In this month’s ‘On The Edge’ interview, Botkeeper VP of Growth & Strategic Relationships Deneen Dias spoke with ReNew Group co-founder Shannon Vincent about ways in which firms can change their mindset, focus on profitability and target the right clients.
With firms currently concerned about their capacity to handle the heavy workload of the tax season as a result of employee burnout and productive inefficiencies, Shannon and Deneen discussed how the traditional business model of accounting firms can be changed to meet these demands.
ReNew Group’s Pareto for Profit system provided insight into resolutions for these issues. Important was the concept of the ReNew Mindset — often, too much work is being done for clients that provide very little revenue, some of which is done for free thus straining the capabilities of businesses to properly tackle the work that actually brings in profit.
Instead, the wellbeing of the firm over that of these ‘Insanity Zone’ clients should be prioritized. Thus, Shannon highlighted how accountants’ capacity can be improved by leveraging employees, technology and pricing to not only reduce Insanity Zone clientele, but onboard much more profitable work in place of the tasks causing burnout.
Here, he introduced the concept of ‘No-mentum’: sometimes, you have to say no to work in order to further the success of the firm. Though it may seem unorthodox to turn away traditional work, such as 1040s, that does generate revenue, it is often not worth the substantial time commitment and the negative outcomes it brings for an ultimate small return. Moreover, though it is natural that accountants will develop close relationships with their clients, services being provided without charge are another pain point for many firms. What may seem like a quick and easy task can often be quite time-consuming resulting in no gains at the end of the day, further increasing burnout. As such, saying “no” to free work, does not represent resentment for the client, but the betterment of the firm as a whole.
In the pursuit of these goals, Deneen noted how software such as Botkeeper allows these time-consuming tasks to be streamlined, freeing up the time of both partners and employees, allowing them to both focus on more profitable practices, and enjoy more spare time, thus further maximizing productivity and profitability.
Difficult times such as tax season can be made significantly easier by better utilizing your business capacity through redefining client interactions, utilizing efficiency-boosting technologies and ensuring your mindset is in the right place.
Check out the full interview here
Mindset, mindset, mindset. Playing to win as opposed to playing to not lose is a ReNew mindset principle.
Now you are through tax season, now's the time to make changes for next year