How to build a profitable, scalable accounting firm
Scaling an accounting firm isn’t just about working harder—it’s about working smarter. Joe Woodard, CEO of Woodard, joined After the First Million to break down the three key shifts that firms need to make to grow beyond the million-dollar mark. From shifting your mindset to leveraging AI and offshoring, here’s how top firms are setting themselves up for long-term success.
Stop Doing the Work—Start Running the Business
One of the biggest challenges for firm owners is making the transition from being a practitioner to being a business leader.
“If you own a practice, your job is to lead teams and manage your business. It is not to produce your product. That mindset will be everything.”
For many accountants, the natural instinct is to stay hands-on with client work. But to scale, firm owners must focus on strategy, team leadership, and business operations—not just service delivery.
“You got into tax preparation and bookkeeping because you love it. And you’re going to have to give up what you love in order to scale your vision.”
By stepping back from daily client work and embracing a leadership role, firm owners can create a structure that allows for sustainable growth and greater impact.
The Path to a Million Is Simpler Than You Think
Many accountants assume hitting seven figures requires a massive client base and a large team. Joe Woodard breaks it down differently:
“How many clients does it take to get to a million? If your average monthly recurring revenue per client is $2,500, it takes 32 clients per million.”
Instead of chasing hundreds of clients, focus on:
- Targeting the right clients: Define your ideal client profile based on company size, complexity, and industry.
- Offering high-value services: Move beyond bookkeeping into controllership and advisory services.
- Pricing strategically: Value-based pricing ensures you’re compensated for the impact you deliver, not just the hours you work.
With just 32 clients paying $2,500 per month, a firm can hit the million-dollar mark without an oversized team or unsustainable workloads.
AI and Offshoring Are Tools—Not Threats
The rise of AI and offshoring has sparked fear in the accounting industry. But Woodard sees them as necessary tools for scaling efficiently.
“The firms that succeed going into the future will be the ones that embrace AI to automate manual tasks and offshoring to help scale the remaining tasks efficiently.”
AI can handle transactional work like reconciliations and financial data analysis, freeing accountants to focus on higher-level strategy. Offshoring allows firms to delegate routine tasks while keeping advisory and client interactions in-house.
“If you were tuned out in this podcast, I was trying to tune you in with a weird story of an owl so that I can get to this. How many clients does it take to get to a million? … 32 clients per million.”
By combining AI and offshoring with value-driven pricing, firms can increase profitability without increasing their workload.
The Future of Accounting: Growth with Purpose
Scaling beyond a million dollars isn’t about grinding harder—it’s about making strategic shifts in mindset, pricing, and operational efficiency.
“The most successful firms won’t just think about how do I do the work? They’ll protect, guide, and improve their clients’ businesses.”
If you’re ready to take your firm beyond the first million, Decimal can help. Schedule a time with a Decimal expert at https://www.decimal.com/contact-us.
