Going organic: how accounting firms can grow on their own terms

In an industry excited about M&A, it’s easy to overlook organic growth.

But you shouldn’t. Many firms prefer organic growth to acquiring another business.

Why? For some, it’s the control it brings. You get to shape the direction of your firm, rely on systems you already know, and build on your strengths.

Some see organic growth as a safer bet compared to buying or merging with a business. You play to your advantages, evolve at your own pace, and build something that always feels familiar.

However, it’s not all plain sailing.

Handling the challenges of organic growth

Let’s look at the downsides of organic growth and explore how we can overcome them.

Recruitment challenges: During an ongoing recruitment crisis, you may need to hire more staff to handle new business. To attract applicants, you have to rethink how you work. For example, some prospects may prefer flexible working hours or a specific number of days working remotely. However, there are other alternatives to hiring. For example, you might look into outsourcing or offshoring.

Technology integration: It’s important to ensure that your systems can accommodate growth. Many firms experience “software clutter”. This occurs when you add new solutions ad hoc, but they don’t scale with the firm or sync with everything else. These issues may create complications during periods of significant change. Modern, cloud-based software can help you here. If you pick the right solution, it can bring your firm together, unite workflows, and scale with you.

Competition: Organic growth entails introducing more services or expanding into new regions as you pursue new business. This process inevitably results in increased competition. It is essential to be ready when other firms adjust their strategies in response to your growing presence within their market. Always have a plan for this. One might be to research a niche: an area you are good at in which others will struggle to compete.

Setting a sensible pace for organic growth

What might you need to do to win new clients at a reliable pace?

To drive organisational success, it is essential to set clear, achievable monthly objectives. These should be aligned with current business development efforts. For instance, if your firm is going to a network event, adjust the target upward. However, during periods when staff are away, it may be prudent to lower targets accordingly.

Prioritise attracting the ideal client base for your firm. Will serving a niche be more profitable than piling up volumes of work? It might be tempting to take on late clients approaching you during peak busy season, but are they the sort of businesses you want to work with long-term?

From the first point of contact, ensure that every client experiences a professional and efficient onboarding process. A system with a centralised database is ideal. This moves staff from signing a contract through to AML checks and beyond seamlessly. 

Client retention

In some cases, existing clients may offer more opportunities for income than new ones. See how you can develop a “client” into a “working partnership”.

This likely means scheduling face-to-face meetings.

Preparing strategic questions before these meetings can be useful. With the right line of questioning, clients may share important information relevant to both parties. That’s not always obvious, however. Sometimes, a post-meeting debrief is a good way to spark new ideas for helping clients.

There is much more in our guide

We have a guide that goes into all of this in further detail. In it, you will hear more about developing a niche, how to get into outsourcing, offshoring, and more.

But the guide does not stop at discussing organic growth. It also looks at M&A and how it can be a force for good for your firm.

It’s time to choose your firm’s growth strategy

Whether you’re scaling your accountancy firm from within or expanding through acquisition, our FREE guide helps you make the right strategic choice and execute with confidence.

Inside the guide, you’ll discover:

• A clear comparison between organic (“build”) and inorganic (“buy”) growth strategies.
• The challenges each presents – from recruitment and tech integration to stakeholder retention.
• Proven strategies for winning and retaining clients, including niche targeting and outsourcing.
• How to future-proof your firm with cloud platforms and scalable systems.
• A 10-step checklist for software integration during mergers and acquisitions.
• Practical insights on internal comms, due diligence, and aligning tech with business goals.

Click here to download the guide today.