Earmark Team

Your Accounting Firm’s Biggest Structural Problem Is Something You Built on Purpose

Earmark Team · May 31, 2026 ·

You built a successful accounting firm, and now you’re trapped inside it. Every client question routes through you. Every tax return needs your eyes before it goes out the door. Your team is talented, but no one knows whose desk the work is on, and your clients couldn’t name their accountant if you asked them to.

Sound familiar?

Unfortunately, you probably built the structure causing all this pain with the best of intentions.

In this episode of Who’s Really the BOSS?, Marcus and Rachel Dillon pull back the curtain on how they restructured their firm, Dillon Business Advisors (DBA), from a bottlenecked, siloed operation into a scalable team-based model. They walk through the exact phased transition that made it work, including the hard conversations, the timing decisions, the mistakes, and the results.

One lesson they learned the hard way, and they keep seeing other firms stumble over it: the biggest mistake accounting firm owners make when restructuring is skipping straight to the end state without working through the messy middle. Building a firm that doesn’t revolve around you requires a phased transition. First, define the roles. Then align the teams and optimize for industry niches. Get the sequence right, and you unlock collaboration, capacity, and career growth for your people. Skip steps, and you’ll create more chaos than you started with.

Let’s break down what that transition actually looks like, starting with the pain points that tell you your current structure is broken, moving through the three phases DBA used to go from chaos to clarity, and ending with what becomes possible on the other side.

The Problem Hiding Behind Good Intentions

Before you can fix your firm’s structure, you have to be honest about what’s broken. What makes this tricky is, the thing that’s broken is probably something you built on purpose.

Marcus describes the symptoms DBA experienced, and they’ll sound painfully familiar to most firm owners. Despite having project management software that technically showed the status of every project, they still didn’t really know where work was. Not in the way that matters, like what a team member was actually waiting on, or why something hadn’t moved in three days. When someone needed time off, or worse, left the firm, there was no reliable way to pick up where they left off without a scramble.

Then there was the silo problem, and this one stings because it started as a smart idea. DBA intentionally created three separate teams: one for individual tax, one for business tax, and one for accounting. On paper, it looked like specialization. In practice, it built unintentional walls.

“The accounting would be done and then passed the baton to the business tax team,” Marcus explains. “The business tax team would do tax returns, and then pass things over to the individual tax team.” The business tax team would be busy at certain times of the year, completely dependent on the accounting team to deliver clean financials, but they had no visibility into what was on that team’s plate. Meanwhile, the individual tax team sat idle, waiting on K-1s, unable to push the process forward or even understand why things were delayed.

Marcus was at the center of it all. Every return needed his review. Every client conversation required his voice. The org chart was a bull’s eye with him in the middle. “I was definitely the bottleneck,” he admits. “I had to have eyes on everything before it went out to a client. It had to be me calling or sitting down with the client.”

The damage wasn’t just internal. Rachel adds the client perspective, and it’s equally sobering. “Clients really didn’t know who their point person was. So when they called, they would ask for Marcus, or they would say, ‘I don’t know who’s working on my tax return’ or ‘I don’t know who’s working on my accounting.'” Things would get lost in translation from person to person. Clients wanted two things the structure simply couldn’t deliver: fast responses and proactive advice.

That’s the real cost of a structure built around one person. It’s not just that the owner burns out. Client experience degrades. Your team knows who they’re working with, but your clients don’t. And when clients feel uncertain about who’s handling their finances, trust erodes until it’s too late.

The Three Phases From Scaffolding to Scale

This is where Marcus and Rachel’s conversation gets practical. They walk through a three-phase approach that DBA used to transition from their old structure to the Team of Three model. Each phase builds on the one before it. Skip ahead, and you’ll pay for it later.

Phase 1: Define the Roles (Build the Scaffolding)

Before you can organize teams, you need to know what roles exist. DBA’s Team of Three consists of three clearly defined positions:

Client Service Manager (CSM). The base of the team. Marcus describes them as “an accountant, a bookkeeper, somebody with experience who doesn’t have to have a degree.” Many of DBA’s CSMs are working parents who want a career that offers flexibility alongside meaningful work. They operate at 85% capacity, with 15% reserved for onboarding new clients and handling the inevitable surprises.
Client Controller. Someone with tax experience who has “seen accounting and done closeouts,” Marcus explains. “Maybe they’ve done the bookkeeping cleanup at year end, and they can produce clean financials.” They can prepare business tax returns and advise on personal and business tax matters. When DBA hires for this role, they post it as “tax manager” because posting “client controller” attracts candidates who misunderstand the position.
Client CFO. This person manages the team and drives the client relationship. “They can have larger business strategy and tax-related conversations with clients as needed or consistently throughout the year,” Marcus notes. Business ownership experience is a big plus here because it gives them risk tolerance and the ability to connect with entrepreneurial clients.

With those three roles defined, DBA assessed its existing team and started mapping people into positions. Some placements were obvious. Others required difficult conversations.

“We didn’t want to force people into a certain role,” Marcus explains. They had direct conversations with team members. “Here are the guidelines of each role, here’s what each one would do. What would you like to do? Where do you feel most comfortable?”

Rachel adds an important nuance about those conversations. “There were team members who had been with us a long time, and they were leaders within our firm. They were experienced, degreed and very good accountants. But if you think about it vertically, they’re the bottom.” It was important to help them understand that CSMs have significant client interaction and hold important relationships. They found other ways for these team members to lead through onboarding, training, mentoring, or becoming subject matter experts.

Marcus admits to a mistake from this phase. “We kept some people on too long. They clearly weren’t fully a client controller. They had a leg in CSM and another in Client Controller for just a little bit too long. And it didn’t work out.”

Phase 2: Align the Teams (Set the Team Structure)

Phase 2 is where the real transformation happens, and where it often breaks down for other firms.

After Phase 1, DBA had people in defined roles. But those people weren’t working in consistent teams. “Even with myself as maybe the only client CFO at that time, we had close to 40 different teams of three within our team of 12 or 10 FTEs,” Marcus reveals.

Rachel paints the picture. “A CSM on our team was working with three different controllers. So three people give her work, ask her questions or request things from her. During tax season, everyone’s busy. Who do I prioritize work for?”

The solution was a deliberate reorganization and locking in which three people would serve which clients. DBA used a straightforward decision framework. If two of the three team members were already working with a client, those two stayed. Swapping out two of three required exceptional justification, such as a team member having a relationship that overrode the numbers.

The timing was strategic. They planned the reorg in March and April, then communicated it to clients after tax season. “After tax season, we actually pushed through the reorg and communicated to clients,” Marcus explains.

Clients reacted well. “They said, ‘Okay, we know you have what’s in our best interest. We trust you. I didn’t lose my person.'”

The internal results were dramatic and fast. “Within a month, efficiencies and budgets improved,” Marcus reports.

Phase 3: Optimize and Refine (Industry Niches and Career Paths)

With teams aligned and running smoothly, DBA could finally build industry specializations. They organized pods around verticals: dental, veterinary, and medical professional services. Construction and real estate were sprinkled across every team, since many clients own real estate.

This created real advisory value. “When I have advisory conversations, that’s what they typically ask me: ‘Well, how’s everybody else doing?” Marcus shares. “Because I want to know, am I the only one who’s going through this difficult time?”

Phase 3 also made career progression visible. “It gives people a clear path to move if they want to do that career ladder,” Marcus explains.

Marcus’s own evolution shows the ultimate success. “I’ve given away clients and team members to other people who are progressing in their careers.” He adds, “After the client meets the team, they forget about me.”

“Sometimes starting at phase three is the problem, or not doing phase one and phase two well,” Marcus warns. “The firms that have success with this start with role definition and then move to defining teams and then optimizing or refining.”

What The Right Sequence Unlocks

Step back and look at what DBA built through this phased approach. Each phase created the foundation for the next breakthrough.

Collaboration over silos. Teams know each other’s workloads and can step in when needed. There’s no single point of failure on any client. “If a team member needs to be out, the client is still going to be fully served and their team is available,” Rachel explains.
Consistency through tax season. Marcus calls out a common industry problem where firms sell clients on recurring advisory work, then stop delivering it from January through April. “You should have the bandwidth and the capacity to serve those clients consistently all year long, including tax season. If you’re signing somebody up for recurring ongoing financial support, which is what most people do in CAS, you have to do that consistently.”
Real capacity for growth. After the Phase 2 reorg, Rachel notes, “Those team members actually had enough capacity to take on clients without being overloaded with work or going above their peak capacity.”
Career development without departure. Team members don’t have to leave to advance. Marcus shares, “Our team members don’t have to go outside of DBA to continue to progress in their careers.”

Marcus and Rachel have seen what happens when firms skip steps. Firms that jump straight to building industry pods without first defining roles end up with confused team members. Firms that try to align teams without clear role definitions create accountability structures with nothing to be accountable to.

The sequence is the architecture that makes everything else work.

Your Move: Define, Align, Then Optimize

The Team of Three model gave DBA a destination. But the phased transition got them there. Most firm owners who struggle with restructuring try to implement the final version on day one.

Whether your firm has five team members or 50, the principles hold: clarity before alignment, alignment before optimization. Your team needs to know their role before they can function as a unit. Units need to gel before you can specialize.

If you’re feeling stuck as the bottleneck in your firm, or you’ve tried restructuring and it created more chaos than clarity, Marcus and Rachel share more details about each phase in this episode of Who’s Really the BOSS?. They discuss the specific mistakes they made and how they coach other firms through the same transition.

Marcus closes with an invitation: “We have a lot of resources. If anybody wants to reach out about any of those resources, job descriptions, benchmarks, scorecards, all that fun stuff. We have those in the Collective community. But if something is sticking out, please reach out.”

Listen to the full episode to hear their complete breakdown of how to build an accounting firm structure that actually works.

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.

What Happens When Your Best Employee Outgrows You?

Earmark Team · May 31, 2026 ·

Alicia Katz Pollock teaches thousands of accounting professionals how to use QuickBooks. She’s built a training empire at Royalwise, published textbooks, and earned the unofficial title of “QuickBooks Queen.” So when she joined the hosts of She Counts for a special crossover episode, she thought she knew exactly what story she was telling.

She was wrong.

“Oh my God, I’m undervaluing myself,” Alicia said after hosts Questian Telka and Nancy McClelland reflected what they heard. “It wasn’t part of my narrative. And I wasn’t thinking about it that way at all.”

This crossover episode brings together She Counts and the Unofficial QuickBooks Accountants Podcast for a conversation that digs into why technically brilliant bookkeepers chronically sell themselves short, and what it takes to finally stop.

When Success Becomes a Mirror

Alicia’s story starts with a bookkeeper she calls Brenda. Brenda was a coaching client in Alicia’s Royalwise On-Demand Web-based Learning Solutions (OWLS) program who had the quality Alicia prizes most: curiosity.

“I could tell she was thinking about the material,” Alicia explained. “Even if she didn’t know what to do, she knew there was something that needed to be done.”

At the time, Alicia was running a small bookkeeping practice alongside her training business. She had about 30 clients, mostly micro businesses, solopreneurs, and therapists. They’re the kind of clients who say, “I don’t need a bookkeeper” or “I can’t afford a bookkeeper,” even though they really need someone to handle monthly reconciliations.

So Alicia brought Brenda on to help. For two years, they developed systems together: Slack communication, technology processes and review protocols. Brenda got better and better. Then she started growing beyond Alicia’s small clients. She bought a couple of Alicia’s personal-books clients that didn’t fit the Royalwise model. She picked up her own $400-a-month client, then a $1,000-a-month client. Finally, a church hired her for $4,000 a month for bookkeeping and administration.

“All of a sudden, she found herself making $10,000 a month,” Alicia said. “And she’s like, ‘Hey, Alicia, I need to give you notice. I can’t do your tiny little clients anymore.'”

Nancy’s reaction captured what everyone listening probably felt. “Two completely opposing feelings at the same time. On the one hand, a huge freaking success story. On the other hand, you taught her everything she knows, and now she’s leaving.”

This wasn’t abstract for Nancy. Her own long-time employee of eight years gave notice just two days before recording. “I feel left behind. I feel trapped,” Nancy admitted.

But then Nancy shared wisdom from Hector Garcia that helped her reframe the problem. When she complained about training someone who left, Hector responded: “Yeah, but what if you don’t teach them everything they need to know and they stay?”

That’s the real mirror moment. As Questian observed, “It forces us to realize the value of what we’ve built.”

From Loss to Expansion

Faced with losing Brenda, Alicia had safe options. She could take the clients back herself, sell the book of business, or drop bookkeeping entirely. She chose none of them.

“If it worked for Brenda, can I repeat the success?” she asked herself. “Can I scale it?”

Showing remarkable vulnerability, Alicia went to her Royalwise OWLS members (the people who pay her for coaching). She asked point-blank, “Is this a good idea or is this a stupid idea?” Brenda was actually there to tell her own story.

The response was enthusiastic. Members said things like “I would love to study under you” and “I would love hands-on experience in real bookkeeping scenarios because every single one is different.”

So Alicia built something ambitious. The incubator model works like this: First, trainees watch while she does the bookkeeping. Then they do it while she talks them through it. After five or six months, they work independently while she reviews.

Beyond bookkeeping, the program includes:

Mariette Martinez’s accounting lifecycle course (because knowing QuickBooks isn’t the same as running a practice)
Richard Roppa-Roberts Roundtable Labs for peer support
Alicia’s intensive hands-on QuickBooks training
A grievance space where trainees can discuss problems without Alicia present

“I love that you created a space for grievances,” Questian said.

The $19,000 Question

When Alicia calculated what all these components would cost if purchased separately, the number came to roughly $19,000 per year.

“Who the heck is going to pay $19,000 to be part of this?” was her first thought.

Questian pushed, “How did it make you feel at that number?”

“I was distinctly uncomfortable with asking anybody for that,” Alicia admitted.

Nancy dug deeper. Was it fear of being seen as greedy? Alicia identified multiple layers, including poverty consciousness, a desire not to price anyone out, and the tension between the need for fair compensation and the need to keep opportunities accessible.

But the trainees are paid employees earning 60% of client fees for their work. When Alicia’s lawyer said they had to be employees rather than contractors, she suddenly found herself hiring five part-time salaried employees, effectively doubling her company overnight.

She also secured sponsorship from Dext to create scholarships, offered payment plans with discounts, and gave credits to existing members. People signed up across all payment options.

What ultimately justified the price was Brenda’s success. “The demonstrated outcome of working with me is somebody who is pulling in $10,000 a month,” Alicia reasoned. “$19,000 a year is a valuable investment to be able to get to that place.”

Why We Can’t See Our Own Worth

A notable pattern emerged during this conversation: None of the hosts could see their own blind spots without help.

Alicia didn’t recognize her burnout until hearing a She Counts episode. She didn’t see her undervaluation until Questian pointed it out. Nancy admitted she’d still be doing every webinar for free if Questian hadn’t pushed her to charge. And someone recently told Questian she runs her business like a nonprofit.

“Human beings are wired for insecurity,” Alicia said simply.

“You can look at the QuickBooks Queen herself right here struggling with undervaluing herself,” Nancy said, putting the conversation in perspective. “To me, that says I’m not alone.”

The conversation also brought up a critical distinction. Technical mastery doesn’t equal business leadership. As Nancy said, “Technical mastery of something doesn’t prepare us for stepping into authority and leadership.”

Alicia drew the parallel. “People think that because they know how to use QuickBooks, they know how to do bookkeeping. They’re not the same.”

Do It Anyway

What makes this story powerful is that Alicia is building her pilot program publicly, in real-time, with complete transparency about not having all the answers.

“I got the idea two months ago,” she said. “Asked my folks six weeks ago. Got the yeses and have been actively putting it in place.”

She doesn’t yet know whether there will be a new cohort next year or whether trainees will become permanent staff or become trainers themselves. “I don’t know what next year is going to hold,” Alicia said.

This level of public uncertainty would terrify most people. But as Questian shared about her own business transition, “I’m on the right track because I am absolutely terrified.”

Nancy pushed back against toxic positivity. “Don’t tell somebody not to be afraid. Of course we are afraid. Our brains are trying to protect us.” The point isn’t to eliminate fear. It’s to act despite it.

“The ability to expand really happens when you step into your own worth,” Alicia said, connecting every thread.

Your Turn to Look in the Mirror

This conversation between three accomplished women in accounting proves we all have blind spots about our value, and we need community to see them clearly.

Alicia’s story shows that when someone you’ve trained outgrows you, it’s not a failure; it’s proof of the value you create. The question is, are you capturing the value you clearly know how to build?

Listen to the full episode to hear all the vulnerability, specific numbers, and moments where the hosts surprised themselves with their own revelations.

Then ask yourself: What’s an example of when you’ve undervalued yourself, and how did you move past it? Share your answer on the She Counts LinkedIn page or in the Unofficial QuickBooks Accountants Podcast LinkedIn group to keep this conversation going.

Because if the QuickBooks Queen can have this blind spot, you’re allowed to have yours too. The difference is what you do once someone helps you see it.

What Social Media Tax Advice Gets Wrong About Business Vehicle Write-Offs

Earmark Team · May 31, 2026 ·

Social media influencers love to throw out tax advice about having your business purchase a vehicle to claim big expenses, especially accelerated depreciation. Sometimes this advice even goes out to people who aren’t self-employed. But as Jeremy Wells, EA, CPA, explains in Episode 27 of Tax in Action, there’s more to deducting the business use of a vehicle than what these influencers would have you believe.

“For most self-employed folks and small business owners, buying a vehicle in the name of your business is probably a bad idea,” Wells argues. The tax law doesn’t care whose name is on the title. It cares about how you use the vehicle, trip by trip. And for most small business owners, you can usually get the same tax effect by owning the vehicle personally.

The episode walks through the statutory framework, including IRC §162, §262, §274, and §280F, along with regulations, revenue rulings, and court cases that govern vehicle deductions. Wells also shares a three-question framework to help determine the best approach for each client’s specific situation.

What Makes Vehicle Use Deductible (And What Doesn’t)

The foundation starts with IRC §162, which allows taxpayers to deduct ordinary and necessary operating expenses of a business. Wells points out that the statute says nothing about ownership; it addresses operating expenses of an automobile used in a trade or business. Meanwhile, IRC §262 says personal, living, and family expenses are not deductible, including commutes between your residence and your place of business.

The key comes from Revenue Ruling 99-7, which Wells emphasizes clearly lays out the difference between a business trip and a personal trip. “We need to think about whether each specific trip is business or personal,” he explains. The unit of analysis is the trip itself, defined by both its origin and destination.

Deductible trips include:

Travel from your main workplace to another workplace in the same area (like visiting a customer)
Attending off-site business meetings in your local area
Driving to a temporary work location outside your metro area

But if a trip begins or ends at your personal residence, it’s typically a commute, meaning it’s personal and nondeductible.

“When I look through a client’s mileage logs, I filter that mileage log in a spreadsheet for the personal residence of that client,” Wells says, sharing his approach. “Nine times out of ten, a lot of those trips begin or end with the taxpayer’s personal residence.”

There’s an important exception. The Tax Court found in Curphey v. Commissioner that trips between a bona fide home office and other work locations are deductible. If your home office qualifies under §280A(c)(1)(A) as your principal place of business, then your residence becomes a business location. But Wells cautions, “It’s not a home office just because you say it’s a home office. It’s a home office because it’s your primary place of working.”

This principle goes back to the Supreme Court’s 1946 decision in Flowers v. Commissioner, which held that business trips must be motivated by “the exigencies of business rather than the personal conveniences and necessities of the traveler.”

The Strict Substantiation Rules You Can’t Ignore

IRC §274(d) requires strict substantiation of vehicle expenses, including the amount, time, location, and business purpose. Wells explains there are two standards: adequate records and sufficient evidence.

“Adequate records” is what taxpayers should strive for: a contemporaneous log combined with documentary evidence like receipts. Wells specifically recommends smartphone apps. “One I usually recommend is MileIQ.” These apps use your phone’s GPS to automatically detect and record trips. “As soon as your phone’s GPS recognizes that you’re moving faster than a normal human being can walk or run, it assumes that’s a trip in a vehicle.”

Without adequate records, taxpayers fall back on “sufficient evidence,” or their own statement plus whatever corroborating evidence they can find, like bank statements showing fuel purchases. But Wells warns, “usually the IRS and the courts will see right through” reconstructed logs created from memory.

The strict substantiation rules of §274(d) supersede the Cohan rule, which normally allows courts to estimate expenses. This catches many practitioners off guard. But Wells puts it bluntly: “When it comes to vehicle use, Congress has effectively eliminated judicial mercy.”

The Depreciation Trap

IRC §280F limits annual depreciation for “listed property,” including passenger automobiles, defined as four-wheeled vehicles rated at 6,000 pounds or less of unloaded gross vehicle weight. The IRS publishes inflation-adjusted limits every year.

But it gets tricky under §280F(d)(2). You can only deduct the portion of depreciation attributable to qualified business use, yet your basis in the vehicle drops by the full depreciation amount, including the nondeductible personal portion. For example, if maximum depreciation is $5,000 and business use is 60%, only $3,000 is deductible, but basis still drops by the full $5,000.

The real danger comes when business use patterns change. As long as business use stays above 50%, normal MACRS depreciation applies. But if business use drops below 50% in any subsequent year, two things happen:

You must switch from MACRS to the Alternative Depreciation System (ADS), which is essentially straight-line depreciation with longer recovery periods.
You must recapture as ordinary income all excess depreciation, which is the difference between what you claimed and what would have been allowable under ADS from the start.

“Accelerated depreciation and especially Section 179 expensing are wagers on future business use,” Wells explains. “You’re essentially gambling that the business use of that vehicle will never drop below 50%.”

There’s another complication for business-owned vehicles. When an employee uses them (including S corporation shareholder-officers), the business use is a nontaxable working condition fringe benefit. But any personal use, including commuting, becomes taxable compensation under §274(l). That means payroll taxes on top of income taxes.

A Three-Question Framework To Cut Through the Complexity

Wells uses three questions to analyze any vehicle situation:

Who owns the vehicle?
Who uses the vehicle?
What percentage of use is for business and how is that expected to change over time?

“In my experience, most mistakes and complex situations arise when taxpayers ignore at least one of these three questions, or the answer to one of these three questions,” Wells says.

He demonstrates with three scenarios involving Jessica and her business, Lighthouse LLC:

Scenario 1: Jessica’s LLC is a sole proprietorship. She uses her personal vehicle 80% for business, but trips begin or end at her residence. A friend recommends buying a vehicle through the LLC for depreciation. “For tax purposes, it makes no difference,” Wells says. The LLC is disregarded, so she deducts expenses the same way regardless of ownership. Plus, Wells notes business ownership usually means “higher financing costs, especially in terms of the interest rate, and higher insurance costs.”

Scenario 2: Now Lighthouse LLC is an S corporation. If the corporation owns the vehicle and Jessica uses it personally, that personal use becomes taxable wages. “A much simpler approach,” Wells says, “would be to reimburse her for the mileage or for the business portion of her actual operating expenses under an accountable plan.”

Scenario 3: The LLC owns the vehicle, but Jessica’s business use has dropped from 80% to 60% and continues declining. She has three options:

Prepare for recapture by making estimated payments (least desirable),
Reduce personal use to keep business use above 50%, or
Distribute or sell the vehicle before crossing the threshold.

“Once business use drops below 50%, that recapture is unavoidable,” Wells says.

The Simpler Alternative: Standard Mileage Rate

Treasury regulations allow taxpayers to use the IRS’s annually published standard mileage rate instead of tracking actual expenses and depreciation. You multiply business miles by the rate, and parking, tolls, auto loan interest, and property taxes remain separately deductible. Everything else, including fuel, maintenance, and insurance, is included in the rate.

“It makes it relatively easy,” Wells says, especially when using a smartphone app for tracking.

The Bottom Line for Tax Professionals

Wells closes with wisdom worth remembering: “The best vehicle strategy is not the one that maximizes this year’s deduction. It’s the one you can defend three years from now.”

For most small business owners, personal ownership of the vehicle combined with proper substantiation and accountable plan reimbursements delivers the same tax benefits without the complexity of business ownership. The key is understanding that deductibility depends on how you use the vehicle, not whose name is on the title.

Having a qualifying home office often provides more value than business vehicle ownership by converting commutes into deductible business trips. And when it comes to depreciation, remember that accelerated write-offs are a bet that business use will stay high. That’s a bet many small business owners will lose as their business evolves.

Listen to the full episode for Wells’ complete analysis of every code section, regulation, and court case discussed here.

Stop Losing Money on Cleanup Work by Automating the Parts That Don’t Need You

Earmark Team · May 31, 2026 ·

Cleanup and catch-up work is among the most in-demand services accounting firms can sell, and among the hardest to deliver profitably. That was the starting point for a recent webinar led by Megan Reid, a 15-year accounting veteran who started in Big Four, moved through private industry, and now works on the firm enablement team at Digits.

In the webinar, Megan demonstrated how AI-native accounting tools can transform cleanup engagements from time-intensive projects into scalable service offerings. She built a client file from scratch, imported raw PDF bank statements, and walked through an entire cleanup workflow in real time.

Why cleanup work kills profit margins

“Cleanup is obviously valuable work and it’s hard to scale,” Megan said, framing the core challenge clearly. New clients almost always arrive with some sort of mess to clean up. Maybe you have 18 months of uncategorized transactions or transactions that haven’t been posted from the bank feed. You want to take the engagement, but you know it’s going to be hard to make it profitable.

“We always uncover more skeletons in the closet than we think,” Megan noted during the demonstration. If you’re billing fixed fees, you get squeezed by unpredictable hours. Clients want fast turnarounds. Your teams are leaner. “You’re asked to do more with less,” she said.

“Business owners need that work to be done,” Megan pointed out. But the question is “whether or not your workflow lets you take them profitably.”

Breaking down a traditional cleanup shows where the hours go:

Gathering data
Importing it or connecting feeds
Categorizing tons of transactions
Reconciling accounts
Resolving exceptions
Making adjusting entries
Reviewing everything with your client
Delivering the final report

“In a typical 12-month cleanup or catch-up, you spend the majority of your time categorizing and reconciling transactions,” Megan explained. These tasks are also “the most repetitive, pattern-based parts of the job, which is exactly what AI is good at.”

From blank file to categorized transactions

Megan started her demonstration with a completely blank client file, essentially just an empty ledger. She then showed how to handle a common scenario in which a new client hands over a stack of PDF bank statements with no bank login credentials.

She dragged and dropped the first PDF bank statement directly into Digits. “It is extracting all that data from the bank statement, booking it and categorizing it as well,” Megan explained as the system processed the document.

The AI extracted transactions, identified vendors and customers (called “parties” in Digits), populated company logos and descriptions, attached website links, and categorized each transaction into the appropriate account. Megan noted the system pulls from models trained on “more than 800 trillion dollars’ worth of transactions.”

After uploading statements for June through October, hundreds of transactions flowed in. When processing finished, only 12 were flagged for review. “Instead of manually clearing bank feeds,” Megan said, “come here and look at the exceptions.”

These were transactions that required confirmation. Megan clicked into one from Swift Courier Services. The AI suggested “contractors and consultants.” She confirmed it with one click.

From there, the system natively learned from that categorization. It immediately found two similar transactions and offered to update them together. The exception list dropped from 12 to 8 in seconds.

Bank reconciliation without the manual work

Megan demonstrated three ways to get bank statements into the system for reconciliation. You can connect directly to banks like Mercury, Wells Fargo, Chase, and US Bank, which pull statements automatically via API. You can drag and drop PDF statements anywhere in the product. Or you can use email ingestion, where each client gets a unique email address to forward statements.

She uploaded the June statement by dragging it onto the reconciliation screen. The system read the PDF, extracted every line item, and verified each against the ledger. Megan explained that the system uses “pixel bounding boxes” to match statement entries to ledger entries.

June needed one manual step: adding a beginning balance entry that the system couldn’t infer without a connected bank account. Megan created the entry directly in the reconciliation screen. “Unlike legacy systems, where you may have to have three different tabs open and make changes and then come back and refresh, everything can be done directly in here.”

Then she uploaded July’s statement and navigated away. When she returned, it was done. “The statement was uploaded by me. The auto reconciliation was kicked off by Digits and even finalized by Digits,” she showed in the timeline view.

For larger cleanups, Megan recommended uploading multiple statements at one time. Handle any beginning balances in the first month, then subsequent months often complete automatically.

Review tools that surface what matters

Even with AI handling categorization, accountants still need to review and sign off. “It doesn’t replace the accountant. It just removes that tedious work so that you can focus on those judgment calls,” Megan emphasized.

She demonstrated several review approaches. The general ledger view shows all transactions organized like a trial balance, including assets, liabilities, equity, revenue, and expenses. You can filter by status, amount, source, department, or location. Bulk updates work on hundreds of transactions at once.

Megan said the vendors and customers views are her favorite. They each flag two critical items:

New vendors or customers: Any vendor (or customer) the AI sees for the first time in your selected period
Split categorizations: Vendors (or customers) whose transactions appear in multiple categories

“I just need to have eyes on things it has not seen before,” Megan explained. Even if the AI categorized with high confidence, you have final review and say on how it was categorized..

For transactions needing client input, the collaboration happens in one place. Megan showed how to comment on any transaction: “Hey client, what is this for?” The client receives an email with a link, can respond directly in Digits or reply to the email, and the response appears on the platform. “All the collaboration is centralized in one location,” she said, “instead of you having to manage a ton of emails and download Excel files.”

Delivering professional reports, not data dumps

The final step Megan demonstrated was creating custom reports. While the financials inside Digits update live as transactions flow in, cleanup engagements need a formal deliverable, a static document that locks the numbers in place.

Megan built one on screen. She added a cover page, used AI to draft an executive summary, embedded links to the client’s checklist, and configured the financial statements with period comparisons and trend lines. The system includes “hover to discover” insights that show period-over-period changes and what drove them.

When you need to make adjustments after sending a draft, you create a new version. “Any adjustments you’ve made in Digits will then update directly to this report,” Megan explained. Publishing the final version removes the draft watermark and notifies the client.

The platform tracks everything, including when you created the report, when you published it, when the client viewed it, and all comments from either party. You have a complete record of the deliverable and the conversation around it.

“We’ve done 12 months of cleanup in an hour and a half instead of days,” Megan concluded.

What this means for your firm

The key takeaways from Megan’s demonstration show how cleanup engagements can become profitable:

AI categorizes the vast majority of transactions automatically, flagging only true exceptions
Bank reconciliations can run automatically when you upload statements
The system learns instantly from every correction without rules to build or maintain
Your time shifts to reviewing anomalies, making judgment calls, and delivering polished reports

One practical consideration came up during Q&A. When asked about importing messy QuickBooks Online data, Megan confirmed that direct QBO migration exists but cautioned, “You maybe don’t want the AI to learn off of really messy data. You maybe just want to start fresh.” The system uses imported data for baseline training, so starting clean might make more sense for particularly messy files.

For firms trying to grow, this changes the economics of client acquisition. Every prospect with messy books becomes an opportunity rather than a capacity problem. When you can handle cleanup work profitably, predictably, and consistently, you can say yes to more engagements while maintaining margins.

Watch the full on-demand webinar to see Megan’s complete demonstration from blank file to published financials. If you have cleanup engagements in your pipeline right now, consider what your workflow could look like when the repetitive work is automated.

What 15 Years of Running an Accounting Firm Taught Marcus Dillon About Building Something That Lasts

Earmark Team · May 24, 2026 ·

Imagine the managing partner of a $35 million accounting firm. Twenty-four partners. A hundred and fifty team members. And this managing partner still carries the largest book of business in the entire organization.

Now hold that image and set it next to another one. A husband-and-wife team in San Antonio running an $11.5 million firm. Three people at the top. Zero billable production hours between them. And by Marcus Dillon’s account, they’re “having a whole lot more fun than the people who are maintaining client work.”

Same profession. Radically different firms. And only one of those models is built to thrive in the future.

That contrast sparked a conversation between Marcus and Rachel Dillon on a recent episode of Who’s Really the Boss? The episode marks a milestone. Dillon Business Advisors is approaching its 15th anniversary, and the Dillons use the occasion to walk through what Marcus calls the “3.0” chapter of their firm. The last five years have brought reinvention, painful lessons, and hard-won clarity about what actually creates lasting value in an accounting practice.

After 15 years and three distinct reinventions, the Dillons believe the firms most likely to thrive in the next chapter of this profession build for enterprise value. That means creating role-based team structures instead of depending on irreplaceable individuals. It means developing real leadership beyond the founder. And it means maintaining enough flexibility to navigate a future where AI, private equity, and market consolidation reshape the rules faster than most owners realize.

Here are the three interconnected lessons from DBA’s journey through their third reinvention.

Building around roles, not people

For roughly six years, Dillon Business Advisors was stuck. Revenue hovered between $2 million and $2.3 million in what Marcus describes as a “yo-yo effect” of exiting clients, growing organically, exiting clients, and growing organically again. They were trying to shift from annual compliance touchpoints to monthly recurring advisory work, but the team that excelled at cranking out tax returns once a year wasn’t necessarily the team best suited to serve clients month after month with real-time advice.

“The business was moving that way, regardless of whether that team member was coming or not,” Marcus explains. And that created a problem no amount of hoping could solve.

The breakthrough came when Marcus and Rachel stopped trying to clone people and started building around roles.

DBA already had the client service manager (CSM) who handled day-to-day communication and bookkeeping. They also had the director-level advisory role at the top. But there was a gap between those two. The client controller or tax manager role wasn’t consistent. Marcus says they “experimented, screwed up, and scrapped different ideas” before landing on what became the team of three: a defined, role-based pod assigned to every client throughout the year.

The team of three model bases assignments on role, not on specific people.

“We made some mistakes by trying to recreate or clone a person, and you just can’t do that,” Marcus explains. Over 15 years, he’s watched team members leave, partners come and go, and clients move on. “Nothing is forever anymore. If you’re building all of your decisions around taking care of the team you have today, that’s kind of shortsighted.”

Rachel offers a personal window into why this mindset shift was hard. Both her parents essentially worked for the same employer throughout their careers. “Staying 20, 30, or 40 years at a job isn’t the norm anymore,” she says.

Once DBA embraced role-based structure, two things happened. First, the firm could absorb turnover without chaos. Second, teams got remarkably efficient. The team of three created so much capacity that team members started asking for more work. Clients knew their team. The team knew their clients. Life was good, maybe too good. Because when DBA looked up in 2024, they’d already converted every annual client to monthly recurring, and they were entirely dependent on organic growth for new business.

But the structural foundation enabled something most small firms never achieve: a real leadership team beyond the founders.

Amy McCarty joined as Director of Operations at the end of 2023. Lezlie Reeves, who started as a CSM in 2020, rose through every level to become Director of Accounting and Advisory. In 2024, Angel Sabino transitioned from being DBA’s external IT provider to Director of Technology. Arin Neucks joined as Director of Tax and Financial Planning. Amy and Lezlie now hold phantom stock in DBA and share in decision-making as owners would.

Meanwhile, Marcus’s own production hours dropped to between 200 and 300 annually over the last two to three years. Rather than backfilling that time with more client work, he channeled it into consulting other firm owners, advising technology companies, and leading industry groups, work that, as he puts it, “gives me life.”

The discipline to stay out of operations was tough. Marcus admits that earlier in DBA’s history, he’d “pull a pin and throw a grenade in it just to rebuild it.” The result was predictable. “You have collateral damage. People get hurt, and they leave because you don’t allow them to do the job you hired them for.”

Building around roles sounds simple. But getting there required some expensive lessons.

The cost of reinvention

If the team of three was the structural breakthrough of DBA’s 3.0 chapter, the path to getting there was paved with decisions that cost real money. Some were strategically brilliant, some were painfully expensive.

Start with the audit practice. DBA exited it around the beginning of 3.0, freeing the firm to go all-in on monthly CAS and advisory. Revenue temporarily dropped in 2021. PPP and ERC consulting work softened the blow, but DBA performed that work exclusively for existing clients. “We didn’t do that for any external non-existing clients,” Marcus emphasizes. “We only took care of our own during that time.”

But the client exits didn’t stop there. Over seven years, DBA performed roughly one exit per year, and sometimes two. They shed complex, non-ideal QuickBooks Desktop clients who didn’t fit the monthly recurring model. The last cut might have gone too deep.

“That very last exit we probably could have done without,” Marcus reflects. The final group made up roughly $100,000 in revenue. They’d made it through multiple prior cuts. “Margins were high on those clients, even if they were annual-only touchpoints. They were so easy.”

During those transition years, DBA created a bonus pool shared with the entire team for every new monthly engagement signed, regardless of who worked on that client. The goal was rewiring how everyone thought about client relationships.

Then came the most expensive mistake of 3.0.

At the end of 2022, DBA changed its name and domain, dropping “CPA” from the branding. The rationale made sense. “CPA” directed too much tax-only traffic when the firm had evolved beyond compliance work. But the execution was catastrophic.

“We lost all of our credibility overnight from an SEO optimization, from a recognition standpoint,” Marcus says. The domain redirects (the technical plumbing that preserves search engine authority when you change web addresses) were botched. Traffic from Google searches “almost completely dropped off for more than a year.”

The worst part was DBA hired a consulting company to manage the transition and paid “hundreds of thousands of dollars. And it still didn’t go well.”

“Don’t take anyone’s word for it when they say you just have to give it some time,” Rachel warned. “That’s definitely not the case.” Recovery took three to four years.

The firm also evolved to fully remote operations during this period, opening hiring beyond Texas to anywhere in the US and even offshore. Two team members moving to Colorado helped push this transition. But going national meant growing up operationally, adding proper benefits, launching a 401(k) with profit sharing in 2020, and eventually moving to a PEO to handle multi-state compliance.

By 2024, with excess capacity from the efficient team structure but organic growth harder to come by, the leadership had to restructure and cut, or go back to market. They chose growth. DBA completed two strategic acquisitions in 2024, one at the end of January and a larger one on October 1. The October acquisition represented about 25% of DBA’s revenue, a cap Marcus set intentionally. “We wanted to retain DBAs’ culture, processes, and technology.”

Today, DBA exceeds $6 million in revenue. But with that scale comes bigger questions about the future.

Two types of firms, one uncertain future

With a leadership team that can run the firm without Marcus touching a tax return, the question shifted from survival to direction. Marcus has conversations with firm leaders across the spectrum that reveal patterns every firm owner needs to understand.

At a breakfast with the $35 million firm’s managing partner, Marcus heard a framework that crystallized his thinking. Two firms exist in today’s market: the legacy firm, where the balance sheet is essentially a snapshot of human relationships, and the enterprise-value firm, where systems, processes, and technology create value independent of any single person.

“That first firm will continue to diminish in value just because they’re not going to be relevant in this next chapter,” Marcus says. Relationships matter, but they alone aren’t enough when private equity, alternative ownership structures, and AI permanently reshape the landscape.

Marcus sees three types of firms emerging:

First, solo and micro firms powered by AI. As larger firms consolidate, team members leave and launch practices that leverage tools like Copilot and Cowork to run $300,000 to $1 million operations without traditional employees. “If you can get $300,000 to $400,000 or more worth of work done as a solo firm owner, by all means, great.”

Second, mid-size firms like DBA, that invest in teams, leadership, and technology and build something meant to outlast the founder.

Third, large rolled-up or PE-backed organizations with the budget to deploy technology at scale.

The parallel to other industries is instructive. DBA’s dental and veterinary clients went through consolidation first. Banking followed. “Independent banking is very hard and it has to be very intentional for them to exist,” Marcus observes. For independent medical practices, “you may not have the patient base you want. You may not be able to hire and pay the team you want.”

And then there’s AI, which Marcus frames as Pac-Man moving from the bottom up. “If you’ve got technology that’s coming for you and you’re just standing there, game over.”

The solution is continuous upskilling. “You can’t not train somebody because you’re worried they’re going to outgrow you and leave.”

This leaves DBA in a deliberate state of discernment.

Marcus spends time with firms of every size, learning what $10 million firms struggle with, how $35 million firms think about technology, and what happens when $250 million firms acquire smaller practices. Part of this is strategic intelligence gathering. But it also positions DBA to attract great clients and talent when they leave larger organizations.

The Dillons haven’t decided to merge, sell, take PE money, or stay independent. They’re building what Marcus calls “optionality.” The leadership team now plans in one- to three-year windows. As Rachel notes, even five years out is difficult to predict “because we don’t even know what the next six months, 12 months, or 18 months will bring.”

Marcus grounds it all in stewardship. “If I’m no longer the best single owner of this business, what does that look like?” He’s asking the question. He’s just refusing to answer it prematurely, or out of fear.

“It’s not a bad idea to pause and pray and wait for your decision to be the right one for you and at the right time,” he says. “Other friends are doing deals, don’t feel pressure to do your own and do a bad one.”

What 15 years of reinvention actually teaches

DBA’s journey distills into three lessons that apply whether you run a $1 million practice or a $100 million operation.

Build around roles, not people. The team of three made DBA resilient enough to absorb turnover and efficient enough to create real capacity. If your firm collapses when one key employee leaves, you have a structural problem. Define the roles that make service consistent regardless of who fills them.
Expect real pain on the path to enterprise value. DBA didn’t reach $6 million by making perfect decisions. They arrived by making intentional ones and refusing to let mistakes paralyze them.
Independence requires more intentionality, not less. Standing still is a decision, and increasingly a bad one. Whether you stay independent, merge, or take investment, the question is whether you’re adding enterprise value daily, or performing tasks technology will soon handle better.

The Dillons share what they’ve learned while figuring out their own path. After 15 years and three reinventions, they’ve earned the right to take their time with the next decision.

Listen to the full episode to hear Marcus and Rachel walk through every chapter of DBA’s evolution, including the specific conversations happening right now about what this profession’s next chapter actually looks like.