When you are just getting started, the founders will be involved in many areas, because you have fewer resources. However, even early on, you should be creating systems that allow you to gradually remove roles off your plate and replace yourself.

A simple way to break down the systems in an organization is to look at Ed’s seven key areas of an accounting business:

1. Board of Directors (Leadership)

2. Marketing

3. Sales

4. Production

5. Quality (Client success)

6. Office administration

7. Financial reporting

A systems-focused accounting firm will have a leader in each of these seven business units, and the ability to hold each one accountable. Eventually, the founder will only be in the leadership role, and will only need to review the other areas in a monthly meeting.

The sustainable benefits of a scalable accounting organization

Growth is not a problem: When you have a systems-focused organization, you don’t need to fear growth. You have a system for growing and can decide how big or small you want your company to be.

Staff expectations are clear: Rather than relying on every staff member to be a superstar and wear many hats, you have clear roles with specific descriptions. This allows your team to play to their strengths and you will never be vulnerable to a person leaving.

The company is more profitable: A systems-based accounting business is more profitable because you are data-driven and accountable. The alternate partnership model leads to wasted time and inefficiency, which eats into your cash flow.

Staff is easier to manage: With systems in place, you can manage your staff even as the number of them grows. You can delegate, build in structure for accountability, and have well-defined roles and managers. With this transparency,  it’s much easier to keep your entire business in check.

Create passive income: The final goal for founders should be to remove themselves from every role in the business. By hiring the right people in the proper roles, your business can be an asset that produces income for you every month. Then, you can enjoy a passive income stream and dictate what you do with your time.

With the right systems in place, you are no longer trapped in your own business but can take control of what you want the business to be.

How to get started

The first step is to evaluate where your business fits on the spectrum between a people-based structure or systems-based.

Start with Ed’s seven key areas above and think about how your business defines each area. Once you lay out these functions, you can start to put leadership in the proper areas with clear descriptions of how the systems work.

Investing in systems is not a quick fix, but is extremely rewarding in the end. To dive deeper, watch Ed Chan’s full webinar on how to build a scalable organization here.