In a session I presented at AccountingWEB Live Summit in San Diego earlier this month, I spoke about preparing your firm for acquisition or succession. One of the key points I elaborated on was automation and tech, which are everything when you're in a service-based business.
The more you automate, the more efficient you are and the more billable time you have available for your clients. When looking to scale your company, I always advise to scale with as little overhead as possible. The whole goal is to be able to grow your revenue without adding another person to your team.
This is completely possible if you use the right technology. When the time comes to sell your firm, you are going to be dealing with the same overhead/people issue. They want to buy your product, they want to buy your contracts, and they want to buy your intellectual property. They don't want to buy your people because your people are not for sale. The number one thing that you need to look for when selling your company is how much of your product/service is actually for sale and how much of what you do can be sold without a person attached to it.
One thing that you'll hear me say often is when attacking the issue at hand, always go for the low-hanging fruit first. Ask yourself, “What is the easiest thing for me to automate/add tech to in my firm right now in order to add efficiency?” If it was my accounting firm, I would automate my bookkeeping immediately.
The next thing I would automate is my payroll journal entries. Did you know that almost every payroll software out there will link to your accounting software and will enter your payroll journal entry automatically? That is a huge amount of time saved with something that you don't have to spend any money on; you just need to get it set up properly. There are no new software costs added, and this automation is likely already available to you right now. An entire role in your firm could be eliminated just by automating your day-to-day bookkeeping and your payroll journal entries.
Register for free to continue reading
It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can: