Last week I asked 134 Accounting firms (who we have never worked with) 3 critical questions about their accounting firms.
- Do you have a model and proven method to create over 25% capacity this year? Only 18% said they do and sadly 82% said they do not. You need to have capacity to grow your firm.
- Do you have a model and proven method to double your profits this year? We help firms double their profits and only 11% said they had a plan and 89% said they do not have a plan.
- Do you have a model and proven method to increase revenue by over 25% this year? This was a bit more encouraging yet only 23% said they do have a plan and 77% said they do not.
The answers were predictable – few have a plan.
So then we started digging and worked out the exact statistics on the firms we have helped over a 2 year period. We looked at the firms who had been through our profit improvement program (where we track their numbers and change their business model) and then implemented our ideas. So far nearly 800 Accounting firms.
This is what we found:
So the average profit increase in year 1 was 93% and a further 36% in year 2. Total of 163% increase in 2 years. I bet there are very few Accounting firms on the planet who do this! It sounds arrogant, but without our help!
So how do we do this? It’s both art and science. There are some very specific tactical things that need to happen to get the improvements. It starts with a client centric business model (not an internally focused model that 99% of firms are working on) and then key projects that MUST be implemented.
Here is a list of 8 non-negotiable key (very specific) projects:
- All client work priced in advance and clients notified of scope and price in writing with sign off
- All work in progress billed every month in advance
- Value pricing (no time based billing) learned and introduced on certain projects
- Sales skills learned and introduced and rolled out to 20 clients per month per partner and all new leads
- New workflow / efficiency model learned and implemented so that fast throughput is achieved
- All clients on cloud accounting and connected to PANALITIX for visibility and opportunity finding
- Marketing plan for generating new leads implemented
- New services offered (8 core categories) to new leads and existing clients
There are heap more projects to implement however they are the top 8. In fact we have a project map of 484 projects that firms implement.
If you want to double your profits and build a truly amazing firm then we’d love to work with you. To kick things off you can attend our amazing 2-day Kickstart business planning workshop. We’ll teach you everything you need to know to achieve the results you deserve.