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 firm, 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 […]