Firms with more tech earn 28% more per employee

As the sugar hangover wears off after a Halloween weekend, take some time to finalize your Q4 business strategy. We’ve got a step-by-step process for reviewing your fee schedule before next tax season starts, plus a business plan template designed specifically for small accounting firms. We’re also sharing a few interesting surveys, including one on tech-savviness and profitability and another on cybersecurity in accounting firms.

But first, check out this interview with David Lifson, CPA, who presented on AI at the 2023 AICPA Tax Conference. He recently shared how his predictions have changed over the last three years.

Plan ahead: A new look at your fee schedule can set you up for a more enjoyable and profitable 2027 

Removing uncertainty: A better way to measure AI ROI involves risk avoidance over productivity

Stronger, not bigger: Consider redefining what growth means for a smaller firm using exceptional service to grow referrals

Focal point: Snag this small-firm business plan template to map out where to focus your services 

CAS expansion: Interested in expanding your advisory services? Here are five areas that require an extra value-add from accountants

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On the fence about how much to invest in technology for your firm? A new report reveals that firms with more technology tend to generate 28% more revenue per employee compared to less tech-savvy firms. While more than 86% of firms use at least one AI tool, the most profitable ones use an average of 16.5 tools within their practice management systems.

Why this matters: Technology investments can pay off in productivity and profitability, and research now backs up this idea. Look for opportunities to integrate your tech stacks for better operational efficiency to help increase revenue. (KarbonHQ / Street Insider)

Creating an effective marketing campaign for an accounting firm is different from other types of businesses, due to low-volume and high-trust client work. Using early pipeline indicators like referral introductions and conversations with ideal clients can help you figure out if your marketing efforts are moving in the right direction before success is reflected in your revenue numbers. Consistently delivering credibility can help shorten those sales cycles and improve your referrals. 

Why this matters: Measuring your firm’s marketing ROI may not be easy, but you can tweak your messaging based on metrics like firm recognition with leads, quality of sales conversations and overall momentum. (Inovautus Consulting)

Percentage of U.S. workers who have faked their skill set at work 😱 (HR Dive)

Accounting firms feel good about their cybersecurity efforts, with confidence levels ranging between 73% to 92% depending on the firm type. But a recent survey reveals major gaps between confidence and actual best practices in place. For instance, only 44% of firms can remotely wipe devices, and only 43% of firms’ devices have endpoint detection and response to address threats in real time. 

Why this matters: Many smaller firms don’t even understand the latest cyber threats, let alone how to address them. According to the survey, nearly 70% of all firms now use outside IT services in some form or fashion. For owners who don’t need a full-time hire, this can be a great way to stay safe and compliant. (CPA Practice Advisor)

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The Net Gains is written and curated by Lauren Ward and edited by Bianca Prieto.