There was a time when opportunities to scale accounting business were substantially limited, especially for CPAs who invested little in team and business expansion. But thanks to modern technologies, even small accounting firms in the United States are acquiring more clients and growing market reputations.
Still, a lot of young CPAs are finding it hard to grow their business and acquire leads, especially those who have a limited understanding of modern growth strategies. In this blog, Finsmart Accounting – trusted for outsourced bookkeeping services in India – will share 7 business expansion strategies that every growth-obsessed CPA and accounting firm should consider in 2022. Whether you want to boost leads, increase yearly revenue, control expenses, or do a bit of everything, these tips and ideas will definitely come in handy.
Read on!
#1 Leverage your client base
Everything around us is changing. There is a chance that the accounting and bookkeeping needs of your clients are evolving too but you have no idea yet. The idea of expanding your business will be futile if you fail to understand the requirements of your existing clients.
Therefore, our first and foremost recommendation for CPA firms is to know and understand your existing clients. Why? Because they know the industry, value your services, and are ready to pay. They are also more likely to recommend your business to others.
By understanding their requirements, you can make surgical changes to your services and improve trust as well as loyalty. Ask the following questions in order to get the drift of your client’s needs:
- Do you have any plans to grow or slim down your business?
- What’s your biggest accounting and bookkeeping challenge right now?
- Are there any regulatory challenges you are worried about?
Listen carefully to what your existing clients have to say when you ask them such questions. With the right insights, you will be able to deliver solutions that delight clients.
#2 Create a referral plan
Referral marketing is the most prominent word-of-mouth marketing strategy that small CPA firms in the United States can take advantage of. Don’t believe us? According to Sign Post, 65% of new business opportunities come from referrals and recommendations. In fact, 83% of people are willing to refer your business to others if you provide them with a positive experience.
While hiring an accounting firm, global clients want to know if they can trust your business. Having a recommendation from your previous or current clients is a remarkable approach to verify that. But truth be told, the assumption that your clients will be happy to tell everyone about you be entirely correct.
Create a referral plan that benefits clients for sending new accounting business your way. Tell your existing clients about the goal of your referral program. Offer them incentives like free support, a discount on future invoices, or free business resources. Also, make sure to use reviews hand-in-hand with referral marketing.
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#3 Expand accounting services
This is literally one of the most useful strategies for CPAs and accounting firms to expand their business globally. Expanding accounting services will not only let your small CPA firm broaden its reach and accessibility but also boost business adaptability and profits. Conduct market research to understand what potential clients exactly are looking for. Also, talk to existing clients about new opportunities.
Growing accounting firms in the United States can expand their services by:
- Outsourcing to meet seasonal demand: When you know what exactly your client wants but don’t have enough staff to wrap up the assignment on time, start thinking about outsourced accounting. This is the easiest way to onboard new clients without bearing the cost of hiring in-house staff.
- Expanding services: This is a no-brainer. If your accounting firm only provides dedicated accounting seat and tax support, consider expanding into payroll and accounts payable & receivable as well.
#4 Research global competitors
Before buying a smartphone, all of us think about different brands, our needs, and the products on offer. That’s because we want to make an informed decision. Similarly, keeping an eye on rival CPA firms makes sense. This business expansion strategy will help you figure out what they are doing and what kind of threat they present to your accounting business.
Analyze the leading players and their strengths. Learn about their USPs and how they stay in the lead. Examine their website and offerings. Take a peek at their pricing strategy as well. All these strategies will help you look at the bigger picture, opening the doors of business expansion.
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#5 Form strategic partnerships
Helen Keller once said, “Alone we can do so little. Together we can do so much.” Sometimes, CPA firms reach their full potential and need outside expertise, technologies, or resources to keep growing. That’s why we recommend forming strategic partnerships with promising vendors.
Keep tabs on service providers that are active in your industry but offer something unique. Touch base with them and propose ideas to work together and expand globally. Creating a strategic business partnership with the right partners will:
- Help in catering to a wider base of clients
- Boost expertise and resources
- Decrease cost of acquisition
- Provide incremental lift to sales and revenue
- Create predictable revenue streams
#6 Reduce inefficient spending
Another useful strategy for small CPAs and accounting firms to expand their business globally. Do you know that the B-side of improving profitability is to dial down the expenses? Try to get to the bottom of all your business expenses and calculate where you are overspending.
Maybe you need to cut back on staff or office space. CPA firms who have hired expensive contractors or want to economize on staffing costs can also outsource certain accounting or bookkeeping projects to an offshore partner to save time and maximize profits.
#7 Revise the pricing of your services
What you charge for your services can make or break your accounting business. Put simply, if you keep the price tag too high, fewer new clients may come along. And keeping it too low can make your profit margins bleak. That’s the reason why it is always worth revisiting your pricing regularly.
Make changes to the pricing of your services based on your financial analysis, market research, and foresight. Switch to an expertise or value-based pricing model rather than an hourly one if needed. Set a fixed cost per service. Regularly reviewing your pricing will ensure your CPA firm is up to the snuff with a service priced to make profits and make clients come back for more.
There you go!
We have told small CPA firms in the United States about strategies to expand business globally. Although global expansion is a big undertaking, it is a massive opportunity for accounting businesses and CPAs to grow. We hope that our expansion strategies will help them succeed on a global or local scale.
Partnering with offshore accounting firms like Finsmart will help you bring down recurring business costs without disrupting workflow and allow you to expand internationally.
Got any queries to ask? Send them to info@finsmartaccounting.com and have them answered by our team of experts.
Also read:
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Best accounting and tax software for CPA firms
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
