How To Grow Your Bottom Line Without Growing Your Client Roster
Accountants are tasked with looking out for the finances of their clients, but what about the growth of their own practices? A recent survey from the International Federation of Accountants found that many small- and mid-sized accounting firms still face an uphill battle when it comes to attracting new clients. Drawing new clients was cited as the biggest hurdle faced by 47 percent of respondents, and 24 percent of respondents said they also faced challenges in retaining existing clients.
Obviously, the motivation behind getting more clients is to make more money. But before you embark on an aggressive (and likely costly) campaign to get new clients, you should first explore these easier paths to making more money:
- Retain more clients
- Generate more profit from existing clients
- Accomplishing these objectives might have been just as difficult as getting new clients in the past. But the good news is that today, the cloud – combined with being proactive – makes it much easier to accomplish both goals. To accomplish this, it’s best to use a two-pronged approach: maximizing your daily operations and offering additional services to existing clients.
Improving your operation
You can make the services you currently offer more profitable by plugging holes that drain your firm’s resources. Chances are many of your business clients still write manual checks, meaning you perform their after-the-fact write-up work. Your firm might be spending hundreds of hours entering bank and credit card transactions for those clients. However, cloud solutions can save a large chunk of that data entry time. Cloud programs can sync with your clients’ online bank and credit cards, allowing your firm to download those transactions electronically and securely, rather than relying on the paper supplied by clients.
According to a survey from AccountantsWorld, 69 percent of accountants noted that they waste a significant amount of time fixing the mistakes clients make in accounting programs built for small businesses. Those generic solutions give clients free rein to do whatever they want, without limitations. Using a professional, accountant-centric cloud solution enables you to minimize those errors by setting up the system properly and giving each of your clients’ access to only the functions they can perform comfortably and accurately. The time you save can add a substantial chunk of money to your bottom line and boost client satisfaction as well.
Offering additional services to existing clients
In addition to maximizing your firm’s operations, cloud technology makes it easier for you to retain existing customers and offer additional services for your current clients to boost your bottom line. Read more on CPA Practice Advisor.