A lot of firm owners track the wrong things, like obsessing over billable hours, utilization rates, and time spent per client—metrics that don’t actually tell you if you’re building something profitable and sustainable.
In this episode, I’ll share the two numbers I focused on to build two successful firms, and why they’re way more important than tracking every minute of your day.
Listen below.
0:40 I don’t do my own books or taxes. I outsource it all. Some of you might think that’s a bad look for someone who coaches accounting firm owners. But I’m fine with it because I’ve run two highly profitable businesses.
1:50 I focused on two metrics. First, bottom line profits. Not broken down by client or service. Just the overall number—how much cash lands in the account.
3:52 When I was running my firm, I didn’t care if a client took five or fifteen hours in a month. Instead, I focus more on whether they paid a recurring fee that contributed to MRR (the second metric) and whether that fee was profitable over the year.
5:50 Other metrics are worth tracking as you grow. Client lifetime value is one of the most useful.
7:19 Gross margin is another key metric. It shows what percentage remains after direct costs and reveals whether your profitability and pricing are working.
9:02 Focus on the numbers that actually matter—the ones that reveal if you’re on track and guide better decisions.
9:40 To circle back—not doing my own books or taxes might be an advantage. I’m not getting buried in details.
