23 Apr Challenges of Growing an Accounting Firm and How to Overcome Them
A growing business may face a range of crucial challenges that need to be identified and addressed to ensure that all functions run smoothly throughout the expansion. When growing, a company is constantly evolving. The strategies that worked a year ago may not apply today. Here’re the top problems that may arise and tips on how you can overcome them:
Management of the Finances and Cash Flow
Although business expansion means you’ll enjoy an increase in revenues, you may find it difficult to manage your financing and maintain cash sustainably. With this issue it is important to use capital in the most efficient manner in all areas of the business. Beware of false optimism and taking too much risk. Be a realist optimist by maintaining emergency funds, diversifying investments, having multiple sources of incomes and having an exit strategy in place for every investment you make.
Losing touch with clients
Amid all the excitement of expanding your business and accommodating many new clients, you may start to lose the close connection you created with your customers. The biggest reason for this is simply your finite time. In a small accounting firm, you are able to meet with all your clients often and check in with them weekly if not daily to see if they’re happy. If they are experiencing an issue, you are able to address them and act quickly. This is perhaps what wins their loyalty towards you in the first place.
The bigger your business, the less available you are to each client. The solution here is to hire account managers that can give them the same relationship that you once did. If hiring in sales is not feasible yet, consider diversifying the role of your existing employees.
Scaling capacity to meet growth
As your accounting firm grows, you’ll be managing work for a larger pool of clients. Incoming leads may turn into customers overnight but hiring a good team to cater to all of them takes time. It is important to make a good first impression with new clients in order to retain them. If you bring them onboard but your team is unable to deliver the quality of service you promised in the first meeting, they may leave. The solution is to find an outsourcing partner with the best accountants and bookkeepers that you can bring to your team overnight. With this solution, you will be able to grow your team without the hassle of tedious hiring processes and employee handling issues.
Get in touch with Obox to meet with the best accounting resources that you can offload your work to and grow smoothly.