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2 KPI's this thriving bookkeeping "firm" tracks

I had an interesting chat with Riley Horne from Bench, an online bookkeeping service, a few days back
Future Firm Weekly Top 5
2 KPI's this thriving bookkeeping "firm" tracks
By Ryan Lazanis • Issue #24 • View online
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 first KPI measures the satisfaction of their customers, where crafting a fabulous customer experience is what’s critical for many of the modern firms out there and more important than ever.
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.
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As always, thanks for reading and enjoy this week’s Future Firm Weekly Top 5:

1) Cloud Accounting Continues Big Growth
Xero’s Full Year 2019 Financial Results
2) Get Started with Cloud
3) Downsize Your Expensive Office
Co-Working Spaces: Not Just for Start-Up Anymore
4) Client Onboarding Done Right
5) Security Takes Center Stage
Xerocon San Diego - June 18-19
Build new connections. Learn about the latest tech & trends for your firm. Be part of the community. Register here for your discounted ticket ($225 instead of $499) and see you there.
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Ryan Lazanis

Future Firm Weekly Top 5 is your weekly curated insight into the top 5 things happening on the internet affecting the future of your accounting firm.

For more technology, practice management and marketing resources for your modern accounting firm, visit my website at https://futurefirm.co.

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