This is an excerpt from The Unplugged Vacation. You can download the book for free here.
I’ve found that the right benchmarks naturally drive better decisions and better delegation.
A lot of people are very data-driven. I like data too, but I don’t like too much data. I prefer a small set of benchmarks that actually influence behavior.
If you run an accounting practice, we suggest focusing on four key benchmarks:
- Top-line revenue
- Cash flow to owner
- Number of days off
- Number of staff
These aren’t just numbers; they’re indicators of how your firm is really operating.
Why Benchmarks Matter for CPA Firm Growth
There’s real value in reviewing these benchmarks regularly, whether that’s monthly or quarterly.
When you track a few key performance indicators (KPIs) consistently, they start to shape your decisions.
For example:
If you set a goal for a certain number of days off each year, you quickly realize something.
You won’t hit that goal unless you delegate.
In most cases, it’s nearly impossible.
That’s where benchmarks become useful. They don’t just measure performance, they push you to change how you operate.
Creating Benchmarks That Actually Motivate You
A benchmark only works if you care about it. Let’s say you set a goal of taking six weeks off per year. That sounds good, but does it actually motivate you? For most people, the number itself isn’t enough. The real motivation comes from the reason behind it.
For example:
“I want to spend more time with my daughter before she graduates.”
That’s very different from:
“I want to hit $2 million in revenue.”
One is personal. One is abstract.
If you want your benchmarks to work, you need to connect them to something meaningful.
Start With the “Why” Behind Your Goals
It helps to go one level deeper:
- Why do I want more time off?
- Why does that matter?
- What does that allow me to do?
Maybe it’s family. Maybe it’s health. Maybe it’s having more control over your time. Whatever it is, that’s what drives action, not the number itself.
Benchmarks Go Beyond Financial Metrics
When we talk about benchmarks, we’re not just talking about revenue or profit.
You can also think about:
- Personal benchmarks (time off, lifestyle)
- Health benchmarks (routine, consistency)
- Professional benchmarks (certifications, development)
- Firm benchmarks (team size, structure, capacity)
The key is to focus on what actually matters to you.
Keep It Simple (This Is Where Most Firms Get It Wrong)
One of the biggest mistakes we see is trying to track too many benchmarks. If you have 15–20 KPIs, you probably won’t focus on any of them. But if you have three or four meaningful benchmarks, you’re much more likely to act on them.
Simple tends to work better.
The Real Goal of Benchmarks
At the end of the day, benchmarks aren’t about tracking numbers. They’re about creating clarity and direction.
When you know what matters, and why, it becomes much easier to make decisions about:
- Delegation
- Hiring
- Growth
- Client selection
- Long-term planning
That’s where real progress happens.
Quick Questions We Hear Often
What benchmarks should a CPA firm track?
Most firms benefit from tracking a small set of KPIs such as revenue, cash flow, team size, and owner time (including days off).
How often should I review my firm’s benchmarks?
Monthly or quarterly is usually enough. The goal is consistency, not constant tracking.
Why are benchmarks important for accounting firm growth?
Benchmarks help guide decisions around delegation, hiring, and strategy. They turn long-term goals into actionable steps.
What Actually Moves the Needle
If your benchmarks don’t change your behavior, they’re probably not the right ones. The goal isn’t to track more numbers, it’s to focus on the few that actually influence how you run your firm day to day. The right benchmarks should guide your decisions, push you to delegate, and help you spend your time where it matters most. Over time, those small shifts in behavior are what lead to meaningful growth.
