Five indications that you are heading in the right direction

We talk about the KPI’s that are tracked in accounting firms and their importance as a measure of improvement but I believe that there are equally important tell-tale signs in your firm that will confirm to an outsider like me that you are on the right track. Conversely, an absence of these would suggest that these are areas of weakness for you to focus on.

Here are the five signs that I look for:

1.   As a matter of practice, you explain to your client how a project is going to proceed rather than react to one that they drop on you

2.   You regularly engage your managers and senior team members in discussions concerning the development and progression of your firm

3.   You know all of the subscriptions and licences that your firm pays for relating to software and apps and where they all fit into your systems and processes

4.   You track how your time resource is utilised within your firm and use this information to improve your profitability and client relationships

5.   Every team member has an up to date contract and a personal development plan in place

Why do I highlight these as the five key indicators?

1.   Actively managing the client relationship and getting the client to work to your systems and timescales is not bad service, quite the opposite in fact. Business owners want accountants who proactively manage their requirements and financial affairs, not who are constantly chasing them and running up against deadlines (even if it is their own fault!)

2.    Involving team members in working on your business not only creates better engagement but provides you with greater support and, most importantly, brings their ideas, perceptions and intelligence into play to the benefit of your firm

3.   Knowing what tech you have and where it fits into your plans shows that you have a clear and managed digital plan. Without it you waste money, are less efficient and potentially lack direction

4.   Time used to mean fees. Today, it is the tracker for what is happening in your business in terms of efficiency, effectiveness and compatibility.  Imagine a sprint coach focusing purely on technique, style and effort and not bothering with a stop watch to track the outcomes. It’s hard to have a measured view of the trends and events in your firm if you don’t track such a key resource.

5.   An up to date contract means not only compliance but clarity, whilst personal development plans line the team member up with your firm’s wider progression. The challenges faced in retention and recruitment are not a temporary blip and offering your team clarity and development are key strategies today

The evidence may be anecdotal but, in my experience, firms that demonstrate these five indicators perform better than those that don’t.

·     They know what is going on within their own firm

·     They manage clients effectively to a plan that suits both accountant and client

·     They have an engaged team who have stepped up

That’s not a bad place to be!