By Paul Roy, CPC

Have you ever wondered why some accounting practice owners succeed so effortlessly? They seem to have a lengthy list of attributes you wish you had. They have large followings on social media, take the stage at CPA events, and share their insights with others. Then there are the firm owners who quietly build outstanding practices while avoiding the spotlight. Some make it through trial and error; others have the help of great mentors. The one thing they all have in common is that they have mastered the 3 P’s: people, processes, and profits.

These Three Areas Matter More than Ever

Today’s accounting firms face an increasingly complex landscape. The competition for top talent is fierce, compliance regulations are constantly evolving, and firms are under pressure to transition from traditional accounting work to advisory services. The firms that thrive in this environment are the ones that have strategically optimized their people, processes, and profits.

People: The Hardest Part of Business

It’s often said that managing people is the hardest part of being an accounting business owner. I couldn’t agree more. But attracting and retaining top talent starts with becoming the kind of firm that top performers want to work for. If you don’t have a process for hiring and retaining great people, staffing becomes a revolving door – hiring with hope and watching employees leave just as they start to excel.

What’s your firm’s retention rate? Solid profits allow you to pay competitive salaries, but for top talent, money is rarely the sole deciding factor. Compensation is important, but the firm’s value proposition – its culture, leadership, and career growth opportunities – plays a much bigger role in attracting and keeping great accountants.

A strong company culture isn’t just about offering perks; it’s about building an environment where employees feel valued and see a future. Top firms focus on mentorship, professional development, and fostering a sense of belonging. Have you defined what makes your firm a great place to work? If not, that’s where you should start.

Profits: The Key to Sustainable Growth

Where does your firm generate most of its revenue? What do you do best for your ideal clients, the ones you love working with and who don’t drain your time?

Identifying an ideal client profile is rule No. 1 in earning more while working fewer hours. Boosting your effective hourly rate is critical to running a successful practice. However, letting go of low-fee, time-consuming clients can be challenging, especially if they’ve been with you since the beginning. Many firm owners struggle with this because they feel an obligation to these legacy clients. Many accountants have big hearts, but you have to accept that sometimes that generosity comes at the cost of the firm’s overall well-being. Letting go of unprofitable clients can significantly reduce stress and sleepless nights.

Another strategy for improving profitability is repackaging your services. Instead of charging by the hour, consider value-based pricing, bundled service offerings, or subscription models that stabilize revenue and improve cash flow.

Processes: The Foundation of Scalability

An accounting business is only as strong as its weakest link. This is where processes can rescue you from being chained to your practice.

Well-documented processes mean that more than one person can perform a task. If only one person knows how to do something, their absence can bring the firm to a halt – or worse, force you to step in. Processes enable delegation and accountability.

Here are a few quick tips for building efficient processes:

• Map out your workflows: Identify bottlenecks and inefficiencies.
• Automate where possible: Use technology to reduce manual tasks.
• Cross-train employees: Ensure key functions aren’t dependent on one person.

Simply put, accounting is a process, and running an accounting business should be one too. Isn’t it time to stop calling your accounting practice a “practice” and start calling it a business?

Bonus Thought: The Entrepreneurial Mindset

Accountants tend to be risk-averse, while most entrepreneurs embrace risk. The good news is that there are ways to grow your firm without excessive risk. Beyond the people, processes, and profits I’ve outlined, successful firm owners should develop an entrepreneurial mindset. Being an entrepreneur is not a dirty word! In fact, most of your firm’s income comes from entrepreneurs.

So, how can you learn from your top clients? You see their numbers: turn your annual tax return meeting into an opportunity to ask how they achieve success. Where are their biggest challenges? How can you help?

Where to Start?

Your approach to building your dream firm depends on the current stage of your growth. Can you work on people, profits, and processes simultaneously? Yes, but should you? Probably not, at least not without a solid strategy.

That’s where your firm’s growth roadmap comes in. Strategy comes first. You can’t build a great accounting business one tactic at a time.

Paul Roy, CPC, is the founder of Profitable Practice Pro, a company dedicated to helping accounting firm owners transition from technicians and part-time business owners to CEOs of thriving accounting businesses. He can be reached at Profitable Practice Pro or on LinkedIn.

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^{Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.}