Archive for the ‘Helpful Information’ Category

Thursday, August 10th, 2017

The 10 Most Profitable Industries

“Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn

It’s no surprise to CPA firm owners, but accounting and bookkeeping firms (along with real estate leasing companies and legal services) top the list of the most profitable industries over the last 12 months.

It’s nothing new, accounting has been at the top for several years, but I think sometimes CPA firm owners don’t think much about it, probably because they are used to the profit margins.

The information comes from Sageworks in its annual ranking of the most profitable industries in the U.S.

Most CPAs truly love the work they do. Sure, it involves some long hours, commitment and dedication to client service but being extremely profitable sure is a nice reward.

Share this information inside your firm. Perhaps it will inspire talented, young CPAs to go down the future partner track. Some partners don’t want to share this information because the staff will want bigger salaries. Maybe it is time to have that conversation inside your firm.

most-profitable-2017

 

  • Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
  • Warren Buffett

Wednesday, August 9th, 2017

Summer Reading for Women in Accounting

“Careers are a jungle gym, not a ladder.” – Sheryl Sandberg

The dog days of summer have arrived. If you work in a CPA firm, male or female, I hope you have made it a point to do more reading this summer. If not, there is still time.

Here are some great books for females in the business world to read. I also recommend that male CPAs who are managing females make it a point to read some of these books. Try “Why Must There Be Dragons” first – it is enlightening and entertaining for both sexes. In this story, males are dogs and females are cats.

NJ Women Summit

  • The future belongs to those who believe in the beauty of their dreams.
  • Eleanor Roosevelt

Tuesday, August 8th, 2017

Warm & Fuzzy

“You cannot do a kindness too soon because you never know how soon it will be too late.” – Ralph Waldo Emerson

Many accounting firm owners/shareholders, in years gone by believed they were doing the right things.

  • We can get by with two monitors, no one needs three.
  • We need to stick with our professional dress code, our clients care.
  • Not everyone needs access to remote connectivity.
  • We don’t need to send more than one person to that management conference, they can come back and inform us all about what they learned.
  • We can just send one person to that leadership training, they can teach it at the firm.
  • It will be okay if we delay working on that succession plan until next year.
  • We don’t need to spend very much on Christmas gifts for the staff, they really don’t appreciate it anyway.
  • It is too hard to keep track of everyone’s birthdays, we don’t need to send a card to each person’s home.
  • It will hurt production if we close the office on Fridays in the summer.

Many partners called all of these things and other nice, little things they were expected to do for staff, “warm & fuzzy” stuff.

In the past, some of these did apply but they sure don’t now. Never be afraid to admit that you were wrong and make important changes that will guide your firm into the future.

  • We would all like a reputation for generosity and we'd all like to buy it cheap.
  • Mignon McLaughlin

Thursday, August 3rd, 2017

Rapid Change

“It is not necessary to change. Survival is not mandatory.” – W. Edwards Deming

The above quote is one of my favorite and it applies to CPAs in public practice.

CPA management consultants (like me) have been asking, urging and pleading with CPAs in public accounting to change for several decades.

Enlightened CPAs paid attention, the vast majority did not. One of the first major changes I can remember was more focus on marketing. Way back, even before my time, CPAs were not allowed to market/sell – it was unethical. You had to rely on word-of-mouth via satisfied clients and referral sources. Finally, over decades, marketing and selling are just like breathing – something every CPA firm must do.

The scary thing to me, as I reflect back, is how long it has taken to begin marketing and to actually learn to sell. It has also taken way too long to begin focusing on the efficiencies with technology and to realize the importance of building a people-friendly culture.

I recently read an article (@hrbartender) about how the number one concern of CEOs right now is not recruiting and retaining, it’s the speed of change.

Of course, recruiting and retaining is still a huge issue but it has become a given and will always be a priority.

For CPAs, change has been something to do gradually. Now, they must face the challenge of rapid change. Never before has the business world moved so rapidly.

Many companies are moving away from any type of long-term planning. They are focusing on hiring the right people – those who fit their culture. Company culture has become a top priority.

From my experience, CPAs in public practice know they need to change many things inside their firm. They know they need to change, personally. They listen to me and others and they learn what must be done. They simply do not do it. My favorite description of CPA firm owners:  Good intentions.  No implementation.

Keep in mind, you are running a business. Business decisions must be made. You can’t take decades to implement changes inside your firm. You must get it done in a few months and maybe even a few weeks!

Revisit the quote at the top of this page. Consider how many CPA firms have disappeared via merger/acquisition. Many could not accomplish change so they have permitted others to do it for them.

  • Stagnation is a slow death.
  • Ellen Hopkins

Monday, July 31st, 2017

Women (and Men) In Accounting – Be Confident!

“One important key to success is self-confidence. An important key to self-confidence is preparation.” – Arthur Ashe

I have observed that many women, working in the accounting profession, say a lot with their body language. Many times they seem to withdraw, make themselves smaller, cross arms and legs signifying that they are shutting people out.

Here are some wonderful tips from Amy Cuddy to help females with job interviews. I think these tips can help women in accounting – no matter what the situation, as they build their careers.

I also believe these video tips apply to men in accounting. I know many male CPAs who do not always show self-confidence via their body language. My message to PEOPLE in accounting – you are powerful!

  • Each time we face our fear, we gain strength, courage and confidence in the doing.
  • Theodore Roosevelt

Monday, July 24th, 2017

Providing Leadership Training Is A Must

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – John Quincy Adams

There are a lot of good leadership training programs out there for managers and new partners in the CPA profession. Today, I want to make you aware of a great one from ConvergenceCoaching, LLC.

It is a future leaders development program called theTransformational Leadership ProgramTM.  The typical participant is a manager, senior manager or newer partner and the one-year program focuses on leadership behavior and mindset first, then management skills and knowledge of the profession, too.  Convergence runs “public” programs where any firm can send their up-and-comers and they also offer private versions of the program for specific firms and/or associations.

The program is unique from others in that they help participants understand the power of their mindset and the “internal dialogue” we all have that holds us back, or causes us to say or do things we shouldn’t.  It is only after participants understand themselves better that they can then help them develop new leadership, management and practice development skills.  And, participants are personally coached by a ConvergenceCoaching, LLC coach and their accountability to the program, their commitment to change and grow and their leaps forward are greater than in an education-only program.

There is a program beginning in mid-September and information about that program can be found at:

http://www.convergencecoaching.com/what-we-do/transformational-leadership-program/

Testimonials on the program can be found at:  http://www.convergencecoaching.com/who-we-serve/testimonials/

  • An army of a thousand is easy to find but ah how difficult to find a general.
  • Chinese Proverb

Thursday, July 20th, 2017

Adulthood Pushed Back

“The greatest day in your life and mine is when we take total responsibility for our attitudes. That’s the day we truly grow up.” – John Maxwell

Several years ago, Rebecca Ryan warned the CPA profession that the twenty-somethings that CPAs were accustomed to managing had changed, dramatically. She noted that adulthood markers were happening during their thirties rather than in their twenties.

Just this week I found additional information on this topic that I want to share with you.

Think about it. Baby Boomers (born 1946 to 1964) graduated from college, got a job, got married and had kids when they were in their twenties. Gen-X (born 1965 to 1976) pretty much followed this same tradition.

Millennials are different. A report from the U.S. Census Bureau compares how people born between 1941 and 1957 were living as young adults in the 1970s and how people the same age lived in 2016.

Researchers established four milestones of adulthood: 1) Moving out of your parents’ house, 2) Getting married, 3) Having a child and 4) Getting a job.

  • Younger generations are delaying marriage.
  • One in 3 people ages 18 to 34 (24 million young adults) live with their parents. In 1975, it was one in 5.
  • Women ages 25 to 34 who were out of the labor force to take care of their home and family dropped from 43% to 14% between 1975 and 2016.

So, remember many of those twenty-somethings working at your firm have not actually moved into the adult world. Keep that in mind as you mentor, nurture and supervise them.

  • You're dead if you aim only for kids. Adults are only kids grown up, anyway.
  • Walt Disney

Friday, July 14th, 2017

Flashback Friday – David Maister

“It’s not hard to find smart people. It’s hard to find people who inspire and motivate.” – David Maister

David Maister, now retired, was a great source of valuable advice for those of us working in professional service firms.

Here’s a post from 2013 that lists: Maister-isms: Quotes From The Master.

  • People at accounting firms are starved for appreciation.
  • David Maister

Monday, July 10th, 2017

Big 4 and Blockchain & Bitcoin

“I had nothing to offer anybody except my own confusion.” – Jack Kerouac

Last week I read an interesting article via Nasdaq titled, Big 4 Accounting Firms Are Experimenting with Blockchain And Bitcoin.

My mission is to always keep you informed, as best I can, about happenings that have an impact on CPA firm management.

So today, I simply provide you a link to the article in hopes you will take the time to read it.

The more I read, the more it all seems to be sinking in. Hope the same applies to you.

Here’s more help on Bitcoin.

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  • Truth is ever to be found in simplicity, and not in the multiplicity and confusion of things.
  • Isaac Newton

Wednesday, July 5th, 2017

Yes, It’s July – But Be Thinking About November

“Education is the most powerful weapon which you can use to change the world.” – Nelson Mandela

An age-old challenge inside many accounting firms is the fact that the business client expects you to do their taxes from a very messy set of books.

I have observed that is usually the case when the business owner has a bookkeeper that is really not qualified (think wife, mother-in-law, sister – you know, someone you can’t fire).

Often, even a very qualified small business bookkeeper doesn’t really understand what your CPA firm needs and how/when you need it.

That’s why I suggest you hold a Bookkeeper/Controller Breakfast for your clients in late November. Invite all your client bookkeepers to the event and offer education along with breakfast and good conversation.

Make them feel special. Provide goodie bags with the firm trinkets (pens, pencils, firm logo post-it notes, candy, gum, maybe even a t-shirt). If you start at 8:00, they can be back in their office by 10:00.

The “program” can be very short and very informative. Explain to them the important role they play in making year-end an enjoyable and efficient experience for themselves (and the firm). It might even save their boss some accounting fees!

Many of them might not have a clue about the firm’s expectations. Plus, I have actually seen them learn some very helpful tips from each other.

  • Education is what remains after one has forgotten what one has learned in school.
  • Albert Einstein