How to Expand Your CA Firm This 2018
As a Chartered Accountant, you are concerned as to how to expand your firm and its scale of services. It may be difficult as you cannot advertise your firm and obtain clients. You can’t form a company and have to limit your entity to a partnership firm or LLP. If you try getting business through referrals, it will involve huge referral commissions and affect profitability.
Such challenges hinder your practice’s growth. Here, we address such difficulties to help you expand your reach to cater to a wider client base.
Cash on the GST market
The newly effective indirect taxation system has increased the number of tax-paying businesses as unorganised businesses now fall under the ambit of taxation. With tax rate labs being constantly revised, clients look to CAs for financial advice, compliances and reporting. Therefore, every CA firm can build and grow its indirect tax practice and provide GST consultancy services to existing and potential clients.
Update Yourself With the Latest Technology
Keeping oneself updated not only warrants knowledge on the latest developments in the world of finance and audit, but also technology. According to a survey conducted by online accounting software company-Xero on 1000 UK accountants in 2016, 83% believed that understanding technology will be equally relevant as traditional accounting skills for future CAs. 22% of the respondents believed that failure to adapt to new technology will result in falling behind competition.
Technologies like cloud accounting software help you:
- Serve clients across different locations
- Increase monthly cash flow by offering accounting services remotely
- Reduce travel expenses of visiting client’s location to gather accounts
Hire Quality and Specialised Staff
For any organisation, the quality of its workforce determines its success. To deliver outstanding client service, it’s important for you to hire quality people in your firm. If a project warrants specialised professionals in tech, do that. This will help you meet tight deadlines with ease.
Knowledge on the latest technology, quality hiring, and subsequent expansion require finances. Consider an external source of finance if you’ve parked your savings for the stock market.
New partners bring in potential clients, expertise in new areas (thereby help your firm diversify its offerings) and a fresh outlook. This is a quick-fix business development solution. Prepare a revenue sharing model, basis your firm’s experience and the quantum/nature of work, while you add new members to the firm
- If your CA firm is new, you might not be able to pay remuneration to the new partner. Therefore, your revenue sharing agreement should be based on profit-sharing. It should clearly define the revenue of each partner, for the business they bring to the firm. This also keeps partners motivated to take the firm to the next level.
- If your firm is old and has a retained client base to cater to, the revenue-sharing agreement can be a mix of fixed income and profits.
CAs need to interact with a lot of people and engage in multiple meetings to seek business. A significant amount of time is wasted in these meetings. As a CA, you must connect with more professionals in your and other domains to strengthen your network so that others may refer your services. This will cut down the time spent on meeting clients.
According to a new LinkedIn global survey result, almost 80% of professionals consider professional networking to be important to career success. In today’s digital age, leverage the power of social media to boost your professional networking.
Your networking will come in handy when you plan to expand to a new city with space, infrastructure, and regulatory norms.
Bajaj Finserv offers collateral-free Chartered Accountant Loans of upto Rs.35 lakh that are meant to aid professionals like you in expanding your firm this new year. Be it catering to a bigger clientele by offering GST consultancy, integrating the latest tech into your practice or hiring the right talent for your firm, you can use these loans as per your requirement and boost your ROI. Get in touch with us today to know more.