Earmark Team

A Fresh Look at Accounting Firm Transitions Puts Quality of Life First

Earmark Team · February 2, 2025 ·

In a recent episode of the Who’s Really the Boss? podcast, attorney Sara Sharp joined hosts Rachel and Marcus Dillon to discuss the evolving world of accounting firm ownership, legal compliance, and how forward-thinking solutions like phantom equity can help firms thrive.

Sara, who works almost exclusively with CPAs on practice transitions and day-to-day compliance, sheds light on key issues every firm owner should consider—from multi-state employment laws to IRC Section 7216, which requires tax return preparers to protect clients’ tax return information or face possible criminal prosecution. Sara also discussed how creative ownership structures can bridge the gap between traditional partnerships and the need for modern flexibility.

From Compliance Challenges to Ownership Solutions

Rachel and Marcus initially engaged Sara to revisit the Dillon Business Advisors (DBA) employee handbook, recognizing that multi-state compliance for PTO and other policies was becoming increasingly complex. What started as a routine legal audit soon expanded into a broader conversation: How do small and mid-sized firms protect themselves legally while also planning for the future?

“A lot of people think signing up with a PEO solves everything,” explains Rachel, referencing how DBA initially assumed their Professional Employer Organization would handle compliance. “But we still discovered plenty of state-specific requirements.”

Sara points out that many accounting firms face challenges such as:

Multi-state labor laws require unique PTO accrual rules or payout stipulations
Contractor vs. employee misclassification can lead to costly fines
Sec. 7216 regulations mandate specific client consent forms when outsourcing tax prep or using contractors

Addressing these issues up front, says Sara, frees firms to focus on strategic goals like offering innovative ownership pathways.

Why Traditional Partnerships Feel Precarious

Despite the compliance work, most of Sara’s clients ultimately want guidance on ownership transitions, whether selling to a third party, merging with another practice, or rewarding top team members. She uses “one foot on the boat, one foot on the dock” to describe how many owners attempt to ease out of the business while transferring equity to new partners. This can create a drawn-out process where any sudden shift—divorce, health crisis, or relocation—throws everything off balance.

“You can set up a five-year partnership buy-in plan,” says Sara, “but if something goes wrong in year two, you’ve got a mess on your hands, with partial owners and complicated payouts.”

Phantom Equity: A Modern Alternative

At DBA, Marcus and Rachel wanted to recognize two key team members—Leslie Reeves, CPA and Amy McCarty, MBA—without forcing them to buy into a rapidly appreciating firm. “We’re not just talking about hours and ‘butts in seats,’” Marcus explains. “Leslie and Amy bring strategic value that far exceeds any traditional measure of partner track.”

The solution? A phantom equity plan. Sara helped them design an arrangement wherein these employees receive financial benefits tied to firm performance—just as if they owned a small percentage—but without actual stock in the company. They would still see real economic participation in a potential sale or buyout event.

“We’re going to treat you economically as though you are a 1% owner,” Sara notes, “but you’re not on the cap table. It’s simpler, and if someone leaves, they aren’t stuck with actual shares in the business.”

For Marcus and Rachel, this addresses talent retention—rewarding employees who already act like owners—and risk management: no messy buyouts if life circumstances change.

Evolving Valuations: From 1X Revenue to 8X SDE

Another factor driving new ownership models is how valuations have changed. Sara observes that many accounting firm owners still assume they’ll fetch about 1X gross revenue. Yet private equity, family offices, and younger entrepreneurs increasingly evaluate profitability. Instead of valuing a practice based on gross revenue, they’re basing it on earnings—often 4X to 8X seller discretionary earnings (SDE).

“Now that people realize it’s about cash flow, we see more sophisticated questions,” explains Sara. “Do you have digital relationships with clients? Are you reliant on face-to-face drop-offs? Efficient, profitable, tech-savvy firms can get premium multiples.”

Younger generations of accountants prioritize work-life balance and operational efficiency. They’re less inclined to log 70-hour weeks or maintain a physical office for clients to drop off paper forms. Sara says this cultural shift is clear in her legal practice:

“I’ve got buyers in their 20s and 30s who want to do everything in the cloud, automate workflows, and raise rates so they don’t have to manage thousands of low-margin returns. They’re running the business more cleverly.”

Looking Ahead: Aligning Compliance, Culture, and Ownership

As more firm owners realize they must adapt to multi-state employment, shifting professional values, and new valuation formulas, legal compliance and innovative ownership structures become intertwined. Whether ensuring your employee handbook meets Colorado PTO law or sending out proper Sec. 7216 disclosure forms, or designing phantom equity plans, the best solutions are protective and empowering.

“Firms want to preserve culture, recognize talent, and plan for what’s next,” says Sara. “But you can’t marry that boy just to keep from hurting his feelings,” she quips, invoking her mother’s advice on knowing when to walk away from a bad deal—or a rigid tradition that no longer fits.

By balancing compliance groundwork with creative reward systems, forward-thinking firms can attract and retain top talent, command higher valuations, and sleep peacefully at night, knowing they’ve protected themselves and their employees.

To hear more about Sara Sharp’s legal insights and how DBA structured its phantom equity plan, listen to the full episode of 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, supports and guides accounting firm owners and leaders with firm resources, education, and operational strategy through community, groups, and one-on-one advisory.

Why This CPA Firm Stopped Marketing (And Started Growing Faster)

Earmark Team · January 30, 2025 ·

“Just turn on your firm’s marketing.” It’s a deceptively simple suggestion that makes experienced CPA firm owners cringe. Yet for firms seeking to grow their monthly recurring client base, it’s often the first piece of advice they receive.

But what if conventional marketing wisdom is leading accounting firms down an expensive dead end? That’s the question Rachel and Marcus Dillon found themselves asking after investing over $500,000 in various marketing experiments in the early days of their accounting firm. Trying out outsourced marketing, internal sales teams, and lead generation services led to a surprising discovery: the most effective way to attract high-value monthly recurring clients isn’t through traditional marketing tactics at all; it takes a relationship-first approach that leverages the power of existing client satisfaction.

In a recent episode of the “Who’s Really the BOSS?” podcast, the Dillons share how this discovery transformed their growth strategy.

The Marketing Paradox

For most accounting firms, finding new tax clients isn’t particularly challenging. “Have a working website and a working phone number. That’s about all you need to find new tax clients,” Rachel notes from her experience running a growing practice. But attracting high-value monthly recurring clients? That’s where things get complicated — and where traditional marketing approaches often fall short.

The challenge isn’t finding clients — it’s finding the right ones. As Marcus explains, “The services you offer, the persona you put out on your social media profiles and your website, and the relationship your ideal clients want to have with their CPA or team of advisors matters a lot.” This is especially true for firms seeking to build long-term advisory relationships rather than just handling annual tax compliance.

This complexity is amplified by today’s global marketplace. Traditional geographic limitations have dissolved, giving clients more options than ever before. “There are more options in the market today than ever,” Marcus notes, “thanks to a global workforce and global services, clients that were limited to a geographic area can work with people nationwide or worldwide.”

In this environment, simply “turning on marketing” — whether through social media, email campaigns, or other traditional channels — isn’t enough. Success requires multiple touchpoints with ideal clients and a deep understanding of how to build and maintain meaningful professional relationships. This realization led the Dillons to embark on a series of marketing experiments that ultimately transformed their approach to practice growth.

The $500,000 Marketing Education

Determined to grow their high-value client base, the Dillons invested in a series of increasingly ambitious marketing experiments. They began with outsourced marketing at $1,800 per month, which included social media management and drip email campaigns. Despite running for a full year and generating some initial meetings, this approach failed to convert a single new client.

Next came a more significant investment: an internal sales team. Over two years, the firm invested approximately $500,000 in a business development position and support staff. “We thought we had a process problem,” Marcus reflects, “We thought we needed a person who could be dynamic enough to sell whatever we wanted to our ideal client. And that doesn’t exist.”

The commission-based compensation structure created unexpected challenges. Sales team members, eager to close deals, sometimes brought in clients who weren’t an ideal fit for the firm’s service model. Within 18 months , many of these clients began to churn — a costly lesson in the importance of client-firm alignment.

Even a sophisticated lead generation service fell short. Rachel explains, “We offer high value and highly relational services. So an email back and forth, that’s not the type of client that’s signing up for the services we provide.”

These expensive experiments led to the realization that traditional marketing approaches, no matter how well-executed, couldn’t replicate the power of authentic relationships in attracting and retaining ideal clients.

The Relationship-First Revolution

After years of expensive marketing experiments, the Dillons discovered their most effective growth strategy hiding in plain sight. By focusing on serving existing clients exceptionally well and nurturing referral relationships, they’ve achieved remarkable results – meeting their annual goal of 18 new clients in just over ten months, with an average client value of $22,300.

This success stems from a fundamental shift in how they view marketing. Instead of chasing new prospects through digital channels, they’ve redirected their marketing budget toward relationship-building activities. As Marcus explains, “Some of the best marketing dollars may be spent taking your existing clients to lunch… let them invite somebody they like, because that’s more or less how you make these connections. They’ll probably invite people they’re close to who either own a similar business or hang out in the same circles.”

Today, much of Dillon Business Advisors’ growth comes from existing clients starting or acquiring additional businesses, along with referrals from people close to the firm who understand the value they provide. The results speak for themselves. Not only is the firm growing steadily, but it’s attracting exactly the kind of high-value, long-term clients they want to serve. It’s a powerful reminder that in professional services, the best marketing strategy might not look like marketing at all.

From Marketing to Relationships: The Path Forward

The Dillons’ journey from traditional marketing to relationship-focused growth offers valuable lessons for accounting firm owners. While the allure of “turning on marketing” is strong, their experience shows sustainable growth in professional services requires prioritizing deepening existing relationships over chasing new ones.

When trust and long-term relationships are essential, investing in existing client relationships and authentic community connections often yields better results than traditional marketing campaigns.

Listen to the complete episode of the “Who’s Really the BOSS?” podcast to hear the full discussion of the Dillons’ marketing journey, including detailed strategies for relationship-building, client entertainment budgeting, and specific examples of successful networking activities that generated high-value clients.

Finders, Minders, and Grinders: Unlocking Your Accounting Firm’s Potential

Earmark Team · January 27, 2025 ·

Every accounting professional knows the dilemma: you’re expected to handle complex client relationships, ensure top-notch technical work, and juggle operational tasks—all at once. This all-in-one approach often leads to burnout, stunted growth, and high turnover.

Enter the “Finders, Minders, and Grinders” framework, a well-known model in professional services.

During a recent webinar, Mark Ferris of Panalitix explained how aligning each person’s natural personality with the right role can transform your practice. Instead of forcing everyone to “do it all,” you identify and empower:

Finders (relationship builders who generate new business),
Minders (managers who oversee processes and teams),
Grinders (technical experts who dive into the detailed work).

By putting people where they naturally excel, you reduce inefficiency, nurture talent, and build a more resilient firm. Below, we’ll explore how to apply this framework to create an environment where team members thrive, clients receive the best service possible, and your business can scale sustainably.

Why Matching Personalities and Roles Matters

When people consistently act against their natural inclinations, they burn out quickly. “If we act contrary to our natural inclination—our personality—it takes quite a lot of effort,” Mark Ferris explains. “That is tiring, and it’s not something we can keep up forever.”

Many traditional accounting practices mistakenly assume everyone can (and should) wear multiple hats equally well—reviewing hundreds of returns, leading team meetings, chasing new clients, and more. While some staffers can manage briefly, over time, misalignment in roles leads to errors, missed deadlines, and unhappy team members.

Skills vs. Personality: It’s crucial to separate learned skills (e.g., mastering new accounting software) from the deeper personality traits (e.g., being comfortable with negotiation or thriving in a structured environment). People can gain new technical skills, but asking a naturally reserved, detail-oriented accountant to spend most of their time selling may not succeed in the long run.

The Three Roles: A Balanced Trio

Successfully running an accounting firm means tapping into three core roles, each with distinct personality traits that maximize productivity and satisfaction.

Grinders

Focus on technical tasks like preparing returns, bookkeeping, complex compliance, or advisory projects.
Excel with structure and detailed rules, working methodically to ensure accuracy and timeliness.
Often patient, diligent, and prefer minimal distractions when completing high-stakes work.

Minders

Oversee operations, manage workflow, and coach the team.
Share some qualities with Grinders—organized and detail-oriented—but also display strong people-management skills, diplomacy, and warmth.
Handle scheduling, capacity planning, and progress checks, ensuring that deadlines, quality standards, and budgets are met.

Finders

Excel at building relationships—both with current clients (for retention and upselling) and potential clients (for growth).
Socially confident, comfortable with change, and willing to engage in negotiations or tackle conflict head-on.
Key drivers of new business, strategic partnerships, and revenue expansion.

When these three roles blend smoothly, an accounting practice functions like a well-oiled machine: technical work is done right and on time, the team runs efficiently, and new business opportunities consistently flow in.

Putting the Framework into Practice: A Real-World Example

Mark Ferris illustrates how to structure an accounting firm around these roles, ensuring each group can handle about $1 million in annual fees before you replicate the model.

Production Team (Grinders)

Bookkeepers, accountants, or tax specialists focus on client work.
Supported by a Production Manager (Minder), who handles capacity planning, scheduling, and quality control.
A Senior Client Manager (Finder) focuses on nurturing client relationships, resolving issues, and spotting upsell opportunities.

Clear Role Distinctions

Administrative staff (e.g., office manager, client service coordinator) handles day-to-day tasks like data collection, engagement letters, or invoicing.
Each Production Team is shielded from distractions, so Grinders can do technical work, Minders can improve processes, and Finders can build strong client relationships.

Career Path Alignment

Team members see exactly how they could progress: a skilled Grinder with strong interpersonal skills might train to become a Finder; a Grinder who loves organizing and leading might transition into a Minder role.
Owners can also step into the role that suits them best—whether that’s business development (Finder) or operational leadership (Minder)—and delegate the rest.

With this structure, hitting $1 million in fees signals the formation of a second production group with its own Finder, Minder, and Grinders. This model avoids an unwieldy top-heavy partnership structure and instead grows in self-sufficient, scalable “pods.” As Mark notes, clearly showing these pathways and roles is critical for recruitment and retention—two huge pain points for many firms.

Taking a Business-Minded Approach

A crucial takeaway is to run your practice like a business:

Track Productivity: Understand how much of your Grinders’ time is billable, and ensure Minders have enough oversight bandwidth. Finders may have less billable work but drive overall firm revenue and strategic direction.
Measure Results: Regularly review profitability at the production-team level. Look for ways to optimize workflow, rebalance roles, or adjust pricing.
Plan for Growth: Once a team reaches capacity, replicate the structure. No need to weigh down the firm with too many partners at the top.

Self-Reflection for Leaders and Owners

Even if you’ve been “doing it all” for decades, it pays to pause and consider which responsibilities bring you the most satisfaction. You might discover you prefer Finder tasks—nurturing client relationships—while leaving day-to-day management to a dedicated Minder. Or maybe you truly enjoy the technical depth of the work (Grinder) but feel forced into too many sales meetings.

Realigning your own role can be transformational: you get to focus on what you do best, and you build a leadership team that covers every dimension of the business.

Additional Resources to Guide Your Transformation

Panalitix LearningHub: Mark Ferris’s organization offers a wide range of tools, templates, and short courses to help you implement the Finders, Minders, Grinders structure. You’ll find interview questions to hire the right personality type, training modules on capacity planning, and resources on workflow optimization.
Coaching & Mentoring: For firms wanting deeper guidance, Panalitix provides group coaching, one-on-one sessions, and specialized projects.
Free Webinar Replays: You can watch recordings (like the one linked above) for more detailed discussions of productivity tracking, org-chart design, and incentivizing your team.

The Path to a More Resilient Firm

Adopting the “Finders, Minders, and Grinders” model is about more than a neat organizational chart—it’s a mindset shift toward placing people where their talents shine. The result? More engaged employees, a better client experience, and an accounting practice that can grow without sacrificing service quality.

Whether you’re a solo practitioner looking to hire your first employee or a mid-sized firm aiming to double revenue, the framework helps you avoid the burnout trap and keeps your team energized. In an industry where talent is scarce and client expectations keep rising, this approach could be your edge.

Ready to dive deeper? Watch Mark Ferris’s full webinar replay to gain practical tips on structuring your teams, setting productivity targets, and charting clear career paths. Embrace this powerful framework, and set your accounting firm on a path to enduring success.

Maximizing Tax Savings with Defined Benefit and Cash Balance Plans

Earmark Team · January 27, 2025 ·

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

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

Identifying Ideal Clients

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

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

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

Real-World Success Stories

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

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

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

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

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

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

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

The result was a win-win:

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

Case Study 2: Solo Attorney Maximizes 1099 Income

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

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

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

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

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

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

Key aspects of the customized plan included:

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

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

The outcomes were substantial:

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

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

Strengths: Flexibility and Customization

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

Key considerations for implementing these plans include:

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

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

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

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

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

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

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

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

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

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

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

Key Technical Considerations

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

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

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

Implementing Success: The Team Approach

A successful defined benefit plan requires coordination among several professionals:

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

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

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

Elevate Your Practice Through Strategic Planning

By mastering these advanced tax strategies, you can:

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

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

Ready to Transform Tax Outcomes?

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

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

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

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

Uncover the Strategy That Turns Extended Leave into an Innovation Opportunity

Earmark Team · January 26, 2025 ·

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

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

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

Building the Foundation: Systematic Documentation

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

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

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

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

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

Methodical Training: The Key to Seamless Transitions

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

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

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

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

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

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

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

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

From Disruption to Opportunity: Strategic Role Distribution and Unexpected Benefits

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

An unexpected bonus soon emerged.

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

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

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

Turning Challenge into Opportunity

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

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

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