When is the right time to scale my accounting practice?
Usually, accounting and bookkeeping practices start with one person running the show as the professional is gaining clients. There will come a time when the professional has accumulated enough clients to fill all of their time. At this point the professional will have a choice to make about the direction in which the business will need to grow. Some options include:
Each option does not have to be the only choice. A professional can combine all or none of these choices. Each choice has its own pros and cons that the professional will have to consider to see what choice aligns with their business goals. The two options that can help increase the amount of revenue a business brings in are the last two in the list above, so they will be the focus of the article
What are some of the items I need to think about to scale my business effectively?
There are many items that a professional needs to consider prior to hiring someone on to work for and grow their business. Some of the most important items are:
Taking the time to research all of these topics prior to growing your business and taking on new clients, while still providing the excellent services you already provide to existing clients, will help make your transition smoother.
Payment structure for additional workers:
Before looking for outside help you will want to consider how much time you will want them to commit to you, and how you will compensate them for their time. Answering the following questions will help you figure out what type of help you are wanting
These decisions not only impact the type of individual you could hire, but will require additional tax and paperwork filings. For all employees, you will have to pay payroll taxes, file quarterly payroll tax forms, and file W-2s. All of these requirements can either be done in house or through a payroll service company to ensure all withholdings and tax payments are completed correctly. For all contractors that make at least $600, your business will have to file a form 1099-Misc with the IRS and provide a copy to the contractor.
As you hire on new employees to assist you with the business operations, it is important that you (the business owner) always have an accurate view of all projects and assignments you are completing for your client. There are some basic steps that you can follow to help ensure that all projects run smoothly and final products are delivered to clients on time.
Communication is a two way street and it is important for everyone to be on the same page to ensure the highest quality of services. The owner will need to be clear with procedures and deadlines, and the staff will need to communicate any complications, client requests, questions, and project updates. Having an environment where staff can come to supervisors (or the owner, depending on the business size) for help – without feeling like they are being judged for asking for help – will improve retention and the quality of work performed.
As the owner, there is a high chance that you will not participate in the work for every client when you are scaling the business up. There will be times where your staff will be doing the entire project, so it is imperative that you have some sort of quality control procedures in place. At the end of the day, the client will associate anything that you give them with you, regardless of whether someone else did all of the work. Quality control starts with creating an effective training program and hiring individuals who have the professional qualifications needed to complete the tasks you assign them. Creating checklists and internal-use work papers to improve the review stage process can also be a measure of quality control to help catch any potential mistakes before products are sent to the client.
Software to Help Streamline Processes:
Software is available to enable everything that has been discussed in this article – helping you streamline and implement the processes into your business. Some available software includes:
There are endless software options that can help you deal with everything you need to consider when scaling a business. Doing the research to find out which software works best for you is crucial in saving you time and stress while growing your business.
Neat provides software that streamlines the capture and management of key financial documents such as receipts and invoices and is used by both accountants and their clients. Neat serves over 100,000 small businesses and 10,000+ accounting and bookkeeping firms. Learn about our partner program, the Neat-Freak program and see how we can help accelerate your firm’s growth.