In the world of finance, the pressure to adapt to new technology is ongoing. As firms adjust, they struggle to understand new approaches to accounting. These changes are particularly challenging for CPAs, as AI and automation make their jobs less relevant, thus interfering with profitability. So how can your firm learn to keep up? Read on to learn how you can make your accounting business more profitable in 2021.
Eliminate Unnecessary Services
Technology is here to bring convenience and efficiency to society. There are many aspects of accounting that have yet to embrace these qualities, and because of this, firms are lagging behind. Instead of sticking to traditional approaches, change things up by getting rid of any and all unnecessary services. Assess which services bring in the most revenue and which ones do not—or possibly even services you’re losing money on. Consider the time they take up. Ask yourself if there are more productive ways to handle these tasks using innovative alternatives. You might consider the idea of streamlining or delivering services with automation as to not devote excess time to tasks.
Improve Data Storage Solutions
Cloud-based solutions provide flexibility to businesses looking to store their data in one place. While they are helpful for security and productivity purposes, not every solution is financially effective. Depending on the type of cloud storage you use, you follow a payment model that is either hit or miss. Some companies charge per unit, and others charge per volume of space. There are even pay models that rest somewhere in the middle and charge per week or per month. Suppose you purchased your business’s cloud storage solution based on features or functionality. In either case, you might have overlooked the fact that you’d be paying for unnecessary components, or paying within a timeframe that is inconvenient for your business. Reevaluate where your finances stand now and look into other options for increased flexibility and affordability. Cutting back on these costs will contribute to your profitability by saving extra money that you can then use to market to your clients.
Market To Your Clients
It seems like a logical approach to boost profitability by gaining more clients or making your services more expensive. Unfortunately, the effectiveness of this approach may be hindered by the fact that many businesses are relying on automated accounting solutions, not to mention the cost of acquiring new customers is quite high. Rather than sticking to your old ways, embrace new tech and continue sparking interest in the customer base you already have. Send marketing emails out to loyal customers and update your website—it’s easy with free website builders—to feature the new or improved services. You might start by advertising your use of software for tax preparers, which can prove beneficial to customers. You can even feature a few blog posts on the topic to gain onlooker interest.
Change Your Pricing Model
The traditional approach for CPA firms is to charge hourly. Try switching to a value-based model so that your clients are not focused on the time it takes to complete a task. Focusing on value makes it simpler for all players to tune in to the results rather than the process it takes to get there. If you can train yourself and your team to work more efficiently, you’ll also save time here as well by working faster. Consider a group productivity course that can teach you better tactics for more productive workflows.
Services like accounting are being digitized thanks to AI, automation, and cloud-based software solutions, which may make it harder for your business to keep a steady client base. However, all hope is not lost, if you’re willing to make the changes necessary to bring your business into the new age. By becoming proficient in new tech and marketing your services accordingly, your business can become more profitable by giving the people what they want: innovation and speedy delivery.
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