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Firm Management

Mastering the Capacity Mindset with Strategic Data Insights

Taking this approach will enable you to optimize operations, boost efficiency, and increase revenue which is the ultimate goal of running your firm with a data-driven capacity mindset.

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By Liz Scott.

I have discovered the magic of the “capacity mindset” in the hectic accounting world. It’s all about maximizing the key areas of operations such as available time, resources, and talent to enhance client services and grow my accounting firm.

If you’re like me, you spend a lot of time wondering, “How could I do this better?” The answers we seek are in the operational data of our practices. We analyze our client data daily, but we never stop to look at where our internal resources are spent. This is an area that needs to change in order to truly enable growth in our practice.

Here’s how we have approached it in my firm: by taking a deep dive into how the data that flows through our practice each day can be leveraged into actionable insights that will allow us to maximize our practice potential.

One example of this is collecting employee capacity data to determine who your best performers are and why. Doing so allows us to identify roles and delegate responsibilities in a manner that creates team satisfaction and delivers client excellence, both are key for firm growth and sustainability.

Adopting this mindset has been a game-changer for our firm, allowing me to handle the complexities of accounting services with much more of a strategic approach. As we all know, it’s about working smarter, not harder, and taking advantage of the technology available to truly maximize my firm’s potential for success.

The power of practice management technology

Since ultimately the ability to grow with intention is all about the data we have at hand (just like the foundation we provide to our clients) we must start collecting it in a meaningful way. The best practices we have adopted include automated task creation and resource tracking, assignment of tasks to the team appropriately, monitoring overall staff performance, and customizing the specific data on our dashboard so we can easily see our key performance indicators and how they are impacting our capacity, productivity, and profitability.

Instead of running to keep up with what is going on in our practice, data-driven insights into our operations help us focus on bigger, strategic business moves. This is the 90-foot view we are all seeking to answer the question: How can we grow a profitable and sustainable firm? 

Practice data is the fuel driving the capacity mindset

Key strategic insights from data play a pivotal role in enhancing the capacity mindset at accounting firms, fundamentally reshaping growth and decision-making. By providing deep, actionable insights into every aspect of firm operations, practice management technology enables you to see capacity in your firm from profitability and efficiency to team performance. These insights can empower your firm to make informed choices that align with your strategic goals.

The data-driven approach to practice management with a capacity mindset provides the ability to identify underutilized resources, optimize workflows, and allocate talent where it’s most needed, thereby maximizing capacity and enhancing overall firm productivity. With these insights, firms can anticipate challenges and opportunities more proactively and strengthen their operations to serve clients better and accelerate growth.

This transformation into a more data-informed culture fosters a proactive rather than reactive management style, which is crucial for thriving in the competitive landscape of accounting services. To accomplish it we must dig deeper into the numbers of our own firms to empower our own operational advancement.

The tangible benefits of technology automation for practice insights

The automation and insights features in my practice management software are nothing short of revolutionary for me. They slash manual errors and save tons of time, which is crucial for ramping up output. For example, automatic reminders and notifications ensure everyone is always in the loop. Recurring tasks have their templates and dependencies, making repetitive work much more efficient. Ultimately, all of the data running through your practice must also be aggregated into reports that give a clear view of staff utilization, client profitability, and overall performance, which provide a confidence boost when making strategic decisions.

Take the next steps to expand your capacity mindset and grow your firm with data-driven insights

Ready to adopt a capacity mindset? Consider the technology tools and automation infrastructure you need to obtain key strategic insights to grow and transform your practice. Taking this approach will enable you to optimize operations, boost efficiency, and increase revenue which is the ultimate goal of running your firm with a data-driven capacity mindset.


Liz Scott is an accounting technologist and a multi-business entrepreneur working to bring together technology and accountants through her business, Liz Scott Consulting. In addition to Liz Scott Consulting, she also owns Accounting Lifeline, a firm serving small businesses with their financial needs. Liz is a co-host of the Appy Hour helping other accountants learn about the different tools and apps for small business needs.