Blog – Full Posts

Mastering Prompt Chaining: Unlocking AI’s Full Potential in Content Creation

Blake Oliver · October 24, 2024 ·

As a CPA passionate about tech, I’m always looking for apps that simplify work and boost productivity. The arrival of AI tools like ChatGPT and Claude felt like stepping into a new era, especially for content creation. However, I quickly learned that to truly harness their power, it’s not about tossing out a prompt and crossing your fingers.

Recently, I had the opportunity to discuss this and more on the Amplify! podcast, where we delved into how AI is revolutionizing marketing strategies, particularly in the accounting profession. As I shared on the pod, the real game-changer when using AI for content creation is mastering prompt chaining—a method that’s transformed how I work.

The Limitations of One-Shot Prompts

Consider a common scenario. Suppose you need a 1,000-word blog post on a specific tax deduction for your firm’s website. The straightforward approach might be to type into ChatGPT: “Write a 1,000-word blog post about this tax deduction.” Seconds later, the AI generates an article. Convenient. But here’s the catch.

The content is likely to be generic, lacking depth, and similar to countless other articles online. It’s like expecting a gourmet meal but receiving fast food. The issue? One-shot prompts give the AI minimal direction, resulting in superficial content that fails to engage or inform readers effectively.

Breaking It Down: The Power of Prompt Chaining

To achieve high-quality content, you have to interact with the AI more deliberately. Enter prompt chaining—guiding the AI through a series of targeted prompts to produce superior results. Here’s my step-by-step approach:

Start with Rich Source Material: I kick things off with a transcript from a podcast, an interview, or even a voice memo where I explore the topic in depth. This provides the AI with substantial, authentic content to draw from.
Analyze the Content: I ask the AI to examine the transcript and identify key themes, insights, and potential angles. For example: “Analyze this transcript and summarize the main points discussed.”
Develop a Thesis and Outline: Based on the analysis, we craft a strong thesis statement (the key point or takeaway). Then, I prompt the AI: “Create a detailed outline for an article based on this thesis, including an introduction, key sections, and a conclusion.”
Draft Section by Section: Instead of having the AI write the entire article in one go, I focus on one section at a time. I might say: “Write an engaging introduction based on this outline,” and then proceed through each section individually.
Review and Refine: After each section is drafted, I review it, make edits, and ensure it aligns with my voice and the message I want to convey.

Why Prompt Chaining Works

By collaborating with the AI step by step, prompt chaining offers several benefits:

Enhanced Depth and Clarity: The content becomes more nuanced and informative.
Authentic Voice Capture: The AI better reflects my tone and style.
Improved Efficiency: It saves time by minimizing the need for extensive revisions.

Making AI Your Collaborative Partner

The key is to view the AI as a collaborator, not just a tool. By guiding it through the process—much like mentoring a junior colleague—you tap into its full potential. It’s about providing context, setting clear expectations, and engaging in an iterative process to refine the output.

Ready to Transform Your Content Creation?

Next time you sit down to create content, don’t settle for surface-level results. Break down your prompts, guide the AI through each step, and experience firsthand how prompt chaining can revolutionize your workflow. Not only will you produce higher-quality content, but you might also find the process more rewarding.

For a comprehensive look at how I use prompt chaining and other AI strategies to enhance productivity, tune into the full podcast episode here. We delve into the nuances of prompt chaining, discuss practical applications, and explore how AI can transform your work and personal life.

Blake Oliver, CPA, is the founder and CEO of Earmark, a platform transforming how professionals earn their CPE credits. Passionate about accounting and technology, Blake is dedicated to helping others leverage AI to work smarter, not harder.

Automating Success: Why Strong Financial Controls Are Essential for Business Growth

Earmark Team · October 22, 2024 ·

Imagine a growing company where invoices pile up, approval processes lag, and financial oversight can’t keep up. Now, picture the same company with streamlined workflows, automated fraud detection, and visibility into finances that help the business. The difference? Strong financial controls.

Financial controls are the guardrails of good decision-making in any business. They include the procedures, policies, and methods for monitoring and controlling economic resources. In today’s digital age, these controls have evolved beyond traditional manual processes.

In the webinar “Mastering Internal Financial Controls for Sustainable Success,” ApprovalMax experts Jonathan Kyritsis and Angela Bierman shared a critical truth for Certified Public Accountants (CPAs) and their clients: modernizing financial controls is vital to sustainable business growth.

But how can CPAs use these evolving controls to deliver tangible value? Let’s explore three key areas:

The evolution of financial controls in the digital era
Using automation for efficiency and fraud prevention
Building scalable controls for long-term success

Whether you’re a CPA looking to enhance your services or a business leader aiming to strengthen your financial processes, these insights will provide tips on where to focus your attention and how to get started in modern financial management.

The Digital Evolution of Financial Controls

“Financial controls are the guardrails of good decision-making in any business,” Angela said. These controls protect against fraud, prevent costly mistakes, and provide the foundation for sound financial stewardship. The digital era has changed how these controls operate and their role in business growth.

Consider the traditional invoice approval process. Angela described the old way:

“If it’s paper, you take the stack of invoices to the various people who need to approve them, and they sign it. They may have a comment or a question, or they come back with post-its, and you’re like, whose signature is this? And what’s the status?”

This manual process is inefficient and prone to errors.

Modern, digitized financial controls automate this process. Invoices are automatically routed to the right approvers, reminders are sent systematically, and every action is logged with a clear audit trail. This removes the chaos of paper trails and reduces the risk of lost or mishandled documents.

Beyond digitizing paperwork, modern financial controls use technologies like optical character recognition (OCR) and machine learning (ML) to extract data from invoices, detect anomalies, and predict potential issues before they arise.

This evolution allows CPAs to offer more strategic, value-added services. Instead of spending hours on manual data entry and chasing approvals, CPAs can focus on analyzing financial data, identifying trends, and sharing insights that help business growth. Jonathan says it’s about understanding “how we can impact your business” through tailored, modern financial control systems.

Using Automation for Efficiency and Fraud Prevention

Automation underpins modern financial controls’ evolution, boosting efficiency and security. For CPAs, becoming familiar with these systems can be important for offering innovative services that support client success.

There are big efficiency gains from automation. Angela candidly said: “Chasing invoices is such a time suck. We all have better things to do.”

Automated systems handle tasks like routing invoices, sending reminders, and tracking approvals. Technologies like OCR automatically extract data from invoices to reduce manual data entry and errors.

These improvements allow finance professionals to shift focus from routine tasks to strategic analysis and decision-making. For CPAs, this means spending less time on data processing and more on consulting clients.

Automation also enhances fraud prevention. Automated systems constantly monitor for suspicious patterns and anomalies. They can flag payments just below approval limits—a common tactic in fraud schemes. Angela noted: “When you have a threshold of $10,000, $50,000, whatever it is, and you start to see bills coming in just under that threshold, that should be a flag.”

Automation fortifies vulnerable points in financial systems, such as vendor information changes. Angela highlighted this risk: “Where they get you, and where the areas of higher risk are, is the changes. Someone says, ‘Oh, I have new banking information. Can you update my account?'”

Automated systems enforce strict protocols for such changes, requiring multiple approvals and flagging suspicious updates.

However, automation complements rather than replaces human judgment. Jonathan said: “Logic sometimes might fly out the window because this is something quick that your boss’s boss is getting you to do. So again, it’s about having the processes in place.”

Automation provides the framework and flags potential issues, but human oversight is still key.

Building Scalable Financial Controls for Sustainable Growth

As companies expand, their financial control needs become more complex. Scalability becomes essential. Angela advised: “With every decision you make regarding processes, policies, and technology, ask yourself: Does this scale? Can this work with more people, more departments?”

A manual approval process suitable for a team of 10 can become a nightmare for a company of 100. Scalable, automated controls adapt effortlessly—moving from a single-tier approval system to a multi-tiered one that accounts for different departments and spending thresholds.

Establishing scalable controls empowers CPAs to transition from traditional number crunchers to vital strategic partners in growth. By anticipating future client needs and creating adaptable processes, CPAs can deliver exceptional value that enhances their role and influence.

Flexibility is important, Jonathan said: “Every client is not the same from client to client. We have to be flexible in this day and age, especially with the world changing as quickly as it is.”

Customization plus scalability ensure that financial controls remain effective and efficient regardless of a company’s size or complexity.

Scalable controls also democratize the oversight process. Angela noted: “What I think is so important is to empower every single person involved in the accounts payable process with the ability to press pause and say, ‘I’m not comfortable with that.'”

This approach maintains robust oversight even as organizations grow.

Setting up scalable controls early saves businesses from growing pains later. Angela pointed out: “It’s so much easier as an employee, as a project manager, as a relationship manager, to say to somebody, ‘Hey, these are our policies. This is what we’ve got in place.'”

It’s more efficient to grow into robust controls than to build them retroactively.

Watch the Full Webinar and Earn Free CPE

Digital, automated, and scalable financial controls form a powerful triad for sustainable business growth. They provide efficiency for daily operations, security against fraud, and flexibility for long-term expansion. For CPAs, mastering these controls is critical to delivering extra value in today’s business landscape.

To fully grasp the role of strong financial controls, watch the webinar “Mastering Internal Financial Controls for Sustainable Success.” Jonathan and Angela offer practical insights and real-world examples to enhance your service offerings.

Addressing Gaps in Accounting Firm Support

Accounting firms today face numerous challenges—from managing remote teams to staying updated with ever-changing regulations. Rachel highlights the struggle:

“We were looking for a community that could serve our team. We wanted accountability and ongoing support solution for the real-life, day-in and day-out challenges our team members were facing—not just the owner but the entire team.”

Existing peer communities in the accounting profession fell short, often focusing solely on firm owners or offering fragmented support. Marcus adds:

“We wanted to support the whole team, from leadership to admin. We wanted to ensure everyone was supported in one place with similar teams.”

Recognizing a gap in comprehensive, team-wide support, Rachel and Marcus, along with Amy McCarty, created Collective by DBA. Their goal was to address the technical aspects of running an accounting firm and the human element—fostering collaboration, facilitating professional development, and cultivating a sense of community across all levels.

Creating a Holistic Support Ecosystem

Collective by DBA is more than a professional network; it’s a carefully crafted ecosystem designed to support accounting firms at every level. At its core, it is a community platform where members, called “Insiders,” can share resources, communicate, and collaborate on topics ranging from client management strategies to the latest tax regulations.

Rachel explains:

“When you join the Collective, you become an Insider. It’s for the firm—not just one person or the owner or a partner. It’s for the whole team.”

The platform offers:

Webinars on current topics: Providing insights into industry trends and challenges.
Live streams for real-time problem solving: Allowing members to tackle issues collaboratively as they arise.
In-person events: Facilitating deeper networking and learning opportunities.
Discussion boards: Providing a place for members to share and receive feedback on potential initiatives and current challenges.
Resources: Offering guides and templates related to accounting firm operations and management.

The community is structured around three main pillars:

Strategy: Helping firms define their vision, target the right clients, and plan for growth.
Structure: Guiding firms in organizing their teams, roles, and workflows for maximum efficiency.
Systems: Assisting in selecting and implementing tools and processes to streamline operations.

A standout feature of Collective by DBA is its vendor-free environment. Marcus emphasizes:

“There are no vendors in this group. Behind the paywall are other firm owners. There’s nobody with a vested interest in a software company trying to sell you something.”

This approach fosters open, honest discussions about software, best practices, and industry challenges without the pressure of sales pitches. Members can freely share their experiences with different tools or strategies, ensuring the focus remains on practical, peer-tested solutions.

Embedding Core Values into Operations

At the heart of Collective by DBA is a clear vision and core values guiding every operation. Rachel articulates this vision:

“We are creating a future where success is measured by the positive impact we make on individuals, businesses, and our communities by connecting and inspiring professionals focused on continual learning and leaving a legacy.”

Their core values, encapsulated in the acronym IMPACT, are:

Integrity. “When we say yes or no to the size of an event or the location of an event, we’re doing back to those values,” Rachel notes. “Does it align? If it doesn’t, then it’s an easy no.”
Meaningful work. “We want our Insiders to continually get better. So we want to see a change—a noticeable difference, a positive impact,” Rachel says.
People first. This value is evident in their commitment to supporting entire accounting teams, not just firm owners.
Appreciation. “This has always been on our heart and, really, a calling to serve others, to serve our peers in the industry,” Rachel explains.
Collaboration. Central to their community platform, encouraging knowledge sharing among peers.
Transparency. This influences their approach to events and vendor relationships. Marcus notes, “We’ve turned down some people for various reasons. These are hand-selected people that DBA uses, and they’re not there to sell.”

Looking ahead, Collective by DBA plans to expand its offerings. Marcus outlines:

“We will build out different types of accountability at different levels, all the way through to one-on-one support. At the end of the day, you’re either going to spend money or spend time.”

This tiered approach ensures firms of all sizes can find the right level of support to meet their needs and drive growth.

Conclusion

By addressing the need for comprehensive, team-wide support, creating a vendor-free community focused on practical solutions, and embedding core values into every aspect of their operations, the Collective by DBA community meets the holistic needs of high-achieving accounting firms.

Imagine an accounting profession where firms collaborate, share best practices freely, and support and value every team member. Collective by DBA is working to realize this vision.

This community offers an exciting opportunity for CPA firm owners and accounting professionals to transform how they operate, collaborate, and grow. Whether you’re grappling with team management, seeking innovative ways to serve clients, or looking for a supportive community of like-minded professionals, Collective by DBA provides a new path forward.

Ready to transform your accounting firm? Listen to the full Who’s Really the BOSS? podcast episode to learn more about how Collective by DBA can benefit your 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.

From Wall Street Darling to Financial Disgrace: Unraveling the Equity Funding Scandal

Earmark Team · September 28, 2024 ·

In 1973, the financial world was rocked by a scandal that seemed almost too outrageous to be true: a respected insurance company had fabricated over 56,000 policies, amounting to a staggering $2 billion fraud. This wasn’t just a case of cooking the books; it was a masterclass in how innovation, technology, and unbridled ambition could combine to create one of history’s most audacious financial deceptions.

Welcome to the Equity Funding Corporation of America world, where the line between financial innovation and fraud is blurred beyond recognition. In this episode of the Oh My Fraud podcast, we dive deep into this fascinating case, which offers crucial lessons for modern finance and fraud prevention.

Join us as we explore the birth of Equity Funding’s innovative insurance-mutual fund product, its evolution into a complex fraudulent scheme, and its ultimate unraveling. Along the way, we’ll uncover valuable insights that resonate in today’s world of high-speed trading, complex financial instruments, and ever-present market pressures. The Equity Funding scandal may be a story from the past, but its lessons are more relevant than ever in our ongoing battle against financial fraud.

The Seeds of Fraud: Financial Innovation Gone Awry

At the heart of the Equity Funding scandal lay an innovative financial product that seemed too good to be true—and ultimately proved to be just that. In the late 1950s, Gordon C. McCormick devised a clever combination of mutual funds and term life insurance that would become the cornerstone of Equity Funding’s success.

The product was revolutionary for its time. As Caleb Newquist explains, “Customers could borrow against their mutual fund holdings to pay for a ten-year term life insurance policy.” The genius was in the timing: “The idea was that at the end of the ten years, the value appreciation in the mutual funds would outpace the total amount of the loan.”

This approach offered customers a win-win scenario: they could invest for the future while securing life insurance protection, all without significant upfront costs. For Equity Funding, it was a ticket to rapid growth. The company quickly became one of Wall Street’s favorite financial insurance stocks.

However, this innovative product also laid the groundwork for fraud. Its complexity made it difficult for regulators and auditors to scrutinize, while its success created immense pressure to maintain growth. The stage was set. What began as financial innovation would soon evolve into one of the most elaborate deceptions in corporate history.

The Anatomy of Deception: Crafting a Fraudulent Empire

As Equity Funding’s success grew, so did the pressure to maintain its meteoric rise. At the helm of this growing empire were Stan Goldblum, Fred Levin, and Sam Lowell—a trio whose backgrounds ironically included insurance regulation and embezzlement detection. Goldblum’s approach to leadership was summed up in a chilling statement to Levin: “publicly held companies do not lose money.”

This pressure to always show growth led to the perversion of their innovative product into an elaborate fraud. The company began creating fake insurance policies, manipulating their original concept of combining mutual funds and life insurance into a vehicle for deception.

Technology played a crucial role in this fraud. Greg explains, “Equity funding’s Electronic Data processing department had designed a computer program that would recognize categories of insurance by a code number. Code 99 indicated a business that involved no direct billing. These blocks of policies, Code 99, were then sold to the reinsurers.”

The fraud’s complexity was mind-boggling. A group known as the “Maple Drive Gang” created physical policy files to fool auditors. In a macabre touch of realism, the company even simulated policyholder deaths at a rate comparable to actual mortality rates.

The scale of the deception was staggering. By the time the fraud was uncovered, Equity Funding had created over 56,000 fake policies worth approximately $2 billion. Of the $117 million in loan receivables booked to finance these bogus policies, $62 million was completely non-existent.

The Unraveling: Detection, Exposure, and Consequences

The elaborate fraud at Equity Funding began to unravel in February 1973 when Ronald Secrist, a recently fired vice president, made two pivotal phone calls—one to the New York Insurance Department and another to Raymond Dirks, a securities analyst.

Dirks’ investigation quickly gained momentum. He interviewed former employees, met with current executives, and compiled extensive notes. As word spread, the company’s stock plummeted. On March 27th, the stock hit a low price of $14, and trading was suspended. Desperate attempts by Goldblum and his associates to maintain the facade, including bugging their own offices, proved futile.

The legal consequences were swift and severe. As Caleb details, “On November 1st, 1973, indictments against 22 defendants on 105 counts ranging from securities fraud, mail fraud, bank fraud, filing false documents with the SEC, interstate and transportation of counterfeit securities were filed.” Goldblum, Levin, and Lowell received prison sentences of eight, seven, and five years respectively.

The Equity Funding scandal exposed significant weaknesses in auditing and regulatory oversight, particularly in the face of emerging technologies. Greg’s observation is telling: “I was surprised during the story how much they relied on computers to help perpetrate the fraud.”

This case offers enduring lessons for modern fraud prevention. It underscores the need for robust checks and balances, the importance of whistleblower protections, and the need to adapt auditing practices to keep pace with technological advancements in finance.

Lessons from a Financial Scandal

While rooted in the 1970s, the Equity Funding scandal offers timeless lessons for our modern financial landscape. This case vividly illustrates how innovation can spiral into massive fraud when warped by greed and enabled by technology.

Key insights from this scandal resonate powerfully today:

Complex financial products require equally sophisticated auditing practices
Technology can be a double-edged sword – both a tool for fraud and its detection
Robust whistleblower protections are crucial in exposing corporate malfeasance
Regulatory oversight must evolve as quickly as the financial instruments it governs

As we navigate an era of AI-driven finance, blockchain technologies, and ever-more complex derivatives, the fundamental challenges highlighted by Equity Funding persist. The methods may change, but the potential for fraud remains.

To truly appreciate the intricacies of this landmark case and its relevance to modern fraud prevention, we invite you to listen to the full episode of Oh My Fraud. Whether you’re a finance professional or simply fascinated by white-collar crime, this deep dive into the anatomy of corporate fraud offers valuable insights.

From Zero to CPA in 18 Months

Blake Oliver · September 25, 2024 ·

Consider this: Kenyth Holdefer, who once worked in the mortgage industry, obtained both his bachelor’s and master’s degrees and successfully passed all four CPA exams, all within just 18 months. His extraordinary journey challenges traditional pathways to CPA certification and offers a potential solution to the accounting industry’s talent shortage.

Ken shared his story on The Accounting Podcast, revealing how he started his accounting journey with just 12 college credits. “I googled ‘quick bachelor’s degree,'” he said, highlighting his unconventional approach.

Fast-Tracking Degrees Through Competency-Based Education

Ken needed a swift career change. With its competency-based education model, Western Governors University (WGU) offered a solution.

“They have a different education model,” Ken explained. “If you know the material, there’s no reason to do a bunch of assignments and papers on stuff you already know. If you can prove you know the material by passing the test—basically, there’s a final exam—and if you pass it, you pass the class.”

This model allowed Ken to complete his bachelor’s degree in just three months—a process that usually takes four years. After a short break, he completed his master’s degree in 30 to 35 days.

Balancing this intense study schedule with a full-time job and family responsibilities, Ken often studied from 7 p.m. to midnight after putting his kids to bed. Remarkably, the total cost for both degrees was under $10,000—a fraction of what students typically spend on a single degree.

But can such an accelerated program prepare someone for the CPA exam and the accounting profession? Ken’s success suggests that it can, but it requires tremendous self-discipline and motivation. “You have to be very self-motivated to do this,” he emphasized.

Ken’s Intensive CPA Exam Preparation

With his degrees completed, Ken faced the CPA exams. He approached this challenge with the same intensity as his education.

Ken quit his job in January and dedicated six months to full-time study before starting at an accounting firm in June. He scheduled all four CPA exams at one-month intervals, aiming to take them all before receiving any scores.

“I took it extremely seriously,” Ken said. “I documented everything I was doing, how many hours I was studying because I wanted to pass them all on the first try.” His routine was grueling: studying 8 a.m. to 5 p.m., Monday through Friday, treating preparation like a full-time job.

He explained, “I glanced over all the material, learned a little about everything, and then really focused on the multiple-choice questions and task-based simulations within two weeks of taking the exam.”

Compared to traditional CPA exam preparation over 12–18 months of part-time study, Ken’s method was revolutionary but challenging. “It was a lot of four-hour nights of sleep,” he admitted.

However, the benefits are clear: a dramatically shortened timeline and total focus on exam preparation. Ken’s success proves this approach can yield impressive results for highly motivated individuals.

Implications for the Accounting Profession

Ken’s rapid journey to CPA challenges the accounting industry. With 75% of CPAs nearing retirement, the profession faces a talent shortage. Could accelerated pathways be the solution?

Faster, more affordable routes could attract a diverse pool, including career changers like Ken. However, the profession must ensure that speed doesn’t compromise quality. The CPA license carries weight due to its rigorous standards. Any changes must maintain the high level of expertise expected from CPAs.

Ken’s success suggests it’s time to think creatively about educating and certifying CPAs. By embracing innovation while maintaining excellence, we can ensure a bright future for the profession.

Want to dive deeper into Ken’s extraordinary journey and join the conversation about revolutionizing the path to CPA certification? Listen to the full The Accounting Podcast episode.