Building a modern accounting firm isn’t a destination—it’s a journey of continuous adaptation and improvement. As the accounting profession evolves and client expectations shift, staying competitive requires intentional decisions about your business model, client relationships, technology adoption, and team culture.
This post combines strategic frameworks with practical implementation steps to help you transform your firm. And remember, you don’t have to do it alone—the Rightworks Community of accounting professionals is there to support you every step of the way.
What Is a Modern Firm?
A modern firm embraces three fundamental principles:
- Intentionality: Making deliberate, strategic decisions about every aspect of your practice.
- Adaptability: Remaining open to change and new opportunities.
- Technology maturity: Leveraging the right tools to enhance productivity and client experience.
Firms that successfully modernize see tangible benefits:
- Increased revenue per employee (up to 39% more for technology-mature firms)
- Improved talent attraction and retention
- Enhanced ability to offer high-value advisory services
- Greater work-life balance for owners and staff
The Modern Firm Framework
Building Your Business Model
Your journey starts with three critical questions:
1. WHO do you want to serve?
- Identify client characteristics that align with your expertise and passion
- Consider industry specializations or niches where you can provide exceptional value
- Define the demographic or technological profile of your ideal clients
2. WHAT do you want to sell?
- Determine your service mix based on profitability and strategic goals
- Consider the balance between compliance work and advisory services
- Identify opportunities to package services for different client segments
3. HOW do you want to deliver your services?
- Define your technology stack and workflow processes
- Establish clear communication channels and expectations
- Determine pricing models that reflect your value
Focusing on Ideal Clients
Building a modern firm requires being strategic about your client roster. Ask yourself:
- Which clients are we good at serving?
- Which clients do we enjoy serving?
- Do our best clients fall into a specific niche?
- Which clients pay on time and value our services?
- Which clients readily adopt our technology solutions?
- Which clients purchase additional services from us?
Focusing on ideal clients improves profitability, distinguishes your firm’s niche market, and creates a more enjoyable work environment for your team.
Implementing the Right Technology
A modern firm requires a modern tech stack. Consider these technology priorities:
- Cloud-first approach: An intelligent cloud platform creates a central location for firm and client data to live. It keeps things secure, accessible and efficient, no matter where users are logging in.
- Process automation: Identify repetitive tasks that can be automated through workflow management solutions and data extraction tools to minimize manual entry and maximize productivity.
- Client collaboration tools: Provide secure document exchange capabilities alongside digital signature solutions and client portals to enable real-time access to information and seamless communication.
- Security and compliance: Protect your firm and clients by implementing multifactor authentication, ensuring data encryption for sensitive information, and establishing regular security training for all team members.
Cultivating Team Excellence
Your team is the glue that holds your firm together. Don’t forget to spend time developing your firm’s culture and prioritizing your people. Here are a few questions to get you thinking about your leadership practices:
- What are your firm’s values and vision? Communicate them, then recognize and reward behaviors that align with those values.
- Are your work policies flexible? Provide the right tools to get the job done—from anywhere—and focus on the results.
- Do you lead by example? If you want your team to adopt new processes, show yourself adopting them, too—don’t just “tell”.
Free Infographic → Download The Modern Firm Framework Checklist
Your Modernization Game Plan
Phase 1: Assess Your Current State
Take stock of where you stand:
- Evaluate your current business model
- Analyze your existing client base
- Assess your technology maturity
- Gather feedback from your team
Set clear modernization goals:
- Identify specific areas for improvement
- Establish measurable objectives
- Create a realistic timeline for implementation
Phase 2: Develop Your Strategy
Create a comprehensive action plan:
- Prioritize improvements based on impact and effort
- Assign responsibilities for implementation
- Establish milestones and checkpoints
Address potential obstacles:
- Identify possible resistance points
- Develop strategies to overcome challenges
- Secure necessary resources and support
Phase 3: Implement Key Changes
Execute with intention:
- Begin with high-impact, visible improvements
- Communicate the “why” behind changes
- Provide adequate training and support
- Lead by example in adopting new approaches
Monitor early results:
- Track progress against established metrics
- Gather feedback from team members and clients
- Make adjustments as needed
Phase 4: Review and Refine
Evaluate your progress:
- Measure results against your objectives
- Identify successes and challenges
- Document lessons learned
Maintain momentum:
- Celebrate wins and acknowledge team efforts
- Address emerging issues promptly
- Refine your approach based on what you’ve learned
Leverage the Power of Community
One of the most valuable resources for your modernization journey is connecting with other accounting professionals who are facing similar challenges. Rightworks Community provides:
- Peer learning and support: Learn from others who have successfully implemented changes, share your experiences, and get feedback on your approach.
- Collaborative problem-solving: Get help with specific challenges from professionals who’ve faced them before and access the collective wisdom that goes beyond any single firm’s experience.
- Accountability partners: Connect with peers who will help you stay on track, and maintain momentum through regular check-ins and updates.
Taking Action: Your Next Steps
Overwhelmed? Don’t be. Building a modern firm starts with a single step:
- Identify one high-impact improvement area to focus on first.
(And if you feel inclined, get help developing your specific action plan with input from Community members.)
And remember: building a modern firm is a journey, not a destination. By applying the principles of intentionality, adaptability, and technology maturity—you’ll create a firm that’s more efficient, more profitable, and better positioned to thrive.
For more advice on running a modern firm, subscribe to our blog today.
