Diversify To Amplify: Why Accountants Should Build A Bookkeeping Division

accountants-building-bookkeeping-divisions-featured
4-minute read   The answer to this intriguing question boils down to one word: Diversification. In an accounting industry amidst massive disruption, this one word can be the difference to winning or losing the future game. You will find out why below.   SHIFT IN STATUS QUO For the longest time, accountants have been considered ... Read more

Keeping Up With The Times: From Number-crunchers To Accounting Consultants

accounting consultants
It's no secret that the accounting profession is undergoing some changes. As competition increases with the advancement of technology, more firms are looking into adding a new revenue stream, like business consulting. What benefit does this provide accounting firms? To put it simply, firms that offer consulting services will be able to help businesses understand ... Read more

The Accounting Firm Hyper Growth Session

The Accounting Firm Hyper Growth Session

Getting Absolute Return On Your Time

Topics:

  • How to get an absolute return on your time
  • How firms can pivot from offering only tax compliance to adding value
  • How offshoring can benefit both local and offshore teams
  • How to add value and deliver more to clients

 

Insights and takeaways:

  • We can do any task behind a computer or phone
  • Offshoring presents an opportunity to free up local team members and get other people to do less value work (people who enjoy doing the job)
  • Local team will have more time to focus on the right type of work
  • Majority of firms today are too focused on compliance work. They are busy being busy.
  • Many firms are not set up to deliver services that can make the most difference to their clients because they are not doing advisory work.
  • Numerous firms do not have the time; they don’t have time for themselves and for their clients.
  • Eighty percent of revenue for an accounting firm is from tax compliance and audit work.

 

So What Do We Aim To Do?

We are here to help you change the lives of your clients. By utilising Rob’s knowledge and experience, you can start implementing new practices to your firm so you can have more time and add more value to clients.

Are You Delivering Value To Your Clients?

Firms that are truly adding value to clients are those that are willing to invest in everything they need to achieve their goals. These are firms that take the time to identify their client’s objectives and match them with the right services.

The accounting profession is bogged down in historical services (87%) which include tax compliance and audit. This is not what clients really want.

We previously ran a poll and asked firms what tasks consume their time. Here’s what we found:

Offshoring Challenges for firms

 

Insights From Business Owners

Years ago, Rob was able to interview 1,077 business owners on behalf of 126 accounting firms in a boardroom type setting where partners were also present. He discovered that:

  • Clients don’t know what they don’t know
  • Accountants are not systematically visiting their clients
  • Accountants are not helping clients find out what they need

 

Since they’re bogged down with compliance, accountants (and partners) are unable to really service their clients.

Is Compliance Really Dead?

To set things straight, compliance is not dead. It will, however, change. Technology, in particular, has dramatically changed compliance.

Compliance is not going away but it’s going to be different.

 

Do you want to know how your firm can make the most out of technology? Watch this video.

Learn how outsourcing benefits from cloud technology in this video.

 

What Successful Firms Are Doing

Firms that are doing well are those that sort out the workflow, client mix, technology, pricing, work-in-progress, deliverables, and day-to-day work. They are also looking for ways to build capacity through various means: offshoring, different systems, and people.

It’s important to note that these are firms that DO NOT hire more accountants locally.

The next step would be top-of-the-line revenue, grow the number of clients, the average fee per client, and the number of services.

Working In Vs. Working On

A phrase coined by author Michael Gerber in the book “The E-Myth” said that “businesses need to spend more time working on the business than in the business.”

What Does This Mean And How Does This Impact Accounting Firms?

Working in means doing what the business does while working on means working out things that will help grow the business.

Firms that are stuck in doing or working in are those whose accountants are very busy doing the compliance stuff. They spend most of their time on historical services, auditing, filing and lodging, and catching up on compliance work. These firms are time-strapped and, as a result, don’t get to work on actually growing the business.

They are, to put it simply, don’t spend their time wisely.

What Should Accountants Be Doing With Their Time?

Rob relayed a story that serves as a good example of how one should spend time. In an interview he was listening to, he learned how one executive was able to do more than she was actually doing by doing the following:

  • Keep a log of all tasks done in the day
  • Do it for one month and then stop when it starts repeating itself
  • Go back to the logs and find the highest dollar-productive activity during the past 30 days
  • Look for the second, then the third highest dollar-productive task
  • Focus on those three things

 

The executive was able to focus on growing the business and doubled her income.

The important takeaway in this story is: identify the best yield of your time. Do more of tasks that allow you to develop the business. Always remember what the best use of your time is. Always ask: what is the highest dollar-productive activity?

 

Need more tips on how you can get the most out of your time? Check out these reads:

Accounting Tips To Effectively Manage Your Time

Double Profits By Taking Charge Of Your Time

Improve Productivity: Are You Wasting Your Time?

Time Is A Big Excuse

 

It’s not that I don’t have enough time. It’s what I’m doing with my time. What are you actually doing?”

Rob Nixon, Mentor to Million Dollar Accountants

 

We all have the same hours in a day. The issue is in how people use their time. Saying “I don’t have time” is not an excuse to not touch base with your clients. It is important to push yourselves to get the most out of the time given to you.

Important takeaway: never use the excuse of not having the time.

What’s Holding You Back From Growing?

Complacency is what’s keeping most firms from growing. The accounting profession is profitable in itself. In fact, in some places, like the United States, it’s the most profitable business.

So How Has Complacency Kept Many Firms From Becoming Successful?

Many have remained reactive. They are content with what they are currently making, which is enough to give them a comfortable life. And since most accountants are too busy as it is, there’s no reason to add more tasks and become even more busy since they are already earning good money.

It affects the psychology of the person. There’s no reason to become more productive because they are already enjoying the good, comfortable life.

When it comes to growing your firm, having the right mindset is very important. When you are in the right mindset and have the right attitude, the rest will follow: tactics and strategies to double revenue, etc.

It all starts inside your head.

Motivation is crucial in building a business that actually helps clients make history, a business that can change their lives.

It starts with having that deep burning desire to succeed.

Starting Your Own Accounting Business

The world has changed. Starting a business doesn’t have to be as tedious as before. Thanks to technology, it’s easy to run your own firm even with limited resources. You only need a few things.

You can literally start your own business with just one laptop, a phone, and a couple of thousand dollars.

Getting clients also is easier, thanks to technology. Firms can look for clients in social media. That doesn’t cost money. You only need a few thousand dollars to get your own firm up and running. You don’t need to rent an office. You can do work inside a cafe or at home.

You can even set up a team for a very affordable cost through offshoring.

Do You Have A Global Offshore Team?

We ran a poll during the webinar and asked whether or not they already have offshore teams setup.

50% said they already have an offshore team while 21% said they still need to know more about offshoring. 13% said they have decided to do it but haven’t implemented anything yet. Interestingly, 10% of the respondents said they are against the idea.

Skepticism for offshoring is not uncommon especially for firms who are scared of losing jobs to people from a different location. But what you need to know is, offshoring, as a business opportunity, will not redundiate the local team. It will, in fact, free up their time, allowing them to focus on more client-facing tasks—those that can add value to clients. 

 

Subscribe to The Ledger to discover more valuable accounting business insights.

Check out our podcast at The Outsourced Accountant to learn the strategies and how-to methodologies to becoming a high-performing firm that delivers results.

 


Looking to scale your business by getting the right people to do specific roles? Call our global offshoring specialists at 1300 896 522 or click here to download our blueprint on how to build a global accounting team.


Overcoming One Major Obstacle To Accounting Firm Growth

obstacle accounting firm growth
4-minute read   Picture this. You are sitting on a beach with powdery white sand and sparkling blue waters. You have a cold beverage in one hand while watching the sunset on the horizon. Wouldn’t that be the dream lifestyle? If only your accounting firm had all aspects of business in order then this situation ... Read more

How To Differentiate Your Accounting Firm: Are You Adding Value To Your Clients?

how to differentiate accounting firm
4-minute read   In an accounting industry amidst rapid disruptive change, how can you differentiate your accounting firm from the competition? This is how. Ask yourself. Are you adding value to your clients? If you do not know the answer to this question, here’s how you can determine it according to Rob Nixon, accounting industry ... Read more

Things To Look For In An Offshore Partner

things to look for in an offshore provider
5-minute read   Supercharging your firm’s capacity is highly feasible with the help of a global offshore team. The best way to ensure success is to partner with the right offshore provider. While there are dozens of them out there, identifying one that best suits your objectives will require you to exert more effort. Remember ... Read more

Growing Accounting Businesses By Growing Relationships

12-minute read   Growth should be on every accounting business owner’s high-priority to-do list. Generally speaking, profitability is the yardstick by which successful businesses are measured. But how does one get there? While focusing on the numbers might be the obvious thing to do. Every single accounting firm’s success has one crucial element. It’s people. ... Read more

Exemplifying Work-Life Balance: The David Browne Story

work life balance
6-minute read   How vast should be the margin of difference between work and life? Though the answer to this may be relative, let us put it simply. Ideal: A wide line with a marked distinction between the two. Reality: A very fine and, often times, blurred line that is skewed. Why is this the ... Read more

Bringing Out The Best In Client Relationships

Improving client relationship
Clients are the lifeline of all businesses. That is why developing a healthy relationship with them is extremely important. The success of your firm will depend on the quality of relationship you forge with your clients. But it may not be a walk in the park. There will be times when you’d have to deal ... Read more

Systemization: Key To Managing An Offshore Team

Ryan Addinsall
Going all in on what a vast majority of accounting firms are apprehensive of doing has allowed Ryan Addinsall of LPR Advisory to scale and grow their business. Offshoring accounting has produced a positive effect on profitability. How did he do it? It all comes down to systemization. Ensuring that they have the right systems ... Read more

A Breakthrough Guide On Capacity Planning For Your Firm

Watch this webinar to learn the three key types of team members you need to build the ideal offshore team.

Speakers:

Nick Sinclair, Chairman, The Outsourced Accountant

Jamie Johns, CEO, Sky Accountants

 

Accountants are really working too many hours. Likewise, for that matter, owners of practices are also working a ridiculous amount of hours. Proportionally, they are also expecting a significant number of hours to be worked by their managers and their staff. Teams are getting absolutely pounded. Thus, there is no semblance of work-life balance. The term nine-to-five becomes nonexistent because of the massive amount of work that needs to get done.

The Undeniable Truth

 


We are seeing a lot of accounting firms paralyzed and their staff are just not engaged and happy because of these huge amounts of work they’re having to get through and most are struggling with capacity. So when we ask accountants if they’re up to date with their client work and if they can comfortably say that when a work deadline comes that they will always meet it and they don’t need to ask for extensions, very few firms could actually do this. A lot of the reason is just that they haven’t mapped out their workflow and they have the wrong people doing the work. In our recent poll, we found that 50% of respondents state that their capacity planning is below standard.

The Obvious Solution

 

 

On average, an accountant within an accounting firm spends roughly 200 hours a year on administration. When you look at that, you go ‘Why?’ when you could put your resources into a global team at a cost of a quarter to even as low as 20% of what that accountant is, take the administrative work off the accountant, and let them do what they’re trained and skilled to do which is accounting. What accounting firm owners don’t realize is that offshoring is definitely a viable solution to what has become a crippling problem for accounting firms at large – the lack of capacity.

The Ideal Team

Before building an offshore team though, accounting firm owners should understand that there are three key types of team members needed. These are three clear-cut roles that when fully understood, combined in a team, and utilized to their fullest potentials can become game changers.

The three key types of team members are the GRINDERS, the MINDERS, and the FINDERS.

Who Are The Grinders?

 

 

Execution is the main function of the grinders. Think of them as the soldiers on the frontline. They are the ones that do all the hard work that’s needed to achieve the business goals of an accounting firm. Grinders are in charge of the nitty-gritty of day-to-day work so to speak.

Here are some examples of Grinders:

  • Accountants
  • Bookkeepers
  • Digital Marketers
  • Social Media Managers
  • Graphic Designers
  • Receptionists

 

Who Are The Minders?

 

 

Operations is what The Minders are really good at. They are in charge of making sure all the systems and processes within an accounting firm are running smoothly. Minders are also the perennial firefighters as they usually get the perilous job of putting out small fires like dealing with problems with clients, repair and maintenance of office facilities, workflow process improvements, and the like.

Here are some examples of Minders:

  • Client Managers or Client Service Coordinators
  • Office or Facilities Managers
  • Administrative Team Members

 

Who Are The Finders?

 

 

Business development and account management are the bread and butter of The Finders. Their highest priority is to look more new clients and more new work from existing clients. Most times they are the owners or partners in an accounting firm. They have high stakes in the growth of an accounting business so they are more often than not at the forefront of creating and ensuring constant revenue streams and increase in profit margins.

Here are some examples of Finders:

  • CEO’s, COO’s, CMO’s, CFO’s etc.
  • Managing Directors
  • Senior Partners

Conclusion

All accounting firms should have a healthy mix of each type of team member. Each one is a crucial cog in the machine that is an accounting business that if at least one of them doesn’t work, the entire mechanism breaks down. With a complete understanding of this aspect of team building, an accounting firm can now start building an offshore team.

 

Here’s an example of the percentages of the accountability each key type of team member holds. As you can see, Grinders hold 70% of the responsibility of getting things done, Minders like client managers hold 50% of the responsibility to get things right, and the receptionist holds 40% of the responsibility to make sure that everyone, from the grinders, client managers, and clients get along. Of course, different accounting firms have different systems, processes, and people so percentages may vary. What’s important to note is knowing who’s in charge of what in streamlining the workflow process and thus increasing capacity.

Gain more valuable industry insights Subscribe to The Ledger now! You can also listen to our podcast series, The Offshore Accountant, to the get inside scoop on the latest industry news and updates.

 


Grow your firm by building your own offshore team now. Call our global offshoring specialists at 1300 896 522. Want to learn more? Click here to discover the blueprint on how to build a global accounting team.


Grow Your Arsenal With These Accounting Technologies

Accounting Technology Your Firm Should Use
4-minute read   By this time you should already be familiar with the different accounting technologies you need to be using. Technology is a vital ingredient in an accountant’s job. Without it, it would be difficult to achieve compliance and getting everything done accurately, quickly and conveniently may not be possible. A Huge Enabler For ... Read more
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