The 5 Stages of Modern Firm Development
How to understand your results and take action
The Modern Firm Assessment reveals your firm’s position within the 5 stages of development—a framework that measures how firms have modernized their technology, security, and management practices.
A systematic approach to firm development
Step 1
Take the 5-minute assessment. Haven’t yet? Click here.
Step 2
Uncover your firm’s development stage and score.
Step 3
Develop a strategic path forward based on your results.
How is my score calculated?
- Your overall score is calculated across three focus areas: Technology and Workflows, IT Administration and Security, and Firm Management, with specific criteria weighted by importance.
- Your cumulative percentage determines your stage placement.
- Scores reflect the depth of modern practices across your firm.
Did you know? The most modern firms report 23% more revenue per employee.
See more national benchmarks from the Rightworks 2025 Accounting Firm Technology Report
Where does my firm fit?
Stage 1: Pathfinding
Building the Foundation | Score Range: 0%-49%
Stage 2: Emerging
Gaining Momentum | Score Range: 50%-64%
Stage 3: Optimizing
Streamlining Operations | Score Range: 65%-79%
Stage 4: Advancing
Maximizing Performance | Score Range: 80%-94%
Stage 5: Future Proof
Leading Innovation | Score Range: 95%-100%
Turn your results into action
No two firms are alike, and your path to modernization should reflect your unique circumstances, goals, and client needs. Choose an approach to get started on your firm’s development journey.
Target your lowest-scoring areas first
Your assessment has identified where your firm has the most room for growth. Rather than trying to improve everything at once, focus your initial efforts on the area with your lowest score to:
- Allocate resources more effectively and see measurable progress faster.
- Concentrate efforts that will have the greatest impact.
- Build momentum with focused, achievable wins.
Identify 2-3 initiatives that would impact your firm’s operations, client experience, or team efficiency.
Prioritize security and data protection
Regardless of your overall score, any gaps in IT Administration & Security require immediate attention—they represent real risk to your firm’s reputation, client trust, and legal standing.
- Immediately remedy issues related to cybersecurity, data protection, and compliance.
- Establish baseline protections: multifactor authentication, encrypted data storage, and regular security training for all staff.
- Create an incident response plan so your team knows exactly what to do if a breach occurs.
Start with quick wins
You don’t need to overhaul your entire operation to make progress. Begin with manageable actions that build momentum.
- Update your Written Information Security Plan (WISP).
- Implement a firm-wide password manager.
- Create and document a formal marketing plan.
These quick wins create immediate value, demonstrate commitment to your team, and establish the foundation for larger transformations. Success breeds success—early progress will energize your firm for the bigger changes ahead.
How do my scores stack up against firms nationwide?
Average scores across all firms surveyed through Rightworks 2025 Accounting Firm Technology Survey
Avg. score for firms nationwide
Avg. score for firms nationwide
49%
Firm Management
Avg. score for firms nationwide
Connection. Expert insights. Real growth. That’s Rightworks Community.
Benchmarking Technology & Workflows
How is your firm leveraging cloud technology, supporting remote work, and adopting modern tools like AI? We assess your digital infrastructure, from single sign-on capabilities to paperless document management, helping you see where technology is propelling your practice forward—and where gaps may be holding you back. Here’s what modern firms employ to round out their technology and workflow capabilities:
Technology & Workflows Checklist
Cloud-Based Operations:
- Store and manage 100% of data and applications in the cloud
- Access data/apps through one online portal
- Support remote workers
- Single sign-on (SSO) for multiple applications
- Grant/restrict user access immediately
Digital Document Management:
- Secure portal for sensitive documents
- Fully paperless operations
Artificial Intelligence Usage:
- Client communications (emails, summaries, marketing content)
- Tax and compliance research
- Advanced data analytics for client services and strategic decisions
IT Administration & Security
In an era of increasing cyberthreats, how protected is your firm and your clients’ sensitive data? This section evaluates your cybersecurity posture, from basic network protections to advanced threat detection, backup strategies, and staff training programs that keep your practice resilient against evolving risks.
Check these vital items off your list to maintain the security posture that the profession demands:
IT Administration & Security Checklist
IT Management:
- Supported by experts (IT firm or consultant)
Network & Device Security:
- Firewalls, VPN, and antivirus software
- Multifactor authentication on firm devices
- Advanced email security (spam/phishing protection)
- Encrypted password storage/password managers
- Regular data backups (beyond software vendor backups)
- Mobile device management (remote wipe capability)
- Real-time alerts for cyberthreats
Cybersecurity Training:
- Structured, instructor-led curriculum
- Conducted regularly (quarterly/annually)
- Tailored to accounting industry risks
- Phishing simulations
- Documented for compliance tracking
Advanced Security Measures:
- Endpoint Detection and Response (EDR) on all devices
- Data backups retained for minimum two years
Firm Management
The assessment examines the strategic foundations that drive sustainable growth: your documented plans for expansion and succession, your approach to client profitability, your service offerings, and whether you’re positioning your firm to thrive in tomorrow’s marketplace.
The following checklist covers the essential management practices that distinguish modern, high-performing firms.
Firm Management Checklist
Strategic Planning:
- Documented strategic growth plan
- Marketing plan/strategy
- Succession plan documented
Client & Financial Management:
- Client profitability reviews to identify low-margin accounts
- Ideal client profile for new business decisions
- Required client use of firm apps/systems
- Majority of payments accepted electronically (ACH, credit/debit)
- Automated billing and collections tools
WISP Requirements:
- Written Information Security Plan (WISP)
- WISP clearly outlines protection of firm and client data
- WISP is reviewed annually for technology/process changes
Services Offered:
☐ Accounts payable and receivable
☐ Tax preparation
☐ Tax planning
☐ Bookkeeping
☐ Payroll services
☐ Audit
☐ Outsourced CFO services
☐ Advisory services (non-tech)
☐ Technology advisory services
☐ Other
FAQs
The 5 stages—Pathfinding, Emerging, Optimizing, Advancing, and Future-Proof—represent the progression firms experience as they modernize their technology, security, and management practices. Each stage reflects increasing maturity across cloud adoption, cybersecurity infrastructure, and strategic planning capabilities.
Your stage is determined by your cumulative score across three focus areas: Technology & Workflows, IT Administration & Security, and Firm Management. Scores range from 0-100%, with specific criteria weighted by importance within each area.
Most firms recognize cybersecurity as a critical priority given increasing threats to client data and regulatory requirements. However, gaps still exist—particularly in advanced protections like EDR, regular security training, and incident response planning. Learn how to prepare your firm for cybersecurity threats.
Generally, yes—targeting your lowest-scoring area allows you to allocate resources more effectively and see measurable progress faster. However, security gaps should be addressed immediately regardless of score, as they represent real risk to your firm and clients. Learn more about Total Security solutions.
Yes, cloud adoption is a significant factor in your Technology & Workflows score. Firms with limited cloud infrastructure typically score in the Pathfinding or Emerging stages, while those with comprehensive cloud-based operations score higher. However, this isn’t just about your score—cloud migration directly impacts your firm’s efficiency, security, remote work capabilities, and competitive positioning.
Ready to find out if the cloud is right for your firm? Check out our eBook: Is Your Firm Cloud Ready? It’s a complete guide to understanding cloud benefits, assessing your firm’s readiness, and creating a migration strategy that minimizes disruption while maximizing impact on workflow, client service, and profitability.
A WISP is a documented plan that outlines how your firm protects internal and client data. Many states and regulations require firms to maintain a WISP, which should be reviewed annually as technology and processes change. Check out our WISP 101 article for more info.
Research shows that the most modern firms report 23% more revenue per employee than less advanced firms. This, along with a number of key insights on firm development, was uncovered during Rightworks 2025 Accounting Firm Technology Survey. Read the white paper to learn more: Becoming a Modern Firm: The 5 Stages of Development.
Remote work capabilities can transform your firm’s flexibility and talent access, but successful implementation requires careful planning—particularly around security, technology infrastructure, and operational processes. The biggest risk firms face is rushing remote implementation without adequate security measures.
Learn How to Keep Remote, Outsourced, & Offshore Accountants Secure for more information to stay safe out there.
We recommend reassessing on a regular basis, either quarterly, every six months, or after implementing major technology, security, or operational changes. Regular check-ins will help you track progress, identify new gaps, and adjust your modernization strategy. Bookmark The Modern Firm Assessment link and mark your calendar.
While traditional services like tax preparation and bookkeeping remain core offerings, modern firms are expanding into advisory services, outsourced CFO support, and technology consulting to meet evolving client needs and increase profitability. Explore service expansion strategies
The fastest path to advancing your firm’s development? Eliminate the complexity of managing multiple vendors, systems, and security protocols. For example, Rightworks Cloud Premier consolidates everything modern firms need into a single, integrated solution: seamless access to desktop and cloud applications through one unified workspace, enterprise-grade security that protects your firm, devices, and client data 24/7, and managed IT support—all delivered through one point of contact who actually understands accounting firms.
This kind of infrastructure removes technology management from your daily concerns, letting you redirect that time and energy toward client relationships, strategic planning, and the high-value work that accelerates your firm’s growth.
Yes. Rightworks provides technology solutions, security infrastructure, expert guidance, and strategic consulting to help firms at every stage of development. Whether you’re building your foundation or optimizing advanced systems, we can support your modernization journey. Talk to an expert.
Your score is a benchmark for improvement, not a report card. Use your score as a starting point for strategic conversations: Which gaps represent real limitations to our growth? Which modern practices would genuinely improve our operations or client service? Where are we already ahead of the curve?
What matters most is understanding where you are today and working toward where you want to be—and that destination looks different for every firm.
As the preferred cloud service provider for 70,000+ businesses and accounting and tax firms, Rightworks is a great place to start. Our award-winning platform securely connects critical desktop and cloud applications and offers managed IT services—protecting everything from data to devices across all your offices.
If you’re looking to make more connections, Rightworks Community, is the accounting profession’s largest peer network. It delivers everything you need to manage your firm successfully and advance your professional development through meaningful peer-to-peer connections, expert guidance from the biggest names in accounting, and exclusive insights and resources.