What 10 obstacles stop small accountancy firms from growing?

Is there anything stopping your firm from enjoying growth this year?

The accounting landscape is changing fast, but time and again, we see certain blockers revealing themselves. If you’re aware of them in advance, you can factor them into your plans.

The 10 obstacles hindering your growth plans

Here is a list of recurring problems firms face when seeking to grow.

We conclude each with an important question in bold. If you can answer that question, then that obstacle is well on its way to being solved.

However, if you need some extra insight, then read to the end of the blog. You won’t be disappointed!

#1 You need more expertise, but recruiting isn’t an option

If you wish to provide your clients with everything they need – but you know that capacity is an issue for your firm –  the temptation is to begin posting ads for specialists in areas like auditing or to hire entire teams to handle popular requests such as payroll.

You need more “people power” and expertise. Is there a way to add this without recruiting?

#2 You face intense competition

Some areas of accounting are being dominated by large firms focusing on high-value work. Unfortunately for small firms trying to compete, these major competitors move quickly. Suddenly, the niches you aspired to learn about and enter become business development dead ends.

Is there a way to compete without tackling rival firms head-on?

#3 You’re consistently checking regulation

Smaller firms must navigate a complex and evolving environment. This includes staying updated on tax laws, audit standards, and compliance requirements. Stringent oversight by regulators like the Financial Reporting Council (FRC) deters smaller firms from undertaking lucrative work due to the high risks and costs involved.

Compliance often hinders accountants – it involves a continuous learning and checking process. Are there ways to maintain compliance with less stress?

#4 Your efforts are not being rewarded

Many small firms undervalue their services by failing to charge appropriately for the advice they deliver. Major selling points, such as advisory services, are often absent from the invoice.

But what if you found out that your competition was charging for work that you provide for free? 

#5 Technology adoption seems costly and difficult to access

Although technology provides opportunities for efficiency and innovation, many small firms believe they do not have the resources or expertise to adopt advanced tools such as cloud accounting or automation effectively.

What if there were ways to update your systems and upgrade to the cloud – all without expensive, hard-to-maintain servers?

#6 Client demands are escalating

Smaller firms face increasing pressure from clients for data-driven advice that goes beyond traditional accounting services. Meeting these expectations requires technical expertise and strong communication skills, which small firms possess but often struggle to make time for.

How can you create more time to establish this level of relationship with your clients, and how can you rapidly obtain the data they need?

#7 Cash flow management feels difficult

Like many SMEs, small accountancy firms often encounter cash flow challenges due to late payments or seasonal demand fluctuations. This limits a firm’s ability to invest in new growth initiatives.

How can you maintain a steady cash flow without investing excessive time and effort, and is there an opportunity to make this beneficial for both you and your client?

#8 It can be difficult to maintain a leadership mindset

It doesn’t take more than a few hectic days to lose some perspective, distracted instead by a sky-high to-do list. If you don’t have capacity to stop and get an overview of events, however, other factors will make decisions for you.

Is there a way to make time, step back and feel like a leader again?

#9 Lack of clear strategic planning

What helped launch your firm is not necessarily the key to long-term sustainable growth. The answer is very rarely more hours, more work, more stress, and more overheads.

A plan for growth needs to be about working smarter, not harder.

What if your growth ambitions had a clear roadmap, with clear target markets and an understanding of how you will evolve your services?

#10 A lack of marketing and brand awareness

It’s inevitable that many see marketing as a potentially high expense, in terms of both time and money.

But there are reasons why bigger firms invest in this practice and send their best and brightest to events around the country: good marketing works.

What if there were ways to market your firm with minimal overheads, by freeing up time and putting your people in front of prospects, clients and new connections?

Our FREE guide tackles these obstacles by answering these questions

It’s time to get ahead without the overhead.

This “grow without growing” approach enables you to enjoy greater opportunities and win more clients without extra operational burdens and overhead.

At its core is a potent combination of efficiency and quality, as you put busywork to the side and focus on big outcomes for clients that result in better profits.

Our guide is packed with advice:

• How to add people power and expertise without the cost of recruiting.
• How to compete without having to tackle competitors head-on.
• Ways to handle compliance obligations with less stress.
• Charging for lucrative work you might have given away for free.
• How to upgrade to the cloud without expensive servers and other excessive tech commitments.

Click here to get your FREE guide now.