Your firm's biggest constraint isn't demand

This week is about bite-sized actions you can take to grow your firm. From how to make better decisions alone to an easy way to start offering advisory services today, our roundup proves you don’t need to overhaul your entire business to see big changes. Plus, we’re covering the metrics to track when you stop billing hourly as well as a heated debate over on LinkedIn about whether or not to niche down your firm.

But before you dig into those links, read how much hybrid offices may be losing due to “workplace friction.”

Debate team: LinkedIn users have opinions on whether niching down a CPA firm is worth it

Better connections: Maximize your webinar success with data insights from every interaction

Makeover montage: Give your marketing plan a facelift with these five tactics

Beat the rush: Extension season is almost here, start getting ready now

Decision fatigue: Say goodbye to anxiety by creating a decision-making filter for your firm

It’s probably capacity, according to William Norman, founder of Demand Gen Solutions. If you’re working harder than ever without seeing significant revenue growth, it may be time to rethink your business model and add more advisory work. Norman recommends looking at the services you offer your top 10 clients, then finding the advisory conversations you’re missing out on. Upselling that demographic can immediately boost your revenue without a single new client. 

Why this matters: Everyone knows CAS is the key to firm growth, but it can feel overwhelming to know where to start. Narrowing down your next steps to just 10 clients makes a new service offering attainable with a high chance of a quick win. (LinkedIn)

You’re ready to implement value-based pricing for your firm, but how do you track growth if you’re not counting billable hours? Instead of falling into an existential crisis over it, take some advice from a recent Inside Public Accounting survey. More firms are shifting how they evaluate success, and you can, too. Swap activity-based metrics for business performance ones, like revenue per FTE or partner. These numbers reveal how well you’re converting your workforce into revenue and what you may need to adjust. 

Why this matters: The shift matters because billable hours create a false ceiling. When hours are the metric, adding revenue means adding time, which means adding people. Revenue per FTE breaks that equation and shows you whether your pricing, your service mix or your staffing model is the actual constraint. That's a different conversation than "we need to hire." (Inside Public Accounting)

Year-over-year increase in accounting firm M&A for 2025 (Capstone Partners)

Snagging a high-net worth client may feel like cause for celebration, but perform your due diligence before breaking out the bubbly. In order to protect yourself, set a clear scope of services rather than relying on unvocalized expectations. It may also be worth considering a loss-limited engagement letter that can cap covered damages and other liability concerns. 

Why this matters: Bigger rewards come with bigger risks and HNW clients may have a different set of expectations than other clients. Thinking ahead about potential claims resolution keeps you prepared for a worst-case scenario. (CPA Practice Advisor)

Thanks for reading this week's edition! You can reach the newsletter team at [email protected]. We enjoy hearing from you.

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