How Large Accounting Firms Stay Successful - Huntersure

How Large Accounting Firms Stay Successful

Posted on: July 21, 2022 by Huntersure LLC.

Large accounting firms become successful through many years of evolution and hard work to ensure their brand grows. Becoming an accountant requires years of education, formal training, and a stringent licensure process. The bar is set high for a good reason — accountants must manage clients’ financial affairs, oversee bookkeeping, and generate financial reports. Each of these tasks comes with an array of liabilities, so it’s essential to invest in professional liability insurance for accountants. How do large accounting firms minimize these liabilities and maintain a high level of success? Staying successful as an accounting firm is a balancing act, but top firms have a few key components in common.

Diversified Client Base

One of the most innovative things an accounting firm can do is diversify its clientele. A broader base of clients will help a firm keep a reliable revenue stream across multiple sectors. It may seem appealing to hone in on a single area of specialization, but this can result in a pigeonholed practice. Accounting firm success relies on your ability to grow and adapt, so it’s essential to keep a diverse clientele if you want to ensure the longevity of your firm.

Provide More Services

Just as you want to maintain a diverse set of clients, you also want to keep a diverse group of services. The more services you can offer, the more business you can accept, which means you can expand operations. It also means you may gain some more revenue from your existing client base. If you only offer services to small businesses, your clients may look elsewhere when they need other services, such as their personal tax returns filed.

Keep Experts on Staff

The best way to ensure that your firm can cover a wide breadth of areas is to keep experts on staff who specialize in these areas. It would help if you kept somebody on staff who is a specialist in bookkeeping, an expert in small business tax compliance, and another who handles payroll tasks for big companies. These are just a few examples of the various accountants you should keep on staff, ensuring that your customers feel they are getting excellent service.  

Awareness of Liability

Accountants are experts at recognizing liability. It’s their job to sniff out any potential liability lurking within a client’s books, so an accounting firm must direct this same level of scrutiny inward. There are many liabilities associated with accountants’ work, and a single misstep could easily result in legal action against a firm. In addition to investing in insurance, accounting firms should thoroughly train all staff on best practices for handling clients’ sensitive information and other common culprits of risk.

About Huntersure

Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.

Posted in: Accountant Professional Liability