Apr 2021

Why it’s critical for Accounting firm owners to get out of the business, and turn it into an investment

By: Odyssey General
Tags: cashflow, community, investment, leadership, value

We’ve all seen the cash flow quadrant which encourages people to move from being an employee (having a job) into being self-employed (owning a job) to being a business owner (owning a system) and into being an investor (owning investments).

Whilst it’s a sobering thought of the massive number of companies that don’t make it to the second year, let alone the 10th year (Odyssey now is 23 years old as of writing), most accounting firm owners would agree that the main value of assets they hold (outside their home) is the value of their accounting firm.

At the same time, many Australian accounting firm owners struggle to step away from the tools, and move through the quadrant into owning investments.

Of particular relevance to Australian accounting firm owners, it’s critical to put in place the systems to make the firm work seamlessly, and then step away from the day to day management of… everything.

This means stepping away from phone calls, emails and bank statements. These are by far the things that Australian accounting firm owners have trouble delegating.

However, this is critical for a number of reasons. Firstly, it’s only when you step away from managing (or micromanaging) that your staff can truly develop into the leaders of your firm. It’s not only in your best interests, but also better for their career development.

Secondly, with the newfound time you have, it’s now critical that once you reach the stage of turning your firm into an investment, that you look to see how you can give back: give to your employees, and give to the community. It’s well researched that giving decreases blood pressure and removes stress (it makes you feel good), which leads to longer life and better health. Giving also promotes social connection and strengthens community bonds.

We say that it’s not only critical your goal is to turn your firm into an investment (and contributing to the community), but it’s your responsibility as a business owner to have this as your personal goal.

We hope you enjoyed this blog, and remember if you need assistance with your outsourced Australian tax compliance work then please drop us a line.

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