Announcement posted by Chan & Naylor 20 Jun 2017
The end of the 2017 financial year is upon us and with FY2018 just around the corner, we better start changing our charge out rates for our teams after determining the new wages of our staff.
Determine your whole team's capacity and the resources you need. You should prepare your capacity spreadsheet before hiring extra staff even when your work load peaks and it is tempting to hire more. Remember that when workload drops because it's cyclical, you will have excess staff that will hit your bottom line.
You have to achieve a win win balance for everyone through proper management of business and teams. Poor management means some stakeholders losing, staff not being paid decent wages, creditors not being paid, clients paying excessive fees or shareholders not getting their fair return of investment.
As a manager, you have to run your teams “Narrow and Deep” and not “Shallow and Wide.”
This means your teams should have a Client Manager with three Accountants. The Narrow and Deep structure is easier because there are more working accountants who are easier to find than managers. This is not only profitable, your Client Managers will also get the opportunity to develop their careers.
You should avoid the Shadow and Wide structure where Client Managers work on their own with no staff doing the work. This means you have to find a superstar who is expensive and hard to find. These people charge their admin and bookkeeping tasks at accounting rates which can be a loss to clients. Alternatively, time is also written off.
I encourage you to use the right charge out rates and the Narrow and Deep structure to run your teams for a more profitable and successful business.
For more information about business in Australia, contact a Specialist to discuss your particular circumstances.
For more tips and advice from other industry experts, visit www.chan-naylor.com.au