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Transforming Your CPA Firm: A Strategic Approach to Client Acquisition

Earmark Team · August 21, 2024 ·

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

Identifying Your Ideal Client: The Foundation of Strategic Growth

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

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

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

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

Streamlining Inquiry Management: Converting Prospects into Ideal Clients

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

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

Their system includes:

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

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

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

Leveraging Technology for Marketing and Communication

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

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

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

Key Takeaways for CPA Firms

To transform your CPA firm’s client acquisition strategy:

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

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

Rachel and Marcus Dillon, CPA own a Texas-based, remote client accounting and advisory services firm, Dillon Business Advisors, with a team of 15 professionals. Their latest organization, Collective by DBA, is a community for accounting firms to get operational support in strategy, structure, and systems.

Embracing the Future of Accounting with Sage Intacct

Earmark Team · August 20, 2024 ·

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

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

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

The Rapid Evolution of Accounting Technology

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

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

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

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

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

Sage Intacct: Driving the Future of Accounting

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

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

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

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

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

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

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

The New Accounting Professional: From Number Cruncher to Strategic Advisor

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

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

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

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

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

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

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

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

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

The Hidden Cost of Big Four Hiring Bias

Blake Oliver · August 15, 2024 ·

Imagine being told your 20 years of diverse accounting experience don’t qualify you for a job because you never worked at a Big Four firm. This is absurd, and it happens every day in our profession.

In a recent episode of The Accounting Podcast, we examined the hiring bias that is creating an artificial barrier in our field. It’s not just a minor inconvenience – it’s limiting diversity, overlooking valuable talent, and perpetuating a dangerously narrow view of what constitutes “success” in accounting.

A Barrier to Diversity and Talent

Scroll through job postings for corporate accounting roles, and you’ll quickly notice a pattern: “Big Four experience required” or “Big Four experience preferred.” This requirement is so commonplace that many in our profession barely question it. But we should.

Why should one to three years of experience on a resume dictate your entire career trajectory? Demanding Big Four experience in job postings is lazy, and it borders on discrimination and classism.

This hiring bias creates an artificial barrier that significantly narrows the talent pool. It overlooks the wealth of experience and skills accountants gain in smaller firms, industry roles, or alternative career paths.

Consider the CPA who wrote to us. (Listen to the episode for details.) They have two decades of diverse experience across multiple industries, including exciting projects with buyouts and public company purchases. Despite this rich background, they are potentially disqualified from roles simply because they never worked at a Big Four firm.

The impact of this bias extends beyond individual careers. It homogenizes our profession, limiting the diversity of thought, background, and experience crucial for innovation and problem-solving. This practice also disproportionately affects professionals from underrepresented groups who may have had fewer opportunities to enter Big Four firms early in their careers.

Big Four Experience vs. Operational Expertise

The emphasis on Big Four experience stems from a perception that it provides a unique skill set essential for success in corporate accounting roles. But does this perception align with reality?

Our listener’s feedback paints a different picture: “I have worked with employees of Big Four firms during audits, and frankly, they are disconnected from the reality of operational accounting.” The listener continues, “They can review the heck out of internal control issues, but none of them ever worked with a badly implemented ERP system with an AR module failing and unable to reconcile cash for eight months because of poor IT support.”

As our listener points out, the skills honed in Big Four firms, while valuable, don’t necessarily translate directly to the day-to-day challenges of operational accounting. Audit experience focuses heavily on reviewing past transactions and assessing controls. But operational accounting requires implementing and managing systems, solving real-time problems, and navigating the complexities of business operations.

If you require experience from the Big Four, you might be overlooking candidates with hands-on experience in favor of a resume line item that may not indicate readiness for the role.

Moving Towards a More Inclusive Hiring Approach

Our profession needs to broaden its definition of what makes a successful accountant. We must move beyond the Big Four checkbox and adopt a more holistic view of professional qualifications that values diverse backgrounds, operational expertise, and adaptability.

What might this look like in practice? We should emphasize problem-solving skills and adaptability over pedigree, value diverse experiences and skill sets, consider candidates’ proficiency with various accounting systems and technologies, and assess their ability to handle operational challenges.

By adopting this more inclusive approach, we’ll tap into a broader talent pool, bring more diverse perspectives into our teams, and build teams better equipped to handle complex, multifaceted challenges.

Professional organizations like the AICPA and state societies could play a crucial role in this shift by discouraging the practice of requiring Big Four experience in job postings and promoting more inclusive hiring practices.

Embracing a New Era in Accounting Recruitment

The Big Four bias in hiring isn’t just a topic for academic debate – it’s a real issue affecting careers and shaping the future of our profession.

This shift isn’t just about fairness. In a rapidly evolving business landscape, we need accountants with varied experiences and skill sets to drive innovation and tackle new challenges.

The accounting profession must embrace a more inclusive approach that values diverse backgrounds, operational expertise, and adaptability.

Listen to the full episode of The Accounting Podcast, where we explore the hidden costs of hiring biases, share more real-world examples, and discuss practical strategies for implementing more inclusive hiring practices. Whether you’re a hiring manager, a job seeker, or simply passionate about the future of accounting, this episode offers valuable insights to help reshape our profession.

It’s time to redefine what success looks like in accounting – and it starts with how we hire. Join the conversation and be part of the solution.

The 40% Solution: Reclaiming Your Time as an Accounting Firm Owner

Blake Oliver · August 11, 2024 ·

As accountants, we’re no strangers to long hours and busy seasons. But what if there was a way to reclaim a significant chunk of your time without sacrificing the quality of your work?

I recently sat down with Kwame Agyei, founder and CEO of Appoynt, on The Accounting Podcast to discuss just that. Kwame, a former accountant himself, shared his idea of the “bottom 40%” solution, which could offer a new perspective on managing our firms.

Understanding the “Bottom 40%” Concept

The bottom 40% refers to the tasks that, while necessary, don’t directly contribute to your core services or business growth. These might be administrative duties, data entry, basic bookkeeping tasks, or even managing your calendar and inbox. The key is to identify those tasks that:

Take up a significant amount of your time
Don’t require your specific expertise
Feel like they’re “dragging you down” or preventing you from focusing on more important work

By pinpointing these tasks, you’re not just identifying time-wasters – you’re uncovering opportunities to delegate, outsource, and ultimately reclaim your time to focus on what matters most in your firm.

Once you’ve freed up this time, you have two options: take on more work to grow your business or use that time to improve your work-life balance. The choice is yours, but addressing your bottom 40% creates the opportunity to make that choice in the first place.

Common Tasks to Consider Outsourcing

Now that we understand the concept of the bottom 40% let’s explore some specific tasks that many accounting firm owners might consider outsourcing. Outsourcing can often provide significant time savings and efficiency gains in these areas, allowing you to focus on higher-value activities.

Virtual Assistant (VA) Services

A virtual assistant can handle a variety of tasks, including:

Email management
Calendar scheduling
Travel arrangements
Basic data entry
Document preparation

The beauty of a VA is that their role can be tailored to your specific needs. At about $1,000 per month for 20 hours a week, it’s a cost-effective solution for many small firms.

Accounts Receivable Management

With the right service, you can automate the process of chasing invoices, using customized workflows based on your preferences. This could include sending reminder emails, making phone calls, or even adjusting the approach based on your relationship with each client.

The potential impact is significant. For example, Kwame says that one firm increased its collection effectiveness from 63% to 78% and reduced its Days Sales Outstanding (DSO) from 23 days to just 12 days. This not only improved cash flow but also enhanced client relationships by ensuring consistent and professional follow-up on outstanding invoices.

Overcoming Hesitations About Outsourcing

Outsourcing can feel like a big leap, especially for accounting firm owners used to handling everything in-house. However, many of the common concerns about outsourcing can be addressed with proper planning and due diligence. Let’s into some of the most frequently cited hesitations and how you can overcome them, according to Kwame.

Security Concerns

As accountants, we deal with sensitive financial information daily. Reputable outsourcing companies address this by using virtual machines with data servers local to the client’s location. This means your data is kept on secure servers in your country, adhering to local data protection laws.

Trust Issues

Building trust with an outsourced team takes time. Start small and gradually increase responsibilities as you build confidence. Communication is key, especially in the early stages. Share your thoughts and concerns freely to help your outsourced team understand your preferences and work style.

The Long-Term Impact of Outsourcing

As you become more comfortable with outsourcing, you’ll likely find more tasks you can delegate. What starts as offloading a few simple tasks can snowball into a significant transformation of your workday. You might start by having a VA manage your calendar, then progress to letting them manage your email inbox, and eventually have them draft responses to routine client inquiries.

This evolution allows you to shift your role as a firm owner. Instead of getting bogged down in day-to-day tasks, you can focus more on strategy, client relationships, and business growth. Alternatively, you can use that reclaimed time to improve your work-life balance.

Practical Steps to Get Started

Here’s how you can get started:

Identify Your Bottom 40%: Log your activities for a week. What tasks are eating up your time but don’t require your specific expertise?
Start Small: Begin with something simple like having a VA manage your calendar or upload expense receipts.
Choose a Reputable Provider: Look for an outsourcing company that understands the unique needs of accounting firms and has robust security measures.
Communicate Clearly: Over-communicate early to help your outsourced team understand your preferences and work style.
Be Patient: Give the process time to work. Significant improvements often become apparent after about three months.
Gradually Increase Responsibilities: As you become more comfortable, start delegating more tasks.
Monitor and Adjust: Regularly review the performance of your outsourced tasks and make adjustments as needed.

The 40% solution isn’t a magic bullet. But it is a powerful tool that can help transform your accounting practice. By identifying and outsourcing the tasks that are dragging you down, you can free up time to focus on what matters – whether that’s growing your business, improving your services, or simply enjoying a better work-life balance.

So, take a hard look at your daily tasks. What’s in your bottom 40%? And more importantly, what could you achieve if you reclaimed that time? The answer might just revolutionize your practice – and your life.

Want to explore this topic further and hear more insights from Kwame Agyei? Listen to the full episode of Th e Accounting Podcast, where we explore these ideas in greater detail. You’ll gain even more practical tips on implementing the 40% solution in your firm and hear real-world examples of how outsourcing can transform your practice.

How One Accounting Firm Turned Work-from-Home into a Competitive Edge

Blake Oliver · August 4, 2024 ·

At KBS CFO, new hires undergo a 3-day work simulation. Internal emails are banned, and success is evaluated based on the results delivered rather than the hours worked. These are all strategies that help the firm operate effectively while being completely remote. There is no office.

Robin Thieme, founder and CEO, shared her approach to remote work on my Earmark Podcast. As the accounting industry faces ongoing challenges in recruitment and retention, her insights offer a roadmap for firms seeking to build a more agile, efficient, and attractive workplace.

Revolutionizing Hiring with Work Simulations

KBS CFO has developed a unique approach to hiring that goes beyond traditional interviews and resumes. Their process begins with automated screening through platforms like Indeed or ZipRecruiter, followed by a three-day work simulation that gives candidates a real taste of the job while allowing the firm to assess skills that matter in a remote environment.

“We set up a simulation that includes a wide variety of tasks and assignments to be performed over a three-day period of time,” Thieme explains. These tasks range from explaining complex accounting concepts to simulated clients to analyzing financial data and demonstrating proficiency with project management tools.

The simulation is conducted through Asana, the firm’s project management tool, mirroring the work environment. This approach offers several benefits:

Skill assessment: “Every single step of the way, there’s inherent screening going on,” says Thieme. The simulation tests technical knowledge, critical thinking, communication skills, and the ability to work independently in a remote setting.
Self-selection: Some candidates opt out when they see the work involved, saving time and resources for both parties.
Cultural fit: The simulation helps identify candidates who genuinely enjoy the work and thrive in a remote environment.

While the simulation’s 4-6 hour time commitment might seem substantial, Thieme reports that truly interested candidates don’t hesitate to take it on. Many spend even more time on it, demonstrating their enthusiasm and dedication.

Balancing Flexibility and Accountability

KBS CFO has developed an innovative approach that balances employee autonomy and operational needs. The firm’s core hours policy is at the heart of this approach.

“My requirement is that everybody be committed to working at least 60% of their time between 10 and 3, their time,” Thieme explains. This ensures substantial overlap in working hours across different time zones, facilitating collaboration and timely client communication. However, employees can complete 40% of their work outside these core hours if they meet deadlines and deliver results.

Thieme emphasizes that this flexibility comes with clear expectations: “There’s no flexibility in terms of meeting deadlines. If we make a promise to a client, there’s zero flexibility in that because those promises are essential.”

This balanced approach provides structure without sacrificing flexibility, ensures consistent availability for clients and team members, and maintains accountability by focusing on results rather than hours logged.

Streamlining Communication and Workflow Management

At KBS CFO, innovative remote work practices extend to communication and workflow management. Two key strategies stand out: banning internal emails and implementing a Results-Only Work Environment (ROWE).

“We are not permitted to email one another internally,” Thieme states emphatically. “It’s banned. I’m pretty serious about it because it’s such a waste of time.” Instead, all internal communication and task management occur through Asana. Every task is assigned a due date in the system, ensuring proper tracking and clear responsibilities.

This approach offers numerous benefits, including improved clarity and accountability, a searchable history of all work and communications, and better organization of client information. Thieme shares an example: “We had a situation with a client where I was talking to them about some kind of issue. Six months ago, I had been talking to them about the same issue, and I was just able to easily find the conversation. They were pretty impressed.”

Complementing this streamlined communication is KBS CFO’s adoption of a Results-Only Work Environment. “I can observe if due dates are being missed, regardless of whether the client is aware of it or not,” Thieme explains. This focus on outcomes rather than hours worked aligns perfectly with their remote work model, allowing them to measure performance based on results and promote a culture of accountability and ownership.

Implementing these strategies isn’t without challenges. It requires a shift in mindset for both managers and employees. However, the payoff regarding efficiency and accountability is substantial, contributing to operational excellence and enhanced client satisfaction.

The Future of Remote Work in Accounting

By prioritizing results over hours worked and effectively leveraging technology, firms can attract top talent, improve client satisfaction, and boost overall efficiency. However, implementing such changes isn’t without challenges. It requires a shift in mindset, investment in technology, and a willingness to challenge traditional practices.

As Robin Thieme puts it, “We’re accountants, but somehow we don’t translate the numbers game to the way we run our business.” This highlights the importance for accounting firms to use the same level of analytical rigor in managing their operations as they do in handling their clients’ books.

As the accounting profession grapples with talent shortages and increasing client expectations, firms that embrace these innovative practices will likely gain a significant competitive advantage.

Ready to revolutionize your approach to remote work? Listen to the full interview with Robin Thieme. In Thieme’s words, “It’s not about working less; it’s about working smarter.”