Jason On Firms Podcast 488 There Are Only 3 Types of Accounting Firms
Jul 28, 2025
Discover the three distinct types of accounting firms and how they evolve over time. Learn about the importance of client selection and how it transforms agency within the business. Explore the three critical phases of an accounting firm, emphasizing the shift from being reactive to proactive in business development. The conversation highlights the vital role of marketing and niche engagement in attracting clients and staff, encouraging listeners to adopt a progressive mindset for success.
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Accounting Market Has High Demand
- The market demand for accounting services vastly exceeds supply, making it easier to start a profitable firm.
- Even imperfect service can still generate strong earnings due to this favorable market.
Phase Two: Selective Acceptance
- Phase two firms begin to say no selectively as their capacity is reached.
- They face a dilemma about keeping early, less profitable clients out of loyalty versus optimizing profitability.
Client Loyalty Is Often Misconstrued
- Early clients often stay due to convenience and low cost, not deep loyalty.
- Most clients treat the relationship as a business transaction rather than a personal connection.