FY24 Benchmarking Report: Insights for Australian Accounting Firms

Our friends at Dashboard Insights have released their highly anticipated FY24 Benchmarking Report, packed with valuable insights and key trends that reveal growth opportunities for Australian accounting firms. Here at Clarity Street, we’ve carefully reviewed the report and have identified some of the standout takeaways that we believe deserve special mention. These insights aren’t just about benchmarking performance—they highlight actionable areas where firms can improve, evolve, and ultimately thrive in today’s competitive landscape. 

Steady Revenue Growth 

One of the most encouraging findings from the report is the 8% revenue growth across the industry in FY24. This growth is a testament to the resilience of accounting firms, even in the face of economic uncertainty. It also underscores the importance of strategic focus on client acquisition, pricing adjustments, and expanding service offerings. Firms that have diversified their services and adapted to changing market conditions are reaping the rewards. 

If your firm hasn’t yet fully explored pricing strategies or services diversification, now’s the time to do so. There are significant opportunities to increase revenue by targeting higher-value clients and expanding service offerings to meet evolving client needs. This steady growth proves that firms of all sizes can thrive by focusing on the right drivers—strategic pricing, diversified services, and strong client relationships. 

Efficient WIP Management 

Smaller firms are setting the bar when it comes to WIP (Work in Progress) recoverability, with some reaching impressive rates of up to 98%. This high level of efficiency is a direct result of well-managed WIP practices, including streamlined billing processes and more accurate time tracking. For larger firms, this presents a real opportunity to improve their WIP recovery rates by revisiting internal systems, enhancing the invoicing workflow, and adopting more efficient practices that convert WIP into revenue faster. 

Firms that streamline their WIP management not only enhance profitability but also improve cash flow—something that can significantly impact the bottom line, especially during challenging financial periods. By investing in more efficient practices and technology, firms can stay on top of their WIP and ensure that unbilled work doesn’t become an issue that eats into overall revenue. 

Consistent Job Turnaround Time 

Another interesting takeaway from the report is that, across all firm sizes, the average job turnaround time remains consistent at around 70 days. While this consistency reflects stable operations, it also points to an area of potential growth. Firms that can reduce job turnaround time will see immediate benefits, from improving cash flow to enhancing client satisfaction. 

Faster job completion doesn’t just mean faster revenue recognition; it also helps firms manage workloads more efficiently and meet client expectations more consistently. Reducing job turnaround time often involves addressing bottlenecks, improving communication, and leveraging technology to automate or speed up tasks. Firms that are able to optimise this area will be better equipped to scale operations without adding excessive overhead. 

Partners on the Front Line 

One of the more surprising findings in the report is that 85% of partners are still heavily involved in day-to-day operations. While many partners thrive on the hands-on approach, it can also be a significant barrier to scaling a firm. This presents a real opportunity for firms to review their operational structure and look at ways to push work down to junior staff, freeing up partners to focus on strategic leadership and business development. 

Achieving this shift is easier said than done, but it is crucial for firms looking to grow and scale effectively. Building operational effectiveness and empowering staff to take on more responsibility is key. This will not only improve efficiency but also increase overall firm capacity and provide opportunities for the next generation of leaders to emerge. 

Rethinking Staffing Solutions 

As the industry faces ongoing staffing challenges, many firms may instinctively think that hiring more staff is the solution to handling growing workloads. However, the report suggests that adding headcount isn’t always the best approach. Instead, firms should focus on improving internal efficiency and optimising their tech stack to reduce reliance on additional team members. 

By streamlining processes, automating repetitive tasks, and adopting new technology, firms can manage increased workloads without the need for significantly expanding the team. This not only saves on staffing costs but also makes the firm more agile and scalable in the long term. Technology has the potential to unlock new efficiencies and streamline operations, helping firms run smoother with fewer resources. 

Need Help with Any of the Above? 

At Clarity Street, we specialise in helping accounting firms unlock their potential through process optimisation, technology adoption, and smarter operational strategies.  

If any of the points above resonate with you and your firm, we’d love to have a conversation about how we can help you make positive changes. From streamlining your tech stack to empowering your team, we’re here to guide you through these improvements. 

Download the full Dashboard Insights Report here to dive deeper into these trends and discover how your firm can put them into action.