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Running an accounting firm that’s profitable while keeping working hours manageable isn’t just a dream—it’s a reality for many firms within the Renew community. By applying laser-focus strategies to their business model, these firms are achieving the elusive goal of working less while earning more. In this blog, we summarize two more key strategies to Renew firms’ success in driving profit up and hours down. In this blog, we summarize two more key strategies to Renew firms’ success in driving profit up and hours down.
1. Strategic Pricing Increases
Many firms fear that raising prices will drive clients away. But as our benchmark data shows, that’s not the case. In fact, we’ve found consistently over the years that you cannot correctly price the wrong client!
This year, Renew firms saw an average price increase of 13.5%, with only 4.35% of clients opting to leave. This price strategy has been particularly effective when combined with transparent communication and value-driven client relationships. Our members access templates in the Renew Vault (created by accountants for accountants) to do this is a professional manner.
By focusing on premium pricing for the right clients, firms not only boost profitability but also ensure they’re working with clients who appreciate and value their services.
2. Reducing Partner Working Hours
Perhaps one of the most crucial goals in Renew’s 40-Hour Firm philosophy is to decrease the number of hours partners spend in the business. We’re thrilled that both partner and team member hours have reduced once again as our firms strive for 40-Hours a week year-round. We know it’s achievable as several firms are already there.
This reduction in hours has a direct impact on quality of life, enabling partners to spend more time working on the business rather than being buried in client deadlines. More importantly, it creates capacity for firm development and strategic and succession planning, all key drivers of long-term success.
The Bottom Line
The numbers don’t lie—Renew firms are seeing tangible improvements in profitability, client relationships, and work-life balance. Through a combination of strategic pricing, reducing low-value clients, and shifting to subscription models, firms are not only working less but earning more.
If you are not yet on board with these changes, it’s time to take a hard look at your business model. Are you still holding on to clients in the Insanity Zones—those who generate little or no profit for your firm, but require significant time? Are you offering services that bog down your team and eat into your profits? The firms that are thriving today are the ones making these tough decisions and implementing strategies to set their firms up for future success.
If you’re ready to make a change and you’re ready to NOT repeat tax season, consider taking the first step toward transforming your firm into a 40-Hour Firm, where profitability and balance coexist. We’d love to talk with you about how you can apply these ideas to your firm. Please feel free to schedule some time at your convenience:
