Getting Absolute Return On Your Time
- 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:
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:
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.
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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.