Time and time again I see the same challenges in small firms - and when I say small firms I am talking about 1-3 partner firms (but the below still applies to 5+ partner firms).
The key challenges are:
- an ineffective business model / wrong organisational structure,
- lack of team buy in,
- poor debtor and WIP management,
- low paying clients with lots of scope stretch, and
- lots of services for lots of different types of clients
Do any of these resonate with you?
The key challenges can only be solved by implementing some new Modern Habits and starting to think differently.
Perhaps your business model needs to be reinvent? You might have team members that need to go, others need their role defined and perhaps some new hires….or outsource? you will need to invest time to building team culture and defining what that culture will be? perhaps pricing and payment upfront will solve your debtors issue? setting WIP controls and driving down time-on-job through tech and processes? introducing measures to manage scope stretch so you get paid when the engagement exceeds the agreed scope? re-home non-ideal low paying clients or give them the opportunity to step up to a minimum level? get clear on services and ideal clients - don’t take on anyone with a heartbeat and a pending tax lodgement.
Your actions for this week as a team are to discuss the key challenges and how they apply at your firm. Then go through my above poised questions and see where there is an opportunity to improve and introduce new habits - even if you have never done this before.
Doing nothing is not an option.
Stay tuned for the pending announcement of the Modern Firm Practices Membership. A community of collaborating like-minded accountants, monthly live trainings and Q&As and access to my ‘continuously being built and improved’ Modern Firm Practises IP. Never before have I introduced an offering like this and I want to invite you, my friends and followers, into the pilot first.
Until next week,