Stages to Growing Your Firm From 50k to 250k

You must have time for blue-sky thinking if you own a small accounting services website. This is where you focus on actions that will benefit your company in the long run.

This could include things like company planning or revising your marketing strategy for accounting firms. However, as your company grows, your time for big-picture thinking will be limited as client work takes precedence. When your annual income reaches roughly £50,000, it’s time to hire trainees/apprentices/assistants so you may delegate some client work to them. You’ll have more time to take on more clients or work fewer hours due to this.

Prioritise your Team More than your Client

When you have a team, your main focus as their employer has switched from client work to assist them. This requires time, which we typically lack at this stage of our accounting firm’s development. Small accounting firms will recruit an apprentice or outsource or engage a part-time employee.

Keep transparency and trust with your team.

It can be difficult to go from performing all of the clients’ work yourself to delegating client work to your staff if you manage a small accounting firm. This is a shift that some small accounting business owners never make.

Following Covid-19, an increasing number of accounting firm owners are allowing their employees to work remotely. It is, however, simpler to trust your staff when they are in your office with you rather than in another location. Achieving this confidence level takes time and investment to practise management software, communication, team culture, dashboards, and reporting.

You’ll have to take the plunge and raise your prices.

Your initial clients were most likely attracted to you because of your low pricing. However, if it is not handled, it will stifle your company’s growth. If you don’t raise your fees, you’ll quickly become the practice’s lowest-paid employee. Even if you work enormous hours, your company may struggle to break even. Wages, office rent, and software licences rise in tandem with your company’s earnings. As a result, the net profit margin shrinks.

You’ll have to raise the fees for existing clients.

Increasing the fees of your existing clients is the best approach to ensure that you can pay yourself enough. You’re aware of those who are in desperate need. They are likely to be clients who joined your firm in its early stages. You will, however, need to suppress that nagging voice in your head advising you not to commit business suicide by raising fees.

If you’re still charging the same amount as when you first started your practice, it’s time to rethink your prices. We frequently hear from our members that they wish they had repriced sooner. Their fears of losing a significant portion of their client base due to repricing were mostly misplaced.

Additional software will be required to boost the efficiency of your practice.

The efficiency of your practice will rise to the top of your priority list as your staff grows. This usually entails redesigning your software stack, for example:

• Conducting a software audit to determine what is truly necessary.
• Looking for ways to avoid duplication or manual entry by making better use of your present software or replacing it entirely.
• If you’re looking for practice management software to automate your operations and eliminate manual entry, you’ve come to the right place.
• Finding solutions that will notify clients automatically when you require their information.

Your marketing and sales focus will shift to keeping current clients pleased.

It all boiled down to winning more clients in the early days of starting your accounting firm. To increase annual revenue from £50,000 to £250,000, you must continue to focus on gaining new clients’ work.

Existing clients account for at least a third of business development, according to our members. However, if your organisation provides excellent service to current clients, new business should come easily due to them requesting additional services or referring you to others.
Finconcile is an outsourcing firm  that helps accounting firms in the UK develop by improving operational efficiency and navigating scaling challenges with the help of a knowledgeable workforce. All accounting firms in the United Kingdom can benefit from our accounting services and solutions.