Saturday, February 25th, 2017
“Childhood is the kingdom where nobody dies. Nobody that matters, that is.” – Edna St. Vincent Millay
I often forget how much I love poetry. Years ago, I would buy poetry books and actually read them cover to cover.
I imagine you have heard this one, First Fig by Edna St. Vincent Millay, but probably never knew the author.
If you use your imagination, you can probably relate the words of this poem to how many of you feel about the CPA profession.
My candle burns at both ends;
It will not last the night;
But oh, my foes, and oh, my friends-
It gives a lovely light.
- "Set the foot down with distrust on the crust of the world - it is thin."
Friday, February 24th, 2017
“From caring comes courage.” – Lao Tzu
It’s not what you think! This method comes from Jeff Kortes. He is an employee retention speaker, author and expert. Kortes has found that employers don’t give their employees enough C.R.A.P. and it is driving away valuable workers. Here’s the CRAP he’s talking about:
C – Caring
R – Respect
A – Appreciation
P – Praise
I became aware of Kortes this week, visited his blog site and thoroughly enjoyed his posts.
I know that in public accounting you are certainly challenged with attracting, developing and retaining people. Perhaps, the first thing you should do is develop a written employee retention strategic plan. Learn more about it, from Kortes here.
- "Caring about others, running the risk of feeling, and leaving an impact on people, brings happiness."
Thursday, February 23rd, 2017
“If we will be quiet and ready enough, we shall find compensation in every disappointment.” – Henry David Thoreau
I often get questions about whether firms are offering signing-bonuses to new college graduates. The answer is, yes.
Signing bonuses were a big deal in the early 2000’s, then in 2008 and for a few years afterwards, the signing bonus was actually not needed and many firms discontinued the practice.
As you can imagine with the intense competition for talent, firms have returned to the practice of signing bonuses. I have observed that they usually run from $1,000 to $3,000.
Often, they are an enticement for a quick response to an offer. If you really have an all-star intern, I would think you would pay more than $3,000.
- "Take free money. No matter how in debt you are, if your employer offers a matching contribution on a 401(k) or other retirement vehicle, you must sign up and contribute enough to get the maximum company match each year. Think of it as a bonus."
Wednesday, February 22nd, 2017
“We won’t recognize the vast majority of CPA firms in five to 10 years.” – Barry Melancon
CPAs working in public accounting, get ready. I’m smiling as I type this because I have been warning, pleading, asking and begging you to “get ready” for about 25 years!
As reported via Accounting Today, Barry Melancon, President/CEO of the AICPA said recently, “The number of changes facing the accounting profession will leave most practices radically altered in the near future.”
Yes, you have been hearing that for years but this time it’s different because time is truly running out.
The businesses you serve are facing changes in a quicker time frame than ever before, why should you think CPA firms would be exempt? CPAs are supposed to be showing their clients the way into the future.
Erik Asgeirsson, President/CEO of CPA.com encourages accountants to dive deep into technology and pursue how it can help them deliver higher value to their clients.
Be sure to read the full article via Accounting Today. Be sure to note the graph that shows the percent of firms implementing cloud accounting in 2017.
- "People evolve and it's important to not stop evolving just because you've reached adulthood."
Tuesday, February 21st, 2017
“Life is like riding a bicycle. To keep your balance, you must keep moving forward.” – Albert Einstein
Some accounting firms have been utilizing stay interviews for a while. However, I have observed that there are still many firms that haven’t embraced this excellent tool.
Anytime you devote individualized attention to one of your team members, asking them for advice and feedback, it’s a positive exercise for both sides – management and staff.
Elizabeth (Bitsy) Watson, PHR, the HR Manager for Mahoney, Ulbrich, Christiansen & Russ shared the process they use for stay interviews. It would be a good best practice for you to emulate. Her comments follow:
We started out with results from our recent engagement survey and identified about five areas where we wanted more insight, such as, if we felt our scores for recognition could be stronger or we wanted more insights into what aspects of compensation were most important to staff.
We then came up with some questions related to these areas and others (about 10 total). A few examples were:
- What types of recognition are most meaningful to you?
- What opportunities for development would you like that you may not be getting?
- What type of work do you find most motivating or interesting?
- Of the compensation and benefits we offer, what aspects are most important to you and what could be improved in this area?
We used a representative sample of our employees to participate in the stay interviews. I kept the names confidential. After the meetings were completed, our next steps were to summarize the overall themes and share the summary with the partners, not sharing names. I also included three recommendations for changes or new programs to implement. We’ll then share these new initiatives with the interview group. We want them to know that we really valued their opinions.
I tried to be as transparent as possible with everyone involved on what we were trying to accomplish and how valuable their feedback is. We received an overwhelming amount of positive feedback from the interviewees. They mentioned feeling like it was helpful to have a channel to be asked questions they might never have been asked. I think the most interesting thing that came from this was bringing to light some wrong assumptions we, as management, had been making.
Our plan is to do this annually utilizing a different group of employees each year.
- "Many of life's failures are people who did not realize how close they were to success when they gave up."
Monday, February 20th, 2017
“The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.” – John Foster Dulles
Do you shy away from challenging problems?
Certified Public Accountants are basically, nice people. They do not want to create contention or participate in confrontation. So, many challenging problems have a very long life-span inside accounting firms.
You have a renegade partner. They develop work-arounds to almost all of your processes and systems and rarely go along with the partner group’s initiatives. You even wonder what they are saying to clients.
You have a sacred cow employee. A person that apparently cannot be fired for continual poor performance. It’s someone who has been with the firm for decades and has evolved to the point where they have a very bad attitude. Even their work has become shoddy and they are beginning to drive people away from the firm.
The business world is quickly becoming digital and your firm is still not even paperless! You have a partner who absolutely refuses to move into the future. They must have everything in paper and they refuse to learn how to even review tax returns on-screen. Young, up-and-comers will soon find greener pastures.
Some partner groups are so afraid of confrontation that they pay a consultant thousands of dollars to come in and deal with the challenging problem.
Sure there is risk involved and it might feel very uncomfortable, but why not step-up to the plate and deal with your challenging problems? That’s what great leaders do.
(If you receive my blog via email, be sure to visit my website to read each days quote at the bottom of the page.)
- "One thing is sure. We have to do something. We have to do the best we know how at the moment. If it doesn't turn out right, we can modify it as we go along."
Saturday, February 18th, 2017
“One good thing about music, when it hits you, you feel no pain.” – Bob Marley
When I first began my career in public accounting, we actually had a partner who would wear a leisure suit to work… honest! It was light blue. A few years later, some of our partners would wear plaid pants with navy blue blazers. Oh, my.
Fashions change, that’s for sure. Back then we would never have believed that partners would some day be wearing blue jeans on a weekday. I do know that I prefer jeans to leisure suits any day.
Lighten-up this weekend and enjoy John Garrett’s video – – It’s not the Dancing Queen that accountants love, it’s an Adding Machine.
Friday, February 17th, 2017
“There is a fundamental distinction between strategy and operational effectiveness.” – Michael Porter
Do you have a firm administrator? Do you wish you had a firm administrator?
If you do have one, be sure they are a member of the CPA Firm Management Association (CPAFMA). If you don’t have one, join the Association to learn more about how you can find one and how you could be saving your accountants a significant amount of time by having someone else take care of firm operations.
Today, I will be attending the Ohio CPAFMA Chapter meeting to learn a lot about what’s new in employment law, something all of you should be learning. Be sure to follow my tweets today.
There are many chapters around the country. If you are a managing partner or if you are responsible for any part of firm operations (what goes on behind the scenes), join CPAFMA and attend chapter meetings.
- "The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark."
Thursday, February 16th, 2017
“I’m really good at email.” – Elon Musk
It’s that old devil – the inbox! So many accounting firm citizens, from all levels inside the firm, lament how difficult it is to keep up with emails.
I have even heard partners talk about the number of emails they received in almost a bragging tone! “I get 100 emails a day!” “Well, I get almost 200!”
Don’t let email run your daily life. Don’t make it your default, open page on your desk top. Don’t feel compelled to reply immediately.
I have read lots of articles about how to deal with email and have shared several on this blog. I also practice what I learn! I do not continually check my email. I close my email window when I am getting real work done, etc.
This week I read a post by S. Anthony Iannarino, speaker and author about how he processes his email. I think you will find it very helpful.
He does not live in his inbox.
He works in 90 minute segments (without checking email).
He does a quick scan for anything urgent (that’s your challenge… what is urgent and what really isn’t urgent?)
There are really not very many emails that actually need an IMMEDIATE response. If you have one, then respond to it.
Every Wednesday morning he processes his email (he has five inboxes) and gets them all to zero.
I think you will enjoy reading his helpful, brief blog post. If you can’t give all of his tips a try at least try a few of his recommended actions.
If I let myself, I could sit and process email continually all day long! My method is to check email first thing in the morning, around noon and then again late afternoon. I rarely look at email after 5:00pm. My clients have top priority. I answer their emails first (but not always immediately).
Commit to a new practice for handling email and making your day more productive.
When you visit Anthony’s site, you might also learn some things to help with sales, after all Anthony’s site is thesalesblog.com. And he has a book titled The Only Sales Guide You’ll Ever Need.
- "The perfect is the enemy of the good."
Wednesday, February 15th, 2017
“Your most unhappy customers are your greatest source of learning.” – Bill Gates
Every tax season you wonder. Will all our clients return to our firm for their annual personal and business tax preparation?
There will be a few who will leave, for various reasons… they’ve moved, their brother-in-law now works for another local firm, they sold their business, etc. The most common reason the departing clients give is that your fees are just too high… more than they want to pay.
You review last year’s work and feel confident that the fees charged were valid compensation for the work performed. You contemplate giving the complaining client a reduced fee quote for their continuing work. Don’t do it!
Dig deeper. A client usually departs a CPA firm because of something other than fees. It is just easy for them to use fees as the excuse because they don’t want to tell you the truth. They feel neglected. They feel you are always reactive rather than proactive. They overheard something said by a member of the engagement team that was distasteful to them.
Studies tell us that a typical business hears from only 4% of it’s dissatisfied customers. Are you asking your clients, EVERY time you have a communication with them, “How are we doing?”
CPAs often spend much more time focused on NEW clients than they do on their OLD, faithful clients. You begin to take them for granted. Your existing clients are golden. Studies also tell us that the probability of selling to a new prospects is 5-20%. The probability of selling to an existing client is 60-70%.
Keep in mind:
- It takes 12 positive experiences to make up for one unresolved negative experience.
- For every customer who bothers to complain, 26 other customers remain silent.
Clients are, of course, concerned about price but most will be willing to pay more for awesome service.
- "The customer's perception is your reality."