It’s not simple to organize your accounting practice’s business restructuring. However, it does not imply that it cannot be done. Particularly with sound planning and strategy.
The objectives and vision for your accounting firm should be reflected in the organizational structure you adopt. Businesses grow, change, expand, contract, outsource work, and more as time goes on. Your organizational structure should be appropriate for the stage your company is in right now.
Successful accounting firm owners have discovered that bringing any amount of change and its effects on their personnel requires careful balancing.
What is Business Restructuring?
Rearranging who each of your team members reports to is referred to as business restructuring. It might also consist of:
- Resource relocation
- The implementation of new procedures
- Revised restructuring strategy
Did you know?
Interest rates are anticipated to increase, the Federal Government’s expenditure plan to be less substantial than anticipated, and lenders’ covenant requirements to be more onerous in 2022.
Due to these factors, we anticipate a rise in business restructuring in the second half of 2022 and into 2023.
The three pillars of an accounting firm’s business restructuring
At every level, change is difficult. Even little organizational changes should be introduced with consideration. If your company is about to undergo a reorganization, consider these three pillars as your guide to ensure success:
- Recognize your “why”
- Create a unified strategy
- Promote and communicate transparency
1. Recognize your “why”
You must first comprehend the reasons behind your accounting firm’s necessity for corporate restructuring. Ask yourself: What is the driving force behind this change, and why is it required?
Make sure you and your management understand the necessity for the business restructuring, the desired outcome, and how the changes will affect your personnel and clients before moving forward.
Pro tip: To better comprehend the changes you propose, perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). Engage your leadership team so you can comprehend broader effects on your firm.
2. Create a unified strategy
Your success depends on having a refined, end-to-end plan once you are clear on the scope of the reorganization.
Consider situations like this when determining the extent of the modifications to include in your plan:
What kind of administrative structure best supports your business needs?
For instance, is it a flat, hierarchical, or matrix structure? A hierarchical structure is common among traditional accounting businesses. However, it might be time to determine if this structure is suitable for your company and your present corporate goals.
Each has benefits and drawbacks, depending on the particular requirements of your company. To create the ideal plan, understand what the functional domains, departments, roles, and lines of authority must entail.
3. Advocate for and communicate openness
Naturally resistant to change are humans. And change is challenging, particularly at work. Building a relationship of trust with your staff is crucial. It requires effort to maintain trust, which can make or break your reorganization.
Set a good example as the owner of the practice and commit to communicating frequently.
Explain to your workers why the change is necessary and how it may be an exciting adventure that can advance your company.
Throughout the procedure, you and your leaders should maintain open lines of communication and deliver a message that is constant and unambiguous.
If layoffs and downsizing are anticipated, you must prepare for any inquiries or concerns and respond sensitively. Sincere and prompt information at each stage will go a long way, even if you are unsure of how jobs may be affected.
Make the jump (carefully)
Your organizational reorganization will only be as successful as your preparation, much as a successful Michelin star restaurant diligently prepares for service each night or a professional athlete develops their body correctly for competition.
The first step to implementing a change is to know why the change is happening, create a comprehensive plan, and remain transparent with your team throughout. Whether it’s for yourself, your team, or your clients, taking these steps can transform your practice.
Ready to grow your business? Speak to our growth experts and learn how to expand your customer base, drive revenue growth, and optimize your business operations.
