My top 7 tips for running your accounting firm

(And no, the shameless use of seven puppies to grab your attention isn’t one of them!)

I’ve spent pretty much every working day of the last 42 years working either as an accountant in practice or with accountants in practice. I’m privileged  these days to work as a mentor and coach in the profession and fortunate enough to have stayed relevant and have people willing to listen to me. Equally fortunately, they don’t always agree with me!

I woke up this morning and decided, for whatever random reason, that today was the day to share my top tips for running an owner-managed accounting firm.

Surprise, surprise, none of these are instant fixes but, in my experience, they all lead to happy and successful outcomes.

1.   Don’t have anyone tell you how you must run your firm (me included!). It’s your firm to run your own way;  to your vision, values, goals, interests and ideas.  Enjoy the rewards of your successes and learn from your mistakes but do it your way. Otherwise, what is the point of having your own firm?

2.   Always work to internal deadlines, not filing deadlines. The curse of the accounting profession is reactive work scheduling. Not only does this create an horribly inefficient use of resources but it prevents proactive client work because the data is always too old. Of course, this requires active client management which brings me onto….

3.   Remember that you are the professional and manage your client relationships accordingly. Clients should work to your guidance and management and not see you as a last resort to dump things on. Its inefficient and disrespectful. You and your team set the timetable for all compliance and planned support work. If the client can’t agree a schedule that works for you both then that’s okay but does mean that you cannot work with them.

4.   Be crystal clear on your target market and model client. Not all clients are the same and segmenting your clients into A (best), B (regular), C (disruptive) and D (causing you losses) is critical in focusing your systems, resources and time effectively. In addition, fine-tuning your marketing and brand to attract clients who fit your A and B segments rather than accepting everything that crosses your threshold will help to build the right client base for your plans.

5.   Give your team the space to develop.  A lack of confidence kills engagement and development so show them that you trust them and give them the room to grow. You learned from your opportunities and  mistakes so give them the same chance.

6.   Actively plan your resources. Whether it be taking onboard a new client or promising to achieve an imminent deadline, we often hit and hope and suffer the consequences. Plan your resources to back up your decisions. You may have to give an answer that you don’t want but you’ll reduce stress levels and build a far more stable business. Always have a plan to deliver.

7.   Price according to your own perception of value and reward.  You can’t ignore what the competition are charging but you can’t be driven by it either. You will be successful in your pricing if you set levels that enable you to confidently present the cost-benefit proposal to the client AND that you feel fairly reward you.

Good luck and, most importantly, do your own thing!