who are not only qualified and capable accountants but also strategic thinkers.
Look for employees who are creative and have the ability to see the big picture. These are the types of people who will help you develop new services, target new markets, and generate new ideas.
Finding these types of people can be difficult, but it’s worth the effort. When you have the right team in place, they’ll be able to help you take your accounting practice to the next level.
Hone in the Ideal Clients
A more targeted approach is to focus on a specific type of client. This strategy also has many risks and challenges, but it can be very rewarding if done correctly. The first step is to identify the characteristics of your ideal clients.
This might include factors such as industry, company size or revenue, geographic location, or any other criteria that would identify a group of companies or individuals as your target market.
Once you have identified your ideal clients, you need to focus your marketing and accountant sales efforts on reaching them. This might involve changing the way you market your firm, the types of events you attend or exhibit at, or the type of content you produce.
It might also require changes to your sales process, such as the way you prospect for new clients or the types of proposals you submit.
Use Automation to Your Advantage
Automation is taking over many of the tasks that used to be done by human beings. This is freeing up time for accountants so they can focus on higher-value tasks.
There are many accounting software programs that automate routine tasks, such as bookkeeping, invoicing, and tax preparation. These programs can save you a significant amount of time and allow you to focus on more strategic tasks.
In addition, there are many online tools that can automate various marketing tasks, such as email marketing, social media, and lead generation. By using these tools, you can free up time so you can focus on other areas of your business.
Understand the 80/20 Rule
The 80/20 rule, also known as the Pareto principle, is an essential concept in business. It states that for many events, roughly 80% of the effects come from 20% of the causes. In other words, a small number of inputs produce a large number of outputs.
This rule can be applied to grow your accounting practice in a few different ways. For example, you can use it to identify your most important clients and focus your energies on keeping them happy.
You can also use it to find the 20% of activities that generate 80% of your results and then focus your time and resources on those activities.
How to Grow Your Accounting Practice: A Guide
Growing an accounting practice takes a lot of hard work, but it can be done if you have the right strategy.
By following the tips in this article, you’ll be well on your way to growing your firm and taking it to the next level. If you’ve been wondering “ how do I grow my accounting firm?” this is how you do it.
If you’re still feeling like your hard work is not paying off, download our business advisor growth guide for more actionable tips.