When COVID-19 lockdowns began in March 2020, most accounting practices focused on survival. However, one Perth practice saw opportunity in the chaos and made strategic decisions that transformed a $750,000 suburban firm into a $2.5 million digital powerhouse serving clients across Australia.
This case study demonstrates how forward-thinking practices can turn industry disruption into competitive advantage and substantial value creation.
Pre-COVID Position
Sandra Mitchell* operated Mitchell Business Services from a Joondalup office, serving local small businesses and individual clients. The practice was successful but faced typical suburban constraints:
Limited Market Reach
- Client base confined to northern Perth suburbs
- Competition from larger city firms for quality clients
- Difficulty attracting high-value business clients
- Geographic limitations on growth opportunities
Traditional Service Model
- Face-to-face meetings required for most client interactions
- Paper-based document exchange and filing systems
- Manual bookkeeping and compliance processes
- Seasonal workload creating capacity constraints
Staffing Challenges
- Difficulty attracting qualified staff to suburban location
- Limited career progression opportunities
- High commute costs for quality candidates
- Competition from city firms offering higher salaries
Despite these challenges, the practice was profitable with strong client relationships and annual fees of $750,000.
The COVID Catalyst
When lockdowns began, Sandra faced an immediate crisis. Traditional client service delivery became impossible overnight, and many clients were experiencing severe financial stress. However, rather than simply reacting to survive, she decided to fundamentally transform her practice model.
Strategic Response Plan
Working with SMF’s practice development team, Sandra developed a comprehensive transformation strategy:
Phase 1: Immediate Digitisation (March-June 2020)
Technology Infrastructure
- Migrated entire practice to cloud-based systems within four weeks
- Implemented secure client portals for document exchange
- Established video conferencing capabilities for all staff
- Created automated workflow systems for routine processes
Service Delivery Revolution
- Transitioned all client meetings to video conferencing
- Developed online client onboarding processes
- Created digital document collection and processing systems
- Implemented real-time financial reporting capabilities
Staff Transformation
- Provided home office setups for all team members
- Implemented collaboration tools and communication systems
- Developed new performance measurement systems
- Created flexible working arrangements
Phase 2: Market Expansion (July-December 2020)
Geographic Growth With location no longer a constraint, Sandra began targeting clients across Western Australia and eventually nationwide:
- Professional services firms in regional centres
- E-commerce businesses operating across Australia
- Mining service companies based in Perth but operating nationally
- Technology startups requiring scalable accounting services
Service Innovation
- Developed automated bookkeeping services using AI tools
- Created real-time business intelligence dashboards
- Launched CFO services for growing businesses
- Implemented subscription-based pricing models
Specialisation Strategy
- Focused on technology and professional services sectors
- Developed expertise in R&D tax incentives and government grants
- Created specialist services for e-commerce businesses
- Built knowledge in cryptocurrency and digital asset accounting
Phase 3: Scaling and Systematisation (2021-2022)
Team Development
- Recruited specialist staff from across Australia working remotely
- Developed comprehensive training and onboarding systems
- Created career progression pathways within specialised service areas
- Implemented performance-based compensation structures
Process Optimisation
- Automated routine compliance work using advanced software
- Developed standardised service delivery methodologies
- Created quality assurance systems and client feedback processes
- Implemented project management tools for complex engagements
Market Positioning
- Established thought leadership through content marketing
- Developed strategic partnerships with technology providers
- Created referral networks with complementary professionals
- Built reputation as digital accounting innovation leader
Extraordinary Results
The transformation delivered remarkable outcomes over three years:
Financial Performance
- Annual fees grew from $750,000 to $2.2 million (193% increase)
- Profit margins improved from 28% to 44%
- Average fee per client increased 180%
- Practice valuation reached $2.5 million
Operational Excellence
- Client retention rate of 98% despite dramatic service changes
- Staff productivity increased 85% through automation
- Service delivery time reduced 60% for standard services
- Client satisfaction scores improved across all measures
Strategic Value Creation
- Developed proprietary technology solutions with licensing potential
- Built valuable intellectual property in specialised service areas
- Created scalable business model with minimal location constraints
- Established platform for continued national expansion
Client Success Stories
The transformation benefited clients significantly:
Regional Mining Services Company A Kalgoorlie-based mining services firm needed sophisticated financial reporting and cash flow management. Sandra’s digital platform provided real-time insights that helped them navigate COVID-related contract cancellations and secure additional work.
Perth Technology Startup An AI software startup required R&D tax incentive expertise and scalable accounting systems. Sandra’s team provided specialised knowledge and cloud-based systems that supported their rapid growth from startup to $5M revenue.
National E-commerce Business An online retailer needed multi-state compliance management and inventory accounting. Sandra’s automated systems and process expertise enabled expansion across Australia whilst maintaining accurate financial reporting.
Key Innovation Elements
Several innovations were crucial to the transformation’s success:
Technology Integration
- Advanced automation reducing manual work by 70%
- Real-time reporting capabilities providing immediate insights
- Secure cloud platforms enabling remote collaboration
- AI-powered tools for data analysis and forecasting
Service Delivery Model
- Subscription-based pricing providing predictable revenue
- Standardised processes enabling consistent quality
- Scalable systems supporting rapid client acquisition
- Specialised expertise commanding premium fees
Team Structure
- Remote-first culture attracting talent from across Australia
- Specialised roles enabling deep expertise development
- Flexible arrangements improving work-life balance
- Performance-based compensation aligning incentives
Challenges Overcome
The transformation wasn’t without obstacles:
Client Resistance Some traditional clients initially resisted digital service delivery. Solution: Gradual transition with extensive support and demonstration of benefits.
Technology Learning Curve Staff needed significant training on new systems and processes. Solution: Comprehensive training programs and ongoing support.
Quality Control Maintaining service quality during rapid growth required systematic approaches. Solution: Standardised processes and quality assurance systems.
Cash Flow Management Investing in transformation while maintaining operations required careful financial planning. Solution: Phased implementation and government support programs.
Industry Recognition
Sandra’s transformation gained significant industry attention:
- Winner of 2022 CPA Australia Innovation Award
- Featured speaker at national accounting conferences
- Case study in professional development programs
- Mentor for other practices undertaking digital transformation
How SMF Supported the Journey
SMF’s role extended far beyond traditional brokerage services:
- Strategic planning and transformation guidance
- Technology platform recommendations and implementation support
- Market expansion strategies and client acquisition planning
- Financial modelling and investment planning
- Ongoing performance monitoring and adjustment recommendations
Lessons for Australian Practices
This case demonstrates that disruption can create unprecedented opportunities:
Embrace Change Early Practices that adapt quickly to market changes can gain substantial competitive advantages over slower-moving competitors.
Technology as Enabler Advanced technology can remove traditional constraints and enable new service delivery models.
Specialisation Pays Developing deep expertise in specific areas allows for premium pricing and stronger client relationships.
Geographic Irrelevance Digital service delivery makes location largely irrelevant for many accounting services.
How SMF Can Help Your Practice
At Sell My Firm, we help Australian practices identify and capitalise on transformation opportunities. Our services include:
- Strategic transformation planning
- Technology implementation guidance
- Market expansion strategies
- Performance optimisation
- Value maximisation planning
Whether you’re facing industry disruption or simply want to build a more valuable and resilient practice, SMF can help you develop and execute transformation strategies that create substantial value.
*Names have been changed to protect client confidentiality.