Accounting Today – Voices Does a CPA Really Need to Do It?
- According to CFO Dive, “Fewer than 1% of small to midsized firms can find the talent they need.”
- One way to address this talent shortage is for firms to:
- Realize they likely do not need a licensed CPA to perform a significant portion of the firm’s tasks and then
- Hire and redistribute work to CPAs and non-CPAs at the firm based on the true skillset needed to perform each task.
Accounting Today – Work Less, Do More
Here are some ways CPA firms can achieve better results while working less include the following:
- Understand Client Value – Determine what clients truly value (e.g., more money, time, and clarity, less stress, etc.) and design services around delivering that value.
- Move Beyond Hourly Billing – Transition away from billing by the hour and instead price services based on the value your firm provides.
- Specialize for Efficiency – Focus on niche areas to work more efficiently, deliver better results, and command higher fees.
- Streamline and Standardize Processes – Develop clear, consistent processes for each service to boost efficiency and the time required to complete tasks.
- Leverage Technology Strategically – Implement technology solutions that automate repetitive tasks and enhance productivity to free up time for higher-value work.
- Hire and Delegate Effectively – Build a strong team and delegate tasks to the right people, which allows you to focus on strategic initiatives.
- Educate Clients on Value – Communicate the value of services to clients, helping them understand the benefits beyond just your firm’s time spent.
- Continuously Improve and Adapt – Regularly assess and refine your firm’s processes, pricing, and service offerings to optimize efficiency and value delivery.
CFO Dive – Shifting accounting norms for the AI age: EY
- AI is “making the tax and accounting domain more important, because what the technology is doing is it’s creating the need for people to apply more judgment.
CPA Practice Advisor – 75% of Mid-Market Companies Say They Will Invest in AI Over Next 5 Years
- “While AI hasn’t been the top priority for the majority of mid-market businesses in the past, it will emerge as such over the next five years, with 75% of mid-market companies planning to invest in machine intelligence to improve efficiency.”
CPA Practice Advisor – Another Option for When Employee Bonuses Don’t Work
- Aside from annual cash bonuses, some other options for boosting employee morale and retention include:
- Spot bonuses,
- Company-wide experiences, and
- Aligning recognition with core values.
CPA Practice Advisor – How CPAs Can Compete in the AI Race
- “Leveraging AI to focus on capitalizing on your differentiators, instead of adoption for adoption’s sake, will be key in seeing a good return on your investment.”
- “In the end, effective adoption of AI doesn’t depend on being the first to adopt; it hinges on being the most strategic about when and how to employ these powerful tools.”
CPA Practice Advisor – Summer Marketing Initiatives for Small to Mid-Sized Accounting Firms
- “The slower pace of summer offers a prime opportunity to engage with current clients in more relaxed settings and attract new clients.”
- “Summer is the season of local festivals, charity events, and community gatherings. You can take advantage of these opportunities by increasing your visibility and engagement within the community.”
Future Firm – 150 – The Firm Freedom System [6 Steps]
- Ryan Lazanis at Future Firm has a Firm Freedom System that consists of six steps to help accounting firm owners increase profits and reduce their workload including:
- “Implement standardized packages with strong margins,”
- “Landing one to five high-quality deals per month,”
- “Eliminate overwork with capacity planning,”
- “Implementing a team of A players,”
- “Put in place easy-to-follow processes,” and
- “Focused action toward your ideal lifestyle.”
Ignition – A Practical Guide to Selling Accounting Advisory Services
Some insights for selling accounting advisory services include the following:
- Identify Client Needs – Analyze your client base to determine which advisory services would best address their challenges and goals.
- Specialize in Specific Industries – Develop deep expertise in your clients’ industries to provide advisory services that would be highly relevant and valuable to them.
- Reach Out to Existing Clients – Personally contact clients who could benefit from your advisory services, and explain how these services can help them succeed.
- Demonstrate Thought Leadership – Create and distribute content that showcases your expertise in areas related to your advisory services to build credibility.
- Package Advisory With Existing Services – Offer advisory services as part of premium packages alongside your core compliance offerings to provide a holistic, value-added approach.
- Use a Consultative Selling Approach – Focus on understanding and addressing clients’ needs rather than pushing a hard sell to position yourself as a trusted advisor.
- Emphasize Outcomes and ROI – Communicate the value of your advisory services in terms of cost savings, revenue growth, and other tangible financial benefits.
- Consider Fixed-Fee or Value-Based Pricing – Implement pricing strategies that provide cost certainty for clients and justify premium fees based on the value delivered.
Ignition – What Is Out Of Scope Work — And How To Avoid It
- The four primary categories of scope creep include:
- Expansion of work (e.g., new items, enhanced items, etc.)
- Client requests for advice and guidance
- Changes to required work and shifting prioritization
- Timeline extension (e.g., client delays providing necessary inputs)
- Some ways to address scope creep include:
- Have a Clear Agreement on the Scope of Work – Have a detailed initial project agreement that clearly defines the scope, deliverables, timeline, price, etc. Mention tasks that are specifically not included if they are frequently requested.
- Note Common Signs of Impending Scope Creep – Pay close attention to client language that may indicate an out-of-scope request, such as:
- “Can you just…”
- “It’ll only take a minute,”
- “We can discuss the details later”
- Identify One-Time vs. Ongoing Add-Ons
- When you identify an out-of-scope request, ask for more details to determine if it’s a one-time request or an ongoing addition.
- This subtly signals to the client it’s out-of-scope, which can prompt them to reconsider the necessity of the request or at least prime them for a conversation about additional costs.
- Have a Prepared Response to Scope Creep
- Have a simple script ready to confidently inform clients of additional costs for out-of-scope work.
- Don’t assume they are asking for it for free.
- Carefully Negotiate New Terms
- If you agree to accept some scope creep, prioritize the client relationship but be firm about your value.
- Also, clearly document all changes and any corresponding cost increase for the client.
Karbon – Why Private Equity is Interested in the Accounting Profession
Some reasons private equity investors are interested in the accounting profession include the following:
- Stable and Profitable Business Model – Accounting firms typically demonstrate resilience during economic downturns, which makes them attractive investments.
- Aging Population of Firm Owners – As partners approach retirement, private equity offers an alternative exit strategy.
- Separating Attest and Advisory Services – By structuring firms to separate these functions, private equity can invest in the advisory portion.
- Recurring Revenue and Growth Potential – Accounting firms with strong recurring revenue models and growth prospects appeal to investors.
- Opportunity to Improve Efficiency and Profitability – Private equity sees opportunities to enhance firm performance through technology and streamlined operations.
- Capitalizing on Fragmented Market – The accounting industry’s fragmented nature allows private equity to consolidate firms for greater scale.
Public Accountant (Australia) – How to Avoid Common Pitfalls of Practice Quality Reviews
Some ways to avoid common pitfalls of practice quality reviews include the following:
- Maintain Current Manuals – Keep quality management and risk management manuals up-to-date to ensure effective practice methodology and quality client services.
- Ensure Adequate Insurance Coverage – Maintain current professional indemnity insurance at the correct level of cover to avoid potentially unlimited liability.
- Regularly Review and Update Policies – Conduct annual reviews of practice management policies and make ad hoc updates based on any client complaints or changes in standards.
- Assign Dedicated Resource for Oversight – Designate a specific individual to oversee procedures and methodologies who is primarily responsible for staying informed about changes in requirements.
- Prioritize Continuing Professional Development – Ensure CPAs at your firm are in compliance with their CPE requirements, and encourage continuing professional education even for non-CPAs at your firm.
- Document Processes – Clearly and adequately document your firm’s policies and processes.
Public Accountant (Australia) – Training in Small- and Medium-Sized Practices
Some ways small- and mid-sized accounting firms can facilitate robust training include the following:
- Embrace Virtual and Hybrid Training – Leverage online resources for cost-effective and flexible training.
- Incorporate Interactive and Bite-Sized Content – Adapt training materials to accommodate different learning styles to maintain engagement.
- Prioritize Technology and Software Training – Use training to increase staff proficiency in AI and other relevant technologies.
- Prepare for Sustainability Advisory Services – Choose training that will develop staff competencies to support expanded advisory offerings.
Rosenberg & Associates – Who Decides How Partner Income Is Allocated?
Here are some ways multi-partner CPA firms can decide on how to determine partner income allocations:
- Who Should Decide
- Founders Decide in Founder-Led Firms – Firm founders typically determine the income allocation in founder-led firms, which works well if they are fair and respected leaders.
- All Partners Decide in Small Firms – In firms with 2-4 partners, all partners typically make compensation decisions together, sometimes sharing profits equally.
- Compensation Committee for Larger Firms – Firms with 6+ partners often have a subset of partners on a compensation committee that makes the allocation decisions.
- Other Considerations
- Important Traits for Compensation Decision-Makers – Those determining compensation should be trusted, fair-minded, future-focused, and committed to the firm’s success.
- Consider Non-Partners for the Compensation Committee – Firms might include a COO on the compensation committee for added perspective.
- Address Insufficient Profits Before Tackling Allocation Challenges – If total partner income feels inadequate, firms should focus on raising profitability before tackling allocation challenges.
