This article is contributed by Hannah
Even during economic slumps, recessions, and depressions, there is hope for your accounting firm. While times are tight, you can still prepare for your future success.
Here are eight tips for managing your practice that will help your firm survive and get through the hard times.
1. Continually Recruit
Losing a vital part of your team can leave you without the talent you need to succeed. You can’t afford to have gaps in coverage. At all times, you should know who your next two hires are.
If you wait until one of your employees leaves to start looking around for someone to potentially fill their spot, you will have weeks or even months of time where you are forced to work without a full team. It’d be like trying to play baseball with your shortstop or pitcher missing.
Always keep an eye out for who you want on your team and who you would hire next. An easy way to do this is through business networking. When you get to know other accountants in your area, you can keep track of who is looking for a job or promotion, as well as who would be a perfect fit for your team.
2. Walk Your Talk
You might be willing to talk about success and growth, but how do your actions match your words? Not living up to the promises you make is a common practice management issue.
During hard times, a manager needs to back up what they are saying with measurable actions. Instead of giving false hope and making empty claims, inspire with what you are able to accomplish. Make your claims a reality. Motivate through being an example and showing that there is a possibility for success rather than simply talking about it.
3. Contact Your Clients
Your clients are the lifeblood of your practice. Without them, you don’t have a company to run, and that is why your company should be client-centric. One of the best ways to show your clients how much they mean to you is to beat them to the phone. Rather than waiting for them to call you, reach out to them first.
Not every call needs to be focused on business. Establishing a relationship with your client is important and pays off in the long run with a reliable customer base. A safe practice for any company is to contact every client at least once a year. Feel free to reach out more often if you feel it will better establish and maintain your business relationships.
4. Market More
Look into digital marketing opportunities. With digital ads, you have the ability to target a specific audience, which can help you get a better return on your investment.
Cold phone calls or going door-to-door handing out leaflets should be the last choice when trying to find customers. Instead of casting a broad net and hoping that you catch something, take the time to direct your marketing to your potential customers.
5. Manage Your Expenses
When times get hard, it’s important to be frugal and manage your expenses to make sure you are not wasting money on unnecessary purchases. Look at your budget. Be frugal and cut out any extraneous costs that you do not need to survive.
Consider going paperless. The initial cost for the software and applications that will help you go entirely paperless will quickly be worth it when you no longer have to pay for reams of paper, toner, ink, and more.
6. Strengthen Your Specialization
Your firm should be specialized in a specific field or role of accounting. That specialization is what makes your firm different from your competition and what will bring in customers. While times are tight, you can spend your time magnifying your specialization.
Going to conferences, workshops, or trainings can be an investment in the future of your firm. By having more certifications and trainings, you will be able to provide higher quality services and charge more for them.
7. Build Your Network
Attend networking functions as often as possible. Not only does networking promote your practice, which you should be doing as often as possible, but it also opens the door for referrals.
Networking gives you the opportunity to meet and work alongside potential mentors, partners, and clients. Those connections can give you the necessary resources to help your practice not just survive the difficult times, but find success in the future.
8. Embrace Technology
While you don’t need to jump on all of the latest technological bandwagons, embracing technology opens the door to change and encourages your company to innovate.
Consider going paperless, investing in an online portal, or using a new accounting practice management software to help your company continue to develop and become more efficient, even during difficult times.
Overcoming Practice Management Challenges
We wish everything was always smooth sailing, but that’s just not the case. Hopefully, these accounting practice management tips will help see your business from the current business climate to the next one and beyond. Good luck!
