A recent study showed that there are more than 1,15,540 practising chartered accountants in India. Other than this fierce competition, the primary concern that most CAs face is to find a way to grow their practices. Chartered accountants are restricted from advertising their services in the market; so, seemingly only positive reviews and recommendations from existing clients can bring in new customers.
However, there are a few other ways in which you can grow your practice while adhering to the code of ethics laid down by the ICAI. These techniques require good planning, a few essential tips for every practising CA to keep in mind, and in some instances, proper financial backing. While the financial burden can be easily mitigated with the help of a business loan for chartered accountants, the rest of the processes require a strong drive to take your firm to the next level. Let’s take a look –
1. Build better partnerships
CA firms have to constantly balance their efforts between completing the existing work at hand and finding new projects to work with. The process can get hectic when there is a lot of work pressure like during the time of IT return filing. Forming a partnership will allow your firm to effectively manage both.
There are a few things that you should remember when you work with a partner. Remember to review the output on a periodic basis to see if it is enough to grow your business or not. Also, factors such as unclear revenue sharing model, lack of mutual understanding, and demand for a fixed percentage regardless of the amount of business can hamper the partnership. You should get a clear understanding of these issues and create an agreement before you head into the partnership.
2. Ask for referrals from the veterans of the industry
If you are just starting an accounting firm, you can ask the seniors of the industry for referrals. Veterans of this industry often recommend clients to newcomers on a profit-sharing basis. Although they will keep the bulk of the income, you will build a strong reputation in the market and grow your credibility as a newcomer. You will also understand the type of work available in the market and gain experience on them.
There are multiple ways in which you can finance your CA firm even when you are paying a large partnership fee. For instance, you can avail a CA loan to meet the financial crunch during this time.
3. Target locations where there is a shortage of chartered accountants
Generally, smaller cities and towns have lesser chartered accountants than what the local businesses demand. You can target the smaller financial hubs around the country instead of opening your branch office in a metropolitan. Periodically visiting these places during peak time is also another way of getting a good exposure. You can make a name for yourself much quicker in smaller cities and towns.
Opening a branch office requires significant financial backing. If you do not want to deplete your personal savings, you can opt for a loan for chartered accountants. Multiple financial institutions in India offer such loans with attractive terms and conditions.
4. Concentrate on fees and payments
Experts recommend maintaining a proper billing system to make sure you collect all the fees and payments in time. You may deplete your working capital if the dues keep piling up. Also, you can ask for an advance from your clients before starting the work.
5. Ensure quality work
Quality work will ensure recurring clients. It will also increase the chances of getting references from existing clients. You must not compromise with the quality of work; otherwise, you will lose your entire clientele.
You can easily grow your practice by following the points mentioned above. To boost your efforts, you can avail a business loan for chartered accountants and take your firm to the heights of success.
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