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Blog – Full Posts

The Math Is Brutal: Every CPA Must Triple Their Productivity by 2035 or Face Professional Extinction

Blake Oliver · September 10, 2025 ·

“When you chart out demand versus supply of people over time, what that math tells you is that ten years from now, 2035, every CPA in the profession will have to be 2.7 times more productive on a revenue per employee basis than they are today. That is crazy.”

David Wurtzbacher shared this projection on a recent episode of the Earmark Podcast. As the founder and CEO of Ascend, a private equity-backed platform that’s completed over three dozen firm acquisitions in just over two years, Wurtzbacher offers an outsider’s perspective on the profession.

His background scaling Lightwave Dental from 7 to 80 locations taught him how private equity can either destroy professional cultures or transform them for the better. Now he’s applying those lessons to accounting, where the numbers paint a sobering picture: demand for services keeps climbing while fewer people enter the profession each year.

To put this in perspective, a typical well-performing firm today generates around $200,000 in revenue per employee. Wurtzbacher’s projection means that number needs to approach $600,000 per person within a decade. Even scarier? By 2035, roughly 85% of the profession will consist of people with ten years or less of experience in an industry where most say you can’t even make partner in that timeframe.

But Wurtzbacher isn’t just highlighting the problem. Through Ascend’s model of preserving firm independence while providing enterprise-scale resources, he’s showing how firms can achieve these seemingly impossible productivity gains through three key transformations.

The Leadership Evolution: From Managing Partner to True CEO

The biggest barrier to 2.7x productivity isn’t technology or talent. It’s how firm leaders spend their time. Most managing partners remain trapped doing client work while trying to run their businesses, creating a fundamental ceiling on growth.

“The very first place we go is to the leader of the firm,” Wurtzbacher explains. “We want to help them through a transition to become a true CEO, defined as them having one client, which is the firm.”

This leadership trap stems from what Wurtzbacher calls the “fiercely independent” culture of accounting. During his research, he consistently heard from entrepreneurial CPAs who valued their independence: the name on the door, community reputation, caring for people and clients their way. But this independence prevents the changes necessary for breakthrough growth.

The problem runs deeper than time management. The client service orientation that defines quality accounting actually caps leadership development. With seasonal demands and constant client pressure, managing partners find limited windows for strategic work throughout the year.

The real breakthrough requires confronting a limiting belief. “When you’re close with your clients, you believe nobody can do the work but you,” Wurtzbacher observes. “No one else can have this client relationship.”

Consider Lee Cohen from LMC in New York, who exemplifies this transformation. Cohen was initially stressed, unhappy, and heavily involved in client work. Through Ascend’s CEO transition process, “Cohen literally became a different person. He would tell you that,” Wurtzbacher says.

Fifty percent of Cohen’s transformation came from a mindset shift. The other fifty percent came from bringing in a Chief Growth Officer—not a traditional business development role, but a general manager from outside the profession. “A lot of them have MBAs, but they are hungry, humble, smart people that come in and create visibility for that leader about what’s going on in the business and where there are opportunities.”

This operational support, combined with the mindset shift away from client dependency, sets leaders free to focus on what only they can do: building and directing their firms.

Creating an “Irresistible Offer” for Top Talent

Even the best leadership transformation can’t solve the profession’s talent crisis through traditional methods. When quality candidates routinely field six, seven, or eight job offers, firms need something fundamentally different.

Wurtzbacher’s solution centers on creating an “irresistible offer,” and it starts with better recruiting. “So many firm recruiters grew up in the profession, and they’re trapped with the baggage of old ways of doing things,” he explains. Ascend built a team of professional recruiters from outside accounting who understand best practices for finding candidates and closing deals.

But the real breakthrough is compensation innovation. While the profession is “very base salary heavy,” Ascend developed an off-the-shelf bonus program that lets firms pay more cash than competitors. They also extended equity ownership far beyond traditional partner levels.

“We have well over 100 people across all our firms that are managers or senior managers that are investors in Ascend. They own Ascend stock,” Wurtzbacher reveals. These employees invest $10,000 to $50,000 annually in company stock—typically funded through the enhanced bonus program—essentially dollar-cost averaging into equity appreciation throughout their careers.

This creates what Wurtzbacher calls “a different cultural energy.” When people understand how equity value creation works outside the traditional partnership model, they connect their daily work to long-term wealth building. The psychological shift from employee to owner fundamentally changes commitment levels.

The design also solves a collaboration problem. Because everyone owns Ascend stock regardless of which firm they work for, “it creates a one team attitude across all our firms” that unlocks knowledge sharing across the platform.

The results speak for themselves. Firms that described capacity as their “#1 issue” now consider that problem solved. “Our big issue now is how do we go and get all the right kinds of new business that we want to keep our great people excited and motivated,” Wurtzbacher notes.

Technology at Enterprise Scale

Achieving nearly triple productivity requires more than incremental improvements. It demands systematic transformation through AI, global teams, and automation that individual firms cannot afford alone.

But there’s a gap between AI hype and reality. “There is so much more hype and future forecasting than there is reality in this area,” Wurtzbacher observes. For firms feeling behind, “that’s just not the case.” Most firms implementing AI are saving perhaps two hours per person per week, and that’s only for the most advanced adopters.

This creates both opportunity and strategic imperative. While individual firms struggle with overwhelming AI options, they lack technical expertise and capital for truly transformative capabilities. The solution requires enterprise scale.

Ascend illustrates this advantage in action. They’re building a 30-person software engineering and AI team by year-end. “No medium-sized or smaller firm is going to be able to do that,” Wurtzbacher explains.

Their strategy operates on two fronts: strategic buying versus building. For general needs, they purchase existing products. For capabilities essential to their workflows, they invest millions annually developing proprietary AI solutions.

One promising area addresses what Wurtzbacher calls the client context problem. Years of relationships generate institutional knowledge typically trapped “in your head, in spreadsheets, in work papers, in your inbox, and some other tool.” Their AI team works on aggregating this context into accessible systems that transform practitioners from information gatherers into true advisors.

Global talent represents another productivity component. Ascend’s acquisition and transformation of Sentient Solutions, a global capability center exclusively serving US accounting firms in Hyderabad, India, demonstrates sophisticated global team integration. But this isn’t simple outsourcing; it requires developing playbooks that elevate rather than replace domestic work.

Even basic infrastructure offers huge opportunities. Practice management systems in accounting are “so messed up,” Wurtzbacher notes. Before AI delivers transformation, firms need fundamental technological foundations for tracking work and maintaining institutional knowledge.

The Choice Facing Every Firm

Survival depends on three interconnected transformations happening simultaneously: leaders evolving from client servers to strategic CEOs, revolutionary talent approaches through equity ownership, and enterprise-scale technology investments individual firms cannot achieve.

This is a watershed moment for professional services. The mathematical reality of 2.7x productivity gains will separate surviving firms from those becoming obsolete. When 85% of the profession will have a decade or less experience by 2035, traditional models don’t just fail; they become mathematically impossible.

But there’s reason for optimism. Firms embracing these changes discover that freeing leaders from client work unleashes strategic energy, equity ownership creates cultural transformation beyond salary increases, and enterprise-scale technology delivers impossible productivity gains.

Wurtzbacher’s personal timeline reinforces this long-term vision. At 37, he tells people “this very well could be the last thing I do. So I’m thinking of Ascend in terms of decades.” While typical private equity investments last three to four years, his commitment spans the time needed for real transformation.

For accounting professionals, this is an existential threat and an unprecedented opportunity. The mathematical moment of truth has arrived. The question isn’t whether change is coming. It’s whether you’ll lead it or be overwhelmed by it.

Listen to the full conversation with David Wurtzbacher on the Earmark Podcast to hear more about Ascend’s approach to transforming accounting firms while preserving their independence.

Inside QuickBooks Online’s Biggest Transformation Since Going Cloud-Based

Earmark Team · September 10, 2025 ·

You’re reviewing a client’s profit and loss report when you notice little sparkle icons next to several expense categories. Curious, you hover over one and get an instant explanation: “Office supplies increased 127% compared to last month due to these three transactions.” What used to require detective work across multiple screens now happens automatically, with AI explaining not just what happened, but why.

This isn’t a future vision—it’s happening right now in QuickBooks Online’s July 2025 updates. On the latest episode of The Unofficial QuickBooks Accountants Podcast, hosts Alicia Katz Pollock from Royalwise and Dan DeLong from School of Bookkeeping break down Intuit’s massive “In the Know” session, where the company unveiled what they’re calling “QuickBooks on the Intuit platform.”

The transformation goes far beyond typical software updates. AI agents now work like digital detectives, scouring your data for patterns and anomalies. Banking feeds can automatically process PDF statements. Client communication occurs directly within QuickBooks, eliminating the spreadsheet shuffle. And those sparkle icons on reports? They’re AI-powered insights flagging unusual trends before your clients notice them.

But here’s what every accounting professional needs to understand: this isn’t an optional upgrade. By September 2025, everyone will be permanently on the new platform, with no opt-out option. The window to influence the final product closes soon.

AI Agents Become Your Digital Workforce

The heart of QuickBooks’ transformation lies in what Intuit calls “Agentic AI”—intelligent agents that actively hunt through your data for insights. Alicia explains her mental image: “I always imagine an AI bot in a detective hat, because that’s how I think about the AI is looking through the data and scouring it.”

The accounting agent, available for Essentials plans and higher, represents the biggest shift in how bookkeepers handle transactions. Instead of facing a wall of uncategorized entries, the system now identifies transactions that are “data-backed and likely to be accurate” and pre-checks them for posting. When three transactions meet this criterion, a banner appears announcing “three transactions ready to post.”

The game-changer is anomaly detection. Those sparkle icons appearing next to categories on profit and loss reports identify unusual trends automatically. Dan shares his experience: “I’ve seen it on some reports where the prior month there was a specific project that was done, and it said it right there on the screen like it went down this amount of percent because these two invoices were in the prior month.”

The categorization intelligence has evolved beyond simple pattern matching. The AI now recognizes that Shell and Arco are both gas stations, suggesting similar categories across different vendors. It scrapes bank descriptions for contextual clues and provides multiple suggestions for ambiguous transactions—offering both “meals and entertainment” and “travel meals” for restaurant charges, depending on your patterns.

Perhaps most significantly, categorization history has expanded from 12 to 24 months—a change Alicia specifically requested. This ensures annual charges can reference the previous year’s categorization, eliminating frustration with recurring yearly expenses.

Platform Integration Changes Everything

What Intuit calls “QuickBooks on the Intuit platform” represents more than rebranding—it’s the breakdown of decades-old product silos. As Dan explains, “their core offerings of TurboTax, MailChimp, and QuickBooks are getting homogenized here. And they can essentially talk to each other.”

The logic makes sense when you consider user patterns. As Alicia notes, “a lot of people use MailChimp who have never used QuickBooks. There’s a lot of people who file their taxes with TurboTax who have never used QuickBooks. So merging them all together is a natural evolution.”

The new interface features an app carousel with customer hubs, sales hubs, accounting hubs, marketing hubs, and business tax hubs. The customer hub will integrate MailChimp directly within QuickBooks, while business tax functionality brings TurboTax capabilities to the accounting workflow.

The enhanced bank feeds represent the most visible daily change. Alicia, who has been beta testing and providing daily feedback to developers, describes the evolution: “Everything that we knew and loved about the banking feeds is still there, but they kind of changed it.” The new system allows inline transaction editing, customizable column displays, and comprehensive transaction details.

The revolutionary statement import feature can process PDF bank statements and extract transactions automatically. While currently requiring human oversight—hence the two-hour processing time, at least for now—this capability could eliminate entire businesses built around transaction import services. As Alicia explains, “there’s a human being looking at it to see if it did a good job or not, and if it didn’t do it right, it’s actually going to a human being who is fixing the programming.”

Interface changes aren’t just cosmetic. The new left navigation is “brighter, it’s lighter, it’s prettier” with collapsible sections and bookmark functionality for one-click access to frequently used screens. The transformation from “Add” to “Post” in banking feeds reflects more technically accurate accounting language.

Client Communication Gets Built-In

The context gathering system eliminates the bookkeeper’s perpetual question: “What was this transaction for?” Built directly into QuickBooks, this feature threatens third-party apps by providing client communication tools within the core platform.

Alicia explains the problem this solves: “When you don’t know what something’s for, you have to go ask. And in the old days, we used to use spreadsheets for that. More recently, we’ve been using apps like Uncat, Keeper, or Financial Cents, where you can communicate with your clients right inside the app, but now you can do it right inside QBO.”

The system creates a to-do list maintained within QuickBooks, allowing bookkeepers to ask clients questions without requiring client QBO access. Clients receive emails with magic links to respond, and “it’s always the same link. And so you can just have your clients save it and bookmark it as the place to go.”

The expense forwarding feature allows anyone to send not just expenses but also income transaction directly into the system. However, this convenience introduces new risks. Alicia warns, “If you don’t have a bill approval process, you may have somebody who just goes in and pays everything without questioning anything. You actually could wind up paying bad actors who just sent random bills into your account to see if they could.” She reminds everyone to make sure they only give these email addresses to people they can trust.

The integration of Bill Pay Basic across all plans, including Simple Start, amplifies these concerns. Firms handling bill payments may want to consider upgrading clients to QBO Advanced, which includes mandatory bill approval workflows.

The September Deadline and What It Means

The timeline carries strategic implications beyond software preference. This isn’t a typical update where holdouts can postpone adoption—it’s a mandatory migration with a hard September deadline.

July offered opt-in/opt-out flexibility. August brought automatic transitions for new brand files. Crucially, all ProAdvisors’ clients were switched simultaneously. As Dan notes, “They threw accountants a bone” by ensuring firms wouldn’t juggle clients across different interfaces. September completes the mandatory transition, and by the month’s end, the new platform becomes permanent with no opt-out option.

The current period is critical for shaping the final product. As Alicia emphasizes from her beta testing: “This is the time to make sure that the platform works for us. They need your feedback.” Her daily communication with development teams resulted in interface improvements that serve real accounting workflows.

For firms considering the timeline, the choice is clear: engage now to influence the outcome, or adapt in September to whatever system emerges. The difference between being a beta participant and a forced adopter could determine whether your practice thrives or struggles.

Training and Resources Coming

Recognizing the scope of change, Intuit announced new training opportunities. Two courses are coming in October: one about understanding Agentic AI in general, and another specifically about AI agents in QuickBooks. There’s also ongoing research about what accounting professionals want to see in ProAdvisor Academy.

Alicia is completely rebuilding her training library at Royalwise. “I’ve got over 50 different courses of over 100 hours of QuickBooks Online content. So in September we are going to start over again from scratch,” she explains. Her Community and Coaching memberships will provide free entry into all webinars as she recreates content for the new platform.

Shape the Future or Be Shaped by It

The July 2025 QuickBooks updates represent the most significant transformation since moving to the cloud. AI agents are becoming the invisible workforce handling pattern recognition and routine categorization. New communication tools eliminate constant client back-and-forth. Interface changes reflect a fundamental shift toward integrated business management.

For accounting professionals, these changes represent both opportunity and risk. Those who engage now can influence the final product through feedback. As Alicia’s daily communication with developers shows, active participants can achieve solutions that serve the profession’s real needs.

But come September’s mandatory transition, the window for input closes. Firms will adapt to whatever system emerges from this beta period. The most successful professionals will view this transition as evolution—an opportunity to eliminate tedious data entry and focus on high-value advisory work.

Don’t let this transformation happen to you—be part of shaping it. The September deadline isn’t just about software—it’s about the future of the accounting profession itself.


Alicia Katz Pollock’s Royalwise OWLS (On-Demand Web-based Learning Solutions) is the industry’s premier portal for top-notch QuickBooks Online training with CPE for accounting firms, bookkeepers, and small business owners. Visit Royalwise OWLS, where learning QBO is a HOOT!

The Secret to Turning Fear Into Career Fuel

Earmark Team · September 10, 2025 ·

Picture Nancy McClelland at 40, standing backstage in a short fringe dress, her heart pounding as she prepares for her first go-go dancing performance. The stage lights are bright, the music is starting, and all she can think about is what people will say when they see her “hauling her 40-year-old heiny across the stage.” This wasn’t just stage fright. This was the terror of pursuing a lifelong dream that felt completely at odds with her professional identity as an accountant.

Yet in that moment of pure vulnerability, McClelland discovered something that would reshape her entire approach to career growth. When she confided to fellow dancer Laurel that she wished she could be fearless like her, Laurel’s response was life-changing: “Oh no, no, no, no, Nancy, I’m just as scared as the next person. The difference is that I do it anyway.”

In this episode of the She Counts podcast, hosts Nancy McClelland and Questian Telka explore the relationship between fear and professional success. They share raw stories of moments when they chose courage over comfort, from McClelland’s dancing debut to Telka’s surprise presentation to 500 people instead of 80. Their conversation reveals an uncomfortable truth about women in accounting: we’re often told to be fearless when what we really need is to be strategically courageous.

The most successful women in accounting don’t overcome their fears. They harness them as career accelerators. They transform every terrifying moment into evidence that they can handle whatever comes next. This builds the muscle to move forward when every instinct tells you to retreat.

Why “Don’t Be Afraid” Is the Worst Career Advice Ever

The accounting profession has a fundamental problem with fear, and it starts with the most damaging piece of career advice ever given: “Don’t be afraid.” We’ve all heard it in conference rooms, performance reviews, and networking events. But McClelland and Telka discovered this advice isn’t just impossible to follow; it’s actively harmful to career growth.

“I personally wish we could delete the phrase ‘don’t be afraid’ from our lexicons,” McClelland explains. “Being afraid is an extremely natural, very human way to be.  Our bodies do this to keep us safe. So by saying, ‘don’t be afraid,’ we’re like, ‘Pay no attention whatsoever to all of these hormones that are coursing through you.'”

The distinction between courage and fearlessness isn’t just semantic; it’s career-defining. Fearlessness is the absence of fear, which Telka points out is completely unrealistic: “I’ve never met someone that doesn’t have fear and doesn’t get afraid. Some of us are better at hiding it than others, but fearlessness is the absence of fear. And that’s just completely unrealistic.”

Courage, however, is something entirely different. As Telka defines it: “Courage is accepting that you feel the fear and acting despite being fearful anyway; doing it anyway.”

This reframe changes everything. Instead of viewing fear as a weakness to overcome, successful women in accounting learn to see it as valuable information. McClelland discovered this through her unlikely mentor, Laurel, whose words became her operating system: “As I say those words out loud, I can feel the goosebumps on my arms and my legs. It’s become a mantra to me. I see fear as something I’ve earned. And courage is the thing that makes me strong—not being fearless.”

Fear often signals you’re approaching something meaningful enough to accelerate your growth. Your body cannot distinguish between fear and excitement: the sweaty palms, rapid heartbeat, and nervous energy are identical responses. The only difference is your mental interpretation. When you reframe these sensations as excitement about an opportunity, rather than terror about potential failure, you transform your body’s natural alarm system into a career accelerator.

This understanding is especially crucial for women in accounting, who face additional pressure to appear “professional” while receiving contradictory messages about vulnerability and emotion. The moments that terrify us most often contain the greatest potential for professional transformation.

When Terror Becomes Your Greatest Teacher

The most profound professional transformations often begin with a phone call that changes everything. For Telka, it was discovering just days before Intuit Connect, that her carefully planned presentation for 80 people had been moved to a 500-person auditorium.

“I full panic, full panic, like from 0 to 11,” she recalls. “And I stayed there until after my presentation was over. I feel like I missed half the conference because I was just so scared and terrified.”

But here’s what happened next: “It was literally one of the best things I have ever done. And my favorite part was engaging with the people in the audience.” The very thing Telka feared most—not being able to answer questions from a large crowd—became the highlight of her experience.

This experience taught Telka a lesson about her capabilities: “If I did that, I can do anything. There’s nothing more terrifying to me than standing up in front of a room of 500 people. And so now I’m like, okay… and I just did it.”

McClelland learned similar lessons through an unlikely teacher: skydiving. Despite her intense fear of heights and her boss’s logical observation that not wanting to jump from a plane is perfectly reasonable, McClelland completed the full training course and solo jump. The experience taught her that “training mitigates risk. Learning how to do the thing will build your confidence.”

This insight transforms how we approach career challenges. McClelland applies this principle when working with bookkeepers who say they “could never do advisory work.” Her response: “I bet if you studied how to do advisory work, you would be confident enough to do advisory work. But you’ve got to actually learn how to do the thing and really dig in and test yourself.”

Yet even understanding this concept doesn’t eliminate fear from future challenges. McClelland emphasizes this crucial point: “Courage builds courage. I’m not afraid of all the same things I used to be afraid of.” But new fears replace old ones, and even familiar challenges can still trigger anxiety.

These transformative moments don’t happen by accident. They require specific tools and strategies for moving through fear rather than around it.

The Professional Toolkit for Acting Despite Fear

The difference between women who advance in accounting and those who remain stuck isn’t the absence of fear. It’s having a systematic approach to harness that fear as career fuel. McClelland and Telka shared practical strategies that work in any challenging situation.

Start with Your Why

The foundation begins with reconnecting to your purpose. As Telka explains: “I constantly come back to my why. And that generally helps me make a decision. And it helps me mitigate the fear that I have around those decisions.” When you remember that you care more about your goal than your fear, the choice becomes clearer.

Separate Action from Feeling

McClelland learned from her therapist that your three selves—thinking, doing, and feeling—don’t actually need to be aligned to accomplish something. “You can be lying in bed depressed and be like, ‘I do not feel like doing the thing,’ and your brain can be like, ‘Doing the thing is the worst idea in the world.’ And you can still get your butt out of bed, and you can do it.”

McClelland’s shorthand for separating the action from the need to want to do it is “putting your yoga pants on.”. This approach makes it easier to develop courage as a habit over time.

Commit When You’re Not Terrified

McClelland developed a crucial strategy: “I say ‘yes’ ahead of time. I say ‘yes’ to whatever it is I’m going to do when I’m not terrified. And I have a policy of not backing out.” This worked when Financial Cents asked her to teach 700 people the Time Warp dance at a virtual conference. She said yes when it sounded exciting, then honored that commitment when fear kicked in later.

Use Physical Exercise to Burn Adrenaline

McClelland’s therapist taught her that adrenaline is a finite resource. “If you are really scared about something, go get some physical exercise. Use up all that adrenaline. It takes a while for your body to regenerate it.” This is why you’ll find speakers like Misty Megia doing jumping jacks before big presentations.

Borrow Confidence from Others

Telka credits both McClelland and Megia with providing crucial support: “Find someone who believes in what you’re doing, who believes in you, even if it’s something that you’re scared to do.” You can amplify this by speaking your fears aloud or writing them down. McClelland explains: “You can actually magnify that by saying it in a group of friends. You can magnify it by saying it to a mentor and borrow your confidence from them. So simultaneously, you’re taking the power away from the fear and you’re borrowing confidence.”

Break Tasks into Smaller Steps

Instead of focusing on overwhelming challenges, break them into manageable pieces. This approach makes the insurmountable feel achievable.

Develop Personal Mantras

McClelland keeps reminders like “remember who you are inside” and “go with the freak-out flow.” Telka draws from science fiction, reciting from Dune: “I will face my fear. I will permit it to pass over me and through me. And when it is gone, there will be nothing. Only I will remain.”

The ultimate insight is that you don’t need to feel ready to act. You just need to act. Each time you choose action over comfort, you build evidence of your capability to handle difficult situations, creating a career acceleration system that transforms fear from an obstacle into an opportunity detector.

The Fears That Hold Women Back in Accounting

Women in accounting face specific challenges that require courage to overcome. These fears are deeply connected to how we’re perceived and judged in professional settings.

The Emotional Professional Paradox

Telka came from a Big Four environment where “if you have an emotion, you need to step away. Do not be emotional.” She used to take it as an insult when someone called her sensitive or emotional. “But I think it’s my strength at this point,” she reflects. “My emotions, my empathy, my compassion, my sensitivity—I used to take it as an insult, but it’s actually my strength.”

Setting Boundaries and Asking for Money

For firm owners, the challenges multiply. Setting boundaries with clients and team members requires constant courage. McClelland admits: “It’s been really, really hard for me because I feel so much empathy for them. Sometimes you just have deadlines and it’s terrifying. I just get paralyzed sometimes.”

Asking for money remains one of McClelland’s biggest challenges. “I don’t want to have to sell it. I don’t want to have to ask you for money. I just want to do these things that I want to do that I think will make a difference in the world and be paid, and then just skip the part where I have to ask for it.”

Admitting You Don’t Know Something

Perhaps the most universal fear is admitting ignorance. As McClelland learned from teaching music theory, “The best thing to do when you’re teaching and somebody asks a question you don’t know is to earn the trust of the students by saying, ‘I don’t know the answer to that, but I know where to find it, and I’m going to get back to you on it.'”

The Motherhood Penalty

The guilt around balancing career and family creates another layer of fear. Telka boldly states: “I do not have guilt leaving my kids to go to conferences.” McClelland, though not a mother herself, reinforces this: “Your children need to see an example of you having a healthy, enthusiastic relationship with your work and with your hobbies and with your friends.”

These fears are normal and shared by successful women throughout the profession. The difference is that successful women develop strategies to act despite these fears rather than letting them dictate their choices.

Your Next Breakthrough Is Waiting

The most successful women in accounting share a secret that has nothing to do with technical expertise and everything to do with their relationship with fear. They’ve learned that fear isn’t the enemy of career advancement; it’s the most reliable indicator that they’re approaching something meaningful enough to accelerate their growth.

Consider how this approach transforms common career challenges: Instead of avoiding difficult conversations with clients, you prepare thoroughly and have them anyway. Instead of declining speaking opportunities because you’re not an “expert,” you accept them and become one through the experience. Instead of staying in safe employment because entrepreneurship is scary, you start your firm and learn to navigate the fear of the unknown.

Every major career breakthrough requires moving through fear rather than around it. The women who advance fastest act despite their doubt. They understand that professional growth happens not when we feel ready, but when we choose to act anyway.

Each time you choose courage over comfort, you’re building the muscle that makes the next scary decision a little easier to navigate.

The next time you feel that familiar terror before a big presentation, client meeting, or career move, remember McClelland standing backstage in her go-go boots and Telka discovering her 80-person room became 500 people. They didn’t wait to feel ready. They didn’t eliminate their fear. They simply chose to act anyway.

Listen to this full episode of She Counts to hear more strategies for transforming fear into professional fuel, and discover how other women in accounting have built careers by repeatedly choosing courage over comfort. Because your biggest breakthrough might be hiding on the other side of your biggest fear. The only way to find out is to do it anyway.

Faith, Fraud, and False Promises: The “Doc” Gallagher Story

Earmark Team · September 8, 2025 ·

“Why are you asking this? Gallagher’s a good man. Gallagher’s a man of God.”

Texas Department of Insurance investigator Steve Richardson had heard a lot in his career, but never this — victims defending the man who had stolen their life savings. Some even warned Gallagher he was under investigation. 

These weren’t just clients. They were believers — in Christianity, yes, but also in the gospel of steady returns and risk-free investing. Gallagher preached with the conviction of a Sunday sermon and the polish of a seasoned salesman.

It worked. Over decades, this self-anointed “Money Doctor” convinced hundreds of Christian seniors to hand over more than $20 million. They weren’t chasing Bitcoin jackpots or penny-stock moonshots — just a steady 5–8% a year, “guaranteed,” wrapped in scripture and trust.

In this episode of the Oh My Fraud podcast, Caleb Newquist unpacks how Gallagher used faith, modest promises, and a carefully crafted persona to pull off one of the largest religious affinity frauds in recent memory.


Building the “Money Doctor” Persona

William Neil Gallagher’s life story read like a trust-building checklist. Born in 1941, he graduated from Rhode Island College, served in the Peace Corps, and taught English in Thailand. That’s where he found his faith — a conversion story he would retell endlessly to clients.

Back in the States, he studied to become a preacher, earned master’s degrees in religion and philosophy, and capped it off with a PhD in philosophy from Brown University. The title of his dissertation? The Concept of Blame. (Insert your own punchline here.)

After academia didn’t pan out, Gallagher pivoted to finance, working for Dean Witter Reynolds and A.G. Edwards before striking out on his own in 1993 with Gallagher Financial Group. He positioned himself as a reformed Wall Street insider now serving “regular people.”

His marketing machine ran on Christian radio. As “The Money Doctor,” Gallagher dispensed a mix of vanilla financial advice, market doom warnings, and heavy religious language. He wrote books like Jesus Christ, Money Master and posed for photos with Nolan Ryan, Joel Osteen, and former Texas Governor Rick Perry — props in his carefully curated image.


The Perfect Ponzi: Modest Promises, Maximum Trust

Gallagher’s pitch wasn’t flashy — and that was the genius. His Diversified Growth and Income Strategy Account promised 5–8% annual returns “without risk to principal.” Modest enough to sound realistic, safe enough to lull suspicion.

He told clients their money was in U.S. Treasuries, mutual funds, annuities, and other familiar investments. His sales copy reassured: “When the markets get smashed, our clients lost nothing.”

And he sold himself as more than a money manager — he was their captain. “It’s your ship, but don’t touch anything. My job is to get you safely through the storms.”

Gallagher made house calls, prayed with clients, and sent flowers or fruit baskets when they asked too many questions. One recalled him offering a trip to the Holy Land instead of an account statement.


🚩 Red Flags of Ponzi Schemes

  • Outdated or missing licenses
  • Regulatory reprimands on record
  • Overly personal behavior with clients
  • Messy office, messy finances
  • Self-appointed titles (“The Money Doctor”) – often used to create false authority when credentials are lacking

The Red Flags Nobody Wanted to See

Gallagher hadn’t been licensed as a broker since 2001 or as an investment advisor since 2009. Regulators had already reprimanded him in 1999 for falsifying records and misrepresenting his status.

Some clients noticed troubling behavior. One didn’t like how he touched her shoulders. Another saw his Cadillac crammed with loose papers and thought, “That’s not how someone should handle other people’s money.”

When investigators eventually walked into his office, they found unopened mail dating back a decade — and no accounting system.


The Slow-Motion Takedown

The first break came in 2015 when Allianz Life flagged suspicious withdrawals. Texas Department of Insurance investigator Steve Richardson followed the money and found the classic Ponzi pattern: new deposits funding old payouts.

But the case stalled. Victims defended Gallagher, sometimes even warning him about the investigation.

In 2018, James and Carol Herman grew suspicious after Gallagher balked at their $100,000 withdrawal request. Instead of cash, they got gifts — and a push to take out a reverse mortgage. That was the crack investigators needed.


📜 What is Religious Affinity Fraud?
A scam that exploits shared religious beliefs to build trust and credibility. Bernie Madoff used golf clubs; Gallagher used church pews. Fraudsters often pose as devout community members, using scripture, prayer, and church networks to recruit victims. The Gallagher case is one of the largest recent examples in the U.S.


The Affair, the Safe, and the Coins

As the investigation deepened, authorities uncovered Gallagher’s secret office and a 2,400-pound safe — empty except for a list of gold and silver items. They also uncovered a long-running affair between Gallagher and Debra Mae Carter.

Carter had received at least $1.5 million from Gallagher, laundered through her daughter’s accounts, and spent it on rural properties. When police arrested her, she led them to a stash of gold and silver worth $300,000 — including South African Krugerrands and “President Trump coins.”


Prison Sentences and Lingering Losses

In 2020, Gallagher pleaded guilty to securities fraud and money laundering, earning 25 years and $10.3 million in restitution. In 2021, he pleaded guilty to more charges and got three life sentences. Carter was convicted in 2024 and also got life.

Gallagher tried to rationalize his crimes, claiming he was “borrowing” for good causes or investing in miracle businesses. One of them, Hover Link, supposedly went from hovercrafts to cancer cures to body armor. In reality, it was another Carter-fronted shell.

Recovery has been slow. As of early 2025, victims have gotten back only 20% of what was stolen. And new scams target them still — fake FBI agents asking for bank details.


💡 Fraud Prevention Quick Check

  1. Verify licenses on FINRA BrokerCheck and SEC IAPD.
  2. Be wary of any “guaranteed” returns.
  3. Don’t ignore small inconsistencies — they often hide big lies.

Timeline: The Rise and Fall of “Doc” Gallagher

YearEvent
1941Born in New York City.
1960sPeace Corps service in Thailand; religious conversion.
1993Launches Gallagher Financial Group in Texas.
1999Reprimanded by Texas regulators for fraudulent practices.
2001–2009Drops all active broker/advisor registrations.
2015Allianz Life flags suspicious withdrawals; investigation begins.
2018James & Carol Herman push for $100k withdrawal; case gains momentum.
2020Pleads guilty; sentenced to 25 years + $10.2018
James & Carol Herman push for $100k withdrawal; case gains momentum.
2021Pleads guilty to more charges; gets three life sentences.
2024Debra Mae Carter convicted, sentenced to life.
2025Victims have recovered ~20% of stolen funds.

One Last Word

The Gallagher saga proves it: trust should be earned by verification, not granted by shared faith.

🎧 Listen to the full Oh My Fraud episode for every twist and absurd detail, told with the wit only Caleb can bring.

The Legal Default Every Tax Pro Gets Backwards About Married Filing Status

Earmark Team · September 8, 2025 ·

Your tax software automatically defaults to “Married Filing Jointly” the moment you indicate a client is married. Your training taught you that joint returns almost always produce better tax outcomes. Your clients assume that filing together is not just preferred, but somehow more “correct” than filing separately.

Here’s what most practitioners miss: the legal hierarchy works in reverse of what we assume.

This insight comes from Jeremy Wells on his Tax in Action: Practical Strategies for Tax Pros podcast, where he walks through one of the most misunderstood areas in tax practice. The reality? Filing separately isn’t the alternative—it’s the legal default under the tax code. Joint filing is an election under Code Section 6013 that requires both spouses’ explicit consent. If either spouse refuses, both must file separately, period.

While tax software defaults to married filing jointly and most practitioners assume it’s always the better choice, understanding the actual legal framework changes how you approach married clients—especially when non-tax factors create situations where paying more in taxes delivers better overall financial outcomes.

Understanding the Legal Framework Behind Filing Decisions

The foundation of smart filing decisions starts with grasping what the law actually says versus what practice assumes. Code Section 6013 doesn’t make joint filing automatic. It allows couples to “jointly elect” to file together if both spouses agree.

“Filing separately is actually the default,” Wells says. ”If it weren’t for code section 6013, we would have all married couples filing separate returns.” Without this specific code section creating the joint filing option, every married person in America would file individually.

Yet tax software creates false defaults that completely reverse this legal structure. The moment you indicate a client is married, the software assumes joint filing “to the point at which we have to backtrack whenever a situation comes up that might lead us to consider filing separate returns instead.”

This backward approach means we assume joint filing is normal and treat separate filing as the exception that needs justification. But legally, it works the other way around. Joint filing is the special election that both spouses must actively choose.

Wells explains, “The joint return, although it tends to produce the better result from a tax perspective, isn’t the default.” The better tax result doesn’t automatically make it the legal starting point.

Understanding this legal framework becomes crucial in situations involving financial disagreement, pending divorce, or simple disagreement between spouses. One spouse cannot force the other into a joint return, and that protection exists precisely because the law treats separate filing as the baseline position.

This legal reality also affects how you approach client conversations. Instead of asking “Why would you want to file separately?” you might ask “Do you both want to elect joint filing?” It’s a subtle shift that acknowledges the actual legal structure while opening space for clients to express concerns they might not otherwise voice.

The Tax Code’s Systematic Push Toward Joint Returns

Understanding why the tax code penalizes separate filers reveals both the logic behind joint filing’s popularity and the threshold where those penalties become acceptable costs for better overall outcomes.

The most immediate impact comes through tax rates and brackets. “Tax rates tend to be lower on a joint return,” Wells explains. Separate return brackets are higher but also smaller, meaning “more income being taxed at lower marginal rates” on joint returns, creating “a relatively lower effective rate across the returns.” For many couples, this difference alone can mean several thousand dollars in additional taxes when filing separately.

But the real penalties come from eliminating or restricting credits and deductions. The earned income credit, American Opportunity credit, and lifetime learning credit simply disappear for separate filers. Other credits have their income limitations cut in half. For example, the child tax credit and retirement savings contributions credit phase out at income levels that are 50% of joint return thresholds.

The Roth IRA contribution restriction is perhaps the most puzzling example. “Contributions to Roth IRAs are phased out for a modified AGI of just $10,000 for separate returns,” Wells notes. “This, honestly, is one of the provisions that really just confuses me… I’m not really sure what the justification for that is.” The practical effect? Most working couples filing separately simply cannot contribute to Roth IRAs at all.

Wells points out other significant restrictions. The state and local tax (SALT) cap drops from $10,000 for joint filers to just $5,000 for separate filers, even though single filers get the full $10,000 cap. The capital loss deduction gets cut in half from $3,000 to $1,500, and the student loan interest deduction disappears entirely for separate filers.

The “itemization trap” creates another layer of complexity. If one spouse itemizes deductions, the other spouse must also itemize—they cannot claim the standard deduction. This creates challenges when his firm prepares a return for one spouse but cannot get information about the other spouse’s filing decisions. “If we just don’t know, then we go with the approach that is most advantageous to the taxpayer we’re working with. But we issue a strong caveat.”

These disadvantages create what Wells calls a “preference” toward joint filing that has become so assumed that practitioners often don’t consider separate filing until specific problems arise. Yet understanding these penalties helps identify situations where accepting them delivers superior overall results.

When Separate Filing Makes Financial Sense

The mark of sophisticated tax practice isn’t finding the lowest tax liability; it’s delivering the best overall financial outcome for clients. Sometimes that means recommending the higher-tax option.

“Our job as tax professionals is not always to prepare the simplest, most tax-efficient return possible… Sometimes, our job is to advise the taxpayer on the options and tradeoffs and help them achieve the best overall result for their personal and financial needs.”

Student loan income-based repayment plans drive most separate filing decisions in modern practice. “Nine out of ten times when we file married filing separate returns in our firm, it’s because of student loan income-based repayment plans,” Wells says. These plans calculate monthly minimums based on the borrower’s tax return income. File jointly with a high-earning spouse, and those monthly payments can become unaffordable.

The financial impact often dwarfs any tax savings from joint filing. When one spouse owes substantial student loans while the other earns significant income, filing separately might increase taxes by $2,000 but reduce annual loan payments by $6,000, creating a net benefit of $4,000 for choosing the “higher tax” option.

Wells addresses practitioner hesitation about this strategy: using filing status as a tool to achieve a financial goal is completely legitimate. It absolutely is proper tax planning, he emphasizes. There’s no ethical concern, no audit risk, no regulatory problem. It’s smart financial planning that considers the complete picture.

Financial protection scenarios create another category where separate filing is advantageous. When couples face “disagreement, mistrust, or even financial abuse,” separate filing is about financial survival and legal protection.

Both spouses on a joint return become “jointly and severally liable for the tax liability,” meaning either spouse can be held responsible for 100% of any tax debt. This remains true even after divorce. IRS collection efforts don’t respect divorce decree assignments of tax liability because the IRS was never a party to that agreement.

Treasury offset protection is another practical application. When one spouse defaults on student loans, the federal government can garnish the entire joint refund to pay that debt. “Filing separately could protect that spouse’s refund… Getting some of that refund with a separate return could be a better result than having the entire refund garnished by the student loan lender,” Wells explains.

Separate filing may also unlock better results for AGI-limited deductions. The 7.5% AGI threshold for medical expenses is much more achievable when calculated against one spouse’s lower individual income rather than the couple’s combined AGI. Wells notes this same principle applies to casualty losses at 10% of AGI.

“Tax filing status is never a reflection of the couple’s marriage or relationship,” Wells explains, countering clients’ concerns that separate filing might signal relationship problems. “There’s nothing wrong about filing separate returns. Nobody looks at separate returns and thinks that’s an indication of something wrong with your marriage.”

Professional Implementation and Practice Management

The realities of implementing separate filing strategies reveal professional challenges beyond tax calculations. Wells shares insights from his firm’s experience that help practitioners navigate these complex decisions effectively.

One fundamental challenge involves timing and irrevocability. Wells explains the common saying, “A couple can make up, but they can’t break up.” Once you file jointly and pass the filing deadline, you generally cannot switch to separate returns. However, the reverse is possible. Separate filers can amend to joint returns within the statute of limitations.

There are limited exceptions to this rule. Couples can file a superseding return before the unextended due date to switch from joint to separate. They can also amend joint returns to separate if the marriage gets annulled, if one spouse can prove the joint return was signed under duress, or if both taxpayers didn’t properly sign the joint return. However, these exceptions require a substantial legal burden of proof.

Technology can streamline the analysis process, as professional tax software includes joint versus separate worksheets. These comparison tools show four columns: the joint return result, each spouse individually as if filing separately, and the combined result of two separate returns. “Usually it’s not an insignificant amount of money. A lot of times we see several thousand dollars” in savings from joint filing, Wells notes.

Wells uses these worksheets for quality control. “That comparison can actually help work through whether or not we’ve made an error.” For example, if all wages show under one spouse and none under the other, it might indicate misallocated W-2s that could incorrectly trigger Social Security overpayment calculations.

Wells describes a specific error his firm caught this way. “I have mislabeled those W-2s and that’s triggered a calculation of that excess Social Security tax paid.” Since Social Security overpayment calculations work on an individual basis, not a joint return basis, misallocating W-2s between spouses can create incorrect refund calculations that later generate IRS notices.

Conflict of interest considerations are crucial when working with couples contemplating separation or divorce. “Working with a married couple that is on the rocks might cause a conflict of interest, especially if the firm started working with one spouse before the couple got married,” Wells explains. Some firms require written waivers, while others simply refuse to work with both spouses during contentious situations.

Different firms handle separate filing preparation differently. Wells notes that some treat separate returns as completely independent engagements with separate fees for each spouse. Others charge for three returns when preparing both joint and separate scenarios. The key is establishing clear policies before these situations arise.

Transforming Client Relationships Through Strategic Tax Planning

The separate filing decision is sophisticated tax practice at its best, where technical knowledge meets strategic thinking to deliver advice that considers clients’ complete financial circumstances rather than just tax calculations.

Wells’ approach demonstrates how understanding these concepts transforms client relationships. Instead of simply optimizing tax calculations, you help clients navigate complex financial decisions that affect their long-term financial health. You become the advisor who understands that sometimes paying more in taxes is the smartest financial move.

Client education is crucial for successful implementation. Wells often encounters clients who resist separate filing because they believe it signals relationship problems or creates complications. Having clear, confident responses to these concerns, backed by a solid understanding of the legal framework, positions you as the expert who can cut through confusion.

“Our job as tax professionals is not always to prepare the simplest, most tax efficient return possible,” Wells says. “Sometimes, our job is to advise the taxpayer on the options and tradeoffs and help them achieve the best overall result for their personal and financial needs.”

This philosophy requires moving beyond traditional tax optimization to consider complete financial circumstances. When you can save a client thousands in student loan payments by recommending separate filing (even while paying extra taxes), you’ve delivered genuine strategic value that differentiates sophisticated tax professionals from basic return preparers.

The separate filing decision crystallizes everything that makes tax planning both challenging and valuable: technical complexity, client relationship management, strategic thinking, and the wisdom to optimize for outcomes rather than just tax calculations. It’s where true tax professionals prove their worth by delivering advice that transforms clients’ financial lives.

Ready to master these strategic filing decisions that could save your clients thousands while protecting them from significant financial risks? Listen to Jeremy Wells walk through the complete framework for navigating married filing status elections, including real-world examples and technical details that will change how you approach these decisions.

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