Summary

Discover how to de-risk your accounting firm in 2024 and beyond with approachable strategies including managing capacity constraints with offshoring, growing into an advisory role, learning how to market to the right audience, and much more. As the famous line goes: The times, they are a-changin’. Hackers are getting smarter, the talent pool is growing smaller, technology is introducing new ways to work, and the powers that be never stop tweaking the rules we all have to comply with to stay on the right side of the law.  What can accounting and bookkeeping firm leadership do to establish an enduring, resilient, and thriving practice that’s ready to withstand dynamic shifts within the industry? To grossly paraphrase another famous song: Give us three ten steps — and we’ll show you exactly how.

10 Tactics for Modern Accounting Firms

We’ll waste no time. Here’s what every decision-maker needs to know to de-risk their firm as they move and grow through 2024 and beyond.

1. Manage Capacity Constraints with Offshoring

The process of managing capacity is work in itself. If you never take the time to go through the process of understanding your capacity and planning for it, you and your team will always feel overworked — which is not a good way to retain clients or employees.  There are two main ways to manage capacity within your firm — do less work, or hire more folks to get the work done.  But what about managing your capacity outside of your firm?  Offshoring is the practice of outsourcing accounting tasks to an outside, overseas firm or individual who has the time and the experience to handle it for you. Diversifying fulfillment in this way is a lifesaver for scaling capacity quickly, increasing your range of services while still carving out time for strategic offerings (more on advisory services later), and preserving precious sanity when it comes to your in-house team. And offshoring isn’t just for the menial day-to-day tasks. With quality-focused partners like TeamUp and Cloud Accountant Staffing, you can unlock highly-skilled and uniquely-specialized global talent. Learn more about the future-proofing power of offshoring and how to get started when you watch our webinar with Isaac Smith, founder of offshore accounting firm TeamUp. 

2. Find Your Niche 

“Niche” is just another word for specialty. Accountants can choose to specialize in certain industries, such as tech, non-profits, real estate, specific trades, etc. They can also focus on a niche based on company size, such as owner/operator-run businesses, startups, etc. Or, you can even specialize when it comes to your services — focusing solely on offering high-value services like month-end closes, tax prep, estate planning, and more.  Here’s why finding your best-fitting niche can help bookkeepers stay afloat and relevant in 2024 and beyond:

• Establish yourself as a thought leader: Focusing on a niche helps you become an expert, setting you apart and making you the go-to professional for clients in that niche.
• Demand higher rates: Specialized knowledge allows you to demand higher fees, as clients value expertise and are willing to pay for it.
• Optimize sales and marketing efforts: Tailoring marketing efforts to your niche ensures your messages resonate with their needs, maximizing the impact of your sales and marketing spend.
• Reduce competition: Narrowing your focus reduces competition, making it easier to attract clients seeking specialized services and stand out among a smaller pool of providers.

But what if you have legacy clients you want to hold onto or another reason you can’t fully focus on a specific niche? That’s the beauty of also investing in the previous strategy — offshoring. By offloading some of those tasks and services you still want to provide but don’t actually want to execute yourself, offshoring is a great way to connect with affordable specialists so you can keep your firm well rounded.  See niching in action when you watch this special episode of our Catch up with Keeper webinar, featuring Melissa Honan — CEO of Bookkeeping for Painters, a niche firm doing $1.5 million in annual recurring revenue. 

3. Embrace AI and Automation

The past few years have seen a transformation in how most businesses operate thanks to modern technology. To keep up with client expectations as well as what competitors offer, you need to know how to adopt and embrace artificial intelligence (AI) and automation.  Accountants, bookkeepers, and tax professionals can apply AI as an assistant of sorts, not to replace human expertise but rather to enhance it. With AI, firm owners can save time by automating simpler tasks, save costs on staffing and training, improve the speed and clarity of client communications, and provide more advanced and accurate advisory services. Using AI to its full capacity at your firm comes down to experimenting with tools like ChatGPT, Bard, and so on to learn how to provide the clear, specific instructions it needs to  produce results.  Once you’ve learned how to best apply AI at your accounting firm, you can start using it to: 

• Analyze balance sheets, cash flow, and income statements
• Summarize and proofread complex reports
• Extract and classify data efficiently
• Explain financial concepts to clients clearly 
• Create budgeting and forecasting templates
• Automate routine accounting tasks
• Craft compelling newsletters, emails, and website content
• Systematize operations and free yourself from repetitive tasks
• Review bookkeeping entries and code transactions
• Automate reporting (leveraging Zapier)
• Create SOPs for bookkeeping, tax, and compliance work
• Write code, Excel macros, and browser plugins
• Respond to routine client emails
• Analyze workload and recommend the best tasks to delegate

4. Prioritize Digital Security

Small businesses are frequently targeted by cybercriminals due to their often limited security measures, which makes them vulnerable to attack. Doubly so for accounting firms, as they deal in financial data that can be especially desirable to nefarious actors.  In fact, in the first quarter of 2023 alone there were over a million victims of cyberattacks in financial services.   Introducing a large digital aspect to your business — as many future-proofing tips will have you do — will require accountants and bookkeepers to take extra steps to ensure their digital security.  Here are some strategies for protecting your firm’s operations and sensitive client data:

• Invest in cybersecurity insurance: Learn how to protect your business against cyber threats by listening to this podcast from AICPA & CIMA on obtaining cybersecurity insurance.
• Only use secure tools: Outside tooling can be a weak link in your security measures. Make sure any bookkeeping platforms you use prioritize security.
• Focus on password security: Use a password manager to save and share passwords, enforce complex passwords, and implement multi-factor authentication (MFA) for added protection in case passwords are compromised.
• Regularly scan for threats: Deploy malware scanners and antivirus software on all computers and devices used for client work. 
• Ensure proper employee offboarding: Thorough employee offboarding will remove terminated employees from all your systems, preventing sabotage as well as unmonitored accounts that are easier to hack.
• Provide security training: Educate your team on security threats upon onboarding and  regularly thereafter. You can keep it simple — share articles and videos that warn of the most common hacks to look for and how to avoid them.
• Encrypt your hard drive: Protect sensitive files in case of device loss or theft, using a tool like Bitlocker on Windows or FileVault on Mac. 
• Consider outsourcing: If you don’t feel comfortable securing your firm, employ a specialized third-party firm to handle your security needs. 

You can check out more strategies in our webinar with Chris Burns from Techie Gurus.

5. Market to a Lucrative, Aligned Audience

Many accounting firms don’t actually need more clients.  What they need is better clients.  Your role as a firm leader is to fill the limited capacity you have with the best-fitting, most-profitable clients possible.  What makes for suitable, lucrative clients? According to Jason Staats, they have to acutely experience the problems you solve, and solve well. So, how do you connect with these clients? Sorry to say it, but it all comes down to marketing.  Here are three approachable but key strategies Jason shares for putting your firm out there in a way that makes you magnetic to your ideal audience: 

• Build an easy marketing channel to share your expertise: Your current clients know how awesome you are, but what are you doing to make sure potential clients do as well? This is critical to helping people make the jump from kicking the tires to signing the contract. An easy way to generate, warm, and convert leads is to build a regular email marketing campaign that speaks to your ideal audience’s needs. Replace those “hire us now” website buttons with a link to sign up to your newsletter and build your roster of potential clients. 
• Share hyper-specific content: We mentioned niching down in your focus as a firm. Well, that niche should be just as apparent in the content you craft for that email marketing campaign you just built above. Remember, it’s all about relieving a very strong, very specific pain point. Are you an expert on tax preparation for freelance poodle groomers in the state of Colorado? Let it be known, and watch the right audience gravitate toward you like dog hair toward your couch. 
• Take your time: If getting better, more aligned, more lucrative clients is your ultimate goal as a firm owner — doing one-on-one work can no longer be your main priority. You need to spend more time engaging in marketing that actively attracts your ideal clientele. So take your time with the new marketing channel and high-value content you’re creating to build your dream roster.

Together, what this marketing strategy does is transcend the traditional marketing funnel. It inspires trust and helps potential clients build a relationship with you via the value-adding content you’ve given them. So when they’re ready to finally make the jump over to your firm, it’s more of a trust fall and less of a terrifying leap.   Need help maintaining and furthering those relationships you’ve built once you’ve signed your dream clients? Keeper's Branded Client Portal stands out in this regard. Move away from trying to handle client relationships via messy Excel or Google Sheets documents and into our smooth practice management solution that streamlines and organizes client communication, details, and documents. 

6. Expand Into Advisory Services 

In the increasingly-intricate business landscape, the demand for accounting client advisory services (CAS) is on the rise. They need to future-proof their businesses just as much as you do. Clients want tailored analytics, reporting, and advice and accountants — with access to deep financial and operational documentation — are well-positioned to answer this call and expand their offerings.  The benefits of positioning yourself and your firm as a data-driven advisor are big: you can diversify your services to stand out against competing firms, there’s an opportunity for major revenue growth through this lucrative income stream, and clients simply want it! The majority of firms agree that client expectations are changing, and that advisory expertise is now in high demand. What areas can you provide advisory services on? Opportunities include:

• Business planning
• Process improvement 
• Change management
• Sustainability reporting
• Advanced tax planning
• Entity structuring 
• Estate planning 
• Financial analysis and forecasting

By leveraging both mother technology and offshore resources to handle transactional and compliance tasks, accountants can free up time and resources to focus on more strategic advisory work. This shift not only adds value to clients but also positions accounting firms for long-term success in a dynamic and evolving industry.

7. Become a Regulation and Compliance Go-To

Ask anyone outside of the field — or within it, for that matter — what an accountant does and you’ll find out how dynamic the landscape is.  With that complexity comes a whole host of regulations, changes to which seem to be happening at an ever-increasing frequency. In fact, keeping up is now a major challenge for modern accountants. Staying in “the know” when it comes to compliance will keep you in good standing, boost operational efficiency, and make your firm a consistent go-to for clients.  Here are some tactics for becoming the knowledgeable champion and expert clients crave:

• Make sure to attend the large annual conferences and other events that address accounting in general as well as your niche.
• Engage in local meetups, webinars, associations, and other groups that have a focus on regulatory compliance in bookkeeping as well as in your area(s) of speciality.
• Build a professional network made up of other accountants in your field who can help you stay abreast of changes, both offline and online through platforms like LinkedIn.
• Once you’re well-versed in the latest on compliance, audit your firm to proactively identify issues and gaps and maintain compliance. 
• Make sure the accounting software and services you’re using automatically adjust to regulatory changes. This should not be your main source of news when it comes to compliance, but it’s helpful when it’s readily updated to help keep you above board.

8. Focus on Internal Retention 

In the world of accounting, client retention often takes the spotlight. However, the current accounting talent crisis brings to the forefront the importance of internal retention — aka, holding onto the precious employees who make your firm tick.  Some reasons for this shortage? A perception of looong work weeks, lower compensation in relation to workload and education requirements, and lacking diversity across many firms.  To build, nurture, and retain a talented team, consider these factors:

• Competitive compensation: Offer attractive compensation packages including competitive salaries, bonuses, and benefits like health insurance and retirement plans. Consider features like profit-sharing and ongoing education to set yourself apart from other hiring firms.
• Work-life balance: Promote work-life balance with flexible hours, remote work options, and generous vacation policies.
• Career progression: Provide clear career paths, regular performance reviews, and opportunities for professional growth.
• Inclusive company culture: Foster an inclusive, supportive, and positive environment to increase job satisfaction and loyalty among employees.

Prioritizing these aspects of internal retention can future-proof accounting teams and ensure success in the evolving industry landscape.

9. Pursue Value-Based Pricing

Understanding how to price your services is critical to your survival in accounting. As such, it’s time to move away from the antiquated structure of pricing based on hours worked and move to pricing that accounts for value provided.  To do so, it’s important to realize that value doesn’t equate to hours worked, it’s measured in outcomes. The more value you’re able to create for clients — no matter how long it takes — the more you should charge for a successful outcome.  Determining the cost of the tiers or packages for your value-based pricing strategy will likely require some trial and error. You can survey existing clients to see what they’d be willing to pay. You could also take a look at how competitors price similar offerings and set yours accordingly.  We recommend setting yourself up for success when it comes to making any pricing changes by establishing a track record of clear and regular communication with clients, including price adjustment clauses in all contracts, and depicting the “why” behind pricing changes using real data.  With value-based pricing, you may be able to enhance client loyalty, better prioritize your time on client tasks, and set a precedent for price increases as outcomes improve over time. However, don’t forget that it requires you to be able to really sell your value up front, and can be complex to implement if you already have a firm full of clients on a different pricing plan. This is good to keep in mind as you expand your bookkeeping services list.

10. Watch Out for What’s Next in Accounting

Staying ahead in the accounting industry requires a forward-thinking approach that anticipates and prepares for upcoming trends. First-movers, who consistently outpace competitors, prioritize keeping abreast of what's next. Here are some tips to develop the “super power” of predicting what’s coming in accounting and de-risking your decisions as you move into the future:

• Study industry leaders: Pay attention to what big firms and leaders in your niche are doing. Their strategies and innovations often set the tone for upcoming trends in the industry.
• Stay connected: Maintain a strong network and get active at industry events. Networking and staying informed about industry discussions can offer valuable insights into emerging trends and developments.
• Monitor competitors: Keep a close watch on your competitors' offerings, marketing campaigns, etc. Understanding their moves can help you anticipate shifts in the market and adjust your strategies accordingly.
• Analyze internal data: Look closely at data within your own firm to see what’s next on a local scale versus a global one. Identify which services clients are most interested in, which industries they belong to, which marketing strategies are yielding the best results, and which features of your bookkeeping technology are most utilized. This data can reveal patterns and trends that indicate what your target audience wants and where the industry is headed.

Ready to Future-Proof Your Firm?

There are a few commonalities that many of the above strategies share — active participation in the industry to stay on top of developments, a supply of reliable data for informed decision-making, and modern technology with the power to streamline operations so you have more time to pursue future-proofing.  In fact, more than 75% of accountants already say that tech has helped them save time. But of course, those savings only kick in once you’ve founded and transitioned to your tooling of choice — which can be an overwhelming task that keeps many time-strapped firms from completing their future-proofing mission.  However, that’s not the case when you choose Keeper as your practice management solution of record. At Keeper, we personally help new clients onboard onto our platform, so they can enjoy AI-powered 1099 management and receipt processing features; flawless client communication; and optimized internal collaboration capabilities that include tasks, files, and even client information management via a built-in CRM. 

Get started today to see how Keeper can help you de-risk your growth strategy and thrive in a shifting landscape.