We’ve all been talking broadly about how the accounting profession is changing, but how exactly can accounting professionals monetize these changes?
To get an idea, let’s look at the most current trends in how accounting firms are bringing in revenue. In the recently released 2018 U.S. Accounting & Bookkeeping Industry Performance Report from Xero, it’s clear that the key to doing well is to move toward online accounting software.
The survey indicated that firms average billing rate was $6,300 per small business client and brought in $100,940 on average per employee. Meanwhile, firms that made the most of online accounting software billed an average of $10,375 per small business customer and brought in $204,200 per employee. These firms also experienced nearly double the growth rate, from 14.9 percent to 28.3 percent.
Digging a bit deeper into the survey, it’s clear this increase comes from two main sources. First, with more clients using online accounting applications, these firms can service more clients per team member. Second, firms that offer online accounting to their customers have more opportunities to sell consulting and advisory services that up the overall client value.
Here’s what those services can look like:
An obvious piece of expertise to monetize is your knowledge of accounting software. Many businesses are looking to make the move to using online accounting software, but aren’t sure where to start. Or maybe they’re already using QuickBooks Online, Xero, or Sage and they are looking for an expense management or billing solution that will integrate.