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A ProAdvisor’s Guide to the New Era of QuickBooks

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QuickBooks has consistently led the charge in the accounting tech world, evolving to cater to the diverse needs of small businesses and accounting professionals. On a recent episode of the Earmark Podcast, I had the opportunity to delve into the latest changes with Hector Garcia, a top QuickBooks ProAdvisor and educator. 

Our conversation highlighted the impact of Intuit’s QuickBooks Live Bookkeeping and Tax services on our community. Hector and I delved into whether Intuit is now competing with its ProAdvisors or is fostering a collaborative future. We also explored the challenges and opportunities for accounting firm owners.

Keep reading for the highlights of our discussion, or watch the full episode here:

Want to listen on the go? Find the link to the podcast version at the bottom of this article.

A Closer Look at Intuit’s Live Services

Intuit launched QuickBooks Live Bookkeeping in 2019. This year, they’re adding Live Tax, meaning that QuickBooks customers can now discover and purchase basic bookkeeping and business tax services directly from inside the product. Intuit is targeting these services to businesses that are not yet ready to hire a full-time accountant or bookkeeper but require professional help. Sounds a lot like our clients, doesn’t it?

The Accounting Community Reacts

The announcement was met with unease – to say the least – across the ProAdvisor community, sparking concerns about direct competition from Intuit’s vast resources. Hector put it bluntly, saying, “When this first thing launched, it was something that mostly accountants just hated.”

A Nuanced Impact: Analyzing the Effect on ProAdvisors

Many accountants feared Intuit’s “Live” services would compete directly with ProAdvisors, but the impact has been more positive than anticipated. Hector believes that the new services have increased awareness of professional bookkeeping and tax services among small businesses, resulting in a surge in demand for tailored and advanced advisory services that only ProAdvisors can provide. QuickBooks Live doesn’t compete with this.

Carving Out Opportunities for ProAdvisors

Intuit’s move has highlighted ProAdvisors’ value to their clients. Here are some ways Hector says ProAdvisors can distinguish themselves and expand their offerings:

  • Specialization: Develop expertise in niche markets or complex accounting needs, delivering a level of specialization that transcends Intuit’s offerings.
  • Advisory Services: Capitalize on the increasing demand for strategic financial guidance, budgeting, forecasting, and business planning—where your impact can be profound.
  • Technology Integration: Employ your deep understanding of the QuickBooks ecosystem to provide bespoke technology solutions, enhancing your clients’ operational efficiency.

Adapt and Thrive: Embracing the New Landscape

Hector says adapting to these changes involves embracing innovation and identifying ways to enhance Intuit’s services. Here are his suggestions for how to adapt and thrive:

  • Market Your Unique Value: Communicate the advantages of your services, emphasizing the personalized touch you offer beyond Intuit’s scope.
  • Embrace Technology: Harness the full potential of QuickBooks features and third-party apps to deliver state-of-the-art solutions.
  • Invest in Continuous Learning: Stay abreast of industry shifts and technological advances to offer forward-thinking services.

Transforming Challenges into Opportunities

Intuit’s introduction of Live Bookkeeping and Live Tax has undoubtedly prompted concerns about competition. Yet, it has also acted as a stimulus for innovation within our field.

“The essential lesson for ProAdvisors is to recognize the necessity of adapting and discovering new ways to distinguish their services,” Hector says. By focusing on areas where their expertise can outperform automated services, ProAdvisors can continue to deliver unparalleled value to their clients. Specialization, strategic advisory services, and advanced technological integration within the QuickBooks ecosystem are paths to enhancing your offerings and making yourself indispensable to clients.

Are you prepared to navigate these changes and seize the opportunities they present? To explore these topics more in-depth, tune into my conversation with Hector Garcia on the Earmark Podcast.

3 Digital Marketing Trends Transforming Accounting Firms

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Did you know top accounting firms are now generating 6-figure leads from their websites? Digital channels are rapidly replacing traditional networking for customer acquisition.

That’s according to David Toth, an expert on strategic growth for accounting firms, who joined my podcast to talk about how digital marketing and AI are disrupting accounting firm marketing.

David opened my eyes to how the top 400 firms leverage digital marketing to grow. Here are three trends that should excite and inspire us all.

1. Marketing Automation & CRMs 🤖

Top accounting firms are implementing marketing automation platforms like HubSpot to track website leads and deals. David said, “I know a significant number of firms dropping Marketo or Pardot and going to HubSpot for marketing automation.”

The agility of HubSpot gives them invaluable data to analyze revenue sources and optimize their sales process.

They also utilize data intelligence tools like Introhive to auto-populate their CRMs by pulling contacts, subject lines, and calendar data from email and cloud storage. This injects CRMs with 30 times more contacts without manual entry.

However, firms still face challenges getting professionals to fully adopt CRMs day-to-day. As leaders, we must guide our teams to embrace these technologies wholeheartedly if we want to compete digitally!

2. Optimizing LinkedIn 🔎

Most accounting firms are significantly under-realizing LinkedIn’s potential for lead generation and recruitment. Employees’ collective networks stretch far wider than the firm’s followers.

To build a bigger digital presence, encourage partners to showcase thought leadership consistently on LinkedIn through long-form posts, articles, and video. This builds personal brands and firm credibility.

With Gen Z and Millennials driving business decisions now, LinkedIn is a crucial platform for attracting top young talent and reaching emerging clients. Frims that want to grow must optimize for digital networking.

3. High-Value Leads from Digital 💰

While most dealmaking historically relied on in-person networking, leading accounting firms now frequently generate 5 and 6-figure leads from their websites. David said, “I have a client that received a $450,000 opportunity, sight unseen through their website.”

As buyers increasingly research and vet firms online before contacting them, digital channels now replace traditional networking for initiating deals.

It’s time for a mindset shift – we must embrace digital marketing as a vital revenue generation channel, not just a brand awareness tool. The future of deals is digital.

Dive Deeper on the Earmark Podcast

Want to dive deeper into the digital marketing strategies and innovations shaping the accounting industry? Listen to my conversation with David Toth.

In the episode, you’ll learn more about:

  • How firms are using webinars as a “content engine” to fuel their marketing
  • David’s perspective on the future of SEO given the rise of AI chatbots
  • Actionable tactics for optimizing your LinkedIn profile and network
  • Adopting short-form video content on platforms like TikTok and Instagram
  • Leveraging generative AI tools like ChatGPT for efficient content creation

If you want to get your firm’s marketing on the right track, be sure to listen to this episode. You can also earn free CPE for listening! Tune in to learn how. And let me know what you think. Leave a comment or contact me at BlakeOliver.com.

Four New CPE Podcasts for Accountants

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Welcome back to Earmark Edge. In this issue, I’m sharing four excellent podcasts for accountants, now available for CPE on Earmark.

A podcast about QuickBooks for accountants

Certified QuickBooks ProAdvisors Hector Garcia and Alicia Katz Pollock delve into the latest updates, innovations, and best practices to optimize your QuickBooks experience. In the latest episode, we explore the new features rolling out in QBO Advanced this September, from fixed asset management to custom project fields. 

Tap here on your mobile device to register for the free CPE course.

A podcast about taxes for anyone who loves taxes

Welcome Tax Chats to Earmark! In this show, Scott Dyreng (Duke) and Jeff Hoopes (UNC), two accounting professors, chat about taxes, including current events, with the energy of an over-caffeinated chihuahua. Listening is guaranteed to be far more entertaining than actually paying your taxes. And you can now earn free CPE for listening!

Tap here on your mobile device to earn free CPE for Tax Chats.

A podcast about revenue accounting

You can now earn CPE for The Closers: Modern Revenue Accounting Podcast by Zuora on Earmark. Dive deep into strategic and tactical insights that will help you elevate the role of accounting in your organization, be a more impactful partner to the business, and grow in your career.

Tap here on your mobile device to earn free CPE for The Closers.

A podcast about [CENSORED] ethics

Once upon a time, you could earn NASBA-approved ethics CPE for our ground-breaking series, Drunk Ethics. Unfortunately, someone complained that teaching ethics while drinking and swearing is unprofessional, and NASBA demanded we take down the course. Fortunately, we’ve got a new course called [CENSORED] Ethics! It’s the same great content with plenty of bleeps to protect your sensitive ears. Follow the link above if you prefer the uncensored version.

Tap here on your mobile to earn free CPE for [CENSORED] Ethics.

($99 in-app purchase required.)

Rethinking the CPA 150-hour requirement: There must be a change

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In my latest article on the Firm of the Future blog, I delve into the challenges associated with the CPA 150-hour education requirement. This mandate, which I experienced firsthand when transitioning into accounting mid-career, often poses a significant hurdle for potential CPAs.

The high cost of obtaining a master’s degree (up to $100,000 when accounting for opportunity costs) imposes a hefty financial burden on young accountants starting their careers. Despite this, our profession desperately needs new talent.

Yet at the current rate of production of accounting graduates, we face a significant supply-demand gap. The 150-hour requirement exacerbates this issue and deters economically disadvantaged individuals and college students from considering a career in accounting.

Counterarguments exist, such as concerns about CPA mobility and lowering the bar for becoming a CPA. However, no solid evidence supports the claim that additional education produces better CPAs. Moreover, NASBA already has the discretion to waive the 150-hour requirement for accountants licensed abroad, suggesting similar accommodations could be made for domestic CPAs.

It’s time to rethink this requirement. To solve the problem, let’s restore the 120-hour option with two years of work experience, allowing future CPAs to swap an additional year of education for a year of experience on the job. This would not only remove financial barriers for aspiring CPAs but also increase diversity in the profession and put us on par with other countries where the education requirement for accountants is less demanding.

It seems the profession agrees with the need for change. In an informal poll at this year’s BDO Alliance conference, only 20% of managing partners supported the 150-hour requirement, with the remaining 80% favoring changing or removing it altogether.

Our profession is a cornerstone of our economy. We need it to be strong, vibrant, and accessible. I encourage you to join the conversation and let your voice be heard. Contact your state board of accountancy, the AICPA, and the NASBA to let them know we need a change.

Read the full article here: https://www.firmofthefuture.com/training-and-certification/rethinking-150-hour-requirement/

If You Enjoyed This Article…

…you’ll love my weekly podcast for accounting and tax professionals.

Plus, you can earn free NASBA-approved CPE and IRS CE for listening!

Sign up for Earmark CPE and start earning continuing professional education by listening to accounting, tax, and finance podcasts today.

Did KPMG Fail as Silicon Valley Bank’s Auditor?

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In a recent Wall Street Journal article titled “Auditors Didn’t Flag Risks Building Up in Banks,” questions have arisen about whether KPMG failed in its duty by not highlighting the risk of held-to-maturity (HTM) bonds on Silicon Valley Bank’s balance sheet as a critical audit matter (CAM).

Let’s explore the concept of CAMs, the risks involved with HTM securities, and what the failure of auditors to issue CAMs for banks means for the accounting profession.

What Are Critical Audit Matters?

Auditors are expected to issue a critical audit matter (CAM) in their auditor’s report when they have identified a matter that is both material and involves an “especially challenging, subjective, or complex” judgment by the auditor. 

Introduced in 2017 by the Public Company Accounting Oversight Board (PCAOB), the goal is to improve the transparency of the audit process and increase confidence in the reliability and usefulness of the audit report to investors.

The Hidden Risk in HTM Bonds

Held-to-Maturity (HTM) securities represent debt securities that a company plans to retain until their maturity date. These securities are reported at their original cost, not the current market value, which can hide potential losses if the market value falls below the original cost. This, combined with flighty deposits, could threaten a bank’s stability.

Why Silicon Valley Bank Failed

Bad Management

In SVB’s case, the bank had unwisely invested significant deposits in United States Treasury Bonds without hedging against the risk of rising interest rates.

When interest rates go up, bond prices go down.

So when the Federal Reserve raised rates rapidly over 2022, the value of SVBs bond portfolio plummeted by billions of dollars. In fact, the bank’s losses of $15 billion at the end of 2022 would have wiped out almost all of its $16 billion in equity — had the bank not classified the bonds as HTM.

Concentrated Risk

SVB also experienced a significant concentration of depositors within the technology sector. As the Federal Reserve increased interest rates, the tech industry faced a downturn, resulting in a concurrent decline in deposits.

In early 2023, when the bank had to sell a portion of its HTM bonds to cover withdrawals, it incurred a sudden and unexpected loss of $1.8 billion. This spooked investors and depositors, triggering a bank run and resulting in the bank’s swift collapse.

Should KPMG Have Flagged the HTM Bond Risk as a CAM?

According to WSJ, Martin Baumann, former PCAOB chief auditor, believes that KPMG should have flagged the HTM bond risk as a CAM, as SVB’s unrealized losses “meet every definition of a possible critical audit matter.”

However, defenders of the audit industry argue that auditors cannot anticipate “extremely remote” scenarios like the one that brought down SVB.

A Wider Problem in the Banking Industry

WSJ examined the audit opinions of nine other US banks exposed to bond losses. Their auditors also did not flag bond-related issues as CAMs, focusing instead on loan losses, which brought down banks in the 2008 crisis.

So Where Does That Leave Auditors?

The SVB collapse is causing many to question the effectiveness of the CAM concept and the role auditors play in identifying potential risks. Changes to the way banks are audited may be on the horizon. And KPMG might find itself in court if shareholders decide to include the firm in lawsuits.

Stay tuned for future developments in the complex world of banking and auditing! Subscribe to Earmark Edge on LinkedIn.