If #automation feels intimidating, you may be approaching it backwards. Attempting to glue all the moving parts in your business together is usually a waste of time. You can spend many hours, indeed years, trying […]
The accounting services mentioned in this post are ranked based on their automation level and how streamlined their processes and workflow are. The ones with the lowest automation levels are constantly suffering stress, spending much of their time putting out fires, solving issues, making mistakes, and missing clients’ deadlines. They also experience a lack of business mostly because they are not able to cater individually to their clients due to lacking systems. As a result, the less automated practices cannot charge much more than market rates for their services.
Most accountants spend over 80% of their time and resources on labour-intensive, time-consuming manual work for their least profitable clients. Successful accounting firms do the opposite. They invest 80% of their time and resources on providing high-value, high-ticket consulting services to the top 20% of their clients. This one shift in priorities allows them to generate 1000x to 10000x higher profits for their shareholders than regular accounting practices.
Today, there are two distinct types of accounting firms – labour-based and data-driven. They work in fundamentally different ways, target very different clients and post incomparable financial results. While the vast majority of accounting practices in the UK continue to be entirely labour-based, all of the big firms – and a new breed of small but ambitious enterprises are embracing a fully data-driven approach by building their own, proprietary software platforms, fine-tuned to their priorities. The ROI these pieces of intellectual property bring to their owners year after year is higher than any other asset class.
In your accounting practice, you are painfully familiar with juggling various tasks. You have to solicit new clients, monitor the daily work, stay on top of deadlines, keep clients happy, care for your staff, chase payments, deal with emergencies . Balancing these tasks can easily take up all of your time and derail you from focusing on actually growing your practice. You’re either working in your business, or on your business, but you can’t do both at the same time. When you are too busy putting out fires, you’re not focusing on what’s important.