I had an interesting chat with Riley Horne from Bench, an online bookkeeping service, a few days back. Bench have raised about $50m of venture funding since 2013, employ around 350 and are helping to reshape the bookkeeping world.
One thing I found interesting is the 2 KPI’s they track for their bookkeepers:
1 - Net Promoter Score
2 - Clients per bookkeeper
But wait, does Bench track time for their bookkeepers? Nope.
These 2 KPI’s are very indicative of where the market is heading.
The second KPI speaks volumes to the level of automation and standardization that they have employed. The more they automate/standardize, the more clients each bookkeeper can handle.
“But what about knowing profitability per client?”
I will catch some flack for this, but honestly.. who cares? Clearly Bench doesn’t and neither do any other of the successful scalable accounting/bookkeeping firms that I know of. Costs are fixed. Revenues are predictable and recurring. It’s pretty easy to run the numbers and figure out what makes sense from an overall company perspective. They are operating more like a tech startup SaaS (software-as-a-service) model than a bookkeeping firm, which makes a lot of sense.
As the market evolves, so must your model and your KPI’s.
As a reminder, Xerocon San Diego is around the corner happening from June 18-19. If you’re thinking about moving your firm into the future, it’s a great place to learn about new trends and the latest technology for your firm. Scoop up your discounted ticket here
and don’t forget to come say hi!
As always, thanks for reading and enjoy this week’s Future Firm Weekly Top 5: