Every accounting firm is feeling the strain of limited capacity. It’s tough to find and keep talent. Firms want to expand their offerings to include high-value advisory and consulting services. However, finding the time to develop these services and market them to new and existing clients is also challenging.
Leaders are always looking at managing capacity to allow their firms to thrive in the face of shifting client expectations, evolving technology and a competitive labor market. However, the traditional ways of managing teams and workloads are no longer enough. We need to rethink how we look at work across the firm.
Rethinking the role of CPAs
When addressing capacity, one of the first places to look is understanding where CPAs spend their time. In many firms, CPAs are bogged down with tasks that don’t necessarily require their expertise—tasks like data entry, compliance checks, marketing, and administrative duties.
This is critical work, but it can be handled by staff members with different skill sets. Rethinking the responsibilities assigned to CPAs frees them up to focus on higher-value work like advising clients, strategic planning or developing new service lines.
Step back and ask: What tasks can be taken off their plates? This realignment of job duties empowers people to engage in more meaningful work that drives business growth and enhances client relationships.
Upskilling and reskilling to develop core capabilities
Upskilling and reskilling fill the gaps left by CPAs taking on higher-value roles. Your team needs to be equipped to handle new roles critical to the firm’s future. For example, marketing, business development, data analytics and project management are growing areas that firms must strengthen.
- Upskill your team to build core competencies that align with your firm’s strategic goals. This can include developing AI or data analytics expertise to better serve clients in a data-driven world.
- Reskill professionals to take on new responsibilities within the firm. For example, accountants who don’t have a passion for the work might excel in roles in wealth management, content creation or learning and development. These roles allow people to grow and contribute in diverse ways.
Supplement your headcount with offshoring and outsourcing
Offshoring and outsourcing help you manage capacity during peak times like tax season. Outsourcing non-core functions or hiring on-demand workers lets you scale operations without committing to long-term hires you may not need to retain once busy season is over.
Consider using interim workers for special projects or to fill in during staff shortages. These workers provide the necessary expertise without the overhead of permanent staff.
Many firms also use offshoring for certain tasks like bookkeeping, data entry, and basic tax preparation. This can save on costs as long as it’s managed carefully. The quality of work, data security and communication should always be priorities.
Balance skills and performance with the firm culture quadrant
As you think about expanding your team’s capabilities, keep your firm’s culture in mind. Culture isn’t just about having friendly people—it’s about creating a work environment where skilled individuals fit your firm’s values and work ethic.
The Firm Culture Model has four quadrants that help assess where individuals fit within the firm:
- High skill, high performance. These individuals contribute significantly to the firm’s success. Nurture them and give them leadership opportunities.
- High skill, low performance. These individuals may be technically strong but fail to contribute positively to the firm’s culture. If their behavior harms the firm’s success and they don’t respond to performance improvement plans, it’s time to part ways.
- Low skill, high performance. These individuals are hardworking but may need more training or development. Offer upskilling opportunities to harness their potential.
- Low skill, low performance. These individuals need significant improvement in both skill and behavior. Give them clear expectations, and let them go if they cannot meet them.
Navigating the capacity puzzle isn’t about doing more with less—it’s about doing more with the right resources. Upskilling, reskilling and outsourcing strategically create a leaner, more efficient organization where both skill and performance align. Your firm’s future depends on your ability to adapt, innovate and invest in your most valuable asset: your people.
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Tags: Accounting, Technology
