How to Scale an Accounting Firm: 10 Strategies for Growth

Until recently, a CPA firm was limited in how much it could scale based on the number of accountants it had on staff. It was difficult to offer financial advisory and tax preparation services to too many clients without sacrificing quality or dramatically increasing overhead.

Solo practitioners, in particular, often hit a ceiling, having to turn away work simply because there weren’t enough hours in the day.

But now, technology, smarter systems, and scalable service models have removed many of those roadblocks. From automation and AI to streamlined workflows and strategic hiring, firms of any size can now grow without ballooning their budgets.

Here are 10 practical ways you can scale your accounting firm without going over budget or compromising the quality of service you offer.

1. Save time and money with AI-powered accounting tools

Having the right tech stack can dramatically reduce the time your team spends on day-to-day tasks like categorizing expenses, reconciling accounts, and sending invoices.

For solo practitioners, AI can feel like having a full team behind you without the overhead. And for growing firms, it’s the key to scaling without constantly hiring. By automating routine work like transaction categorization and bank reconciliation, you can free up hours each week to focus on higher-value services like advisory and client strategy.

Accounting firms are already using Digits and its Autonomous General Ledger® to automatically book over 93% of transactions. It learns from each client’s historical data and chart of accounts, adapting as it goes so your team can close faster and spend less time on manual cleanup. Some clients have even reclaimed a full workday each month thanks to streamlined AI bookkeeping.

The benefit of this automation is both time and money. By offloading repetitive tasks, you reduce your reliance on manual labor and free up employees to focus on work AI can’t do, like client service and business development. That translates to lower payroll costs, fewer errors, and more capacity to take on new clients.

2. Build a strong foundation with standardized processes

A bottleneck for many accounting services firms is a lack of standardized processes. Many tasks are repeatable across clients. Clearly documenting each step ensures consistency and makes it easier to train new hires or delegate work efficiently. Examples of processes worth documenting include:

• Month-end close procedures
• Client onboarding workflows
• Tax return preparation steps
• Payroll processing checklists
• Quarterly reporting timelines and deliverables

Standardizing processes like these ensures each client receives consistent, high-quality service, no matter who handles the account. It also builds trust: Clients know exactly what to expect, when to expect it, and that nothing will fall through the cracks.

New hires can easily ramp up by reading the training materials, which should clearly outline these processes. When they sit in on in-person training sessions, they’re already up to date on the processes they’ll be responsible for.

Use tools like Scribe to create standard operating procedure (SOP) documents that describe processes, like how to perform month-end closes, and training materials. A screen recorder like Loom can also be helpful in demonstrating how you perform certain tasks in your accounting software, such as generating financial reports.

A well-documented process shortens turnaround times by eliminating guesswork and ensuring that every task follows a consistent, repeatable flow. It also reduces miscommunication by setting clear expectations for who does what and when, minimizing back-and-forth with clients.

3. Hire admin and support staff early to offload busywork

Another potential hurdle accounting firms face is the workload spike that inevitably happens at the end of each quarter and during tax season. If you’re understaffed, routine administrative tasks often get deprioritized as your team shifts attention to the most time-sensitive client work.

Preempt this potential issue at your firm by hiring new team members at least six to eight weeks before tax season begins. This gives you time to properly train them and build their confidence before crunch time.

If you’re a solo practitioner, consider hiring a temporary tax professional during your busy season to help manage client volume without compromising service quality. This way, you can take on more work while maintaining fast turnaround times and personalized service. Draft a clear, time-bound contract, typically lasting 10 to 14 weeks, to cover the full duration of tax season, including prep and post-deadline follow-up.

For administrative support, you don’t need to commit to full-time, in-house staff. Virtual assistants or offshore contractors can help with tasks like scheduling, document collection, or client communication, which frees up your time to focus on higher-value work without significantly increasing overhead.

4. Specialize in a niche to attract higher-value clients

Many clients choose an accounting firm based on price, especially if they don’t fully understand the value of the services provided. By specializing and clearly differentiating your firm, you attract clients who care about your expertise, not just your cost. These clients tend to value your insights, stay with you longer, and refer others to you.

Your niche might be offering financial advisory services to SaaS companies. Or helping small businesses set up their LLCs or S corps. Or offering your expertise to e-commerce brands on tax compliance, inventory accounting, and platform integrations. Find the gap in the market based on your potential clients’ needs and fill it.

When you specialize, you can charge premium rates for your deep understanding of that industry’s needs. And clients are more likely to stay with a firm that “gets” their business. Plus, you’re likely to get more referrals from industry peers because your name becomes synonymous with that niche.

5. Add scalable services

The more service offerings you automate, the easier it will be to scale sustainable growth for your firm. Accounting packages that include reconciliation, reporting, and payroll may require little manpower if you’re set up to leverage AI tools that do the work for you.

But scalability isn’t just about automation. It’s also about repeatability. Look for services that you can create templates for, deliver as a subscription, or package into tiers. Examples include:

• Monthly bookkeeping with set deliverables and reports
• Virtual CFO or advisory services with quarterly strategy calls
• Automated sales tax compliance
• Outsourced payroll processing
• Client onboarding and training modules using recorded tutorials or checklists

Platforms like Digits make offering a lot of these services easier by combining automated workflows, real-time dashboards, and branded client portals.

With built-in tools for reconciliation, bill pay, invoicing, and reporting, Digits makes it easy to offer services like monthly bookkeeping, accounts payable, and financial strategy, without adding more headcount. This way, you can deliver repeatable services at scale without reinventing the wheel for every client.

6. Systematize client onboarding and communication

Streamlining communication with clients and collecting documents frees up time to actually manage those accounts. If you’re waiting for a tax client to bring you physical receipts and bank statements (because that’s how you’ve always done it), it might be time to invest in software that allows customers to easily upload their documents through a client portal. The documents can be automatically scanned to extract key data, which makes your work in filing their taxes faster and more efficient.

If you find yourself responding to dozens of emails from clients about minutiae like whether they qualify for the child tax credit or whether a home office qualifies for a deduction, start automating some of your communications. For instance, you could have automatic reminders sent out that tax season is approaching or offer a chatbot to respond to frequently asked questions on your website.

You can also create a customer intake form that minimizes the back-and-forth communication and gives you everything you need to create a custom plan to help that client. For example, if a new small business owner is seeking monthly bookkeeping and tax support, your intake form can collect key details like entity type, accounting software used, number of bank accounts, and typical monthly transactions. With this information, you can determine the client’s needs right away.

Another option is to work with a platform like Digits. It centralizes your client communication with built-in tools made for accounting firms like branded client portals, document upload vaults, and one-click Q&A workflows, so nothing gets lost in email or stuck waiting for follow-up.

7. Build a marketing engine that brings in right-fit clients

Search engine optimization, advertising, referrals, and social media are all great ways to build your client base. So, develop a marketing plan that targets your potential customers where they spend time. Then, consistently work to build trust with them as part of your growth strategy.

Here are some elements you may want to consider as part of your marketing strategy:

• Website: Ensure your website is informative and SEO-targeted so your brand reaches the right audience.
• Blog: Publish posts that answer common client questions, industry-specific tax tips, or downloadable checklists for tax season to drive traffic and build trust over time.
• Advertising: Invest in Google Ads to increase the likelihood that your site is found in search results.
• Community participation: Sponsor a local event that targets your audience, such as a small business networking gathering.

To encourage referrals, set up a simple program that rewards existing clients, such as offering a service discount or a gift card for every qualified referral they send your way. Email your clients an invitation to participate with details on how to qualify.

Also, don’t underestimate the value of LinkedIn networking and niche Facebook groups, where your ideal clients are already looking for trusted professionals. Social media provides a great opportunity for you to engage in conversations with people in your target market.

8. Expand your reach through partnerships

Another effective way to scale is by forming partnerships with complementary businesses. For instance, if you serve small businesses or startups, consider offering free consultations through a local entrepreneur center. This builds trust early and positions you as a go-to trusted advisor, making participants more likely to return for ongoing financial services.

You could co-host a webinar or podcast with a financial planner, providing tax advice to retirees while the financial planner talks about retirement plans. You can also offer this audience a bundled package of services, adding more value when they sign up for both services together.

9. Use automation to increase capacity without new hires

Seventy-five percent of accountants say they’re spending too much time on repetitive tasks that take their focus away from more important work. Save time and cut down on your hiring spend by automating everything from report generation to marketing emails.

Today’s cloud-based accounting tools automate transaction categorization, bank statement reconciliation, and accounts payable tasks. Rather than wasting energy on these time-consuming tasks, you can focus on providing that personal touch that strengthens your client relationships.

For instance, Digits helps firms automate their entire back office, including reconciliation, bill pay, invoicing, reporting, and transaction review. With everything in one place, your team can work more efficiently, reduce errors, and serve more clients with the same headcount.

Beyond accounting functions, automation can also streamline marketing, onboarding, and client communication. For example:

• Zapier can automatically move new leads into your CRM and trigger onboarding sequences.
• Project management platforms like Notion can help centralize information, streamline onboarding and serve as a repository for client notes

By automating routine tasks across your firm, you increase capacity, reduce operational costs, and deliver a more consistent client experience.

10. Track KPIs like revenue per employee and client churn

Key performance indicators (KPIs) help you understand what’s working, what’s wasting resources, and where your firm has room to grow. Two important metrics to help you scale are:

• Revenue per employee: This tells you how efficiently your team is generating income. If this number is too low, it could signal overstaffing, underpricing, or unproductive workflows. Find ways to increase it by cutting unnecessary staff, implementing AI, or raising prices.
• Client churn rate: If clients are leaving frequently, you may have an onboarding, service delivery, or communication issue. High churn erodes accounting firm growth and wastes marketing dollars. Find ways to automate your onboarding process without losing that personal touch.

You may also want to track these metrics:

• Client lifetime value (CLTV): This is the total revenue you expect to earn from a client over the duration of your relationship. A high CLTV justifies investing more in client acquisition and retention strategies, like upselling advisory services.
• Client acquisition cost (CAC): This is the total cost of acquiring a new client, including marketing, sales, and onboarding. A high CAC may indicate inefficient marketing or sales funnels and can eat into profit margins if not offset by a high CLTV.
• Average project turnaround time: This refers to the time it takes to complete core deliverables, such as month-end close. A consistently long turnaround can signal workflow inefficiencies, while shorter, predictable timelines improve client satisfaction and free up capacity for more work.

Understanding how your accounting firm is faring can help you make strategic decisions like whether to raise your prices, hire staff, or invest in technology.

Scale your accounting firm with Digits

Most accounting firms don’t need more tools. They just need a platform built to scale. Digits replaces disconnected systems with one AI-native workspace that automates your back office from end to end — reconciliation, reporting, bill pay, invoicing, transaction review, and more — so you can deliver the books in days, not weeks.

Try Digits free and see how much more your firm can handle when the busywork takes care of itself.

FAQs

How do you scale an accounting firm?

You can scale an accounting firm by adding AI-powered tools to your tech stack, hiring staff before the busy season, specializing in a niche, and automating day-to-day tasks.

How do accountants use AI?

Artificial intelligence (AI) can automate many tasks for accountants, including transaction reconciliation, report generation, and bill pay. It can also help with business communication and forecasting.

How does AI reduce accounting costs?

AI can reduce the amount of manual labor involved in updating accounts and sending invoices. It can also reduce the incidence of human errors in data input, saving time and money.