In the second part of his article series, HPC Founder and CEO Bruce Phillips, CPA explores how to measure KPIs and truly set your firm up for success when it comes to investing in automation for your practice.
Once you define your firm’s key performance indicators and how you will measure them, you can begin to set targets. These include sales, number of new customers, the capacity of your firm, and the overall bottom line.
Devising a strategy for revenue is relatively simple. As opposed to charging hourly rates, HPC uses a flat-fee business model. This helps us in a couple of key ways:
- Transparency. Flat rates are easy for our prospective customers to understand and give them a set of expectations. They know precisely what our deliverables are when we engage with them and a definite dollar amount attached to them. Having a mutual understanding of the services to be performed saves time and money by eliminating instances when a customer may dispute costs and delay payment.
- Productivity. As mentioned above, HPC is unlike a traditional accounting firm that keeps meticulous notes on time spent on particular customers or projects. A flat-fee model incentivizes our team to be productive and have an efficient workflow, in turn giving us the opportunity to have a higher capacity of customers.
Capacity is more difficult to plan than revenue. Verticalizing our staff is a large part of how HPC automates its workflow. This method creates well-defined roles and delegates responsibilities to each team member for increased capacity.
Bruce is Founder and CEO of HPC, a cloud-based accounting and advisory firm that serves small business clients around the world.