Building firm capacity involves implementing strategies to make your firm more adaptive and responsive to today’s changing conditions.
We’d like to share four concrete methods to effectively accomplish this goal.
Watch our video below or read the article underneath to understand more!
1. Improve efficiency by creating standardized workflows
You already know about Henry Ford and his invention of the production line. By using standardization and workflows, he massively increased the production capacity of the automobile industry. But what you may not know is that thanks to this improvement in productivity, as the cost of cars decreased, the average worker’s wage increased significantly.
This idea can also be applied to firms who want to increase their production of accounting work. Building standardized workflows allows you to produce more output in less time, so you can deliver more value for every hour.
2. Improve efficiency by harnessing technology The efficient use of technology already gets a lot of attention in the accounting world. Cloud Accounting technology, however, is just the beginning. There are many other categories of tools which can also increase the efficiency of other functions, including:
- Engagement letter automation
- Receipt capture
- Workflow management
- Customer feedback
- And more….
Using the right technology and tools – and extracting maximum value from each one – is a solid recipe for making your people more productive.
3. Increase resourcing by hiring more high-value local staff
If you are coming in on the LEAN and MEAN side of the Capacity Matrix, you may need to expand your team. Hiring more local staff is certainly an option (if you can find them!). These people are best utilized in client-facing, strategic and managerial roles. You don’t want to hire great people, only to put them onto low-value procedural work that is beneath their paygrade. Therefore, we recommend you first ensure that you have re-balanced your capacity so your in-house team members can focus on high-value work.
One great way to do this is to…
4. Increase resources by hiring an offshore team
There’s also an option to hire outsourced accounting staff in the Philippines to handle the bulk of your compliance and procedural work.
By having a well-trained and low-cost workforce on the case, your local team can be freed up to focus on:
- Strategic and advisory work
- Networking and business development
- Client meetings
- Interpreting and explaining the numbers
As a result, your revenue, margins, and profits grow.
This outsourcing strategy is now completely “mainstream” in the accounting world.
Evaluating and understanding firm capacity, then building that capacity, is essential to effectively implement change, increase client satisfaction, and stay ahead of the competition!
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