Earmark Team

7 Game-Changing Features in QuickBooks Modern Invoices That Save You Time

Earmark Team · March 21, 2025 ·

For accounting professionals who rely on QuickBooks, the invoice is arguably your most essential tool. QuickBooks’ modern invoice redesign represents one of the most significant overhauls in years, changing how you’ll create, send, and manage client billing.

In a recent episode of The Unofficial QuickBooks Accountants Podcast, hosts Alicia Katz Pollock and Dan DeLong explore these new modern invoices, which have been in development for about a year. Alicia says, “They originally drove us crazy, and now I’ve actually become quite fond of them”—a journey many accountants can relate to when facing significant software changes.

Getting Started with Modern Invoices

If you haven’t switched to modern invoices yet, you’ll need to take that first step manually. When viewing a standard invoice, look for the “Update Layout” button in the upper right corner. Clicking this will convert the invoice to the modern experience.

The new interface might initially seem to take up more screen space (Alicia notes her screenshot size has doubled), but the extra real estate serves a purpose. Let’s explore what’s changed and why it matters to your practice.

Smarter Customer Insights Without Switching Screens

One of the biggest improvements is accessing client information without leaving your invoice. Next to the customer’s name, you’ll find a small Intuit Assist icon that provides valuable context with one click.

“It actually does have contextual information about the customer that’s there,” explains Dan. “So it’s nice to have it all in one place. And you don’t have to navigate and look in the customer section to see those types of insights.”

This panel shows:

Payment history by method (credit card, bank transfer, PayPal)
Number of open invoices
Number of overdue invoices
Customer relationship length

Alicia appreciates this feature: “I’m kind of used to having to have multiple tabs open where one I’m doing my invoicing and in one I’ve got the customers open… now I can see my customer information without having to navigate away.”

You can also edit customer information directly from the invoice screen by clicking the “edit customer” link. This allows you to update addresses and contact details without interrupting your workflow, a significant time saver.

Better Communication Tools for You and Your Clients

The modern invoice includes four different communication fields, each serving a specific purpose:

Customer payment options: Instructions about how to pay that appear on the invoice
Note to customer: General communication that appears on the invoice
Internal customer notes (hidden): Team communications that clients can’t see
Memo on statement: Text that appears only on customer statements

The internal notes feature is especially valuable for team collaboration. As Alicia explains, you can use it to record important details like “Customer got a PITA discount”—information your team needs but clients shouldn’t see.

Sales Tax Management Made Easier

According to Alicia, address management in the modern invoice is “mission critical” for those working in states with complex sales tax rules.

The system now clearly shows whether sales tax is calculated based on your business location or the customer’s location. By toggling the “add shipping info” link, you control which address determines the tax calculation:

When shipping information is collapsed, tax is calculated based on your business location
When shipping information is shown, tax is calculated based on the ship-to-address

“For those of you who are having trouble with sales tax calculating incorrectly, this is your game changer,” emphasizes Alicia. “Pay attention to the bill to, the ship to, and the ship from boxes and make sure that you have the right addresses in the right places.”

Expanded Payment Options and Strategic Fee Management

The modern invoice significantly expands payment options through QuickBooks Payments. Beyond standard credit cards, your clients can now use:

Apple Pay
Bank transfers (ACH/EFT)
PayPal
Venmo

What makes this integration powerful is that all these payment methods work through QuickBooks Payments—no separate PayPal or Venmo business accounts are required. This means all payments are processed with the same automatic recording, fee allocation, and deposit reconciliation that QuickBooks Payments provides.

“All of the automagic things that QuickBooks payments does—like recording the payments, recording the deposits, allocating the fees, making the deposit reconciled in the bank feed—all of those things are done for you,” explains Dan.

Perhaps most interesting is the new option to have customers pay the processing fees. By turning off all standard payment methods, you’ll see a new option labeled “your customer pays the fees.” When selected, this gives clients the option to pay via ACH while covering the associated costs.

Alicia shared a practical application: When clients’ credit cards expired, she sent invoices with the “customer pays fees” option enabled. In her email, she wrote: “You’re welcome to pay this yourself. If you want to save on the fees, give us a call with your new payment information so that we can update our systems. And then you won’t have to pay the fees; we’ll pay the fees.”

The result? Three phone calls with updated card information—problem solved.

Recurring Payments Without PCI Compliance Concerns

The modern invoice also introduces an improved approach to recurring payments that addresses security concerns. Instead of storing client credit card information (which creates potential PCI compliance issues), the system now allows clients to approve automatic future payments while maintaining control of their payment details.

“This is really replacing scheduled sales receipts,” explains Alicia. “Now you can make a recurring invoice, and the customer approves it to auto pay it in the future. So it’s kind of the best of both worlds.”

Dan adds that the system “automatically checks the auto-pay functionality so that they don’t have to find it. You don’t have to tell them where it is. It’s just preselecting that option.”

Customizing Your Invoice Experience

Nearly all customization options for the modern invoice are found in the Manage panel and can be accessed via the gear icon at the top right. These settings allow you to control what appears on your invoice without changing default settings for all clients.

Through this panel, you can:

Turn specific fields on or off (shipping information, service date, SKU column)
Manage custom fields
Configure payment options and tips functionality
Add discounts (percentage or dollar amount)
Control whether discounts apply before or after sales tax
Set up recurring invoices or payments
Access client reports directly from the invoice

For those who want to see exactly what clients experience, three view options are available after selecting the “modern” template:

Email View: How the email appears in a client’s inbox
Payer View: What clients see in the payment portal
PDF View: How the invoice looks when printed

“Rather than sending a CC or BCC to yourself to see what the customer sees, it’s nice to see it all in one place,” notes Dan.

Current Limitations and Future Development

While the modern invoice offers many improvements, some limitations exist in the current version:

Design customization is limited to colors and fonts when using the modern template. To access all the modern features, you must use the standard modern layout rather than your custom templates. Intuit has indicated enhanced customization is on their roadmap.

Reminders cannot be set on an invoice-by-invoice basis yet. Both hosts expressed a strong desire for this feature: “Intuit, if you’re listening, we desperately want reminders to be set up on an invoice by invoice basis. Desperately.”

The Intuit Assist autofill feature is still in beta. This feature aims to create invoices automatically from files, images, or text, but accuracy varies, especially with line items. The hosts encourage users to try it despite limitations, as user feedback will help improve it.

Why These Changes Matter for Your Practice

These invoice improvements represent more than just interface changes—they’re part of a complete rewrite of QuickBooks Online’s underlying code.

“One of the things that’s really happening is they’re actually rewriting the entire code base underpinning all of QuickBooks Online because it originally started back almost 20 years ago,” explains Alicia. “The code that it was written on 20 years ago was modern back then. But things have changed on the programming side.”

This approach sometimes requires what Dan calls a “take a step back to move forward type of thing,” where short-term limitations enable long-term improvements. “They’re basically recreating the foundation so that new and cool features can actually take place,” he notes.

For accounting professionals, these changes deliver practical benefits:

Time savings from not switching between screens
Improved client experience with flexible payment options
Better security compliance through modern payment handling
Real-time visibility into invoice status, from creation through payment
Strategic tools for managing fees and client relationships

Most importantly, Intuit is actively seeking feedback. A prominent feedback link appears on each invoice, providing a direct channel to the development team.

“If you have a good idea, please go up to feedback and flood that feedback and let them know what you want to change,” encourages Alicia. “They are actively listening.”

Dan confirms: “Now they can act on the flood of feedback that has been coming in. They’ve been taking care of some of the more mission-critical issues. Now they’ll be able to further enhance this experience.”

Next Steps: Making the Most of Modern Invoices

To maximize the benefits of these changes, consider these practical steps:

Explore the Manage panel thoroughly to understand all available customization options
Try the Intuit Assist features even while in beta
Review your sales tax settings in light of the new address field controls
Use the view options to understand your clients’ experience
Provide feedback to help shape future development

By mastering these new capabilities, you can transform what might initially seem like disruptive changes into meaningful practice advantages—delivering better client experiences while saving valuable time.

For a comprehensive demonstration of all these features, listen to Episode 80 of The Unofficial QuickBooks Accountants Podcast, “Everything You Need to Know About Modern Invoices.”

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!

AI’s Game-Changing Impact on B2B Revenue Management

Earmark Team · March 11, 2025 ·

Technology has made many tasks like paying employees, managing bills, and handling expenses much more manageable in business finance. However, tracking revenue—essential for any company’s success—has mostly relied on old tools like spreadsheets and emails, leading to a lot of manual work and confusion. Fortunately, that situation is starting to improve.

In a recent Earmark Expo webinar, Blake Oliver, CPA, and David Leary explored how Tabs, a new AI-powered platform, transforms B2B revenue management by bringing invoicing, usage-based billing, and revenue recognition under one roof.

Why Revenue Management Has Lagged Behind

Even though significant improvements have been made in automating accounts payable and payroll processes, managing revenue still requires a lot of manual effort. David pointed out that the accounting department is responsible for handling payroll and paying bills, but revenue management often gets divided among different teams, including marketing, sales, and finance.

According to Ali Hussain, CEO and founder of Tabs, “Revenue is just a very complex discipline from a data standpoint.” Each contract can carry unique terms, amendments, and usage triggers. Until recently, this complexity kept automation efforts at bay.

In 2023, artificial intelligence advanced enough to tackle complicated business contracts, even those tucked away in emails or side agreements. Taking a cue from how today’s accounting and payroll systems have combined various tools into a single platform, Tabs offers an all-in-one solution for managing the entire revenue process. This means businesses no longer have to search through multiple spreadsheets, contract systems, and scattered documents to close the books.

From Contract Ingestion to Collections and Revenue reporting: A Look Inside Tabs

During the demo, Caitlin Lu, Head of Partnerships, showcased how Tabs centralizes every step of the revenue cycle:

Contract Ingestion

Forward a contract (formal MSA, email agreement, renewal, side letter—English language only) to Tabs’ secure email.
Tabs automatically scans the document, extracting billing terms, pricing details, renewal dates, payment schedules, and usage allowances.

Billing and Invoicing

Tabs auto-generates invoices based on the extracted terms.
Users can edit or confirm billing frequency or payment terms before sending.
Integration with QuickBooks or NetSuite is bidirectional: once sent, the invoice syncs to the general ledger, and any subsequent changes in QuickBooks or NetSuite flow back into Tabs.

Usage-Based Billing

For companies charging by hourly rates, seat licenses, tiered usage, or any variable consumption model, Tabs removes the need for manual calculations.
To share usage data, simply upload CSV files or integrate a BI tool. Tabs then apply the contract’s negotiated rates.

Revenue Recognition

Tabs automatically computes deferred, unbilled, and recognized revenue aligned with GAAP requirements.
It generates corresponding journal entries for each period, which are ready for import into the GL.
For audits, every revenue schedule is tied to the original contract, creating a clear paper trail.

Collections and Renewals

A live collections dashboard highlights overdue invoices, pending invoices, and upcoming renewals.
Automated reminders can be sent to customers.
Renewal information, including price escalators or extended terms, surfaces well ahead of contract end dates, mitigating revenue leakage.

Customer Payment Portal

Each invoice includes a secure payment link where customers can pay by ACH, credit card, wire, or check.
ACH, checks, and wires incur no additional fees in Tabs; credit card fees depend on the Stripe terms negotiated by the merchant.
Tabs applies payments and reconciles amounts automatically, marking invoices paid in both Tabs and your accounting system.

Implementation and Pricing

Unlike traditional billing systems that can take six to nine months to set up, Tabs is designed to help finance teams get started in just one billing cycle. There’s no need for costly technical projects; many companies can simply export their usage data from their product team using a spreadsheet. Tabs takes care of everything else from there.

Tabs offers a straightforward pricing plan with a fixed fee, meaning there are no extra charges based on how much you use the service. They collaborate with Stripe to handle credit card payments, but you can choose any payment processor.

Transforming the Role of Finance

The Tabs approach offers a refreshing solution for accountants who often find themselves overwhelmed by complicated revenue models, spreadsheets, or the hassle of tracking down missing contract updates. Instead of getting bogged down with tedious data entry and reconciliations, finance teams can focus on more valuable tasks. This includes providing insights on pricing strategies or analyzing how profitable different customers are. Plus, the system helps ensure everything is ready for audits and automatically handles journal entries, which helps to minimize mistakes and keeps financial records tidy.

“This is your chance to do more with less,” says Ali. By centralizing contracts, usage, billing, and revenue recognition, Tabs enables finance professionals to be proactive rather than reactive—whether at a large firm managing hundreds of contracts or at a growing SaaS startup looking to modernize its revenue processes.

Ready to Learn More?

If you’re ready to see how Tabs can help, or if you’re an accountant interested in rolling this out to clients, visit tabs.inc and explore the “Partners” section or schedule a demo.

You can also earn free CPE by watching the webinar’s replay and completing a short quiz in the Earmark app. With AI now able to tackle the messy reality of B2B revenue, it’s time to shed that manual work and step into the future of revenue management.

Proactive Cash Flow Solutions for Small Business Clients

Earmark Team · March 7, 2025 ·

Millions of small business owners start every morning the same way—logging into their bank account to see their balance. While 95% of business owners perform this daily check, a recent Cash Flow Compass report from Relay reveals a startling insight: 91% of small businesses face ongoing cash flow challenges. Despite their vigilance, most owners still lack the structures and systems to plan effectively, leaving them vulnerable to late payments, insufficient reserves, and high stress.

Based on a recent webinar featuring Blake Oliver, CPA, and Relay’s own Deanna Zubrickas, this article explores how accountants and financial advisors can move beyond balance-check advising and guide clients toward proactive, data-driven cash flow strategies. By leveraging multiple bank accounts, automated transfers, and regular check-ins, accountants can deliver both financial clarity and much-needed peace of mind to overworked owners.

Let’s dive into some of the key points from the webinar and, more importantly, what you can learn from them.

1. The Universal Challenge: 91% Face Cash Flow Struggles

In Relay’s Cash Flow Compass survey of over 750 small businesses:

91% of respondents reported dealing with cash flow issues.
Common causes include rising labor costs, seasonal fluctuations, and late client payments.

With so many business owners feeling the pinch, accountants have an opportunity to provide high-value advisory services that go far beyond routine compliance work.

2. Overconfidence vs. Reality: The 42% Confidence Gap

One surprising finding is that many owners believe they have a solid handle on their finances—but the numbers tell a different story. On average, business owners are 42% more confident in their cash flow management than is justified by their actual data. This gap creates real risks.

Blake remarks, “Coming off of a busy season, business owners see a big bank balance and feel invincible. The challenge is helping them realize that money might need to stretch through slower months or seasonal dips.”

This mismatch between perception and reality underscores the need for deliberate systems that track not just daily balances but future obligations.

3. Missing Payments, Personal Stress, and Burnout

Cash flow struggles affect both the business and its people:

31% of respondents missed or were late on major payments, including rent and payroll.
71% reported experiencing significant stress or anxiety due to cash flow woes.
62% said they suffered negative outcomes like delayed projects or losing clients.

For many, delayed payments jeopardize vital relationships with landlords, suppliers, and staff. Even worse, it erodes personal well-being. As Blake noted in the webinar, accountants are uniquely positioned to help clients break this cycle, offering regular check-ins and proactive planning that reduce the risk of crisis—and the accompanying burnout.

4. The Single-Account Trap: Why 24% Use Multiple Accounts

Despite recognizing their vulnerabilities, most small businesses still rely on one operating account for everything. According to the survey:

95% check their balance daily,
but only 24% maintain multiple accounts to track and separate funds.

Without additional accounts, it’s easy to mix up funds earmarked for payroll, taxes, or profit distributions. That single lump-sum balance can create a false sense of security. This is where modern tools and advisory play a crucial role.

5. Structuring for Success: Multiple Accounts and Automated Transfers

Relay, the official banking partner of Profit First, offers a clear solution:

Create Multiple Accounts: At a minimum, split finances into an operating account, payroll account, and savings or tax account.
Automate Transfers: Relay lets you set rules so each payment received is split into designated buckets—e.g., 10% for taxes, 15% for profit, and the rest for operations.
Project-Based Accounts: For agencies or firms handling multiple projects, separate accounts for each project can clarify available budgets without waiting for monthly reconciliations.
Receipt Capture & Sync: Relay’s new receipt capture feature (in beta) automatically syncs to QuickBooks or Xero, streamlining bookkeeping and reducing administrative overhead.

By making these processes nearly automatic, business owners start building reserves without having to remember monthly or quarterly transfers. Even small percentage allocations can add up, bolstering that emergency fund. Meanwhile, accountants can monitor activity in real-time rather than sifting through backlogged statements.

6. Advisory in Action: Weekly 15-Minute Check-Ins

A critical element of success is consistent communication. Rather than waiting for quarterly reviews—or worse, an emergency—weekly 15-minute video calls can transform client relationships:

Forecast: Quickly update spreadsheets or dashboards, listing upcoming bills, expected deposits, and payroll cycles.
Allocate: Ensure auto-transfers are working as intended and address any shortfalls immediately.
Plan: Discuss hiring decisions or new projects that might affect cash flow in coming weeks.

This shift from reactive to proactive engagement positions accountants as strategic partners. As clients see their cash flow stabilize, trust builds, and deeper advisory conversations become routine.

7. The Bigger Picture: Reducing Stress and Enabling Growth

When small businesses move beyond bank-balance management, they gain more than just better books—they reduce anxiety, avoid late fees, and seize growth opportunities. With 43% of surveyed businesses having less than a month of reserves, even moderate savings can soften sudden revenue dips or unexpected expenses.

Most importantly, owners get back to focusing on what they do best—running and growing their companies—rather than obsessing over daily balances. It’s a win-win for both the client and the accountant.

Conclusion: Empower Your Clients to Thrive

For many entrepreneurs, the line between personal and business stress is razor-thin. By advocating structured cash flow management—multiple accounts, automated transfers, and regular advisory sessions—accountants can deliver peace of mind while ensuring clients have the resources to grow sustainably.

Ready to see these strategies in action? Watch the full webinar for in-depth conversations, real-world examples, and detailed demonstrations on how to implement a modern cash flow system. Equip your clients to move beyond the daily balance check and lay the groundwork for lasting success.

The Fun CPA Shares How to Work No More Than 40 Hours In Tax Season

Earmark Team · March 3, 2025 ·

For many accountants, working just 40 hours a week during tax season sounds like a fantasy.Tax pros often work 60+ hours for months straight, wearing those long hours as a “badge of honor” in a profession that glorifies the grind.

Yuri Kapilovich, known as “The Fun CPA,” has rejected that model entirely. He’s built a practice where he works just 40 hours during tax season and just 10-15 hours per week the rest of the year. His firm generates roughly $225,000–$250,000 annually, giving him time for family, fitness, and hosting memorable networking events.

Earn CPE for this episode: You can earn Continuing Professional Education credit by listening to the podcast and then taking a brief quiz in the Earmark app.

Escaping the Public Accounting Treadmill

After 12 years and seven different firms, Yuri kept encountering the same frustrating culture: pressure to bill more hours, looking busy for appearance’s sake, and efficiency being punished.

“I would look at these partners who are in the office more than I am. I’m leaving and they’re still there,” he recalls. “They have a boss, just like I have a boss. If I can make $800,000 and work 10 to 2, I would have stayed. But you can’t.”

Yuri decided to break free by purchasing a small block of clients from a friend. That deal unexpectedly fell apart, but he decided to move forward anyway. He contracted part-time with two CPA firms, working two or three days a week while gradually building his client base. This bridge approach kept his income steady and let him say “no” to prospective clients who weren’t a good fit.

The Economics of Premium Pricing

The foundation of Yuri’s business model is simple but powerful: charge more, serve fewer clients, and provide exceptional value. He started with a minimum fee of $800 and now won’t take on any tax-only client for less than $2,000.

Yuri emphasizes that working fewer hours doesn’t mean delivering less value. It’s about charging enough to serve clients well without drowning in low-fee work. He explains the difference between accepting hundreds of returns at $300–$500 each—earning decent revenue but shouldering an avalanche of busywork—and serving fewer clients at a much higher minimum fee.

Here’s how the math works when comparing traditional high-volume practices to his approach:

Traditional Model:

300 clients at $500 per return = $150,000 revenue
At least 1 hour per client (realistically more with admin, communication, etc.)
300 hours over just 8 weeks (Feb 15 – Apr 15) = 37.5 hours weekly at a minimum
Reality: Information arrives late, questions pile up, schedule compresses
Result: 60+ hour weeks, constant administrative chaos

Yuri’s Model:

100 clients at $2,000+ per return = $200,000+ revenue
Higher-value clients with more complex needs
Work spread more evenly, better boundaries
Result: 40-hour weeks max, even during tax season

That doesn’t simply triple his revenue per client—it dramatically changes his day-to-day life. He feels in control of his workload, and his clients benefit from more personalized attention.

The most surprising discovery? Yuri says, “As the price went up and as you’re dealing with somebody who’s seeing your value, you know what goes down? The number of questions, the number of bothers.”

Service Packages That Create Value for Both Sides

Beyond standalone tax returns, Yuri offers:

Quarterly Package: Starting at $1,500 per quarter ($6,000 annually)

Tax preparation for business and personal returns
Proactive tax strategy discussions
Quarterly planning meetings (approximately one hour each). Having this regular touchpoint helps avoid unpleasant surprises in April.

Monthly Package: The “full service” option

Everything in the quarterly package
Bookkeeping (outsourced locally in Brooklyn)
He still maintains a quarterly meeting schedule rather than monthly. This structure keeps everyone on track but prevents excessive demands on his time.

Life by Design: What Freedom Looks Like

In large firms, partners can earn very high incomes—sometimes $800,000 or more a year. But from Yuri’s perspective, those partners often trade away family time, mental health, and control of their schedules to hit those numbers. Many are still at their desks long after younger staff have gone home.

Yuri has optimized his practice to support his priorities:

family time with his two young children (ages 2 and 6),
fitness, and
enjoying life.

His summer schedule is particularly enviable. “My friends make fun of me, and it’s partially true—I don’t really work. Especially in the summertime, it’s like 2 to 3 hours a day at most. And we can do it from anywhere.”

He’s accessible to clients (they can text him directly), but because he’s selective about who he works with, this accessibility doesn’t become overwhelming. He even occasionally takes client calls while at the gym.

Yuri also hosts creative networking events to bring business owners together. When asked what he gets from these events, he answers simply: “I have no goal. I literally am here to put these people together so they can interact and do business together.”

Breaking Free: Advice for Building Your Practice

If you’re considering a similar path, Yuri offers these tips:

Start with Contract Work
“My advice to anybody looking to go out on their own—try to find a contracting gig. Those 2 to 3 days will keep the lights on while you build your firm the way you want to with the other 2 or 3 days.”

Start with Higher Fees Than You Think

“If you’ve already built a firm with a lot of volume but want to get to the value aspect, it is extremely difficult to just all of a sudden say, ‘By the way, I know I was charging you $500, it’s $1,000 now.’ Not only will you lose the client, but you’ll lose reputation and street cred.”

Be Ruthlessly Selective About Clients
“Here’s how the conversation typically goes with a prospect looking for cheaper returns: ‘Hey, are you taking on clients like me?’ And I’ll say, ‘Are you a business owner?’ And they’ll say, ‘No, I have a W-2 only.’ I’m like, ‘I’m happy to work with you W-2 only. My minimum fee is $2,000.’ Then I stop talking.”

Create a Memorable Brand

Whether intentional or not, having something that makes you stand out helps attract the right clients and sets expectations about your approach to accounting.

Building the “Fun CPA” Brand

Establishing a personal brand was a key part of Yuri’s strategy. His Instagram handle and hashtag—#thefunCPA—emerged almost by accident. But it quickly set him apart in an industry that often feels stiff. He showed up at events with “Fun CPA” banners, printed T-shirts, and a big smile, which made people do a double take.

Yuri also hosts networking events that don’t feel anything like typical “mixers.” He might invite business owners on a boat outing or to a local hangar party where private jets are on display. His main purpose is to connect people and let them create business opportunities together. If they want to talk taxes or accounting, they’ll ask.

Rethinking Success in Accounting

The accounting profession often measures success by top-line revenue and billable hours—metrics Yuri calls “trash” and “imaginary.”

“I think as a profession we need to refocus. And especially if we want to fix this pipeline problem, the way we do that is by focusing on the people—your number one asset,” he says. “When you neglect that and just grind them for billable hours that mean absolutely nothing, it is of no surprise to me that people are leaving.”

Yuri’s model shows that building a profitable, sustainable practice that prioritizes accountant and client well-being is possible. By serving the right clients at the right price, you can transform accounting from a seasonal grind into a genuinely rewarding career—one with time for birthday celebrations, family dinners, and maybe even the occasional boat day.

Want more details? Listen to the full Earmark Podcast episode with Yuri Kapilovich, and don’t forget you can earn CPE credit by downloading the Earmark app and taking a quick quiz after you listen.

Design Better Habits, Build a Better Accounting Firm

Earmark Team · February 25, 2025 ·

When Rachel Dillon began her 4:30 a.m. workouts in January 2010, she only knew she needed a routine that fit her teaching schedule. She had no idea this personal commitment would eventually shape how she and her husband, Marcus Dillon, run their accounting firm, Dillon Business Advisors. Years later, they discovered that the same habits guiding their health journey could also help them overhaul their business.

Starting from Excess and Finding Focus

In 2016, Rachel and Marcus merged their firm with a mentor’s practice. This left them juggling more clients than they could serve effectively. At the same time, they were both working with a nutrition coach to improve their health. Seeing how steady, daily actions led to personal change, they realized these principles could solve their firm’s overload problem.

The final puzzle pieces came together when the Dillons read James Clear’s Atomic Habits. They recognized they’d already been applying many of his ideas to their personal lives and their accounting practice. This sparked an intentional approach to three principles that continue to guide their growth today.

1. Make It Obvious and Easy

A big lesson from Atomic Habits is turning good intentions into obvious, easy actions. The Dillons did this by scheduling important firm tasks at the start of each year. They get quarterly client meetings, team scorecards, and even vacation windows on the calendar long before anything else can crowd them out.

Rachel explains, “What gets measured, gets managed, and what gets scheduled is more likely to happen.”

Going on a family vacation during spring break is nearly unheard of in accounting firms as it often falls right in the middle of the March 15th and April 15th tax deadlines. But the Dillons started blocking off spring break in small steps. At first, it was just a few days, but then they eventually built up to the entire week. This helped them balance busy season deadlines with time for family. Over time, team members also learned that when tasks and priorities are clearly laid out, everyone stays accountable.

2. Environment Design

Environment design means shaping spaces and systems so the right behaviors become natural. When Rachel and Marcus wanted more flexibility for their team, they began transitioning to remote work. Before going fully remote, they tested digital tools like Microsoft Teams so people became comfortable collaborating online. They also invested in proper desks, monitors, and other equipment rather than letting everyone rely on a single laptop at the dining room table.

According to Marcus, “If someone stayed on one small laptop for five years, they wouldn’t be as effective. Actually spending money on environmental design was a good call.” By building a flexible, remote-first culture, they kept talented staff who valued autonomy. They also served clients more effectively because team members had the right setups to do their work.

3. Identity-Based Habits

Finally, the Dillons aligned their daily actions with the values and identity they wanted for their firm. Marcus and Rachel emphasize transparency, so they share their objectives early—even when they’re unsure how plans will unfold. For example, they’ve begun exploring possible firm acquisitions to grow beyond the standard one-client-at-a-time model. They keep their team in the loop even before potential deals become certain.

“Transparent leaders do this,” says Rachel. Their team appreciates being trusted with big-picture thinking and offers ideas for making acquisitions smoother. Marcus adds that their firm’s vision and values mirror their personal ones, so it feels natural rather than forced. When beliefs, words, and actions match, big changes tend to stick.

Personal Habits Fuel Professional Results

The Dillons’ story shows that lasting change often starts with personal commitments. By applying principles of habit formation to their firm—making tasks obvious, designing supportive environments, and acting consistently with their values—they’ve built an organization that embraces growth year-round.

To learn more about how Rachel and Marcus continue to evolve their firm and stay true to their values, listen to the full episode of the “Who’s Really the Boss” podcast. You can also visit Collective.cpa for more resources to help you design a modern accounting practice.

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.