An ambitious small practice needs to observe business metrics beyond day-to-day duties. You won’t grow just through being a good accountant – though naturally, that’s very important!
If you’re focused on providing a good service, that leaves less time to think about areas as:
- Optimising productivity, both individually and collectively
- Relationship management with colleagues and clients
- Marketing and client acquisition
- Expanding your workforce
Wolters Kluwer Tax & Accounting UK has identified more than 30 key performance indicators that ambitious practices should consider. These go far beyond the basics of turnover, return and profit. They’re all crucial metrics of success if you want to grow your small practice.
However, in order to do so, you’ll need to free up some more time. So how do you do that without compromising the quality of your service? The answer lies in purpose-built accountancy software that streamlines your working routine. This helps you to complete more work in less time, and thus focus on building a practice growth strategy.
Here is an overview of 30 KPIs you could be monitoring to grow your small accountancy practice-
- Percentage of clients with recurring revenues vs. transactional sales
- Client lifetime value
- Client profitability score
- Average turnover per client per segment/department
- Average number of days that an invoice is open
- Time of payment within the invoicing process
- Sales growth rate
- Turnover per employee
- Employee client rate
- Number of billable versus non-billable hours per employee
Download our complete guide to read about more about 30 KPIs you could be tracking to grow your small accountancy practice.
