A firm grasp on growth: 6 strategies common among high-growth firms

A global survey of tax and accounting professionals at firms of all sizes found that the majority of firms experienced revenue growth.

The survey results in Wolters Kluwer’s Future Ready Accountant Report also identified insightful differences between the actions taken by high-growth firms and the approach taken by firms experiencing stagnant or declining growth.

According to data in the report’s appendix, high-growth firms — identified as firms reporting revenue growth of 5% or more — more commonly made changes over the past one to three years aimed at improving client offerings and improving the ability of staff to serve those clients.

And, while just 5% of high-growth firms reported making no major changes in 19 areas included in the survey, 15% of declining/stagnant firms reported making no major changes.

While that was the only category in which declining/stagnant firms answered in the affirmative at least 10 percentage points more often than high-growth firms, high-growth firms answered at that rate in six categories, highlighting a drastic difference in approach that could provide insights for firms that find themselves lagging behind.

Three common areas of change for high-growth firms focus on improving offerings for clients:

• Diversified/created additional services.
• Increased marketing investment/efforts to differentiate the firm from competitors.
• Improved client communication through digital channels.

Three other areas focus on enabling employees to better serve clients:

• Enhanced data analytics and/or business intelligence capabilities.
• Hired more staff.
• Invested in professional development and training for staff.

“Most firms experienced at least modest growth over the last few years, and they anticipate continuing that trajectory,” the report’s authors wrote. “However, growth doesn’t just come from serving more clients. Improving efficiency can result in profitability growth, and adding services can bring in more revenue, even with fewer clients.

“For most firms, though, achieving growth requires a combination of the right people using the right technology.”

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.