In today’s dynamic landscape, accounting has become integral for every business, whether large or small. Yet, most people struggle to manage finances effectively. Some are not familiar with tax laws, while others don’t want to exhaust resources on bookkeeping. That’s where an accounting firm comes into play. It manages other companies’ accounts, acting as a financial backbone of the business. From preparing financials – to tax calculations, they perform every accounting-related task.
As more enterprises are willing to outsource the accounting process, the competition in this industry is skyrocketing. Hence, if you run an accounting business, it is time to upscale and expand operations. Perhaps, you can build a stronger relationship with clients, introduce new services, or market the company to a new demographic. In addition to giving your firm more exposure, adopting innovative growth-hacking strategies can give you an edge in the accounting industry.
Besides this, the business expansion will open revenue streams, boosting profitability. If you don’t know how to push your accounting firm towards growth, let us help you out. Here we are highlighting five strategies to expand your accounting business.
1. Commit to Learning
Most business owners believe learning stops when they enter the professional world, but that’s not true. You have to commit to consistent learning to expand your horizons and keep pace with evolving trends in the industry. Firstly, complete your education and encourage employees to do the same. If most of the workers are undergrads, encourage them to complete a master’s degree. They can opt for programs in accountancy to contribute towards the firm’s success.
Higher education will equip them with proficient accounting skills and financial know-how. Second, look up short courses offered by industry professionals. It would help you learn about new-age trends in the accounting industry. You might come across new software solutions, accounting standards, or ideas to market the business. In short, the more you learn, the better you can run the business and push it towards growth.
2. Develop Flexible Payment Terms
Sometimes, the clients might ask you to lower prices or give an extension for payments. It might seem like a loss-making deal that can hinder growth, but it would build loyalty with customers in the long term. However, you have to work this through instead of lowering prices instantly. Maybe, you can change the scope of the agreement or develop flexible payment terms with the customers. For this, you have to perform an extensive review.
First, deliver a quality of earning analysis and only complete the federal returns. It would lower the workload from your end while building trust with the customers. Next up, you can change the payment terms. For instance, allow customers to pay for services within 60 days instead of 30. Otherwise, you can offer a discount on early payments so that clients don’t have to pay the total amount. It will improve your firm’s cash flow while growing your accounting practice.
3. Invest in Savvy Accounting Tools
Although most people don’t like change, you don’t have a choice when running a business. You have to keep your accounting firm up to date with new technological advancements and software solutions. Instead of sticking to a conventional spreadsheet, you have to leverage advanced accounting software. Alongside speeding up the tasks, it will leave a lasting impression on existing and new clients. In turn, you can captivate more customers and expand the accounting operations.
Moreover, you have to invest in data enrichment tools. It would ensure your firm’s customer relationship management (CRM) software builds healthy relationships with the clients. In addition, it can accelerate sales and unfold more business opportunities by updating your database with new information. The software will also calculate the revenue every client brings in the business, helping you discover rich insights.
4. Introduce New Services
Most accounting firms provide financial management and advisory services, but in reality, there are limitless opportunities. You can introduce a wide range of services to target a new demographic and bring more clients on board. Here are a few of the new services that you can provide.
- Bank Loan Preparation: Most entrepreneurs face obstacles when raising capital and funding the business. So, why not help your clients with loans? Maybe, you can introduce loan preparation services alongside a business plan, credit reports, and financial statements for the client. In short, you will help clients with loan approvals.
- Business Valuation: When a partnership or company dissolves, there is a lot of debate on goodwill and valuation. With valuation services, you can offer succession services, mergers, acquisitions, and research business disputes. After all, most owners prefer bringing an external party for valuation, unfolding an incredible business opportunity.
- Compliance Services: Surprisingly, an accounting business can also provide compliance services. You can oversee if the organization complies with the company law, regulatory standards, and accounting principles. It would save them from external audits while bringing revenue into your business.
5. Refine Your Sales Pitch
When it comes to expanding an accounting business, you have to establish loyalty with clients. After all, they would be trusting you with their confidential financial information. And to gain their trust, ensure transparency in every business step, especially with the sales pitch. Unlike conventional businesses that show off their services, you have to explain why people should trust you.
Likewise, stress on your firm’s flexibility. For instance, are you willing to provide monthly or quarterly reviews, and how quickly will you respond to their queries? In addition, demonstrate you speak the same language as the client by eliminating the jargon. Most importantly, talk about what makes your firm different from the rest in the market. Perhaps, you can list services, qualities, and expertise that sets your business apart. Having a well-defined sales pitch will attract more customers, fostering growth.
The demand for accounting-related services will continue to increase in the coming years. All you have to do is, capitalize on the opportunity and take your accounting business to the next level. You have to look for lucrative opportunities in the market and attract more clients with new services. Similarly, keep pace with changing tech trends and redefine your sales pitch to target a new demographic. Implementing a few growth strategies can set up your business on the road to success and expansion.