7 KPI Metrics to Track at Your Accounting Firm

As an accounting professional, you never miss a number. But have you ever wondered what metrics you might be missing that could predict performance?

KPIs, or key performance indicators, are metrics that demonstrate your company’s performance in various areas. They can highlight areas for success and improvement and provide necessary data to inform future decision-making.

A recent study by MIT Sloan Management Review and Boston Consulting Group reveals that more than 50% of business leaders acknowledge the need for better KPIs.

So, how can accounting firm efficiency be increased, and which KPIs should they track to gain the insights they need to grow? In this article, we will share 7 KPIs that every accounting firm must track.

Why track KPIs?

Data can make a big difference in how easily and efficiently your firm achieves its goals, and tracking accounting KPIs can help you arrive at consistent and valuable results. By monitoring metrics such as cash flow, days sales outstanding (DSO), or accounts payable processing time, you can identify trends that impact every area of your business.

However, while thousands of data points are available, not all of them may be relevant to your firm. Your accounting firm can align its goals and deliver actionable insights by tracking specific, measurable, and targeted KPIs, such as budget-to-actual variances, bad debt-to-sales ratio, and invoice payment cycles.

How do you decide which accounting KPIs to track for your firm’s goals? How do you compare these indicators and choose the ones that will serve your business best?

Start by addressing these questions:

• Which area of your firm’s operations needs improvement?
• Are you struggling with retaining clients?
• Are you generating enough leads through your marketing efforts?

By tying KPIs directly to your desired outcomes, you can ensure that the metrics you track will provide the most meaningful insights.

7 Types of KPI metrics to monitor

Once your firm has identified the business areas that need improvement, use the seven types of KPI metrics below to measure your accounting firm’s success.

Client Development KPIs

By tracking client development KPIs, your firm can get a better understanding of how to maximize client intake and ensure excellent client service. Here are a few metrics you might consider tracking:

• Number of clients served: Tracks the total number of clients actively working with your firm, indicating your market reach and ability to attract and retain business. Growth in this metric demonstrates scalability, while stagnation may suggest acquisition challenges.

• Average revenue per client: Measures the revenue generated from each client, providing insights into profitability and potential opportunities for upselling or cross-selling.

• Percentage of high-risk accounts: Highlights the proportion of clients at risk of disengagement or loss. Monitoring this metric allows for proactive retention efforts, minimizing churn and safeguarding revenue.

Client Retention & Satisfaction KPIs

Client relationships are the foundation of your firm's success and by prioritizing client satisfaction, you can drive growth and build a strong reputation. Track these metrics to gauge how satisfied your clients are with your services:.

• Client retention rate: Measures the percentage of clients who continue to use your accounting services over a specific period. A high retention rate indicates effective relationship management and consistent client satisfaction with services like tax preparation, auditing, or financial consulting.

• Net promoter score (NPS): Assesses client loyalty by asking how likely they are to recommend your accounting firm to others. In a field where referrals are highly valuable, a high NPS reflects strong client trust and satisfaction.

• AI-driven sentiment analysis: Utilizes artificial intelligence to analyze client feedback from emails, surveys, or reviews. This provides deeper insights into client sentiments regarding your accounting firm’s responsiveness, expertise, and the quality of your accounting services.

• Client satisfaction ratings: Gathers direct feedback through surveys or feedback forms on specific services provided, such as bookkeeping accuracy, timeliness of financial reports, or effectiveness of tax strategies. This helps identify areas where your firm excels or needs improvement.

• Number of client referrals: Tracks how many new clients are acquired through existing client recommendations. This metric directly reflects client satisfaction and the strength of your professional relationships.

Marketing KPIs

Marketing is vital for attracting and retaining clients in a competitive accounting industry. By tracking the right KPIs and using modern tools, accounting firms can refine strategies, optimize budgets, and effectively reach target audiences. Here’s how key marketing KPIs and tools can drive results for your firm.

• Website traffic: This measures the number of visitors to your site each month and indicates the success of your SEO strategies, paid ads, and social media campaigns. A steady increase signals growing visibility and interest in your services.

• Landing page conversion rates: Tracking the percentage of visitors who complete desired actions, such as booking a consultation or downloading a resource, highlights the effectiveness of your messaging and page design.

• SEO rankings: Monitoring how well your site ranks for key terms like “small business accounting” or “tax preparation services” helps ensure that your firm appears prominently in organic search results, driving valuable traffic.

• Paid advertising return-on-investment (ROI): This compares the cost of ads (Google Ads, LinkedIn campaigns) to the revenue they generate, ensuring your marketing spend delivers measurable returns.

• Email marketing performance: Open rates, click-through rates, and conversions reveal how well your email campaigns are engaging clients.

• Social media engagement: Likes, shares, comments, and click-throughs on platforms like LinkedIn and Facebook indicate how effectively your content resonates with your audience.

• Webinar and event engagement: Participation metrics from webinars or virtual events, such as attendance rates and follow-up interactions, reflect your success in positioning your firm as a thought leader.

Financial KPIs

Healthy finances are at the heart of every business. In order to grow and meet goals, you’ll need steady cash flow. Measuring financial performance can help you achieve your accounting firm’s financial goals and maintain healthy profitability. Plus, monitoring key financial and operational KPIs allows firms to pivot and compete better in their respective market.

These KPIs for accounting departments can reveal insights that determine future decisions. Keep an eye on the following KPIs:

• Profit and loss: A classic but essential indicator of overall financial health, reflecting revenue, expenses, and profitability over a specific period.

• Process costs: Tracks the costs associated with financial processes, such as payroll and invoicing, to identify opportunities for cost optimization.

• Number of aging reconciliations: Measures the number of unresolved transactions or discrepancies in accounts—highlighting areas that need attention to ensure accuracy and efficiency.

• Time to close: Measures how quickly financial statements are completed after the accounting period ends, indicating the efficiency of the financial reporting process.

• Bad debt to sales ratio: Determines the proportion of receivables unlikely to be collected compared to total sales, providing insight into credit risk management.

• Number of invoicing disputes: Tracks disputes over invoicing, which can indicate inefficiencies or miscommunication with clients, and measures the effectiveness of billing processes.

Employee Performance KPIs

An efficiently working team is infinitely valuable. Creating accounting metrics for employee performance can ensure your accounting firm runs smoothly and continuously generates revenue. Below are some accounting KPI examples to measure staff productivity and satisfaction:

• Days to complete monthly close: Tracks the time it takes to finalize monthly financial statements, reflecting the team's efficiency in meeting deadlines.

• Days to complete annual close: Measures the duration to complete year-end financial reporting, a critical period for accuracy and timeliness.

• Time spent on individual tasks: Evaluates how effectively employees allocate their time to specific tasks, identifying opportunities to optimize processes or balance workloads.

• Employee satisfaction index: Measures employee morale and engagement through surveys and feedback. High satisfaction often correlates with better productivity and lower turnover rates.

Job Profitability KPIs

Tracking job profitability KPIs is what every successful accounting firm measures to determine which services are profitable and which might no longer be worth offering. Companies that focus on the performance of their workforce are 4.2 times more likely to outperform their peers

These metrics provide a clear picture of your firm's financial performance and enable data-driven decisions:

• Net profit: Tracks the overall profitability of your firm after all expenses are deducted from revenue.

• Net profit margin: Measures the percentage of profit generated from total revenue, providing insight into overall efficiency.

• Gross profit: Calculates profitability before operating expenses, helping to assess the cost-effectiveness of core services.

• Gross profit margin: Determines the percentage of revenue remaining after accounting for costs directly related to service delivery.

• List of all completed and active services: Provides a clear view of what your firm offers and how it contributes to profitability.

• Income per project: Tracks the revenue generated by individual projects, enabling comparisons across different types of engagements.

Lead Analysis KPIs

Analyzing leads helps you find prospective clients faster and refine strategies for acquiring new ones. In today’s digital age, tracking the right metrics ensures you stay ahead in growing your client base:

• Cost of acquiring a new client: Measures the expenses incurred in attracting each new client, helping you gauge the efficiency of your marketing spend.

• Number of new clients specifically from referrals: Tracks the success of referral programs and indicates client satisfaction.

• Estimated average value of each new client: Calculates the potential long-term revenue from a new client, providing insight into acquisition ROI.

• Number of consultation appointments: Reflects your firm's ability to attract prospective clients and move them through the sales funnel.

• Number of prospects converted to clients: Measures the effectiveness of your sales process in turning leads into paying clients.

Tools and Technology to Track KPIs

Tracking KPIs effectively in an accounting firm hinges on leveraging the right technology. Modern tools not only streamline data collection but also provide real-time insights, automate calculations, and enhance decision-making. Financial management platforms like QuickBooks and Xero are indispensable for tracking essential financial KPIs such as profit and loss, operational costs, and invoicing cycles. These cloud-based systems also integrate seamlessly with other software, ensuring accuracy and accessibility across your team.

For visualizing complex data, analytics platforms like Power BI and Qlik Sense offer intuitive dashboards that consolidate all your metrics in one place. These tools make it easy to spot trends, identify bottlenecks, and forecast outcomes, empowering your firm to make data-driven decisions with confidence.

When it comes to managing client retention and satisfaction KPIs, CRM systems like HubSpot and Salesforce are useful.

While these options are powerful, CPACharge stands out as the best choice for accountants. It’s designed specifically for accounting firms and offers tailored features like invoicing, payment tracking, and financial reporting. CPACharge simplifies KPI management through complete reporting, making it easier to track and improve performance.

How to Implement KPIs Effectively in 2025

To implement KPIs successfully, start by defining goals using the S.M.A.R.T framework, ensuring they are specific, measurable, achievable, relevant, and time-bound. Align your chosen KPIs directly with these goals, focusing on metrics that provide actionable insights rather than overwhelming your team with irrelevant data.

To ensure veracity, leverage tools like dashboards and automation platforms such as CPACharge or QuickBooks to streamline tracking and reporting. These tools reduce manual effort and provide real-time visibility, ensuring consistency and efficiency.

And to make everything run smoothly, regularly review your accounting department KPIs to evaluate progress and adapt to changing priorities. Use the data to identify trends, address challenges, and refine your strategies. AI-powered analytics can further enhance this process by predicting outcomes and highlighting risks before they arise.

Complement KPI Strategies with the Help of CPACharge

Transform how your accounting firm manages payments and improve client satisfaction. With CPACharge, your accounting firm can streamline invoicing, provide flexible payment options, and ensure secure transactions—all while saving time to focus on delivering exceptional services.

• Simplify payment processing: Accept credit, debit, and eCheck payments seamlessly.
• Improve cash flow: Get paid faster with efficient, automated invoicing, client fee funding, and scheduled payments.
• Enhance client satisfaction: Offer the convenience and data security your clients expect.

Take your firm’s financial performance to the next level by booking a demo today.

If you’re looking for more information on managing your accounting firm, download our free eBook “How to Manage your Accounting Firm: Tips to Boost Profitability”.