How to Grow an Accounting Firm Despite the Staffing Shortage

With so many accounting firms facing problems growing their Client Accounting Services because of the staffing shortage, a new competitive advantage is opening up for some smart and innovative firms.

AICPA’s 2024 PCPS Survey results showed that, except for solo practitioners, firms of all other sizes state that finding qualified staff is their #1 issue. Even if a staffing shortage is hobbling most firms, yours need not be one of them.

Indeed, a bold and visionary strategy could turn other firms' problems to your advantage.

And what if you knew it would take only two weeks to get everything in place?

Hitendra Patil, whom you may already know as the author of the best-selling "Definitive Guide to Client Accounting Services," can show you how some of the best firms in the business are doing it.

First, the scope and range of the staffing problem in the CAS sector must be considered.

1. Increased Workload

Expanding CAS requires additional resources to manage increased client demands.

A staffing shortage means existing employees may be overwhelmed, leading to:

• Decreased Quality of Service: Overworked staff might struggle to maintain high standards, resulting in potential errors or slower response times.

• Burnout: Prolonged periods of high stress can lead to employee burnout, further exacerbating staffing issues.

2. Specialized Skills Requirement

CAS often involves specialized knowledge in areas such as:

• Bookkeeping and Financial Reporting

• Payroll Processing

• Financial Analysis and Forecasting

• Technology Integration

Finding qualified professionals with the necessary expertise can be challenging, especially in a competitive job market.

3. Training and Development

Even if new hires are available, they may require extensive training to become proficient in the firm's specific systems and processes.

This training period can delay the expansion and put additional strain on current staff who must train new employees.

4. Client Relationships

Successful CAS relies heavily on building and maintaining strong client relationships.

A staffing shortage can impact:

• Consistency: Clients may experience a revolving door of account managers, affecting trust and satisfaction.

• Responsiveness: Delays in communication or service delivery can damage client relationships.

5. Scalability Issues

Scaling operations to handle a larger client base becomes problematic without sufficient staffing.

This limitation can:

• Restrict Growth: The firm may have to turn away potential clients or limit the scope of services offered.

• Operational Bottlenecks: Key processes might slow down, affecting overall efficiency and profitability.

6. Competitive Disadvantage

Firms facing staffing shortages may struggle to compete with adequately staffed teams.

This disadvantage can lead to:

• Loss of Market Share: Clients might prefer firms that provide more consistent and reliable services.

• Difficulty in Attracting Talent: Potential employees may hesitate to join a firm known for being understaffed and overworked.

The Bottom Line

Staffing shortages present significant obstacles to the expansion of Client Accounting Services in an accounting firm.

Addressing these shortages through strategic staffing solutions is crucial for successfully growing CAS offerings.

That's why we thought you'd be interested in this 24-page step-by-step practice guide from Hitendra. It explains everything you need to know to turn a staffing problem into a competitive opportunity, and you can do it in only 14 days.

Are you in?

Yes. Show me the plan 

PS: To be sure, this plan isn't for everybody. It requires courage, ambition, and a commitment to growth and profits for your firm, your employees, and your clients.