How to Build a Referral Network
Word-of-mouth referrals are the number one method professional services firms get leads and gain new business.
Shop-Front Ground Level ‘Vs’ First-Floor Accounting Practices
Ground floor in the right area near anchor businesses is always superior. You don’t get walk-in business to level 1 as such.
Competitive Advantage for Accountants that use Google’s New Posts Feature
Did you know that you can now post news and events directly to your map listing which then displays when your practice pops up in a Google Search.
Five Factors Affecting Client Retention
The five factors affecting client retention are client satisfaction, client delight, client switching costs, client relationships, and client service standards.
The Trouble With Debt
The three ways accountants can get in trouble with debt financing their practice are: Using short term debt to make long term investments. Doing this creates problems as the short-term debt will need to be refinanced well before the long-term investment returns are available. If the short-term debt cannot be refinanced, the lender will either sell or close the business. Failing to consider that when increasing debt it increases business risk. Borrowers need to ensure their cash flows have a Read More…
Introducing New Services to Existing Clients
This strategy is about creating new services that you can provide to your existing client base. It is similar to the low hanging fruit strategy, but involves more work. The practice has to create the new services, train the staff on delivering the new services, and develop a marketing plan. When considering what new services to provide ask yourself two questions. Firstly, what service would provide immense value to existing clients? Secondly, does the practice team have the skills or Read More…
Selling Existing Services to Existing Clients
The first step to providing more existing services to existing clients is to identifying which services each client currently uses.
The Effect of a Good Office on Productivity
Productivity studies show that the most significant factor in determining an employee’s ability to focus is their physical environment.
Accounting Practices KPI’s
An accounting practice’s key performance indicators (KPIs) are the set of quantifiable measures that are used to gauge or compare performance.
Working Capital Management
Working capital management involves ensuring a practice has positive working capital so it is able to continue its operations.
Practice Sin 7 – Poor Time Management
Principals often spend too much time on activities that have no value. The Pareto analysis can be applied to time management.
Practice Sin 6 – Dreadful delegation
Delegation is one of the practice principal’s most important management skills and if done well, saves you time, develops your people, and is a motivator.
Practice Sin 4 – Failing to Change
As the business environment changes, practice owners must change. To not do so is to get left behind.
Practice Sin 3 – Operating the Practice Like a Hobby or Vocation, not a Business
Without the discipline and focus on managing the business for maximum profit, standards and performance falls.
Sturgeon’s 10% of Practices
If a Purple Cow practice is not achievable, then being part of Sturgeon’s 10% of practices would still be a worthy goal. This would be financially rewarding of course with annual principal profits of $1m plus. If you are already achieving this, well done. If you are not, how do you get there? Firstly, you need to start with your strategy. If you currently have a stuck-in-the-middle strategy, you need to take Michael E Porter’s advice and chose one out Read More…
Practice Sin 1 – Failing to Reinvest in the Practice
The number 1 sin for an accounting practice is failing to reinvest in the practice. Reinvestment can significantly increases net profits.
Importance of Strategic Planning
A business strategic plan details the methods by which a business sets out to achieve its objectives. Typically a business strategy will cover a period of three to five years.
SMSF Advice Options
At June 2015 the ATO advised that there were 556,998 self-managed super funds in Australia with 1,049,840 members. During the 2015 financial year 32,073 funds were established and 1,350 funds closed (by either the members or ATO). On 1 July 2016 the accountants’ exemption was repealed and ‘Recognized Accountants’ can no longer recommend the establishment or winding up of a self-managed superannuation fund unless they are appropriately licensed. Previously Regulation 7.1.29A of the Corporations Regulations 2001 permitted this without being Read More…
Accounting Practices Stuck in the Middle
The worst strategic error is to be stuck in the middle, or to try simultaneously to pursue all the strategies (i.e. low cost, differentiation, and focus).
A Purple Cow Practice
To make a Purple Cow practice is extremely difficult and probably only one in a thousand practices will be able to achieve this.
The Cost Leadership Model is not Profitable
The cost leadership model is not a profitable for accounting practices as practices with no staff where the principals do all the work have low revenue.
How Should I Structure My New Business
When clients come in to see me about starting a new business they have many different questions depending on the type and size of business they are commencing and their own understanding of business. One of the more common questions is; what type of entity should I use? There are several different entities, or business structures, that can be used to run a business. These are, sole trader, partnership, company and trust. Some of the advantages of being a sole Read More…
What I Want from My Tax Accountant as a Small Business Owner
I run a digital marketing business, Pixelpi. As a small business owner, I don’t have a lot of time to spend on accounting. In fact, my time literally equals money. It’s a double edged sword. The more time I spend on accounting, the less billable hours I can do. The less time I spend on accounting, the more money I lose through lapse accounting knowledge and application. It is therefore essential that I can trust and rely on my accountant Read More…