You have more capacity than you think. Through 3 simple, yet effective strategies, you’ll be able to free up to four hours (or more) per accountant, per day without having to hire any more accountants.
I’ll use the example of a sole practitioner with five accountants. You can multiple out for your size firm – with five Accountants, that’s 100 hours per week, or 4,500 hours+ per year.
If you have an average hourly rate of just 0, that’s 5,000 of new capacity. You could refill the capacity or downsize your team. Have I got your attention yet?
Let’s get to work.
Strategy # 1: Administration Team = 1.5 Hours Per Day
Our research indicates that accountants spend an average of 1.5 hours per person, per day on activities that they should not be doing. They spend a lot of time doing ‘administrative tasks associated with the accounting job,’ which includes collecting information from clients, setting up work papers and importing data. Anything that is not considered accounting work would fall under this category.
All you need to do his hire one new person for every five Accountants. This person is a professional administrator called a “Client Service Coordinator.” Their job is to manage the workflow, the client information flow and any administration tasks associated with the client project. Previously, the accountant performed these tasks; now, they are done by someone else, who is probably more capable.
If you hire the right type of administration people, and the accountants delegate to them, then you’ll free up around 1.5 hours per accountant, per day.
Strategy # 2: Cloud Accounting = 1.5 Hours Per Day
It’s a proven fact that the more clients you have on a cloud accounting platform, the more efficient you are. The data is more accurate so there is less ‘checking’ needed – there are no ‘version control’ issues, and the data is in real-time. It’s just a more efficient system.
It all adds up to less time needed to process the accounting work. When all business clients are switched across, we have examples where there is up to a 60% reduction of time needed on the accountants side once this part of automation is realized. Let’s be conservative … it took you 3 years to convert all of your clients across to a cloud accounting system and you didn’t realize a 60% reduction, but instead, a 25% reduction in time.
If your accountants are normally effective for 6 hours per day and they are now 25% more efficient, that is another 1.5 hours per day of new capacity. Time to move the clients up to QuickBooks® Online!
Strategy # 3 – Workflow Management = 1 Hour Per Day
Accountants not only do tasks they shouldn’t be doing (see strategy 1), but they are also wasting a lot of time doing what they are supposed to do. To prove my point, let’s look at this brainstorming session:
“This task took 30 hours to complete last year. I know it can’t be done, but if it could be done, hypothetically, what would need to be done to get it done in 5 hours?”
With the word “hypothetically” in the exercise, it opens the mind and we get some fabulous answers. However, the answers are all the same. Accountants tell us the same 5 things every time.
To get this task to 5 hours, instead of 30 hours, the following would need to be in place:
- All information available before starting.
- Self-imposed deadlines communicated to the team and the clients.
- One job at a time worked on.
- No interruptions.
- Production and Systemization of what we do.
So, then I say – just go and do that!
Let’s say you did and you were only able to find 1 hour per accountant, per day. Then, that’s still 1700 or so hours per year.
The culmination of these 3 strategies has an enormous impact on your capacity.
With 3 key strategies, you can not only free up 4 or more hours of capacity per day, per accountant, but also see (in this example) 5,000 in new capacity.
These strategies (and 30+ more) will be discussed in detail at my upcoming “Firm of NOW” seminar. For you to be a Firm of the Future, there are key strategies to implement NOW. Being more efficient to create capacity is just one of them.
You can get more details on the Firm of NOW seminar by clicking here. Bring your entire team and get total alignment.
- August 19 – Boston
- August 22 – Chicago
- August 24 – San Francisco
- August 26 – Los Angeles
- August 28 – Washington, D.C.
- October 31 – Philadelphia
- November 2 – Atlanta
- November 4 – Dallas
- November 7 – New York City
Register now. I’d love to see you there.