Weekly Update

Tips for Documenting Firmwide Processes

by

Executive Summary

  • Documenting Firmwide Processes – Some key elements to documenting firm processes include:
    • Establishing a cross-functional team,
    • Reviewing previous work to identify and document firm processes,
    • Determining how you will collect data from staff,
    • Conducting follow-up interviews,
    • Focusing on real-world firm practices,
    • Setting deadlines,
    • Selecting a central documentation repository,
    • Sharing results with stakeholders,
    • Scheduling regular check-ins, and
    • Streamlining the documentation process for efficiency.
  • Tips for Implementing Automation
    • The best tasks to automate first are routine, repetitive tasks that are predictable (e.g., invoicing).
    • Automating tedious tasks can free up time for your staff to work on more meaningful work, which can increase their retention.
    • Before you automate tasks, compare the cost of continuing as-is versus the cost of automation software and training.
  • Guidance for Starting a Mentorship Program
    • Provide guidance to mentors on what to do when the career goals of a mentee conflict with the firm’s goals.
    • Ensure all mentors have a genuine interest in the mentee’s development.
    • Set clear success metrics for the mentorship program.
  • Insights for When You’re Hiring New Staff – Some benefits of hiring staff straight out of college instead of experienced hires include:
    • Resistance – Reduced resistance to following your firm’s processes because the new hire “knows a better way” to do it that’s not actually a better way.
    • Staff Retention – Increased staff retention if you bump up existing staff a level when you onboard a new hire.
    • Cost – College hires are typically much less expensive than experienced hires.
  • Note Process Improvement Opportunities – It can be helpful to use tools like notepads or voice recording to make a note to yourself of process improvements that need to take place before you forget about them.
  • Cybersecurity Strategies – Five key strategies to protect against cyberattacks include:
    • Educating staff on phishing, social engineering methods, etc.
    • Testing staff with simulated attacks
    • Implementing access controls and encouraging the use of password managers such as Bitwarden
    • Securing remote collaborations with VPNs and secure portals for file transfers
    • Maintain regular data backups to reduce the potential impact of a ransomware attack
  • Hybrid Work Strategies – You can increase productivity and team cohesion for teams that are geographically dispersed by implementing the following:
    • Virtual team-building,
    • Consistent check-ins, and
    • Virtual whiteboards.
  • Learning & Development in 2024 – Upskilling and reskilling staff are critical given the accelerating pace of skills obsolescence.
    • Upskilling involves enhancing staff skills and knowledge for their current roles.
    • Reskilling equips staff with new abilities for different roles, which reduces key person dependencies.
  • Strategies for Success Selling More Advisory Services
    • Get Prospects Info They Need – Create targeted blog posts addressing specific client fears or questions.
    • Use Social Media – Encourage staff to share industry-related articles on their personal social media profiles.
    • Use LinkedIn Banners – Use LinkedIn banners to promote specific firm events, such as an upcoming advisory-focused webinar, or specific advisory services your firm offers.
    • Obtain and Share Client Testimonials – Obtain testimonials from your happy advisory clients and share them on your website, on social media, and in your marketing materials.
  • Tips for Firm Talent Management
    • Firm Branding – Enhance your firm’s website and social media presence to make it more attractive to potential employees by showcasing its unique culture, values, and what it’s like to work there.
    • Use Career-focused Job Descriptions – Craft job postings that emphasize career growth and development opportunities, rather than just listing role requirements, to appeal to professionals seeking long-term growth.
    • Offer Competitive Compensation – Regularly review and adjust salary structures according to market trends to remain competitive in attracting and retaining top talent.
    • Embrace Remote Flexibility – Adopt and promote flexible work arrangements to attract a broader range of applicants, particularly from younger generations who value this flexibility.
    • Leverage Employee Referrals – Encourage current employees to refer qualified candidates, tapping into their networks and potentially reducing recruitment time and costs.
    • Effective Onboarding Processes – Design an engaging and informative onboarding experience to help new hires integrate seamlessly into the firm, which can improve their retention.
    • Feedback-Driven Improvement – Regularly seek and act on feedback from staff regarding the workplace environment, policies, and practices.
  • Considerations When Outsourcing and Offshoring Work
    • Evaluate outsourcing providers thoroughly
    • Shift predictable, repetitive work outside the firm so staff can perform more client-facing work
    • Utilize time zone differences to your advantage to get offshored work completed during your firm’s off-hours in your local time

Accounting Today –  Automation is Transforming Accounting: How to be Prepared in 2024 

  • Automating routine, repetitive tasks like invoicing, accounts payable/receivable, payments, expense management, etc. will free up staff time from tedious data processing to focus on more strategic, value-added advisory work.
  • Evaluate if manual processes are draining productivity and causing errors/rework.
    • Then compare the cost of continuing as-is versus the cost of automation software and training.
    • Automation investments often pay for themselves quickly.

Accounting Today –  Making Mentoring Work 

  • Accounting firms are increasingly implementing mentorship programs.
  • Mentors in these programs focus on an individual’s career growth, which may sometimes conflict with departmental goals.
  • If your firm implements a mentorship program, it is important to have mentors with a genuine interest in the mentee’s development.
  • Firms can support their mentorship programs by setting clear success metrics and allowing for regular check-ins between mentors and mentees.

Accounting Today –  Voices Art of Accounting: Moving Staff Up to Replace a Higher-Level Person 

  • Hiring skilled staff directly from school rather than relying only on experienced professionals can enhance a firm’s efficiency and staff retention.

Accounting Today –  Voices Don’t Succumb to the Forgetting Curve This Tax Season 

  • Documenting issues as they arise and later developing solutions for them can help your firm learn from mistakes and improve its processes.
  • The use of a notepad or a voice recording tool can help you quickly and easily capture issues as they occur in real time.

Accounting Today –  Voices Keeping Cybersecure During Busy Season 

  • Five strategies for firms to protect themselves against cyberattacks include the following:
    • Educate Employees on Cybersecurity – Continuously educate personnel on phishing and social engineering methods, and test them with simulated attacks.
    • Implement Access Controls – Mandate modern access controls, including complex passwords, password managers, and multifactor authentication.
    • Secure Remote Collaborations – Use VPNs, secure emails, and portals for encrypted file transfers, and educate clients on secure processes.
    • Outsource Security Management – Employ professional security/cloud providers for comprehensive and expert management of security infrastructure.
    • Establish Security Governance – Update security training and policies, ensure adequate cyber-insurance, and maintain regular data backups and disaster planning.

Accounting Today –  Voices Why AI Can be Accountants’ Next Big Pivot 

  • Accountants are encouraged to use AI in areas that are repeatable and predictable, such as invoicing or spend management.
  • “Done right, leveraging AI in accounting can and should drive cost and time savings by automating tasks, analyzing financial information more quickly and reducing the time spent cleaning up data and fixing errors.”

Bloomberg – Severe CPA Shortage Risks Creating Expensive Corporate Errors

  • The shortfall of 340,000 accounting professionals is contributing to errors in financial reporting and shaking investor confidence.
  • This shortage is attributed to an aging workforce and the profession’s inability to attract new talent due to the demanding education requirements and relatively low entry-level salaries compared to other fields.
  • “If the people preparing the financials are overworked, or there’s not enough of them, you will have errors.”
  • “Last year more than 720 companies, from Advance Auto Parts Inc. to online legal services provider LegalZoom.com Inc., cited insufficient staff in accounting and other departments as a reason for potential errors.”

Boomer Consulting – Building Bridges in a Hybrid World: Enhancing Connection and Community 

  • Adopting new technologies and engagement methods can increase productivity and team cohesion for teams that are geographically dispersed including:
    • Virtual team-building,
    • Consistent check-ins, and
    • Virtual whiteboards.

Boomer Consulting – Documenting Firmwide Processes: It’s a Team Sport 

  • It is a productivity best practice to identify and document all of your firm’s processes to:
    • Enhance consistency,
    • Improve training and onboarding,
    • Facilitate compliance, and
    • Lay the groundwork for continuous improvement.
  • One approach to identify all processes involves:
    • Creating a cross-functional team,
    • Reviewing historical work to identify and document processes,
    • Deciding on data collection methods from staff,
    • Conducting follow-up interviews,
    • Focusing on actual practices,
    • Setting deadlines,
    • Choosing a central documentation repository,
    • Sharing results,
    • Scheduling regular check-ins, and
    • Streamlining the documentation process for efficiency.

Boomer Consulting – The Power of Learning & Development in 2024 

  • Upskilling and reskilling can increase staff productivity by enhancing their capabilities and their ability to adapt to a rapidly changing professional landscape.
    • Upskilling involves enhancing staff skills and knowledge for their current roles.
    • Reskilling equips staff with new abilities for different roles.
  • The accelerating pace of skills obsolescence, driven by technological advancements, underscores the urgency for a strategic approach to upskill and reskill your firm’s staff.
  • Less than 10% of those surveyed find a significant difference in preparedness between those with 150 and 120 college credit hours, which raises questions about the value of the extra credit hours as a requirement to obtain a CPA license.
  • Some states, such as New Jersey, are considering alternatives to the 150-hour requirement to balance the need to maintain robust standards and the need to attract talent into the profession.

CPA Practice Advisor – Automation and AI-Driven Solutions Can Create Incentives to Attract and Retain Certified CPAs

  • “By automating standard accounting processes like data entry and recording, invoice processing and expense management, employers free their staff for more exciting work, reduce taxing workloads.”
  • “Goldman Sachs estimates that automating invoice and payment processes can save as much as 70-80% of time for accounting staff, empowering them to manage their responsibilities more effectively and create time for more strategic work or studying.”
  • “These powerful benefits can aid retention and hiring efforts, including attracting professionals who may not otherwise pursue certification, which can help accounting firms and departments manage the current labor crunch while preparing for an exceedingly digital future.”

CPA Practice Advisor – Gratitude is Better Than a Pay Raise for 55% of U.S. Workers, Survey Finds

  • Although this may be difficult to believe, a recent survey conducted by Motivosity and OnePoll reveals that 55% of American workers prefer personalized forms of appreciation over pay raises or promotions.
  • The survey results underscore the importance of personal recognition in the workplace, suggesting that it can significantly impact employee motivation and retention.

CPA Practice Advisor – How Firms Can Better Package Advisory Services

  • Progressive accountants are shifting from traditional accounting to advisory services, which not only improves cash flow but also client service, with 83% of clients desiring advisory services.
  • It can be helpful to package advisory services in a way that’s appealing and familiar to clients while focusing on their specific needs and pain points.

CPA Practice Advisor – Insider Marketing Tips for Accounting Advisory Success

  • Content Marketing: Refresh Old Content – Revisit and update existing blog posts with an industry or service-line focus. For example, transform general financial service information into a targeted blog addressing specific client fears or questions.
  • Social Media: Utilize Personal Profiles – Encourage team members to share industry-related articles on their personal social media profiles. Provide them with a selection of articles and guidelines for posting, including keywords and hashtags.
  • Social Media: Creative LinkedIn Banners – Use customized LinkedIn banners on both company and personal profiles to promote events and services. Ensure these banners are branded and align with your firm’s messaging.
  • Social Media: Engage with Faceless Reels – Create short, engaging faceless reels focusing on your workspace or services. These should be concise (10-15 seconds) and include background music to enhance viewer engagement.
  • Google Business: Leverage for Visibility – Use Google Business profile posts to answer common questions related to your services. Include a compelling call-to-action and link to your services or contact page.
  • Social Media: Boost Posts for Reach – Allocate a small budget ($1 – $10 per day) to boost posts on social media. Target specific geographies and interests to enhance the visibility of webinars, events, or services.
  • Networking: Forge Strategic Partnerships – Build relationships with professionals in related fields like law and finance for referrals and collaborative opportunities. Speak at industry events and engage in cross-promotion to expand your network.
  • SEO: Optimize for Online Visibility – Incorporate relevant keywords into your website and content, and optimize for local searches with a Google Business Profile. Regularly update SEO strategies to maintain high visibility in search results.
  • Client Testimonials: Showcase Success – Highlight client testimonials on your website and marketing materials. Share success stories on social media, tagging clients when appropriate to expand reach and credibility.

CPA Practice Advisor – It’s Time to Rethink Current Practices for CPA Firm Talent Management

Here are some tips to enhance your firm’s talent management practices:

  • Elevate Employer Branding – Enhance your firm’s website and social media presence to showcase its unique culture, values, and what it’s like to work there, making it more attractive to potential employees.
  • Career-focused Job Descriptions – Craft job advertisements that emphasize career growth and development opportunities, rather than just listing role requirements, to appeal to professionals seeking long-term growth.
  • Offer Competitive Compensation – Regularly review and adjust salary structures according to market trends to remain competitive and attract top talent.
  • Embrace Remote Flexibility – Adopt and promote flexible work arrangements to attract a broader range of applicants, particularly from younger generations who value this flexibility.
  • Maintain Talent Pipelines – Proactively build relationships with potential candidates and maintain a network of talent to fill future roles efficiently, reducing the need for reactive hiring.
  • Foster Continuous Learning – Implement ongoing professional development and training programs to attract candidates interested in continuous skill enhancement and career advancement.
  • Inclusive and Diverse Culture – Develop and promote an inclusive workplace culture that values diversity, attracting a wider range of candidates and improving employee satisfaction.
  • Utilize Data-Driven Recruitment – Implement data analytics in your hiring process to better understand recruitment trends, candidate preferences, and to make more informed staffing decisions.
  • Leverage Employee Referrals – Encourage current employees to refer qualified candidates, tapping into their networks and potentially reducing recruitment time and costs.
  • Prioritize Employee Well-Being – Offer comprehensive health and wellness programs to demonstrate care for employees’ well-being, thereby attracting and retaining top talent.
  • Effective Onboarding Processes – Design an engaging and informative onboarding experience to help new hires integrate seamlessly into the firm, improving retention.
  • Feedback-Driven Improvement – Regularly seek and act on feedback from employees regarding the workplace environment, policies, and practices to continuously improve and adapt to changing workforce needs.

Forbes – Accounting And Tax Outsourcing For CPAs: Top Considerations For 2024

Here are some recommendations for outsourcing your firm’s work:

  • Evaluate Outsourcing Providers Thoroughly – Ensure you thoroughly evaluate the outsourcing provider by asking about their hiring practices, educational requirements, and technology infrastructure to gauge the quality of work and data security.
  • Understand Accountability – Remember that your firm is solely accountable to your clients for maintaining quality control, regardless of whether work is done locally or through a global team.
  • Focus on Staff Experience – Improve your current staff’s work experience by leveraging automation and integrating software solutions, and consider offshore outsourcing to shift their focus from data-intensive tasks to more client-centric, meaningful work.
  • Assess Talent Pool Quality – When choosing an outsourcing partner, assess the quality of their talent pool to determine whether they have relevant education and experience to meet your firm’s standards.
  • Monitor Data Security – Prioritize data security by confirming the outsourcing provider’s adherence to data protection standards and certifications like SOC 1 or SOC 2.
  • Consider Costs and Benefits – Weigh the cost savings from reduced overhead and staffing costs against the potential risks and ensure these savings adequately contribute to your firm’s growth and efficiency.
  • Plan for Scalability – Choose an outsourcing partner that offers quick scalability and that can reallocate resources efficiently, enabling your firm to manage workload fluctuations and growth.
  • Manage Time Zone Advantages – Utilize the time zone differences to your advantage, ensuring that work is being done during off-hours in your local time.
  • Retain On-site Talent – Use outsourcing to manage your firm’s workload so you can offer more interesting work to your on-site staff to increase their retention.
  • Understand Cultural Differences – Be aware of cultural differences and operational challenges when coordinating with offshore teams, and manage these differences effectively.

Journal of Accountancy – C-Suite Goal: Keep Up With New Technology

Top personal challenges for C-suite executives include:

  • Keeping up with new technology,
  • Balancing career and personal life,
  • Embracing change and innovation,
  • Finding time for professional development,
  • Motivating teams, and
  • Avoiding burnout.

Karbon – How to Manage Big Practice Improvement Change in Older, Traditional Firms

Some tips to implement significant practice improvements in traditional firms include the following:

  • Embrace Strong Leadership – Successful change requires effective leadership to guide and motivate the team.
  • Develop Structured Plans – Implement structured plans and clear objectives to guide the firm through the transition.
  • Focus on Team Structure – Shift from a wide and shallow to a deep and narrow team structure for better efficiency and management.
  • Prioritize Staff Training – Invest in training staff to improve their skills and performance and to increase their retention.
  • Measure Performance Consistently – Regularly measure and analyze team performance using specific tools and metrics for informed decision-making.
  • Implement Client and Production Management – Separate client-facing and production roles to streamline workflow and enhance productivity.
  • Seek Mentorship and Guidance – Engage with mentors or industry experts for guidance and insights into effective practice management.
  • Maintain a Clear Business Vision – Have a clear and focused vision for the firm’s future to steer growth and development efforts.
  • Understand the Importance of Processes – Acknowledge that combining the right people with efficient processes leads to optimal performance.
  • Shift the Business Model – Aim for a business model that can operate successfully without the constant presence of the owner.

Anthony Le (Columbia University) – Accounting Rules and the Supply of Accountants

  • A recent white paper found that a shift towards more compliance-heavy and rules-focused GAAP accounting standards and away from rules requiring judgment and creativity is contributing to a significant decrease in:
    • The number of students interested in entering the profession, and
    • The number of accountants interested in remaining in the profession.
  • One might think that the resulting reduction in the supply of accountants, in the face of stable to increasing demand, would result in higher pay for accountants due to typical supply and demand dynamics.
  • However, because the nature of demand has changed in that there is a shift to more menial work, there is a more compressed wage distribution without a material increase in earnings for accountants.
  • This shift toward more menial rules-focused work to comply with GAAP also is reinforcing the public’s perception of the profession as one where dull work is performed, which further reduces the supply of accountants.
  • “I find that subjects shown the restrictive prompt have significantly heightened views of accounting as a profession that does not allow for creative or critical thinking. These findings help strengthen our understanding of why restrictiveness makes accounting less appealing and why it reduces labor supply”​​.

Public Accountant (Australia) – Outsourcing and Offshoring: What Not to Do

  • It is important to vet outsourcing or offshoring providers, which can include visiting them.
  • This can help you avoid significant related issues including:
    • Workers with inadequate skills and training,
    • Cybersecurity issues,
    • And ethical risks such as poor working conditions and child labor.

Leave a Comment