How to run a Successful Chartered Accountants Firm Stressfree
Written By PracticeGuru dated: 9th Oct, 2020
10 Min Read
Every professional like chartered accountant wants two things, first is No Stress and second is Profits. Please note that, we have mentioned stress first and then profits. If you are running a very profitable business but you are stressful you will never enjoy running it for long. Also, You want something which gives you lot of free time to enjoy your time with family and frineds and enjoying your personal hobbies and interests. So today we will discuss every aspect of running such a chartered accountants practice.
You will ask is it possible to run a chartered accountants or company secretary practice which is successful and at the same time without any stress? Yes it is 100% possible. There are some concepts which you need to understand and certain methods which you have to follow and there are many tools which will help you to do that easily. So lets start.
Lets First understand the reasons for the Stress:
Reasons for Stress
1) Emergencies - Emergencies are killer for mind. It is something which comes without any notice and its the biggest reason for stress. But there are lot of emergencies which can be avoided by strict planning regime.
2) Lack of Knowledge - Lot of delays and mistakes in chartered accountants or company secretary's office are due to sheer lack of knowledge on behalf of owner and staff. If you are well aware of latest news and updates, lot of stress can be avoided.
3) Clients Complaints - No one likes complaints of clients. It can spoil ones mood. It is disapproval of ones skills, knowledge and experience. It leads to lot of stress for chartered accountants.
Reasons for Low Profits
To take care of above reasons for stress and low profitability, Chartered Accountants firm has to focus on following 3 bassic areas.
Basic Structure
A) Knowledge - Without knowledge and expertise, there is no Chartered Accountants Firm. Clients come to CA for their advice as they believe CA has requisite knowledge and experience. So this is the foremost thing.
B) Team - Without Team one cannot deliver services. If team is motivated and efficient then firm can run successfully.
C) Clients - Clients pay for the whole system. Clients are the reason you are in the business. If there are no clients, there is no CA Firm.
D) Work / Tasks - Works should be completed before due dates. Every task has to be tracked properly.
To manage Team, Clients, Works - Its Free
*(Avoid Excel at any cost, very ineffective and inefficient tool to manage Practice)
A) Knowledge Management
1) Areas of Practice
CA Firm should decide on few of the areas in which it wants to practice and then start getting deep knowledge in that area.
There is a huge debate and difference of opinion on should Chartered Accountants firms do specialisation or should they take every work that comes their way.
Read this article on Specialisation Here
We discuss few areas of Practice which CA can opt here -
DISA
Data Analytics
2) Reading
Many people find reading boring but it is one of the important thing for a professional.
3) Team Training
Team should be trained for newer knowledge and skills periodically.
4) Sources of Knowledge
There are lot of good publicashions out in the market, like taxmann.
Many paid and FREE courses are available online on youtube and educational websites like udemy.
B) Team Management
C) Clients Management
1) Work Delivery - Should be on time.
2) Billing - send proper proposals, quotations before starting work. If there is an additional charge, keep client informed about it. Clients dont appreciate surprise in billings. Provide proper supportings for reimbursement of govt fees, etc.
3) Client Servicing
Read more on Client ServicingD) Works Management
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Additional Concepts
E) Time Management
1) Categorize time into Investment & Expense - time spent in areas which can help in years to come is investment & time spent in areas which has no long term benefit is time expensed.
For eg Time spent in reading #GST basics and #caselaws is Investment and Time spent on Looking for lost documents is expense. Analyse how much time you are putting in Investment and how much time is expensed. Keep daily record of your time.
2) As Owner only do those tasks which cannot be delegated. Something which can be standardised can be delegated. Have a team which can do such standardised tasks.
3) Understand meetings are great time wasters.
4) Dont make yourself available for 24*7 for your staff and clients too. Nothing is really urgent. Give specific time appointments in advance. Then only people will respect your time.
5) Just be free. Keep calendar empty. Great progression only happens when you are Free to think, strategize. So Just be Free.
F) Networking
Chartered Accountants get all their business from referrals so for them networking is very important. Its a special skill and it needs to be learnt well.
Read more on NetworkingG) Technology
No business can run without technology today. Every function in the organisation is affected and can be improved with technology. Technology can be hardware and software both.
Read more on TechnologyH) Branding
Many institues and trade bodies are always looking for experts to come and educate their students or members. Get into contact with such instiutes and let them know you are avaulable for giving lectures.
There are many FREE blogging websites. One may also write blogs for Taxguru or Practiceguru.
Twitter and Linkedin are 2 powerful social media platforms for creating brand.
I) Managing Risks
Professionals like chartered accountants and cost accountants are subject to lot of risks where due to their lack of due care, there may be mistakes, errors in their work and clients put case on them.
Read this article on Indemnity InsuranceThere are many tools like Practiceguru which help you to achieve many of above objectives like Knowledge, Clients, Employee and Tasks management. Professionals should make use of such tools.
To Conclude, if you understand all above concepts and follow the methods prescribed, you can build a successful firm within few months from starting.Disclaimer:The information contained in this website is for general information purposes only. The information is provided by PracticeGuru and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
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