Earmark Team

QuickBooks Online Tests Credit Karma Financing: What Accountants Need to Know

Earmark Team · September 3, 2024 ·

In a recent Unofficial QuickBooks Accountants Podcast episode, hosts Hector Garcia and Alicia Katz Pollock discussed a significant new development in QuickBooks Online: the integration of Credit Karma financing options. This feature allows QuickBooks users to offer personal loan options to their customers directly through estimates, marking a potential shift in how small business tools operate.

This Feature Is In Testing

Note that this new feature has not yet been released generally. It is currently in beta testing and may not be available to all users. A ProAdvisor discovered it in her client’s file when the client sent an estimate to a customer. In addition to the expected messaging, the customer was invited to take out a loan to pay the invoice.

How It Works

When the QuickBooks user sent an estimate to a customer, they noticed financing offers powered by Credit Karma. In the fine print, the interest rates varied widely, from 8.49% to 35.99% APR with autopay. The loans are provided through a company called Upgrade, potentially allowing Intuit to monetize its $7 billion acquisition of Credit Karma.

Importantly, this feature will be optional for QuickBooks users. It can be toggled on or off in the account settings, giving businesses control over whether to offer financing to their customers. When enabled, the financing option appears alongside the estimated details when customers view them.

Potential Benefits and Concerns

This integration could help businesses convert more estimates into paid work by offering customers flexible payment options. As Alicia noted, “If you are somebody who gives high estimates and you know you struggle to have all of your bids accepted, this may be a way of actually getting them paid where you’re getting paid in full right up front.”

However, the hosts also raised some potential concerns:

Privacy: There are questions about how QuickBooks customers’ information might be used to market these loans.
High interest rates: The upper end of the APR range (35.99%) raised eyebrows among the hosts.
Ethical considerations: Accountants may need to consider the implications of facilitating high-interest loans to their clients’ customers.
Customer relationships: Businesses must decide whether offering financing aligns with their customer service approach.

Intuit’s Strategy

This integration is part of Intuit’s broader strategy to leverage its Credit Karma acquisition. By offering financing options within QuickBooks, Intuit aims to create a more comprehensive financial ecosystem for small businesses and their customers.

However, it’s important to note that Intuit does not directly provide the loans. Instead, they likely receive a commission for approved loans, similar to Credit Karma’s existing business model.

What Accountants Should Do

If you or your clients use QuickBooks Online, it’s essential to be aware of this new feature:

Check the settings: Look for the “customer financing” toggle in the Discounts and Fees section of the new invoice experience.
Discuss with clients: If the feature is available, discuss whether offering financing aligns with their business goals and customer relationships.
Understand the terms: Familiarize yourself with the financing options and terms to advise clients appropriately.
Monitor developments: As this feature is still being tested, watch for any changes or broader rollout.

The integration of Credit Karma financing into QuickBooks Online represents a significant shift in accounting software capabilities. While it offers potential benefits for businesses looking to close more sales, it also raises essential considerations about privacy, ethics, and customer relationships. As this feature develops, accountants will be crucial in helping clients navigate this new landscape of embedded financial services. Listen to the full Unofficial QuickBooks Accountants Podcast episode for the latest information.

Alicia Katz Pollock’s Royalwise OWLS (On-Demand Web-based Learning Solutions) is the industry’s premier portal for top-notch QuickBooks Online training with CPE for accounting firms, bookkeepers, and small business owners. Visit Royalwise OWLS, where learning QBO is a HOOT!

Transforming Your CPA Firm: A Strategic Approach to Client Acquisition

Earmark Team · August 21, 2024 ·

A recent episode of the “Who’s Really the Boss” podcast offers a roadmap for strategic client acquisition that could revolutionize your accounting practice. Hosts Rachel and Marcus Dillon, drawing from their experience running DBA Accounting, posit a compelling thesis: CPA firm owners can turbo-charge business growth by implementing a comprehensive client acquisition strategy that encompasses ideal client profiling, service package development, and streamlined inquiry management.

Identifying Your Ideal Client: The Foundation of Strategic Growth

At the heart of the Dillons’ approach is a laser focus on identifying the ideal client. This isn’t about targeting any business owner who needs accounting services; it’s about pinpointing the specific type of client who will benefit most from your expertise and align with your firm’s values and goals.

Rachel and Marcus share their experience: “Our ideal client is a doctor owner. They own their own practice, and their annual revenues are anywhere from $1.5 to $3 million. They’ve got a team of 20 employees or less, and typically it’s a family practice.”

This level of specificity didn’t come out of thin air. The Dillons arrived at this profile by analyzing their existing client base, identifying patterns in the types of clients they served best, and recognizing opportunities where they could add the most value.

By focusing on a specific ideal client profile, you’re not just narrowing your focus—you’re setting the stage for more targeted marketing, more efficient operations, and, ultimately, more satisfying client relationships.

Streamlining Inquiry Management: Converting Prospects into Ideal Clients

The Dillons emphasize the importance of a dedicated person handling new client inquiries. Rachel manages this process for their firm, ensuring consistent messaging and efficient screening of potential clients.

“The thing that has helped the most with that is knowing who our ideal client is, and knowing who our ideal client isn’t, so that within just a few minutes after talking, I can decide whether or not to continue asking questions to see if they are a good fit?” Rachel explains.

Their system includes:

Quick response time (typically within 24 hours)
Use of technology (HubSpot as their CRM and website platform)
Automated calendar booking for prospects

Marcus adds, “Our website has to be just as good a front door as a brick-and-mortar office could be. So we’ve invested in our website, and many people ask us questions about our website.”

Their website includes clear messaging about their services, video content explaining their ideal client profile and onboarding process, and self-qualification tools. This helps prospects determine if the firm is a good fit before they even make direct contact, saving time for both the prospect and the firm.

Leveraging Technology for Marketing and Communication

The Dillons use a variety of tools to streamline their marketing and communication efforts:

HubSpot: Serves as their CRM, website platform, social media scheduler and email marketing tool
Ignition: Used for sending engagement letters and receiving payments

Rachel emphasizes that while these specific tools work for their firm, the key is to find solutions that provide automation, analytics, and a seamless experience for clients and prospects.

Key Takeaways for CPA Firms

To transform your CPA firm’s client acquisition strategy:

Get specific when defining your ideal client
Designate a dedicated person to handle new client inquiries
Invest in your website as a key tool for attracting and qualifying prospects
Leverage technology to automate and streamline your marketing and communication efforts

By implementing these strategies, you can create a more focused, efficient, and profitable accounting practice that attracts the right clients and provides more satisfying relationships for you and your clients. Get all the details by listening to the full episode of the “Who’s Really the Boss” podcast.

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, is a community for accounting firms to get operational support in strategy, structure, and systems.

Embracing the Future of Accounting with Sage Intacct

Earmark Team · August 20, 2024 ·

“If I gave this same presentation three months from now, it’s probably going to be a different discussion because that’s how fast everything’s changing right now in this industry.” That’s according to Douglas Lewis, a co-host of the new Unofficial Sage Intacct Podcast, which was created to help accountants stay up-to-date on the latest in a rapidly changing technology landscape.

Co-hosts Doug Lewis, Emily Madere, and Matt Lescault will combine their expertise in M&A consulting, Sage Intacct implementation, and global accounting practices to provide a unique perspective on the accounting profession’s transformation. As an unofficial podcast, they aim to offer balanced information about Sage products, including discussing competitors and potential shortcomings.

In Episode 1, Doug, Emily, and Matt discuss how the evolution of accounting technology is transforming the role of accounting professionals from number crunchers to strategic advisors, requiring a shift in skills and mindset.

The Rapid Evolution of Accounting Technology

The accounting industry is experiencing rapid change driven by technological advancements. This breakneck evolution is affecting every aspect of accounting:

Mergers and Acquisitions: The landscape of firm valuations and appealing features for acquisition is constantly changing. One of the most requested items nowadays is a thriving CAS practice. This demonstrates the increasing importance of technology-driven services for firm value, with Sage Intacct often at the core of these valuable practices.
Technological Advancements: New tools and software continually emerge, offering enhanced capabilities and efficiencies. These advancements include cloud-based systems, AI-driven analytics, and automated data entry, all of which are reshaping how accountants work.
Operational Shifts: The way accounting firms and departments operate is being reshaped by these new technologies. Matt Lescault mentions that his firm has been “completely remote” since 2010, a trend that has accelerated across the industry. This shift to remote work is enabled by cloud-based tools like Sage Intacct, which allow for real-time collaboration and data access from anywhere.

This rapid change presents both a challenge and an opportunity for accounting professionals. Emily Madere, who works in Sage Intacct, stresses that “accounting is now technology-focused.” This shift requires professionals to not only understand financial principles but also to be adept at leveraging advanced software tools.

This constant evolution pushes accountants beyond traditional number-crunching roles and into more strategic positions. Today’s accountants are expected to provide data-driven insights, predictive analytics, and strategic financial advice. Tools like Sage Intacct are enabling this transition, automating routine tasks and providing powerful analytics capabilities that allow accountants to focus on higher-value activities.

As the podcast hosts emphasize, embracing these technological changes is not just about staying competitive—it’s about redefining the role of the accountant in the modern business landscape.

Sage Intacct: Driving the Future of Accounting

At the heart of this technological revolution in accounting is Sage Intacct, Sage’s flagship product that’s reshaping the industry landscape. Matt Lescault, drawing from his global experience as president and CEO of Lescault & Walderman, a Sage partner in both the US and Africa/Middle East, offers a broader perspective: “There will be a major focus on the Intacct product because it is what Sage is launching globally.

Sage’s significant investment in Intacct reflects the software’s potential to transform accounting practices on a global scale. It offers advanced capabilities beyond traditional accounting software, enabling professionals to automate routine tasks, gain deeper insights from financial data, and make more informed strategic decisions.

With her expertise in Sage Intacct, Emily Madere highlights its transformative potential: “Sage has a lot of great, awesome products and functionalities that can help a lot of people.” However, many companies are not fully leveraging Sage Intacct’s capabilities. Madere observes that there’s “an opportunity for firms, businesses, entrepreneurs to get so much more out of their system.” This underutilization often manifests in several ways:

Limited use of automation features, with firms still relying on manual data entry for tasks that could be streamlined.
Underuse of advanced reporting and analytics tools, missing out on deeper financial insights.
Failure to integrate Sage Intacct with other business systems prevents a holistic view of operations.
Neglecting real-time collaboration features that are particularly valuable in today’s remote work environment.

By fully embracing these functionalities, Madere suggests, companies can dramatically improve efficiency, gain more actionable insights from their financial data, and ultimately provide more strategic value to their clients or organizations. This shift from basic bookkeeping to high-level financial strategy is at the core of the evolving role of accounting professionals, which the podcast aims to explore.

Drawing from his extensive M&A consulting experience, Doug Lewis highlights a significant trend in the accounting industry: “In all of the M&A work that I do for accounting firms, one of the most requested items is a thriving CAS (Client Advisory Services) practice. And most firms that we see who have these thriving practices are utilizing Sage Intacct to do so and to build that out.”

Mastery of advanced tools like Sage Intacct not only enhances operational efficiency but can directly contribute to a firm’s market value and long-term success. Proficiency in Sage Intacct is becoming a key differentiator in the M&A landscape, potentially increasing a firm’s attractiveness to potential buyers or investors.

The New Accounting Professional: From Number Cruncher to Strategic Advisor

As accounting technology evolves, so does the accounting professional’s role. The days of simply balancing books and preparing financial statements are giving way to a new era where accountants are expected to be strategic advisors.

Sage Intacct is at the forefront of enabling this shift. Automating routine tasks and providing powerful analytical tools frees accountants to focus on higher-value activities. This requires a new set of skills:

Data analysis: Interpreting complex financial data and deriving actionable insights
Strategic thinking: Using financial information to guide business decisions
Technology proficiency: Mastering advanced tools like Sage Intacct

Emily Madere emphasizes the importance of staying current: “After you listen to an episode, you are going to have a more robust knowledge of the Sage products and how to use them and how to talk to them with your colleagues.”

This evolution demands a proactive mindset. Accountants must actively seek out opportunities to learn and adapt to new technologies. Matt Lescault, with his global accounting experience, notes the rapid change he’s observed: “I started my company in late 2006, and it’s just been an amazingly fast-paced environment of change from a technology approach and focus.”

The Unofficial Sage Intacct Podcast aims to support this journey, providing insights and guidance to help professionals navigate this changing landscape. As Madere puts it, “This is a great opportunity for me to share what I know about Sage and hopefully help people in their day-to-day lives.”

As the podcast hosts emphasize throughout the episode, the accounting profession is transforming profoundly. At the forefront of this revolution is Sage Intacct, offering powerful tools that enable accountants to move beyond traditional number-crunching and into strategic advisory roles.

This shift represents not just a change in tools, but a fundamental reimagining of the accountant’s role in modern business. As accountants become strategic advisors, they can drive more informed decision-making, contribute to business growth, and even influence economic trends.

Don’t get left behind. Join the conversation with the Unofficial Sage Intacct Podcast and equip yourself with the knowledge and insights needed to thrive in the new era of accounting. Your journey from number cruncher to strategic advisor starts here.

Raising Prices Without Losing Clients: A CPA Firm’s Success Story

Earmark Team · July 31, 2024 ·

Setting the right price for your services can feel like walking a tightrope. How do you increase your rates without alienating your loyal clients? Can you boost your bottom line while maintaining strong client relationships? For many CPA firm owners, these questions aren’t just theoretical – they’re critical to the success and growth of their businesses. Today, we dive into a real-world success story that proves it’s not only possible but potentially transformative for your practice.

In a recent episode of the Who’s Really the BOSS podcast, Rachel and Marcus Dillon, owners of a family-run CPA firm, share their journey of transforming their pricing model. By aligning their pricing with the value they provide, the Dillons have streamlined client relationships, better communicated their worth, and optimized their practice for growth.

Let’s examine how adopting a value-aligned pricing strategy can benefit your firm.

Strategic Approach to Price Increases

The Dillons successfully raised prices without losing clients using a strategic approach. They simplified their pricing process by implementing evergreen engagement letters in 2022, eliminating the need for annual renewals.

“We used to send out updated engagement letters every year with pricing to every single engagement. And that was stressful,” Marcus Dillon explained. The shift to evergreen letters allowed the firm to focus on value-based pricing rather than annual negotiations.

The timing of the price increase announcement was also crucial. The Dillons announced their increases on February 15th, with an effective date of April 1st. This timing, while unconventional as it fell during tax season, was strategic. It allowed clients ample time to consider the changes and ensured that most tax work was completed before potential client transitions occurred.

Marcus emphasized the importance of regular, small increases: “Always go get a small price increase every year. If it’s 3%, 5% something. That way people are always in the habit of expecting a price increase that goes along with inflation.”

Transparent Communication and Client Management

Central to the Dillons’ success was their commitment to transparent communication. They used QuickBooks Online to create detailed estimates that showed the full market rate for their services and a “loyalty discount” for 2024.

“We put the year 2024 on there. That way, they could see that that reduces or goes away over time,” Marcus explained regarding the loyalty discount. This transparency helped clients understand the pricing structure and set expectations for future adjustments.

Rachel Dillon was in charge of communicating the price increases to clients. “We never want to hurt the relationship of the “team of three” with the client and have to have awkward conversations,” Rachel explained. So pricing almost always goes through Marcus and myself.”

The Dillons used email tracking software to gauge client reactions and follow up as needed, ensuring no client felt ignored or undervalued.

Balancing Client Retention and Profitability

The Dillons’ approach yielded impressive results. For Client Accounting Services (CAS), the client base decreased from 81 to 75 over three months. However, the average revenue per CAS client increased from $1,823 to $2,103. Their AIM (individual tax) service saw a similar trend, with client numbers decreasing but average revenue increasing.

The Dillons were strategic about which clients they were willing to lose. “We knew that clients under $1,000 a month under the legacy pricing are going to have to go up beyond a thousand,” Marcus explained. This approach allowed them to focus on clients who valued their services and were willing to pay for the expertise provided.

They also thoughtfully handled special cases, such as clients selling their businesses. Rachel emphasized the importance of this approach: “Any time a client is going through an M&A deal, our team’s hours go up. There are just more requests, more clarifications.”

Overall, the firm achieved a 94.15% acceptance rate on CAS price increases by June 1st, with total monthly recurring revenue increasing by 6.46% despite client attrition. This outcome aligns closely with what Marcus calls the “80-10-10 rule”: 80% of clients accept the increase, 10% have questions but ultimately accept, and 10% leave.

The Dillons learned valuable lessons from this process. “Creating capacity seems to attract more ideal clients,” Rachel noted. Letting go of clients who were no longer a good fit created space for new, higher-paying clients better aligned with their service model.

It’s worth noting that the process wasn’t without emotional challenges. “The two to three weeks and even the week and two after we sent these out, there were tons of conversations between [Marcus] and me with our leadership team,” Rachel shared. You know, just going through all the scenarios.”

The Dillons also emphasized the importance of having a network of professionals to refer clients when they no longer fit the firm’s service model. This allowed them to maintain positive relationships even when parting ways with clients.

The Dillons’ experience shows how CPA firm owners can successfully implement price increases while maintaining strong client relationships. Their story proves transparency, clear communication, and strategic timing can boost profitability without sacrificing valuable client connections.

For CPA firm owners, the broader implication is clear: when handled thoughtfully, price increases can be a powerful tool for business growth. However, success requires a delicate balance between valuing your services appropriately and maintaining the trust and loyalty of your client base.

To gain more detailed insights into the Dillons’ strategy and hear about their experiences firsthand, listen to the full “Who’s Really the BOSS” podcast episode. Their story offers practical advice for any CPA firm owner considering a pricing strategy overhaul.

Remember, as a CPA firm owner, you provide valuable expertise and services to your clients. Don’t be afraid to price your services accordingly. With the right approach, you can increase your profitability while strengthening, not weakening, your client relationships.

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, DBA | FIRM, supports and guides accounting firm owners and leaders with free resources, education, and operational strategy.

Familiar Interface, Cloud Power: Meet the QuickBooks Online Desktop App

Earmark Team · July 29, 2024 ·

In a recent Unofficial QuickBooks Accountants podcast episode, accounting gurus Hector Garcia, CPA, and Alicia Katz Pollock, MAT, explored the new QuickBooks Online desktop app.

As the accounting profession continues its shift towards cloud-based solutions, the QuickBooks Online desktop app is proving to be a vital transitional tool. It provides accountants who are used to working in QuickBooks Desktop with a familiar interface while introducing the benefits of online platforms to streamline workflows and enhance client services.

But what exactly makes this app such a powerful ally for accountants navigating the choppy waters of technological change? How does it balance the comfort of traditional desktop software with the advantages of cloud-based systems? And most importantly, how can it help you serve your clients more effectively?

The Comfort of Familiarity: Navigating the New Interface

For many CPAs, transitioning to a new accounting system can be daunting. Will it be intuitive? How steep is the learning curve? The QuickBooks Online desktop app addresses these concerns head-on with its familiar interface and enhanced navigation features.

The core of this user-friendly approach is the Desktop View feature. When you open the QuickBooks Online Desktop app and log into a company file, it defaults to Desktop View, but you can toggle a checkbox at the top left side of the screen to turn it off, transforming the left navigation bar to mirror the QuickBooks Online interface. As Alicia Katz Pollock enthusiastically noted, “Turning on Desktop view made QBO look like traditional QuickBooks Desktop.”

A customizable shortcuts feature allows users to tailor their experience to their needs. As Hector explained, “You can pick and choose what shortcuts you want to put in there in order to quickly access things.” This flexibility means you can set up your digital workspace to match your unique workflow, boosting your efficiency and productivity.

The app also introduces a traditional menu structure and a new set of keyboard shortcuts. While there’s a learning curve involved, these features offer the potential for significant time savings once mastered.

These features collectively create an environment familiar to CPAs accustomed to desktop software while gradually introducing the benefits of online platforms.

Juggling Made Easy: Improved Multi-Client Management

Picture this: It’s tax season, and you’re juggling financial reports for a small business, tax returns for multiple individuals, and a quick consultation for a new client. In the past, this scenario involved logging in and out of different accounts or even switching between multiple applications. The QuickBooks Online desktop app aims to transform this hectic juggling act into a seamless, efficient workflow with improved multi-client management capabilities.

The app’s multi-instance, multi-company usage feature is at the heart of this improvement. Hector explained, “You can connect to multiple companies simultaneously without logging off.” This functionality allows you to switch between company files without logging out and back in. Imagine jumping from reviewing your small business client’s profit and loss statement to updating the books for your individual tax client with just a few clicks. This streamlined process can save precious minutes that add up to hours throughout a busy season.

The app further enhances this efficiency with enhanced tab and window management. You can open multiple tabs and windows, creating a command center for all your client work. Hector highlighted this feature, saying, “Essentially, all the windows you have open and all the tabs you have open, they’re listed in the top right. And if you hover over each of them, it gives you a little preview of the screen.” This means you can have a client’s tax return open in one tab, their financial statements in another, and perhaps a research window open in a third—all easily accessible and manageable.

For accountants, these features translate to significant productivity improvements. Seamlessly switching between clients and tasks can dramatically reduce the mental overhead of context switching. You’re no longer constrained by the limitations of traditional desktop software, where each client might require a separate login or company file. Instead, you have a unified workspace that adapts to your needs.

This improved multi-client management also opens up new possibilities for serving your clients. Do you need to quickly compare the financial performance of multiple clients in the same industry? Or perhaps you want to simultaneously apply a tax strategy you’ve just researched to several relevant clients? With the QuickBooks Online desktop app, these tasks become efficient and straightforward.

The Best of Both Worlds: Unique Bridging Features

The QuickBooks Online desktop app offers unique features that bridge the gap between traditional desktop applications and cloud-based solutions.

The crown jewel of these bridging features is the Split Screen function. As Hector enthusiastically demonstrated, “I want to see a profit and loss and a balance sheet next to each other. I don’t want to be moving too many things around. I can pull one report up on the left side and another report on the right side, collapse the shortcuts list, and close the open tabs window to make the most use out of the two screens.” This side-by-side analysis can significantly speed up your work and reduce the risk of errors when constantly switching between tabs or windows.

However, it’s essential to acknowledge that the QuickBooks Online desktop app, like any technological solution, has its own trade-offs. While it offers unique features like Split Screen, it lacks support for browser extensions that many CPAs have come to rely on in their daily work. And Hector pointed out that the app just feels slow. So, users will likely still need to have another browser open to use extensions like a password manager or Grammarly for proofreading.

“So now you’re going to put a double strain on your computer; you’re going to do all your email, banking, whatever on your browser. And then the QuickBooks app will only be QuickBooks,” Hector says.

Accountants should be aware of these potential limitations and consider their typical usage patterns and hardware capabilities when deciding whether to adopt the desktop app.

Despite these challenges, the QuickBooks Online desktop app represents a significant step forward in bridging the gap between traditional desktop accounting software and cloud-based solutions. It offers a unique hybrid experience that combines the best of both worlds: the familiar interface and robust features of desktop software, coupled with the accessibility and collaborative capabilities of cloud-based platforms.

Embracing the Future of Accounting Technology

The app’s familiar interface with enhanced navigation offers a comforting starting point for accountants and other QuickBooks users venturing into the cloud. Its improved multi-client management capabilities promise to streamline workflows and boost productivity. Its unique features, like the Split Screen function, exemplify the potential of hybrid accounting solutions.

For many accountants and business owners, this app could be the key to unlocking the benefits of cloud-based accounting while maintaining the workflows they’ve honed over years of practice. It’s not just a new tool – it’s a stepping stone to the profession’s future.

To truly grasp the potential impact of this app on your practice, we encourage you to listen to the full Unofficial QuickBooks Accountants Podcast episode. Hear directly from industry experts as they explore the nuances of this game-changing tool. You’ll gain invaluable insights into how the QuickBooks Online desktop app could revolutionize your workflow, enhance your client services, and position your practice at the forefront of accounting technology.