Are you monitoring these top accounting firm KPIs?
When moving into the advisory space it’s crucial to monitor the core metrics in your firm. A lot is changing, so keep on top of it. You’re teaching clients to measure KPIs, so remember to practice what you preach.
1. Churn: Your churn rate is the essential means of calculating customer retention. When clients don’t stick, something’s up. Is your firm offering broad enough services for a range of business owners?
2. Staff to client ratio: The advisory space calls for conscientious accountants. Your team need to be making regular contact with clients to make sure they’re reaching targets and goals. Protect your firm and client relationships by measuring this ratio.
3. Revenue per client: A great indicator of when you can upsell, keep a close eye on this metric. Some advisory services can be priced as ‘add-ons’, which is a great way to up revenue.
4. Referrals rate: Business owners trust fellow entrepreneurs, so word of mouth is pivotal to your bottom line. Monitor this to combat churn and help yourself identify stronger and weaker areas in your firm.
5. Revenue per existing vs new clients: Onboarding new clients regularly? It’s important to differentiate between new and existing clients. Measuring this KPI helps you visualise what’s working and what’s not, where you can earn more revenue and areas that might need work.
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