Efficiency Improvement Service for Small Accounting Firms

[frogger94]

Product: Management Consulting & Tech Service to improve operational efficiency for small accounting firms (2-15 headcount). Service includes:

• Implementation and configuration of a secure client portal (like MS-SharePoint) eliminating all email for transfer of files and document and includes advanced config related to read/write/view permissions such that some files can serve as static records.
• Implement electronic client tax questionnaires that will ask clients relevant questions for tax filing purposes but also include advanced skip logic ensuring clients do not need to answer a series of unnecessary questions if previous question responses render those questions irrelevant.
• Automatic and personalized client reminders (email, SMS, phone calls) of deadlines and missing files based on client specific file uploads or client specific missing files.
• Implementation and configuration of Online Payment System for BOTH client invoice payments and client state and federal tax payments.
• Implementation of communication plan, business operation, and configuration of invoice system that adjusts invoices and adds invoice line items as needed when clients miss milestone deadlines.
• General business operations knowledge-transfer and process workflow training.

Market: $50M based on 10K Accounting Firms in the U.S. with less than 16 headcount.

Product Analysis / comparison against competition:

Competition: 1) Manual maintenance of activities costing $15K annually on average for the market . 2) Office Admin trying best to implement and configure third-party tools on their own with poor results 3) Office Admin with limited third party support from desktop support provider. Results better but not great b/c desktop support specialist does not have accounting domain expertise or industry knowledge.

Stage: Ideation / Research Stage

Custom conversion strategy: Local strategy starting in Massachusetts, establish flagship customers for which services have been provided at steep discount for use of their brand, logo, and testimonials for online locally targeted marketing campaigns. Local industry networking events. Lead referral programs. Eventual partnership with third-party platform and service providers for software and services such as payroll including limited advertising on their platforms and capitalizing on their referral compensation plans.

Why you: Currently provide management consulting services to this industry and market segment ~5% of total business, been running successful consulting firm since 2014, background in accounting and finance with previous experience as a software engineer and systems implementation.

Open questions:

1. What percentage of small accounting firms perceive their operational inefficiencies as a problematic?
2. What percentage of those firms are they actively seeking solutions to address this problem?
3. To what extent could this service be provided remotely.

Hypothesis based on initial research: Accounting firms could increase the amount of customers / top-line revenue by 30% in the first 12 months of improving their operations without a change to their existing headcount.

Roast away

 

[frogger94]

Roast: Trying to solve a problem that exists in reality but not in the heads of accounting firm owners.

Figured I'd try to get the ball rolling.

 

[frogger94]

Roast: 30% improvement of nothing, is less the cost of what you are puffing.