Weekly Update – June 1, 2024

Accounting Today –  Recruiting Practices to Combat the Hiring Crisis in Accounting 

• Attract top talent and overcome the hiring hurdles with these proven tactics:
  • Offer Internships – Build an internship program designed to facilitate future full-time employment for proven workers.
  • Consider Non-Accounting Majors – Consider candidates who did not major in accounting to discover hidden gems.
  • Demonstrate Your Firm’s Strength in Key Areas – Showcase how your firm meets candidates’ key needs, including competitive salaries, job security, personal fulfillment, a welcoming environment, diverse career paths, and advancement opportunities. 

Accounting Today –  AT Think: Art of Accounting: Invest Time to Save Time 

• “As soon as you catch an error, have it corrected by the staff person, and then have them go over everything similar they already worked on that has not yet been reviewed and have them fix it.”
• “Your goal should be to make sure your staff are doing the right thing the right way and getting it done at the right time.”

Accounting Today –  AT Think: Connected Leaders: Cultivating Deeper Bonds for Team Success 

• Transform your firm’s leadership with these strategies:
  • Build Genuine Relationships – Foster genuine relationships by taking the time to understand each team member’s strengths, weaknesses, goals, and challenges.
  • Have Empathetic Communication – Practice empathetic communication through active listening, creating an environment where everyone feels heard and valued.
  • Use Collaborative Problem-Solving – Rather than simply giving orders, encourage collaborative problem-solving, harnessing the collective wisdom of your team.
  • Empower Team Members – Provide opportunities for team member growth, including trusting team members to make more decisions and take more ownership of their work.

Accounting Today –  AT Think: Futureproofing Your Firm 

• Here are some ways to keep the future from catching you off guard:
  • Move to the Cloud – Embrace the cloud for seamless data storage and application access.
  • Evaluate App Stack and Usage – Audit your app stack, ensure secure access, and implement a robust backup strategy.
  • Prepare for AI integration – Review AI data security policies, train staff, and stay informed about regulations.

Accounting Today –  AT Think: Move Beyond the Busy Season Mindset 

• Tired of the relentless grind of tax season? One of the most powerful ways you can break free is by filing extensions until October 15th.
  • This allows you to reduce burnout, mistakes, and staff turnover, as well as increase the attractiveness of your firm to prospective hires.
  • It also allows you to have more time for your clients when they need you most, including increasing your ability to provide them with advisory services.

Accounting Today –  AT Think Who Are Accountants’ Competition in Wealth Management?

Here are some ways CPAs can enhance the wealth management aspect of their practices.

• Survey Clients for Valuable Insights – Assess clients’ views of your firm to effectively shape your offerings.
• Provide Honest, Authentic Investment Advice – Use reliable tools, and set realistic expectations about market performance.
• Create Client-Focused Content – Prominently feature your firm’s wealth management services on your website in your newsletter if you have one, etc.
• Reinforce Messaging in Face-to-Face Meetings – Train staff and partners to proactively share with clients the key aspects of your wealth management services in their face-to-face meetings with clients.
• Utilize a Portal for Clients’ Financial Information – Provide clients with a secure portal where they can easily access information regarding their financial situation, their portfolio, and important documents.

CPA Journal – The Divergent Accountant

Here are some ways accounting firms can more effectively accommodate neurodivergent individuals, including embracing the “social model” approach:

• Allow flexible work arrangements.
• Provide accommodations for sensory sensitivities (e.g., noise-canceling headphones, adjustable lighting, etc.)
• Modify recruiting practices to remove biases or barriers that may inadvertently exclude neurodivergent candidates.
• For neurodivergent staff, provide accommodations such as written instructions, regular check-ins, and clear expectations for those who may struggle with verbal communication or social cues.
• Provide your firm’s staff with neurodiversity awareness training.

CPA Practice Advisor – Five Common Accounting Challenges and How to Solve Them

Here are some common challenges and how to overcome them:

• Time Constraints – Insufficient time can lead to errors or missed deadlines.
  • Automate Tasks – Invest in digital solutions to automate mundane and repetitive tasks.
  • Centralize Records – Use document management platforms to maintain records in one accessible location.
• Compliance – Staying up-to-date with regulations is crucial to ensure compliance.
  • Establish a CAS – Implement a dedicated client advisory service (CAS) supported by compliance-facilitating technology, which can include:
    • Cash flow forecasting,
    • Budgeting and technology implementation,
    • Industry benchmarking,
    • Business valuations, and
    • Tax planning.
  • Intelligent Accounting Solutions – Automatically compile data from your engagements to enable the identification of insights at a more granular level.
• Data Security – Financial data contains sensitive information susceptible to exploitation.
  • Secure Cloud Environment – Select a secure and reliable cloud-based environment with advanced security features.
  • Adhere to Your Firm’s Practices – Enforce complex passwords, implement multi-factor authentication, and restrict data access.
• Lack of Resources – Attracting and retaining qualified accountants remains a significant concern.
  • Enhance Collaboration – Offer tools that enhance team collaboration and provide clear project ownership visibility.
  • Invest in Technology – Demonstrate a commitment to innovation by investing in cutting-edge technology.
• Client Communication – Effective communication with clients is vital during the engagement process.
  • Quickly Deliver Accurate Information – Reduce the use of paper and emails, and increase the use of:
    • Cloud-based accounting software, which “elevates client communication by simplifying access and enabling real-time updates” and
    • Client portals, which collect data, share progress, and keep documentation secure.

CPA Practice Advisor – What Does the Next Generation of Accounting Look Like?

• “The industry is moving towards more merit-based promotions [and] more career pathways.”

Future Firm – Pricing High Can Make You Busier

• If your firm charges high prices:
  • If only your firm’s highly-skilled firm owners can provide the work, it can result in them needing to work long hours to deliver the custom work required for each client.
  • If this work can be done by your firm’s staff because it’s “productized,” then this work would be scalable without firm owners having to work especially long hours.
• Therefore, before increasing prices, ensure your firm’s services are productized and delegatable.
• To scale advisory services, firms should productize, hire or upskill, and run a capacity plan.

Public Accountant (Australia) – Selling a Business: Insights on a Successful Sale

Here are some things to consider when it comes to selling your interest in your firm:

• Build and Maintain Strong Systems and Processes – To maximize your ability to quickly sell your interest for top dollar, ensure your firm maintains robust internal systems and processes.
• Consider a Partial Sale – Selling a portion of the business allows founders to retain some ownership while reducing administrative responsibilities.
• Staff Relationships and Talent Matter – Buyers are interested not only in clients but also in the relationships, talent, and knowledge of the business’s staff.
• Agree on Business Valuation Method – Establish a clear method for determining the business’s value, such as a dollar-for-dollar revenue-based approach.
• Negotiate Beyond Dollar Figures – Remember that the value of the sale extends beyond the monetary amount paid for your interest in your firm.
• Inform Staff Cautiously – Proceed with caution when informing staff about the sale, as key team members may hold significant influence over client relationships.
• Communicate With Key Clients Early – Begin personal conversations with key clients as early as possible to ensure a smooth transition and to maintain relationships.

Rosenberg & Associates – A Post Busy Season Checklist for CPA Firm Leaders

Non-busy-season months present an opportunity for your firm to pursue the following:

• Recharge and Prevent Burnout – Set the tone by taking time off and encouraging staff to do the same to recuperate from busy season.
• Evaluate and Manage Underperforming Employees – Have conversations with all employees, especially underperforming ones, and consider letting go of those whose performance is well below average to maintain morale and retain star performers.
• Assess and Cull Problematic Clients – Engage staff in evaluating the client roster, grading clients from A to F, and consider moving on from clients that receive a D, E, or F grade.
• Work ON the Business – Partners should work “on” the business by researching new service lines, expand into new markets, and engage in business development activities, rather than solely working “in” the business.
• Invest in Training and Development – Survey employees to identify areas where they need more training, encourage staff to pursue their CPA license during downtime, and consider attending conferences or CPE sessions to advance your technical and leadership skills.

Rosenberg & Associates – What is EOS: How Six Questions Can Make Your CPA Firm More Efficient

• Consider using the Entrepreneurial Operating System (EOS) to run your firm.
• Gino Wickman detailed this in his book, “Traction: Get a Grip on Your Business.”
• The EOS is “particularly helpful to small- to mid-sized firms that need to tighten up their internal operating processes.”
• Six key questions related to the EOS include:
  • “What is your ideal future state as a CPA firm?”
  • “Do you have the right people in the right seats to get the job done?”
  • “Are you tracking and managing the key metrics that are most important to your firm’s success?”
  • “Do you regularly identify the biggest challenges that are facing your firm?”
  • “Are your firm’s current processes aligned and effective?”
  • “Are the leaders holding themselves accountable to achieving the vision?”