‍The Biggest Growth Barrier? The Firm Owner

Most accounting firms stay small because everything depends on the owner.

Growth naturally stalls when the firm’s success relies entirely on one person. The owner gets caught up in day-to-day client work, administrative tasks, and putting out fires, leaving no time to think strategically or improve operations.

Matt explains, “The firms that grow past $1M don’t just take on more work. They build systems and teams that allow them to scale.”

The firms that remain stuck below seven figures often fall into these common traps:

•  The owner is too involved in every client interaction.
• There’s no scalable system—just a patchwork of manual processes.
• Growth means working more hours, not building a better business.

To move beyond this cycle, firm owners need to shift from an accountant to a business owner.

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Why Manual Work is a Scaling Killer

The biggest operational challenge for small firms? Too much manual work.

Most accounting businesses rely on outdated processes—emailing spreadsheets, chasing clients for documents, and doing everything by hand. This limits how much work they can handle and creates bottlenecks as the firm grows.

To scale efficiently, firms need to:

•  Automate routine tasks – Leverage technology to eliminate repetitive work.
•  Standardize workflows – Create structured, repeatable processes.
• Delegate effectively – Stop being the bottleneck and build a strong team.

“You can’t scale a business that runs on manual work. You'll eventually hit a wall if every new client means more hours.”

Revenue ≠ Profitability: Why Growth Alone Isn’t Enough

A common mistake firm owners make is chasing revenue growth without focusing on profitability.

Adding more clients might sound like the right strategy, but it's a losing game if your margins shrink and you’re working twice as hard for the same take-home pay.

Successful firms focus on:
Pricing services for profitability – Stop undercharging and create value-based pricing models.
Offering scalable services – Recurring revenue models (like monthly advisory services) help smooth cash flow.
Eliminating inefficiencies – Reducing time spent on low-value tasks increases profitability.

Growth should make your firm more efficient and profitable—not just busier.

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What It Takes to Break Past $1M

What sets the successful ones apart if most firms never scale beyond six figures?

They shift from being solo operators to business owners.
They leverage technology and automation instead of relying on manual work.
They build scalable systems that don’t depend on them being involved in everything.

Firms that reach seven figures don’t just work harder—they work smarter. They design their businesses to grow sustainably, focusing on efficiency, profitability, and a team that supports the firm’s vision.

“Scaling past $1M is a choice. It’s about deciding to build a business, not just do the work.”

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The Takeaway: The Path to a Scalable Firm

If your firm feels stuck below $1M, it’s time to rethink your approach.

Matt’s key takeaways: 

• Stop doing everything yourself—build a team and delegate.
•  Automate manual work so your firm can handle more clients efficiently.
•  Focus on profitability—not just revenue growth.
•  Create systems that allow your firm to scale without burning out.

Want to hear more? Listen to After the First Million for insights from Matt Tait on growing, scaling, and building an accounting firm that thrives beyond the first million.