The Power of Simplifying Your Firm

In today's fast-paced accounting and tax environment, simplicity is more important than ever. There's so much to stay on top of: modern technology stacks, positive client experiences, security threats, a greater demand than supply of talent, and an ever-changing, more complex tax and compliance landscape. And I haven’t even mentioned the complexity and challenges presented by change management in a firm that’s already too busy. A simplified firm can be more efficient, productive, and profitable. This may seem counterintuitive, but it absolutely can be...and your staff will be happier as well. 

Key Benefits of Simplifying Your Firm 

There are many benefits to simplifying your firm, but the ones I really like are: 

1. Increased Efficiency: When you have a clearly defined business model—one where you know exactly WHO you want to serve, WHAT you want to sell them, and HOW you plan to deliver those services—your efficiencies can and will increase significantly. When processes are simplified, there is less room for confusion, wasted time, and delays. This will increase efficiency and productivity. The majority of firms I speak with and survey have done a poor job of curating an ideal client list, therefore they are less efficient than they could or should be. 

2. Improved Customer Satisfaction: People's expectations have evolved; I think that’s the best way to say it. They expect digital access to information, quick responses, and an experience where they feel like they are being proactively, holistically served. A quick ChatGPT search will inform a client of the 20 best tax planning ideas for a business like theirs. They may not know whether the answer is accurate or how to implement the recommendations, but they certainly can get a good start. Clients appreciate working with firms that are proactive and easy to do business with. A simplified firm can provide a better customer experience, leading to increased customer satisfaction and loyalty. 

3. Increased Profitability: A simplified firm can be more profitable by increasing efficiency and improving customer satisfaction. Profitability also comes from going deeper with your existing ideal clients. Simplifying your client list to mostly ideal clients will enable you to go deeper with those clients, leading to increased revenue with less friction and overall profitability.

How to Simplify Your Firm 

There are several ways to simplify your firm, including: 

1. Define Your Business Model: Think of your business model as WHAT you want to sell, WHO you want to sell those services to, and HOW you want to deliver those services...the technology stack for clients. 

2. Streamline Your Processes: Take a close look at your current processes and identify any that can be streamlined or eliminated. Think of this as taking as much friction out of any process as possible. 

3. Automate Tasks: Use technology to automate tasks that can be done more efficiently by machines. Many firms get stuck doing the same thing the same way as they’ve done before. This is a trap because technology is constantly changing and evolving to more efficiently solve problems. Much of what accounting firms do is ripe for automation, routing, and repeatable tasks. 

4. Delegate Tasks: Delegate tasks to team members who are best equipped to handle them. You don’t have to do everything yourself; you are not the only one who can do whatever needs to be done. Team members in your firm want to be elevated, they want more responsibility, and you should help them succeed. 

5. Communicate Effectively: Implement a daily stand-up meeting where you have the opportunity to keep on top of what is happening and remove barriers for your team. We live in a post-pandemic world and people's expectations have changed. Communicate clearly and concisely with your team members and clients to avoid misunderstandings and delays. 

6. Focus on Your Core Competencies: Focus your efforts on the activities that you do best. Review all the services your firm provides today and eliminate the offerings that your firm shouldn’t be doing. This may sound like you will be reducing revenue, but the reality is the opposite will happen. You will create capacity to take on clients that are better fits for what your firm wants to provide. This can help you and your firm be more efficient and productive. 

Simplifying your firm can lead to increased efficiency, productivity, and profitability. By following the tips in this article, you can simplify your firm and reap the benefits.