Fight inflation at your firm, and for your clients, by making (or mastering) tools.
Tools are deflation oriented, they are that by their nature.
Hammer to Nail Gun
If you were a roofing company and went through such a change you would need less people to do the work thus reducing the cost of putting on a roof. This translates to; 1) Lowering the price so you can win more volume 2) Keeping the price at market/same thus increasing margin 3) creating optionality should market conditions change.
HOWEVER, a big however, many accounting firms have a hard time reducing clicks inside their traditional workflow because many of the tools are outdated and are not getting updated anytime soon. (CCH, TR, Intuit, blah blah).
People are masking the margin compression through trying bots and outsourcing which makes tons of sense. However, this is purely incremental gains to what could be had by a better set of tools.
What to do?
A new angle we are trying to take with our firm/parnters is to get to the revenue upstream via a SPECIFIC tool/s that fit their target client strategy. Ideally that tool is created BY the firm (or firms) for the specific vertical you are looking to expand your footprint in.
I am not talking about generic pre-accounting (although that is a great thing) but am talking about laser focused tech that blends the workflow b/w you and the client.
You and your _______ clients…vet, brewery, cost seg, risk, PE, construction, etc.
A few examples: (The current ones that come to mind I can’t share because they are in motion)
This list could be vast! If you ask your typical 5+ year Tax/Audit person what ‘only if’ statements they have rolling around in their brain countless times a month you could fill up a binder.
If you are curious on how to build a tool/software from scratch for your firm and and getting it to market hit me up for a conversation. Link here to book a time in.
Austere de Facere. - To dare is to do!