What’s stopping your firm from growing the way it wants to?
While the answer might be different from firm to firm, the importance of being able to identify and understand the answer is the same for all firms. Some of the more common reasons firms struggle to grow at the pace they want include:
- Neglecting strategic goals: Failing to establish strategic goals can lead to a client base that doesn’t align with the firm’s long-term objectives.
- Commoditization risk: Without differentiation, firms risk becoming commoditized and competing on price alone.
- Data underutilization: Not leveraging client and firm data for decision-making can result in missed opportunities to increase capacity and profit margins.
- Tech stack misalignment: An inadequate tech stack that doesn’t support the firm’s strategic goals can hinder growth and scalability.
How to overcome growth restrictions
When analyzing what’s preventing your firm from meeting its growth goals, you will need to objectively examine your client base, growth strategy, and workflow.
Often, what stops small firms from getting larger is simply time, or more precisely, the lack of it.
Inefficient workflows force you to undertake time-intensive tasks that could be handled more efficiently with the right technology. With the pace of business today, it is essential to automate as much of your business as possible so you can focus on growing your billing.
Here are some of the key strategies and how you can leverage your tech stack to lighten your workload and set the stage for growth.
Define strategic goals
Establish SMART goals aligned with your definition of success to guide your tech stack development. SMART goals are specific, measurable, attainable, relevant, and timely.
You must define your growth strategy and commit to goals and timelines. Read more about using SMART goals to help achieve success.
Optimize your tech stack
It’s essential that your tech stack supports all facets of the firm, not just tax prep or bookkeeping software. And though research conducted by Accounting Today on behalf of Wolters Kluwer shows that the single piece of software 86% of small firms have invested in for tax prep, other solutions considered fundamental to an efficient and effective digital workflow show much lower adoption rate.
When looking at your tech stack with an eye towards growth, here are the six categories of tools that we’ve identified as critical to success:
1. Modern professional tax preparation software
Modern tax software streamlines complex returns and automates repetitive tasks, such as data entry and calculations. The right tax solution allows you to focus on higher-value advisory services to grow your billing and client base.
With an optimized digital tax workflow, you can also process more returns, more efficiently while reducing error rates. With more efficient processes, you can increase your capacity to take on additional business.
Does your current tax software provide the level of automation you need and enable you to take on more complex returns to grow your business?
2. Document management system
Document management systems provide secure cloud storage for client files, enabling you to access data from anywhere. This makes collaboration easier and also ensures compliance with predefined rules on retention.
You also get digital audit trails and version control to ensure you are always working with the most updated file. Shifting to a paperless workflow is also more eco-friendly.
3. Workflow solutions
Workflow solutions optimize your internal processes, such as automating client onboarding and tracking work in progress. Reducing the manual effort required in your workflow frees up time. A well-designed workflow will also be scalable, so your system can grow as you add more clients.
Consider how your firm’s workflows currently support the firm’s growth goals.
4. Client experience tools
Client experience (CX) is now a key differentiator. How you provide personalized service and timely responses can make a big difference. Features such as client collaboration platforms, secure messaging, and online appointment scheduling can enhance CX.
How important is the client experience?
A Salesforce survey revealed that 80% of customers and clients value the experience a company provides as much as its products or services. In today’s highly competitive landscape, the client experience can be a major differentiator.
Another reason to prioritize the client experience: referrals, a critical avenue for business growth. According to Adobe, 64% of those receiving exceptional CX are more likely to recommend your brand if they have a great experience.