We’ve all been there: what starts as a straightforward project balloon into something much bigger, straining your team, delaying timelines, and eroding your profits.
If you are thinking – “No No… Scope Creep in my accounting firm? Never”
Then let me present a scenario you might find familiar.
Adam (real story, fake name) signed on a promising new client—a growing startup in the sustainable tech space. He was excited, and so were they. The engagement letter was signed, the scope – was clearly defined, and all were ready to dive into the work.
The tasks were laid out: monthly bookkeeping, quarterly financial statements, and annual tax preparation. Everything’s straightforward, and all agreed to a fixed fee.
It began with a seemingly harmless request: “Hey, could you quickly review this budget for us? Just want to make sure we’re on the right track.” Adam thought, sure, why not? It’s just a quick look, and it’s important to keep the client happy. So, he spent an hour on it, sent back his thoughts, and moved on.
A few weeks later, another email landed in Adam’s inbox: “We’ve been looking at some investment opportunities. Could you give us your take on these? We trust your judgment.” It’s flattering, really, and Adam wanted to help them succeed. So, he dug in, spending several hours analyzing their options and drafting a detailed report.
Before long, these “quick favors” become a regular thing. Mark, the CEO at the startup, sends over contracts to review, asks for financial forecasts, and even started requesting Adam’s presence in strategic planning meetings. Each time, Adam agreed—after all, it’s all about building a strong relationship, right?
But here’s the catch: none of these tasks were part of the original agreement, and no one’s talking about adjusting the fee. Adam was doing more and more work but for the same price.
And then it hit him. He was overwhelmed. The nights were getting longer, and his weekends were shrinking as he was trying to keep up. Other clients started to feel neglected.
So, what Adam was supposed to do? What was happening and how could he prevent this from happening with other clients?
That’s what we call Scope Creep and there are high chances you are facing the same in your accounting firm.
Poor capacity management is one of the symptom of having scope creep in accounting practice.
To make sure you don’t get trapped in scope creep, you need to understand the ways it can appear. You might already be delivering out of scope work and not aware of it. Let’s find our together.
Let’s break down what is scope creep, why this happens, how to prevent it, and how to protect yourself from such headaches.
Scope creep occurs when the scope of a project expands beyond its original boundaries—without a corresponding increase in resources, time, or compensation.
Imagine agreeing to handle a client’s bookkeeping, only to end up managing their payroll, tax preparation, and financial forecasting without any additional fees.
That’s scope creep in the accounting industry.
Scope creep often sneaks in under the radar. It might start with a client’s innocent request—“Could you also look into this?” or “Would you mind just adjusting that?”
Before you know it, these small requests have snowballed, transforming a simple project into a complex, time-consuming endeavor.
Here’s how scope creep typically manifests in accounting firms:
Related Read – The dangers of scope creep – by ACCA
Scope Creep in accounting practice is not a new thing. But accountants have acknowledged its existence recently.
Now that we’ve identified how scope creep happens, let’s look at actionable strategies to prevent and manage it effectively.
The first step in avoiding scope creep is to set clear boundaries from the outset. When you begin a new project, clearly define what is and isn’t included in your service. Document this in your contract or service agreement, and ensure your client understands these boundaries. This isn’t just about listing what you will do—it’s equally important to specify what you won’t do unless additional fees are agreed upon.
For example, if your engagement is to manage a client’s bookkeeping, make it clear that tax preparation, financial forecasting, or payroll management are not included unless specified otherwise. This clarity helps prevent misunderstandings and sets the stage for a smoother project experience.
Service packages are a powerful tool for managing scope creep. By offering different tiers (e.g., Basic, Pro, Elite), you can set clear expectations for both you and your clients. Each package should outline exactly what’s included, helping clients understand the value they’re getting and what falls outside the scope.
For instance, your Basic package might include monthly bookkeeping, while the Pro package adds quarterly financial reviews, and the Elite package includes tax preparation and advisory services. Not only does this structure make it easier to manage client expectations, but it also provides a built-in upsell opportunity if the client’s needs grow.
Don’t wait for scope creep to rear its head—anticipate it. Schedule regular check-ins with your clients to review project progress. These check-ins provide a natural opportunity to discuss any new requests and address potential scope creep before it becomes a significant problem.
During these meetings, reaffirm the project scope and make necessary adjustments if both parties agree. This proactive communication helps ensure that everyone remains on the same page and that any changes to the project are managed smoothly.
Even with the best planning, scope creep can still occur. When it does, here’s how to handle it:
Documentation is your best defense against scope creep. Keep detailed records of all communications with your clients regarding the project scope. This documentation can be invaluable if there’s ever a dispute about what was included in the original agreement versus what was added later.
For example, if a client requests additional services during a regular check-in, document the request, your response, and any agreed-upon adjustments to the scope or fees. This paper trail not only protects your firm but also helps maintain transparency and trust with your clients.
Your team is on the front lines of managing client expectations, so it’s crucial that they understand the importance of sticking to the project scope. Train them to recognize when a client request falls outside the agreed parameters and how to handle such situations.
For instance, if a client asks your junior accountant to review an additional set of financial statements, ensure they know to check the original agreement first and escalate the request if it’s outside the scope. This training empowers your team to manage scope creep effectively and ensures consistency across your firm.
If scope creep becomes a recurring issue, take a step back and evaluate your processes. Are your service agreements clear enough? Do you need to be firmer in your initial negotiations? Use each experience as a learning opportunity to refine your approach and prevent future issues.
For example, after completing a project, hold a debrief with your team to discuss what worked well and what didn’t. If scope creep was a problem, brainstorm ways to improve your communication or documentation processes for future projects.
Ready to take control of scope creep in your firm? Contact us for expert guidance! Contact us for expert guidance!
Avoiding scope creep starts with a “NO”. But you need to be careful because you don’t want to hamper the relationship.
By defining clear project boundaries, utilizing service packages, conducting regular check-ins, and documenting everything, you can effectively control your projects and avoid the pitfalls of scope creep.
Training your team to recognize and handle potential scope changes ensures that everyone is aligned and equipped to manage client expectations. Ultimately, being proactive about scope creep not only protects your time and resources but also strengthens your client relationships.
If you are still not sure how to get rid of scope creep in your accounting firm, book a 1:1 consultation call with me. I provide free consultation as an additional service to my offshore staffing clients.
I’ve had conversations with hundreds of accounting and tax firm owners about their capacity and profitability challenges. A few of them trusted us as their staffing partner.
In cost-based pricing, you set your fees according to the overhead costs and other expenses you incur. With competition-based pricing, your charges align with what your competitors are charging.
When a client approaches you with a question that extends beyond the scope of accounting compliance, it’s time to pay attention.