Prices are rising everywhere, from payroll to software to the coffee you keep stocked in the breakroom. For accounting firms, the impact can be even more noticeable, with operating costs climbing faster than many revenues.
But here’s the good news: You don’t have to grow your top line to improve your bottom line. Sometimes, the biggest profit gains come from cutting costs. That’s exactly what The Accountant’s Guide to Lowering Your Expenses from Mango explores practical, actionable ways to run your firm more efficiently without sacrificing quality or client service.
The guide focuses on five core areas where firms can meaningfully reduce costs:
1. Technology
Many firms overspend on software. Mango suggests auditing all licenses and subscriptions regularly, canceling unused tools, and consolidating features into a single platform where possible. Better yet, explore a robust practice management solution that combines project management, billing, time tracking, secure file sharing, and eSignatures in one place.
💡 Regular expense audits—monthly or quarterly—can stop “small” costs from quietly snowballing into big ones.
2. People
Your team is your biggest asset and often your largest expense. Track utilization rates (aim for 85% or more for non-leadership roles), implement time tracking even for non-billable work, and rethink your hiring strategy to avoid both costly overstaffing and burnout-inducing understaffing.
Consider whether certain roles could be handled more cost-effectively by contractors during peak seasons. And don’t forget a benefits audit, sometimes no-cost perks like flexible hours or remote work are valued more than expensive, underused benefits.
3. Operations
Waste often hides in everyday processes. Examine profitability by client, project, and even employee to identify where resources are best spent. Cut unnecessary meetings, encourage “deep work” without constant interruptions, and streamline vendor contracts for better rates.
Shifting to digital workflows can dramatically reduce paper, printing, and postage costs. Even shopping around for internet or insurance providers can yield surprising savings.
💡If a client costs more in time and resources than they bring in revenue, consider “rehoming” them to free capacity for higher-value work.
4. Payments
Inefficient payment practices eat into cash flow. The guide recommends shortening payment terms, moving to monthly recurring billing, and exploring next-day funding to access your money faster. Adding surcharges for credit card transactions, which is now standard in many industries, can also protect margins.
5. Sales & Marketing
Not every marketing channel delivers equal value. Apply the 80/20 rule: focus on the 20% of activities that deliver 80% of your best leads. If referrals drive most of your business, consider investing more in relationship-building and referral incentives rather than low-performing ad campaigns.
Likewise, evaluate your client list. Double down on your most profitable relationships, and consider phasing out those that consistently drain resources.
💡 The cheapest lead is a referral from a happy client. Make it easy and rewarding for them to send new business your way.
The Bottom Line
Lowering expenses isn’t about penny-pinching; it’s about making intentional, data-driven choices. By refining technology, managing people and operations more strategically, optimizing payments, and focusing marketing efforts where they count most, firms can boost profitability while improving the client and employee experience.
Want the full playbook?
Download The Accountant’s Guide to Lowering Your Expenses from Mango and get step-by-step strategies to put these ideas into action.
Insightful Accountant Newsletter
Like what you're reading?
Subscribe to our FREE newsletter and we'll deliver content like this directly to your inbox.