It's a fact, many partners and principals work long hours for inadequate financial returns. Unfortunately GST turned many firms into compliance sweatshops with staff processing 'computerised shoebox' records. To some degree, compliance has almost been commoditised and this is choking profitability. Write offs remain a big issue and in real terms, profitability has been flat lining.
In the profession we seem to measure the success of a firm based on their top line revenue. Surely the ultimate measure of success is bottom line profitability? When discussing profitability, bigger certainly doesn't mean better as many sole practitioners outperform their larger multi partner counterparts.
Our mission includes consulting with firms to achieve greater revenue success and several years ago we researched how accountants could improve their profitability and developed what we refer to as the 'Practice Profitability Diagnostic'. It explores 15 ways a firm can generate additional income in the practice. The average revenue increase is in excess of $42,000 per annum from opportunities in leasing, lending, risk insurance, audit insurance etc.
Client expectations have changed over the past 20 years and many firms have bolted on financial planning services as part of their commitment to grow their clients' wealth. Unfortunately, research suggests many clients aren't aware of the additional services on offer which is where our marketing consultancy services and tools can raise awareness. There is nothing worse than a client saying to you, 'I didn't know you did that'.
Through benchmarking and analysis of your processes, KPIs and financial data we can identify the areas within your firm that are limiting your profitability. Our mission is 'Helping Accountants Succeed' and improving your profitability is a key part of that strategy.