Earmark CPE

Earn CPE Anytime, Anywhere

Archives for January 2025

Maximizing Tax Savings with Defined Benefit and Cash Balance Plans

· ·

What if you could help your high-income business owner clients convert a $500,000+ tax liability into retirement wealth—while maintaining complete IRS compliance? That’s the power of defined benefit and cash balance plans, a strategy that many CPAs overlook but that can transform your clients’ financial futures.

In a recent webinar, David Podell of Business Benefits Consultants shared how strategically designed defined benefit plans can provide CPAs with a powerful tax optimization tool. 

Identifying Ideal Clients

According to Podell, the best candidates for these plans are high-income business owners who:

  • Have consistent, significant profits
  • Are comfortable with their current income
  • Run companies with fewer than 50 employees
  • Have stable employee bases
  • Are currently overpaying in taxes
  • Have underoptimized retirement planning

With these criteria in mind, let’s see how these plans have delivered results for real businesses.

Real-World Success Stories

Podell illustrated how defined benefit and cash balance plans can help business owners significantly lower their tax liabilities while enhancing their retirement savings.

Case Study 1: Law Firm Achieves $874,000 Contribution

A small law firm with two partners experienced an unexpected surge in income after winning a significant case that awarded them a substantial fee—much larger than their typical annual earnings. Facing a hefty tax bill, they sought a strategy to minimize their tax liability while making the most of this financial windfall.

They consulted with Podell to explore their options. By implementing a customized defined benefit plan, they were able to contribute $874,000 toward their retirement, with $814,000 being deductible. Remarkably, 96% of this contribution was allocated directly to the two partners.

The plan was meticulously tailored to account for the partners’ differing ages and financial situations:

  • Partner A was older and closer to retirement, making it advantageous for him to maximize his retirement contributions.
  • Partner B was younger, with student loans and young children, and preferred to contribute a smaller amount.

“This was very specific and customized in the design,” explains Podell. “We adjusted the plan to reflect the age difference and individual needs of each partner. By doing so, we turned a potentially large tax burden into a significant retirement asset for them.”

The result was a win-win:

  • Immediate Tax Savings: The firm significantly reduced its taxable income for the year, saving hundreds of thousands in taxes.
  • Retirement Growth: The partners boosted their retirement savings without disrupting cash flow or day-to-day operations.

Case Study 2: Solo Attorney Maximizes 1099 Income

A solo attorney was earning a substantial W-2 salary from his primary employer while also generating significant 1099 income through consulting work. Faced with a hefty tax bill on his consulting earnings, he sought a strategy to mitigate his tax burden and enhance his retirement savings.

He approached Podell with a straightforward question: “What if I can put away all the 1099 money? How would this work?”

By implementing a customized defined benefit plan, the attorney contributed $105,000 entirely for his own benefit. This strategic move not only provided a significant tax deduction but also allowed him to convert his side income into a substantial retirement asset.

Case Study 3: Family Business Secures Nearly $1 Million Deduction

A family-owned enterprise, involving multiple entities and several family members, faced a significant tax burden due to high profitability. The business had a complex ownership structure, including two primary owners, a minority owner, and other family members employed within the company.

Seeking a solution to minimize taxes while benefiting the entire family, they consulted with David Podell. By designing a highly customized defined benefit plan, they were able to make a $948,000 deductible contribution, with 86% of the benefits allocated directly to the owners and participating family members.

Key aspects of the customized plan included:

  • Inclusive Design: The plan incorporated not just the main owners but also the minority owner and other family members, maximizing benefits across the family.
  • Age and Role Considerations: Adjustments were made based on the ages and roles of each family member to optimize retirement contributions where they were most needed.
  • Multiple Entities Coordination: The plan seamlessly integrated various business entities under the family’s control, ensuring compliance and optimal benefit distribution.

“We tried to maximize the family as best as possible, determining ages and everything else,” explains Podell. “We really created this in a way that was very customized.”

The outcomes were substantial:

  • Significant Tax Reduction: The nearly $1 million contribution substantially lowered the company’s taxable income, providing immediate tax savings.
  • Enhanced Retirement Benefits: Family members received considerable boosts to their retirement savings, strengthening their financial futures.
  • Unified Financial Strategy: The plan aligned the family’s financial interests, promoting cohesion and shared goals within the business.

This case exemplifies how defined benefit plans can be tailored to accommodate complex family businesses while turning substantial tax liabilities into valuable retirement assets.

Strengths: Flexibility and Customization

The success of these case studies stems largely from the inherent flexibility of defined benefit and cash balance plans. “Every single plan design is different,” notes Podell. “That is not the world of the 401(k); that is not the world of a SIMPLE or a SEP plan.”

Key considerations for implementing these plans include:

  • Plan Design Variations: Options like floor offset, new comparability, and cash balance designs can drastically affect outcomes.
  • Flexibility in Contributions: Plans can be adjusted annually to match business performance, with options to freeze or reduce contributions in lean years.
  • Coordination with Existing Plans: These strategies can often be layered on top of existing 401(k) plans without disruption.

While traditional plans may cap out at basic 401(k) limits, defined benefit plans can support pension balances up to $3.1 million per person, with annual tax savings often exceeding $100,000. For CPAs looking to deliver measurable value to clients, these numbers represent a compelling opportunity.

The impact of proper plan design cannot be overstated. Consider a young real estate investor who received three different plan proposals:

1. First design: Offered a $100,000 contribution—not insignificant, but far from optimal.

2. Second design: Increased the contribution to $140,000 through a cash balance approach with a 401(k) component.

3. Third design: Incorporating pre-funding and ancillary benefits, achieved a remarkable $216,000 contribution—more than double the initial proposal.

This dramatic range demonstrates why sophisticated plan design is crucial for maximizing client outcomes.

A Strategic Combination: Defined Benefit + Roth 401(k)

Beyond plan design, there’s another powerful strategy available to enhance the overall tax benefits.

While many business owners avoid Roth 401(k)s due to losing the tax deduction, pairing them with defined benefit plans creates powerful tax diversification. 

When you’re already getting a $200,000+ deduction from your defined benefit plan, you can afford to make Roth contributions without the immediate tax benefit. This creates tax-free growth potential while controlling when and how taxes are paid—ideally during retirement when income levels and tax brackets may be lower.

Key Technical Considerations

While defined benefit plans offer powerful tax advantages, several important technical factors must be considered during implementation and ongoing management:

  • Plans should typically remain open 3-5 years minimum to minimize audit risk
  • For S-Corps, W-2 income levels are crucial for plan funding
  • Plans can work with multiple entities and control groups
  • Plans can be coordinated with existing 401(k)s without disruption

Given these technical complexities, successful implementation requires a coordinated effort among key professionals.

Implementing Success: The Team Approach

A successful defined benefit plan requires coordination among several professionals:

  • Tax advisor/CPA
  • Financial advisor
  • Record keeper
  • TPA/Actuary
  • Plan consultant

Consider working with a consultant who can quarterback this process, bringing together the necessary expertise while simplifying implementation for you and your clients.

By mastering this coordinated approach and becoming fluent in these sophisticated strategies, you can transform your practice and your client relationships.

Elevate Your Practice Through Strategic Planning

By mastering these advanced tax strategies, you can:

  • Deepen Client Relationships: Offering sophisticated planning sets you apart and fosters loyalty.
  • Attract High-Income Clients: Demonstrating expertise in significant tax-saving strategies can attract referrals.
  • Transform Your Role: Move from being a tax preparer to a strategic advisor who provides substantial, measurable value.

“Advice requires guiding your clients toward strategies that can improve their outcomes,” emphasizes Podell.

Ready to Transform Tax Outcomes?

Ready to explore defined benefit plans for your clients? Start by:

  1. Reviewing your client list for those with $100,000+ in potentially pensionable income
  2. Identifying business owners currently paying more in taxes than they’d like
  3. Considering clients with existing retirement plans that might benefit from optimization
  4. Reaching out to a qualified consultant to explore specific client situations

The difference between an ordinary retirement plan and an optimized defined benefit strategy can mean hundreds of thousands in tax savings for your clients—and a transformed advisory relationship for your practice.

Watch the full webinar to explore how you can implement these plans and transform your practice.

Uncover the Strategy That Turns Extended Leave into an Innovation Opportunity

· ·

When two team members announce overlapping maternity leaves, many firms would anticipate a major disruption. But when that scenario played out at Dillon Business Advisors, something remarkable happened: team efficiency improved, profitability rose, and the firm discovered innovative ways to serve its clients.

In a recent episode of the Who’s Really the Boss podcast, Lezlie Reeves, Fractional CFO at Dillon Business Advisors, discussed with hosts Rachel and Marcus Dillon how the firm transformed what could have been a significant operational challenge into a catalyst for growth. With a team of 15 employees serving numerous clients, extended employee leaves often spell strained client relationships and overwhelmed staff—issues many CPA firm owners know all too well.

Yet through methodical documentation, systematic training, and strategic role delegation, Dillon Business Advisors didn’t just maintain their service levels—they raised them. Their experience offers valuable lessons for any firm looking to build more resilient teams and sustainable growth.

Building the Foundation: Systematic Documentation

Before team members announced their leaves, Dillon Business Advisors had already laid the essential groundwork. They recognized a common issue in accounting firms: too much vital knowledge residing in employees’ heads.

“Many of our CSMs do such a great job, but a lot of things would live in their head,” explains Lezlie. “If they needed to be out or someone left unexpectedly, they were not covered.”

Their solution was straightforward: using Excel templates and Vimeo recordings, the team documented every client’s comprehensive workflow—from daily tasks and weekly responsibilities to monthly financial preparation and client contact details. Rather than creating more administrative burdens, they integrated documentation into normal processes: recording videos during actual client work and updating Excel templates in real-time.

The team had previously solved for  password management by implementing Practice Protect, ensuring secure access to client systems wouldn’t become a bottleneck during employee absences and exits.

This foundation of systematic documentation paid off when employees announced their leaves. Instead of scrambling to capture processes and procedures, the firm focused on strategic preparation and training. It’s a powerful reminder that the best time to document critical workflows is before you need them.

Methodical Training: The Key to Seamless Transitions

With documentation in place, Dillon Business Advisors turned their attention to training team members over six to eight months.

The training began with basic daily tasks before progressing to specific client work. To avoid overwhelming both the trainers and the trainee, they introduced five clients at a time. This paced approach allowed the CSM Assistants to gain confidence with one cluster of clients before moving on.

 “If you’ve ever trained someone, you know it is exhausting to train while you’re working,” Lezlie says. 

To address this, the firm distributed training responsibilities across multiple team members instead of burdening a single trainer with 40 hours of instruction. Each group of clients followed a three-month progression:

1. Month One: The CSM Assistant shadowed the CSM.  

2. Month Two: The CSM Assistant handled the work with the CSM shadowing.  

3. Month Three: The CSM Assistant worked independently with support available.  

By the time employees went on leave, their replacements were fully prepared and confident—a stark contrast to common last-minute handovers.

From Disruption to Opportunity: Strategic Role Distribution and Unexpected Benefits

Rather than assigning all responsibilities to controllers, Dillon Business Advisors strategically divided tasks. The CSM Assistant handled bank feeds, reconciliations, journal entries, and financial preparation, while controllers managed client communication, tax filings, and payroll. This balance prevented any team member from becoming overloaded and ensured critical deadlines were met.

An unexpected bonus soon emerged. 

“One added benefit we’ve had is with the client service manager assistant and the controller stepping in on different tasks—they’re just putting a different set of eyes on things,” Lezlie notes. “They can reevaluate, maybe trying new ways of doing things.”

These fresh perspectives resulted in process improvements across multiple clients. Team efficiency grew, and rather than seeing a dip in profits during the leave periods, the firm saw an increase in profitability. When the team members returned from leave, they even requested to continue assistant support because it had enhanced their ability to serve clients effectively.

What began as a workaround for extended leave transformed into a sustainable model for growth, enabling the firm to create capacity without hiring more full-time CSMs. This led to more efficient workflows and improved profitability overall.

Turning Challenge into Opportunity

What started as leave preparation became a catalyst for enduring change at Dillon Business Advisors. Through systematic documentation, methodical training, and strategic role delegation, they not only maintained client service—but improved it.

By viewing extended leave not as an unavoidable disruption but as an opportunity for growth, accounting firms can build more resilient teams, streamline workflows, and create new paths for expansion.

Want to learn more about how Dillon Business Advisors transformed their approach to employee leave management? Listen to the full episode of the Who’s Really the Boss podcast for deeper insights and practical tips you can implement in your firm.  

Rachel and Marcus Dillon, CPA, own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA, supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory.

Why Top CPAs Embrace Strategic Productivity Over Time Management

· ·

Every accounting professional has the same 24 hours each day, yet some feel perpetually behind while others run efficient, profitable practices—and still have time to enjoy life. According to Mark Ferris of Panalitix, the difference often lies in how purposefully you structure your organization, communicate with teams and clients, and focus on high-value work. 

In a recent webinar, Mark shares that moving beyond old-school time management toward “strategic productivity” involves three steps: (1) establishing effective organizational systems, (2) improving communication, and (3) refining individual mindset.

1. Establishing Effective Organizational Systems

Mark explains that “business is a team sport,” and even sole practitioners must consider how clients and contractors interact with their workflows. He emphasizes the importance of delegation and role clarity as the bedrock of effective time management. You can determine which tasks genuinely demand your expertise by identifying your workload in categories—administration, operations, production (basic vs. complex), management, client relationships, business development, and leadership.

He notes that using an organizational chart and job descriptions “prevents you from doing tasks that don’t require your specialized knowledge,” freeing up time to deliver advisory work or focus on firm growth. Mark also points out that routine procedures (such as client onboarding, payroll, and tax preparation) are best systematized via checklists. These checklists “ensure consistency and make delegation easier,” which allows key leaders to dedicate more attention to top-level strategy and client relationships.

According to Mark, strong key performance indicators (KPIs) bring structure and accountability to a practice. “Whether you track turnaround times, gross margin, client satisfaction, or productivity hours,” he says, “everyone should know how success is measured.”

He further highlights the importance of a consistent meeting cadence. In Mark’s view, “a daily huddle of 10–15 minutes can drastically reduce confusion,” because participants share top priorities, key metrics, and obstacles. He also recommends scheduling weekly or monthly meetings around production planning, marketing, or strategy and documenting actions so that discussions move the firm forward.

2. Improving Communication

“Email isn’t going away,” Mark emphasizes, “so we need smarter systems so it doesn’t run our lives.” One of his core recommendations is batching your inbox—setting specific times each day to tackle emails. He adds that if you open an email, “respond, delegate, or archive it immediately” rather than letting it linger.

To further prevent inbox overload, Mark recommends sharing documents in a central repository instead of sending attachments back and forth. He also highlights the value of a speed culture and response policies, noting that “slow response often undermines a client’s trust.” Setting a standard turnaround time (such as 24 hours for routine inquiries) and prioritizing A-list clients keeps projects on track and clients happy.

Mark advocates designating meeting-free zones each week to make headway on complex projects. “A day without meetings gives you uninterrupted time to focus,” he explains, “and it’s amazing how much more you can accomplish when you’re not constantly switching tasks.”

3. Refining Individual Mindset

Mark challenges practitioners to avoid the trap of filling newly freed-up time with more tasks. “What’s the point of being more productive,” he asks, “if we just keep piling on work until we burn out?” Instead, he advises using calendar blocking and setting deadlines to combat Parkinson’s Law—“work expands to fill the time available.” When you define strict time frames for tasks, you’re less likely to waste energy.

He highlights the value of chronotypes, referencing Daniel Pink’s research, and encourages CPAs to schedule complex tasks when their energy naturally peaks. This goes hand in hand with deep work concepts (from Cal Newport), where one to three hours of distraction-free concentration “dramatically boost both output and quality.”

Pointing to the idea of slow productivity, Mark urges professionals not to equate constant rushing with true progress. “By focusing on quality over quantity,” he notes, “you actually achieve more while protecting yourself from burnout.” He shares several stress-busting tips—like walking breaks, breathing exercises, or simply looking away from screens periodically.

The Pareto Principle (80/20 rule) also applies. Mark observes that “20% of your clients may be consuming 80% of your time,” despite not contributing meaningful revenue. He recommends offloading or restructuring those relationships so you can invest energy in A-list clients who value your services and are open to additional services or advisory work.

Bringing It All Together

According to Mark, practicing “strategic productivity” means joining organizational structure, communication mastery, and a focused personal mindset. Whether your goal is to take on higher-level advisory, grow your firm, or simply have more control over your schedule, implementing these strategies can help you work smarter instead of harder.

He suggests picking one or two techniques—such as instituting a daily huddle or revamping your inbox routine—and taking immediate action. Mark stresses the importance of documenting and sharing any new policies, checklists, or workflows so that “everyone is on the same page, and no one reverts to old habits.”

Mark also recommends exploring further resources, including short courses, events, and learning materials offered by Panalitix, which provide deeper dives into email management, leadership development, and operational process improvements. 
To learn more about Mark’s approach and see these strategies in action, watch the full webinar, where he provides step-by-step advice for applying each concept. Get ready to discover how small, purposeful changes can free your time, delight your clients, and bring greater satisfaction to your accounting practice.

Why a Smaller Client Base Helped This Firm Accelerate Revenue 

· ·

What if growing your accounting firm meant intentionally serving fewer clients? While this strategy may sound counterintuitive, one firm discovered a leaner client roster was the secret to success: they grew from $2 million to $3 million in revenue while reducing their client base from 2,400 clients to just over 100. 

In a recent episode of the Who’s Really the BOSS? podcast, Rachel and Marcus Dillon shared how their firm achieved this transformation over the past seven years. Instead of endlessly pursuing higher client volumes and ever-expanding tech stacks, they prioritized building a scalable infrastructure and preserving a strong culture—an approach that might turn traditional assumptions about firm growth upside down.

Rethinking Growth: Less Can Be More

2017, Dillon Business Advisors brought in an average of $2M annually in revenue from 2,400 tax clients—what many would view as a thriving practice. But despite its profitability, this high-volume model came with challenges. Tax work accounted for 80% of revenue, leading to heavy accounts receivable cycles and intense tax seasons that strained the team and its infrastructure.

In a bold and seemingly paradoxical move, the firm began strategically exiting large blocks of clients. 

“We exited blocks of clients that equated to more than $1 million of revenue,” Marcus explains. “And that growth from $2 million to $3 million while exiting clients was very hard.”

This shift required restructuring leadership, implementing new processes, and thoroughly rethinking client service. Along the way, the Dillons solidified the philosophy that true, lasting growth depends on establishing a solid base first—before taking on new business.

Today, the firm supports about 100 monthly clients and 10 to 15 family groups, generating $3M in revenue, with 75% arriving through monthly recurring revenue. This deliberate, high-value approach replaced the burn-and-churn cycle of their previous volume-focused model.

Building a Scalable Foundation

Armed with lessons from their challenging transition, the Dillons focused on building infrastructure through two main channels: technology consolidation and process refinement.

Streamlining Technology

Instead of adding more applications, the firm focused on maximizing its core technology stack.

“Your client base and where you’re at revenue-wise should drive the processes and the technology you use, not the opposite way around,” says Marcus.

While the average accounting firm might rely on 30 different apps, Dillon Business Advisors consolidated. Rather than deploying specialized reporting tools, they maximized features in their existing software. They also merged communication platforms, moving their phone system to Zoom to unify it with their video conferencing solution.

Perfecting Processes Before Automating

Dillon Business Advisors applied the same philosophy to refining operational processes, especially for onboarding new clients. The firm adopted a “team of three” model—assigning a client service manager, controller, and CFO to guide each client’s onboarding. Before adding automation, they made sure the manual process ran smoothly.

“We had to look at the process and figure out exactly what we needed to solve for,” explains Rachel. “And then we chose the technology to put in that place.”

As a result, the team now completes a full client onboarding—including bookkeeping setup, tax review and proforma, and initial financial reporting—in just two to three weeks, all without sacrificing service quality for existing clients.

Cultivating Culture for Sustainable Growth

Alongside technology and process refinement, the Dillons knew preserving firm culture was vital for sustainable expansion. They introduced two key strategies: creating development paths for existing staff and adopting a culture-first approach to acquisitions.

Developing Internal Leadership

In mid-2024, Dillon Business Advisors launched a Subject Matter Expert (SME) program, enabling employees to grow their leadership skills without changing roles. SMEs receive extra compensation for staying up-to-date on industry changes and mentoring team members in specific areas like payroll, tax, or QuickBooks Online.

“They don’t have to move to a different role within the firm,” Rachel says, “And they don’t have to look outside the firm to work on their leadership development.”

This initiative helped the firm retain top talent while cultivating deep in-house expertise.

Culture-First Acquisitions

Their cultural focus also shapes the firm’s acquisition strategy. Rather than scooping up just any practice, the Dillons specifically target sub-$1 million firms with teams of five or fewer. Cultural alignment, not potential revenue, drives their decisions.

“We definitely want to maintain everything we’ve built at DBA and not dissolve into another brand or another culture,” Marcus adds.

Applying these selective criteria ensures each new addition strengthens rather than dilutes the firm’s carefully nurtured culture.

Conclusion: Build First, Then Grow

Dillon Business Advisors’ evolution from a sprawling 2,400-client roster to a specialized firm illustrates that growth isn’t just about scaling up in size. By consolidating technology, refining processes, and investing in culture, they’ve built a more profitable and resilient business model that runs on monthly recurring revenue rather than seasonal peaks.

For firm owners looking to grow more sustainably, the Dillons recommend building the foundation first. Then, when your people, processes, and technology are in place, growth can happen without the chaos that often accompanies rapid expansion.

For deeper insights into these strategies, listen to the full episode of the Who’s Really the BOSS? podcast. The Dillons share practical, real-world guidance for any firm owner on a growth journey.

Rachel and Marcus Dillon, CPA, own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA, supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory.

Automation in Payment Management: A Game Changer for Accountants

· ·

For decades, accountants have had to schedule payments days in advance, juggle multiple bank logins, and painstakingly track every invoice and bill to ensure vendors get paid on time. That outdated process is rapidly changing, thanks to new platforms that leverage real-time payment rails like FedNow and RTP (Real-Time Payments). These innovations promise to streamline payments, reduce risk, and free accounting professionals to focus on strategic advisory services.

During a recent Earmark Expo, Forwardly CEO Nick Chandi joined hosts Blake Oliver and David Leary to showcase how accountants can tap into these instant payment rails. Below are the highlights from the conversation, illustrating how a platform like Forwardly can upgrade your payment processes—without requiring a drastic overhaul of your accounting systems.

FedNow and RTP: The Dawn of Real-Time Payments

The U.S. payment infrastructure is evolving. FedNow is the Federal Reserve’s new service enabling near-instant settlement—often in under a minute—while RTP (offered by The Clearing House) also provides real-time capabilities. According to Nick, about 77% of bank accounts are already covered by one or both of these rails, making real-time payments more accessible than ever.

But what if a payer’s bank doesn’t support instant payments yet? Forwardly’s fallback is same-day ACH—at no charge—ensuring no disruption in payment flows. This approach guarantees the fastest possible route for every transaction without complexity on the user’s end.

A Single Dashboard for All Clients

One of the biggest challenges for accountants is managing payments across multiple clients, each with their own bank accounts and approval chains. Forwardly consolidates all this data into a single dashboard, showing:

  • Real-Time Bank Balances: Aggregated balances across each client’s accounts, updated continuously (via Plaid, when available).
  • Outstanding Bills and Invoices: Pulled from integrated accounting systems such as QuickBooks Online, Xero, FreshBooks, and Zoho.
  • Approvals at a Glance: Quickly see which bills need sign-off and where each payment stands in the workflow.

No more guessing whether there’s enough cash on hand—Forwardly’s system checks and balances before processing bills. The platform sends a warning if a payment is scheduled but funds are insufficient. For accountants, this level of visibility is a huge step toward proactive cash flow management and strategic advisory.

Four-Way Sync and Flexible Integrations

For those who already maintain invoices and bills in QuickBooks Online or Xero, Forwardly automatically pulls those records into its dashboard. Conversely, if you create an invoice directly in Forwardly, it syncs to your ledger. Nick described a “four-way sync” feature that can even pass invoices from a QuickBooks user to a Xero user, bridging two different accounting systems.

What about clients on QuickBooks Desktop or those without a formal accounting system? Forwardly allows you to accept or send payments by connecting directly to a bank account. This flexibility means you can standardize real-time payment processes for all your clients, regardless of their tech stack.

Auto-Payments and Approvals

Recurring invoices can be an accountant’s headache—especially if payment amounts vary. Forwardly addresses this with “auto-payments.” After requesting client authorization via a white-labeled form, the platform automatically collects any invoice that appears. You can also schedule future payments or pay right at the due date, minimizing the float time and optimizing cash flow.

The system enforces proper controls via robust approvals. You can set multi-step thresholds (e.g., payments over $5,000 require two sign-offs). Only when the last designated approver clicks “okay” does the money move. In a nonprofit or multi-partner environment, this ensures checks and balances without bogging you down in manual processes.

Simple, Transparent Pricing

Forwardly’s pricing reflects its focus on instant payments:

  • Instant Payments (FedNow or RTP): 1% of the transaction, capped at $10 per payment.
  • Fallback Same-Day ACH: Free when instant rails are not available.
  • Credit Cards: 2.99% + $0.25 per transaction to get paid on invoices. You can choose to pass through the credit card fee to your customer.

Because same-day ACH is free, you only pay a fee when an instant transaction goes through. This keeps costs low while delivering the speed your clients want—no monthly fees or subscription costs are required. Also, another added benefit is that paying bills with Forwardly is free and it takes only 60 seconds. 

Enhanced Role Permissions for Accounting Firms

Firms often need to assign different levels of responsibility to staff. In Forwardly, an Admin or Advisor role carries “superpowers,” meaning they can bypass approval workflows if necessary. A Payment Manager can schedule or initiate payments but cannot override set thresholds. A Reviewer can view details without being able to approve or send money. Each user can be assigned different permissions for different client files, making it easy to stay compliant and maintain sound internal controls. You also get an unlimited number of users at no additional cost.

Transforming Accountants into Payment Strategists

In the demo, Blake and David underscored how real-time payments free accountants to offer more proactive advice to clients. Instead of guessing when to cut checks or dealing with delayed receipts, you can precisely time cash outflows and inflows. You’ll know within seconds whether a transaction succeeded, and you can immediately confirm the date and time in the ledger.

With manual drudgery reduced, accountants can shift their focus to cash flow forecasting, budgeting, and even advisory on optimal payment timing—turning what used to be a cost center into a high-value service offering. By adopting real-time payments, you enable your clients to pay (and get paid) at the speed of modern business.

Looking Ahead

Currently, Forwardly caters exclusively to B2B transactions. Nick explained that personal (consumer) payments are not yet part of the platform. However, expansions to other ERP systems like NetSuite and Sage Intacct and potential consumer capabilities are on the roadmap.

Ready to Upgrade Your Payment Process?

Payment automation isn’t just about moving money faster; it’s about transforming how accountants serve their clients. From centralized dashboards to auto-payments and real-time visibility, modern tools like Forwardly make handling everything from daily bills to large, time-sensitive transactions easier.

To learn more and earn Continuing Professional Education (CPE) credit, watch the full Earmark Expo session. Once you see how effortless real-time payment management can be, you’ll never go back to five-day lead times and manual checks.