Accounting firm guidance: What you need to know about strategy

If you’re questioning whether your accounting firm needs a robust strategy, a well-defined business model or even a bit of guidance, you’ve come to the right place!

Whether you’re a sole practitioner or leading a team of 50, having a strategic plan for your accounting firm isn’t just a nice-to-have. It’s a must-have.

In this blog, we’re going to offer some accounting firm guidance. We’ll explore why every firm—regardless of size—needs a strategy, a clear business model and a community of peers for support. Let’s get into it.

Why strategy matters for every accounting firm

An image that depicts an accounting firm's strategy as a roadmap.

Whether you’re just getting started with your firm (oh, the excitement of a new journey!) or your firm has been established for years (You go, Glen Coco!), a strategy is vital to your success. Think of it as a roadmap for:

Achieving goals.
Growing your client base.
Staying competitive in a rapidly changing profession.

Without a strategy, you may find yourself drifting without direction. This leads to reacting to client demands—er, requests—instead of proactively steering your firm toward success.

So, what can you do?

Define your firm’s purpose

A strategy starts with understanding your firm’s purpose. Ask yourself the following:

Who am I focused on serving? Small businesses, individuals or a mix of clientele?
Do I specialize (or want to specialize) in specific industries?
Do I offer (or want to offer) a broad range of services?
How do I want to offer my services?

The answers to these questions are going to help you later on.

A piece of advice? Clearly defining your firm’s mission, vision and values will help you define your firm’s purpose. It’ll also guide your strategic decisions and help communicate your value to clients.

Craft a business model that works

An image that reads: Your firm’s business model consists of three important elements: your WHO, your WHAT and your HOW.

Your business model is the backbone of your firm. It defines how you deliver value to your clients and how you generate revenue. A well-crafted business model not only sets the foundation for your firm, but it also helps you stand out from competitors. And the best part? You get to define it.

Your firm’s business model consists of three important elements: your WHO, your WHAT and your HOW. (Remember your answers to the questions from above? This is where they come in.)

1. Know your WHO

The first element of your business model is knowing your WHO. Many firms drift unintentionally into a miles-long client list full of non-ideal clients. Maybe it started out by taking on every client who walked in the door (or called) and just snowballed from there. If that sounds familiar, it’s OK. You have the power to rectify that. Here’s how:

Have your partners and managers think about their favorite client to work with.
List 10 reasons why they’re a favorite (e.g., responsive, respectful of time, adaptable to technology changes, pays on time).
Meet with your partners and managers to review their favorite clients and attributes.
Create a list of the common characteristics.
Evaluate your current client list against these ideal attributes.

The clients who share these attributes? They’re your WHO—your ideal clients. They’re the ones you love to serve and are good at serving.

Our accounting firm guidance: Identify your ideal clients and start saying goodbye to those who don’t fit the bill (see what we did there?).

2. Know your WHAT

The next element of your business model is your WHAT. If you offer a little bit of everything (because clients may have asked you to in the past), but you want to streamline your offerings, now’s your chance. WHAT refers to the services you’re good at providing—and want to provide—to your ideal clients. Here’s what you can do:

Take a look at all the services you provide. Are you taking on too many 1099 clients? Are there too many one-off projects that you provide when requested?
Think about the services you want to offer to your clients.
Consider whether you have the staff to support the services you want.

Choose the products and services you want to sell. And make sure they can be standardized and repeatable across your ideal clients. (Pro tip: If you have clients that demand services you don’t offer, they’re not ideal.)

3. Know your HOW

Does your firm’s tech stack feel…untidy? Maybe it’s a hodge-podge of desktop solutions and cloud-based solutions to accommodate everything your clients use. It feels clunky and overwhelming, I’m sure. This is why you need to determine HOW you want to deliver your products and services to your clients.

Think about the services you provide. What apps can you use to deliver those services?
How can you best communicate with your team and your clients?
What apps integrate seamlessly so you’re not entering data in 20 different places?

It’s important to build a cloud-based tech stack. And you also have to be intentional about it. You don’t need every new shiny application; be intentional about the applications you select and implement.

Our accounting firm guidance: Don’t succumb to the one-off applications some of your clients use. Make sure you transition them to your tech stack and not vice versa. (Hint: Your ideal clients will have no issues with this.)

Lean on your peers: Community over competition

An image of a diverse group of smiling employees. — Lean on your peers in the accounting profession—their guidance and kinship can be invaluable to your firm’s success.

Running an accounting firm can be challenging—but you don’t have to go it alone. That’s why you need a network of peers to lean on for advice, accounting firm guidance and support. Join professional organizations, like the American Institute of Certified Public Accountants (AICPA), attend events specifically for the accounting profession or consider becoming a member of a firm-improvement organization like Rightworks Academy.

By joining the Academy, you get access to expert training, proven strategies and resources (like tailored playbooks), the chance to earn required CPE and—the best part—a community of like-minded professionals.

Our accounting firm guidance: Connect with others in the profession to hear fresh perspectives and new ideas, and even get advice on what not to do. A professional community is invaluable—make sure you join one.

Follow these next steps to guide your firm

An image that lists the steps toward accounting firm success: Define your firm's strategy, evaluate your business model and see out peer support.

So, where do you go from here? We’ve given you a lot of advice, but here are some actionable steps you can start implementing today.

Define (or redefine) your firm’s strategy. Take the time to clearly outline your firm’s mission, vision and goals.
Evaluate your business model. Define your WHO, your WHAT and your HOW. And then get to work paring down your client list, creating the products and services you want to provide, and tidying up your tech stack.
Seek out peer support. Consider a Rightworks Academy membership so you can connect with others in the accounting profession for advice, collaboration and support.

The accounting firm guidance you need…at your fingertips

Every firm—big or small—thrives on three things: a strategy, a well-defined business model and the support of a community. By investing time and intentional effort into developing these key elements, your firm will be better positioned to handle challenges and achieve growth. Embrace the adventure, stay committed to your strategy and join a professional community. You’ve got this.

Get the guidance and community you need—become a Rightworks Academy member today!

Does my accounting firm need a strategy?