Weekly Update

Weekly Update – June 8, 2024

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Accounting Staffing Strategies – Staffing Webinar

  • Here are some ways accounting firms can address the staffing crisis:
    • Develop an Internship Program – Create an internship program, especially during slower periods like summer or fall, which can help identify and train potential future hires.
    • Leverage Offshore Talent – Outsource work to offshore providers to help alleviate staffing shortages.  Carefully evaluate vendors including assessing their staff selection, training, supervision, and cybersecurity.
    • Implement Work Optimization Strategies – Streamline processes to reduce errors and workload while achieving the same or greater results.
    • Discontinue Non-Core Services – Consider discontinuing services that do not meet or exceed your profitability threshold, that do not have adequate client demand, or that fall outside the firm’s niche.
    • Raise Prices and Set Minimums – Increase prices, especially for lower-value clients, to free up resources to deploy in more profitable work or to hire more staff.
    • Create Upfront Client Assessments – Charge an upfront assessment fee to filter out price-sensitive clients and clients seeking excessive free advice.
    • Focus on Retention, Not Just Recruiting – Improve compensation and benefits, offer flexible work arrangements and career development, and modernize your firm culture to help retain existing staff and reduce turnover.

Accounting Today –  NPAG: All Hands on Deck to Solve the Pipeline Problem 

  • Here are some ways to solve the ongoing staff shortage in the accounting profession:
    • Offer compensation that is competitive not just with other similar firms, but also with other professions competing for the same talent.
    • Be transparent about the compensation and benefits your firm offers, as well as what you expect (e.g., typical busy season hours at your firm).
    • Facilitate the ability of your staff to prep for the CAP exam (e.g., extra time off, financial support to purchase study materials, etc.).
    • Provide multiple clear career paths and proactively guide staff along them.
    • Prevent staff overload and burnout.
    • Provide leadership training to your firm’s people managers.
    • Have your most junior staff mentor accounting students who participated in an externship or internship at your firm, which can increase their likelihood of joining your firm after graduation.

Accounting Today –  AT Think Boomer’s Blueprint: With AI, It’s Not the Tool That Determines Your Success

  • “The successful implementation and utilization of AI tools within organizations require a strategic approach that harmonizes three critical elements: leadership, project management, and process management.”
    • “Change management is a systematic approach to dealing with transformation or transitions within a firm’s goals, processes or technologies.”
    • “Effective project management ensures that AI projects are carefully planned, executed, and monitored, aligning with the organization’s strategic objectives and resource constraints.”
    • “Effective process management ensures that AI tools are not merely bolted onto existing systems but rather woven into the fabric of the organization’s operations, enabling genuine transformation.”

Accounting Today –  AT Think Dear CFOs: The Accountant Shortage Isn’t Going Away 

  • The current shortage of accountants is a serious issue that shows no signs of improving in the near future
  • Some ways firms can address the staffing crisis include:
    • Leveraging AI, enterprise resource planning (ERP) software, and automation to reduce manual workloads and allow staff to focus on more strategic tasks
    • Shifting the traditional accountant role from number-cruncher to a more analytical position that can “make sense of the mountains of data enterprises generate every day” to generate insights that drive clients’ business strategy
    • Move away from the traditional staffing model toward “more dynamic, flexible staffing solutions.”

CPA Practice Advisor – Building a Scalable Accounting Firm: A Q&A on Growth Strategies for Accountants

Here are some tips for building a scalable accounting firm:

  • Focus on a Specific Niche – Identify a target market and specialize in providing services tailored to their needs, which allows for higher pricing and more focused work.
  • Implement a Strategic Pricing Model – Shift from hourly billing to upfront value-based pricing that anchors to the client’s perceived value of the services provided.
  • Invest in Employee Training and Development – Establish training structures to ensure your team is continuously learning and adapting to the latest industry developments and best practices.
  • Embrace Technology for Efficiency – Choose and implement technology solutions strategically to streamline processes, improve knowledge management, and enhance service delivery.
  • Restructure Teams as the Firm Grows – As your firm expands, restructure your teams to optimize the flow of knowledge and service, ensuring effective management and communication.
  • Encourage Leadership Growth and Networking – Firm owners should allocate time to attend conferences and participate in communities with other firm owners to stay informed about industry trends and best practices.
  • Regularly Evaluate and Refine Your Client Base – Periodically assess your client base and be willing to eliminate clients that no longer align with your firm’s specialization or pricing strategy to make room for growth opportunities.
  • Develop and Launch Innovative Services – Continuously innovate and introduce new services with a high perceived value among clients to differentiate your firm in the market.

CPA Practice Advisor – Finding Qualified Staff Is the Top Issue Facing Most CPA Firms In 2024

  • Finding qualified staff remains the top issue for firms with two or more employees.
  • Related issues include staff recruitment, staff retention, and the development of future firm leaders.

CPA Practice Advisor – Managers Think They Are Doing Great But Employees Disagree, Survey Finds

  • A new Gallup poll finds a disconnect between managers’ self-perception that they are doing a great job, whereas employees often feel differently.
  • Some ways to bridge the gap include manager leadership training, structured feedback, and clear expectations.

CPA Practice Advisor – Mid-Year Marketing Checklist for Accounting Firms

  • “Focusing on the middle of the marketing funnel, where potential leads are weighing their options and seeking more information, can significantly enhance your ability to convert prospects into engaged clients.”
  • Some key takeaways from Penheel’s mid-year marketing checklist include:
    • Collect testimonials from satisfied clients and share them on your firm’s website.
    • “Nurture Leads with Drip [Email] Campaigns: Develop a series of emails that provide value and guide prospects through the buyer’s journey.”
    • Share firm updates, and post thought leadership content on social media.
    • “Encourage Online Reviews: Ask clients to leave reviews on platforms like your Google Business Profile and LinkedIn company page.”

CPA Practice Advisor – Why Gen Z Is Opting Out of the 9-to-5 Job Grind

  • Compared to previous generations, Generation Z is performing more freelance work.
  • Gen Z is keen on freelance work by choice, not out of necessity, with 70 percent saying they chose it to have a flexible schedule.
  • Business leaders may need to rethink their approach to hiring Gen Z staff members, as they may not fit the mold of typical employees.

Future Firm – Future of Accounting: The 2024 Annual Guide

Here are some “trends that are happening at this very moment and specific strategies that you can use right now to better prepare you and your firm for the future:”

  • “Automation & Accounting Technology is Accelerating” – Document and standardize processes before automating them.
  • “New Skills Required” – Increase your firm’s ability to serve as a “trusted advisor” by prioritizing the hiring and training of staff with robust problem-solving and communication skills.
  • “Emerging Business Models in Accounting” – Consider using a service such as TeamUp to hire staff based in the Philippines.
  • “Jump on the Client Accounting Services Train” – In your discovery calls with prospective clients, learn about their current processes in as much detail as possible to understand how you can improve them before you sign the client up.
  • “The Future of Accounting Services Are Found on Google” – Set your firm up on Google My Business and get Google reviews for your firm, which can help you show up toward the top of the search results.
  • “Changing Client Expectations” – “Accountants should be constantly asking their clients what you can be doing better” by asking them “what you could do to make their lives easier when you have your annual meetings with them.”
  • “Work-Life Balance More Important Than Ever” – Use capacity planning, which “involves comparing an individual and firm’s available capacity at a future point in time to the work that’s assigned to them.”
  • “Compliance Services Far From Dead” – Consider dropping services away from your firm’s “sweet spot” that cannot easily be completed with “a set process that’s followed.”

Future Firm – New Service Idea: Time-Saving Accounting Audit

  • “In today’s fast-paced world, saving clients time and making processes seamless is crucial. Demonstrating this will encourage clients to sign up, even at premium prices.”
  • You can formalize the work you perform to help clients with client-facing process improvement by calling this service a “Time-Saving Accounting Audit,” which you can offer at different frequencies (e.g., monthly, quarterly, or annually).
  • Although you would not charge more for this item, you would include it in your proposal as an included service.
  • Create a checklist covering key accounting processes that clients are typically involved in, and use it to consistently conduct the audit and provide improvement recommendations.
  • This approach can further build your credibility with clients and reduce churn.

Future Firm – The Ultimate Virtual Assistant for CPAs Guide

  • “Hiring a virtual assistant for CPAs is one of the best choices you can make when scaling your firm.”
  • Here are some tips for doing so:
    • List the tasks you want to delegate to a VA, which could include:
      • Administrative tasks,
      • Basic bookkeeping,
      • Preparing financial statements,
      • Email and client support,
      • Scheduling meetings,
      • Invoicing, and
      • Payroll management.
    • Determine the qualities and skills you need in a VA, such as:
      • Excellent communication,
      • Detail-oriented,
      • Organized,
      • Resourceful, and
      • Tech-savvy with accounting software.
    • To find potential VA candidates, ask for referrals from other CPAs who have hired VAs, or use websites like:
    • Thoroughly vet candidates by checking references, conducting virtual interviews, and administering assessment tests to ensure they have the necessary skills and qualities.
    • When hiring, consider VAs from countries like the Philippines, as they often charge lower rates while still being skilled and fluent in English.
    • Provide clear instructions and training to your VA to ensure they understand your firm’s processes and standards.
    • Leverage the flexibility of VAs by using them for on-demand services, allowing you to scale support up or down as needed without long-term commitments.
    • Use the time freed up by delegating tasks to your VA to focus on revenue-generating activities and growing your firm.

Going Concern – Accounting Firms of All Sizes Care Less About IRS Headaches and More About Finding and Retaining Staff, Says AICPA Survey

  • With respect to the staffing shortage in the accounting profession, “If you pay more than the competition and don’t make people come into the office five days a week, you shouldn’t have that big a problem.”

Going Concern – Here’s How Mid-Tier Accounting Firms Are Feeling About the Talent Crisis and Remote Work

  • The mid-tier accounting industry faces challenges in attracting and retaining qualified staff.
  • The disconnect between Gen Z’s values and firms’ cultures may contribute to retention challenges, despite some firms describing themselves as caring, collaborative, and client-centric.
  • Changes to working patterns must balance the need to compete for top talent with meeting client expectations for personalized support and on-site presence.

Ignition – The Ultimate Pricing Strategy Guide for Accountants and Bookkeepers

  • Charge clients upfront with fixed-fee value-based pricing while providing clients with great clarity regarding the services you will provide them.

Journal of Accountancy – Insights from ENGAGE: You Don’t Have to Like People to Lead People

  • Many professionals in various fields wouldn’t consider themselves “people people.”
  • However, being a “people person” has little to do with being a successful leader.
  • “When they become a manager, they go from being 70% billable and doing tax and accounting work every day to spending 70% of their day dealing with client management and team development. It’s two different jobs, frankly.”
  • “To be a great leader,” Crowley said, “you simply need to lean into more of your natural talents. Do more of what you’re already good at.”

Journal of Accountancy – Pipeline Pledge: How Small Commitments Can Make a Big Difference

  • “I don’t think a day goes by where I don’t hear from someone that is challenged with their ability to find, attract, and retain professionals,” said the AICPA & CIMA’s CEO–Public Accounting.

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