Practical ideas, lessons learned and shared experiences for those in the world of CPA firm management, human resources, administration, marketing and technology.
Today’s title is a take off on the old rhyme we used as children, “Water, water every where but not a drop to drink.”*
It’s what comes to mind when I read all of the news and articles about mergers in the CPA profession. Seems like every week I read about two or three mergers/acquisitions in the public accounting profession. And yes, in my opinion, you can call them mergers but they really are acquisitions in that there is always a “top dog.”
As I facilitate owner retreats, the “M” word is often on the owners’ minds, mostly because they have not done a good job at dealing with the “S” word (succession). Simple advice here: If you want to pass your firm along to the next generation inside the firm, you have to build a strong culture and operate a “well-run” firm. That means active management, not waiting on something to happen and then reacting. It means a strong career development program and streamlined, efficient, fully adopted operating procedures. Considering this option? Then get busy now!
Next month, Paul McCartney turns 70 years old. As the story goes, 20 years ago his manager suggested that 50 was a good age to retire because you don’t want to embarrass yourself.
Paul’s answer as he continues to age: “You get the argument, ‘Make way for the young kids,’ and you think, let them make way for themselves. If they’re better than me, they’ll beat me.”
For now, McCartney continues to draw huge crowds who are willing to pay a lot of money for his performance and what he contributes to their sense of well-being.
As I talk with CPAs around the country, I encounter a similar mindset. CPAs who are around 60 who intend to work until they are 70.
Rebecca Ryan of Next Generation Consulting puts it this way when addressing the Paul McCartney situation in a blog post on the Winning Is Everything blog: “That’s not how it works for you and me. We toil in organizations where some of our elders hang out – sucking up resources and biding their time, well past their expiration date. They hide behind a smokescreen of success that veils the hollowness of their contributions.”
Ryan notes that many Boomers are scared because they haven’t saved enough to retire and many of them love to work.
Relating this to the public accounting profession, my first issue is, some of them say they love to work but what they really love is coming to a nice, comfortable office every day surrounded by bright younger people and simply enjoying the environment. What would they do at home anyway?
My second issue is, younger CPAs (the younger partners and even younger managers) let this happen. They must step-up to the plate and demonstrate their ability to bring in business, manage a growing firm and take the firm to the next level. They have to prove their ability. Like the McCartney quote, “If they are better than me, they’ll beat me.”
Firm leaders, young and old, take on the project of addressing the dilemma of continuing contribution.
If a 60-something is still contributing ideas, showing creativity, providing over-the-top client service, keeping up with technology and social media and bringing in business – their performance still draws a crowd and brings in lots of money – they are contributing. If a 60-something comes in every day at nine or ten, checks emails, surfs the net, often plays golf in the afternoons and “sucks up resources” without any visible signs of personal growth – they are not contributing.
It’s going to be an issue for years to come – the oldest baby boomers are just now turning 65. Figure out your firm’s plan to deal with it.
I'd never just want to do what everybody else did. I'd be contributing to the sameness of everything.
Lynn Nichols, CPA, is legendary in the world of tax CPE. I heard his name early on in my career as CPAs raved about his tax classes. I’ve also worked on conference committees where the planners would always say: We must have Lynn Nichols!
He has a devoted and passionate audience. He has been providing tax consulting services to accounting firms for 40+ years and presents more than 100 CPE seminars sponsored by state societies and CPAs each year, plus he is a featured speaker at most major tax conferences.
Having given you all of that information (which you probably already knew), you can imagine my excitement at having my picture taken with Mr. Nichols at the Minnesota Tax Conference last fall. Now I have a “Lynn Nichols, is that you with Rita?” gem to add to my collection.
I wanted to post this now because of Mr. Nichols’ recent article that appeared in the Ohio CPA Voice magazine and in some other states’ society newsletters. It has a wonderful and important message and causes my admiration to continue to grow.
The mental stress and long hours associated with a CPA's work can be difficult to handle.
One of the best ways to enhance your reputation as being an outstanding CPA is to write. Don’t cringe! One of the best ways to attract new business is to write. One of the best ways to obtain more business from your current clients is to write
You should be writing about what you know – accounting, tax, auditing – or about a special industry you serve, where you have become extremely knowledgeable – auto dealers, distributors, high wealth individuals, non-profits. Write about a special tax situation you solved for a client.
For years, firm administrators, administrative assistants and marketing directors in CPA firms have been waiting on you to provide that article you promised.
Here’s how the story goes. At a pipeline meeting, Pete (the tax partner) mentions that he will write an article for the next firm newsletter. Sally, the firm administrator, thanks him and informs him that she will need the article in three weeks. Pete acknowledges that is enough time for him to provide her the brief (350 to 400 word) article.
Two weeks later Sally sends Pete an email to remind him that he has one more week to write the article and she even stops by his office to inquire about his progress (he hasn’t started it yet). Two days before the due date she inquires again via email and receives no reply. The next day she asks him in the hallway about the article and he explains, “I know I owe you an article but I have been too busy, maybe I’ll do it tomorrow.” Sally delays publication of the newsletter, awaiting the promised article. After three or four days of standing outside his office door to nag him, she gives up and substitutes a “canned” article. Now, repeat this scene over and over again. One of my favorite phrases applies: Good intentions, no implementation.
In today’s business environment, writing has become more and more important. CPAs should be blogging, tweeting, sending newsletters with articles written by their own partners and staff, submitting articles to their local business newspaper, starting discussions on LinkedIn andiShade. The written word is being blasted around the planet in astronomical numbers and CPAs should be part of the noise. It has become absolutely critical for CPAs to be writing on social media.
Want to learn how to write for social media and how to make it an easy natural activity? Take 6 minutes and watch this excellent video from Jeffrey Gitomer titled, Writing is Not a Mystery. It’s Your Best Chance to Achieve Mastery.
Either write something worth reading or do something worth writing.
Today, inside thousands of CPA firms in the U.S., busy season is drawing to a close. As a firm owner or leader, what’s on your agenda for the coming days, weeks, months?
“No mariner ever enters a more uncharted sea than does the average human being born today. Our ancestors thought they knew their way from birth through all eternity; we are puzzled about the day after tomorrow. – - Walter Lippmann
There are a lot of things to contemplate about today’s business world and about the public accounting profession. The pace of change is frantic. This spring, don’t waste time. Get busy on your action plan for 2012 and beyond.
Don’t involve the same old people, doing the same old thing, attending the same old retreat, giving performance feedback the same old way, hiring the same old way, providing the same old training and end-up procrastinating as usual. The pace of change is frantic and you (and your firm) will be left behind. It’s time to expand your universe.
Success makes men rigid and they tend to exalt stability over all the other virtues; tired of the effort of willing they become fanatics about conservatism.
I recently had the pleasure of becoming acquainted with Brannon Poe, CPA. Poe is the author of a book, titled Accountant’s Flight Plan - Best Practices for Today’s Firms. I found it to be a very readable, on-point guide to some of the most pressing topics in CPA firm practice management.
When Poe got into the business of helping people buy and sell their accounting firms, he started keeping a “deal journal.” It became full of notes, anecdotes, and scribblings as he talked with firm owners. He has helped over one hundred practices to be sold. Later, it dawned on him that all of this information might be worth passing along. Thus, the book.
His findings are right on target and I certainly agree that he did the right thing in writing a book that can be shared with practitioners facing the challenges of running an accounting practice.
I like the titles of his chapters. Click the link to see a preview. Here’s a few examples of the chapter titles:
Sometimes inside accounting firms, people are not very creative. What I am referring to is that employees are taught and expected to follow checklists and firm leaders manage the firm based on what other CPA firms are doing.
Seems pretty confining, right? I don’t mean you should discard your checklists (they bring efficiency, accuracy and quality to the work you provide clients). I don’t mean you should never refer to another MAP survey. What I want you to do is encourage your people to THINK and challenge the status quo.
How Does Creativity Work? - We use creativity in the singular as if there is only one way the brain creates new connections but there are probably three neurologically distinct forms of creativity. One is when you have these moments of insight that come out of the blue (when you are in the shower). Another form is really working hard at solving a problem and the third is spontaneous improvisation (what Miles Davis did).
Can a person choose which kind of creativity to use? – The type of process we should use really depends on the type of problem we’re solving. I think we have to do a better job of diagnosing where we are in the creative process and adjust our thought process accordingly. When I’m stuck, I realize now I need to let myself relax, because the answer will arrive only when I stop looking for it. (Keller comment: Hasn’t this happened to you many times when trying to solve an accounting problem?)
You say brainstorming doesn’t work. Why? – The reason is it’s main rule: Thou shalt not criticize.(Keller: We tell our people, team, committee, task force, partners at a retreat – “spit it out, no idea is too dumb, we won’t laugh or make fun of anyone, i.e., criticize.) As long as criticism is constructive, it forces people to engage on a deeper level. The problem with brainstorming is free associations are really superficial and constricted by language. Criticism is important to get past that.
At your partner retreat this year, dig deeper into a few issues rather than superficially looking at many of the firms challenges. If a good idea surfaces, attack it! Use confrontation as a tool, don’t hide from it.
In my experience, when really tough issues come up, CPA partners tend to look at their laps rather than open their mouths. Get over it and be more creative at your firm.
In public accounting for CPAs, as far as I can see and assess, it’s still about the volume of time you can work.
I’m not talking about how or if you track time or how you price your services. I’m talking about the number of hours you spend “at the office” and, include the number of hours you work away from the office at home and even on vacation. Most experienced CPAs can tell you immediately even in a casual conversation – “I worked 3,012 hours last year.” – as if it is a badge of honor.
Those of you who are baby boomers (or those of you trying to understand baby boomers), remember when (about 15 or 20 years ago) you all took official time management courses or went through formal time management training? How are you doing with that?
Maybe it’s time to update your thinking about time management. After all, it’s a whole different world than it was 15 years ago – things are moving at a lightning pace and inside your accounting firm the mood is changing. The old badge of glory – working unreasonable and unhealthy hours is not something to be admired.
Rather than younger accountants thinking: Wow, he/she worked 3,000 hours. I wonder how he/she did it? I need to get more productive.
They will be thinking: Wow, he/she worked 3,000 hours. I certainly don’t want to spend that many of my precious hours at work – I’m outta here.
There are a lot of accelerator programs out there for startups. They teach wannabe entrepreneurs time management skills. For startups, managing time is a matter of sink or swim and young companies can only succeed if they stay on task. I think the same applies to accounting firms going forward. Here’s some great tips from these programs as featured by FAST Company:
Avoid the email time suck – only check it three times a day.
Choose your most important goal each week – focus on the biggest and most important thing.
Know your productivity limits – more hours doesn’t mean productive hours.
Take breaks to prevent burnout – it’s better to average 8 solid hours of productivity a day than it is to output 12 hours of mediocre ones.
Skip some meetings – watch out for meetings with no goal.
Say “no” when you need to – whether it is too many meetings or actually talking too much to your team, you need to make decisions fast about when to say no.
Look around your office during the next few weeks. Are you and your people spending too much time on email? Are you in the office 12 hours and only really working 8 or 9?
After April 15th, will you be able to clearly focus on your number one priority to make your firm a winner or will procrastination set-in for at least a couple of months?
Consider the CPA firm partner – typically very successful and dynamic. Could be described as a natural at marketing, an expert in a niche, cultivates a great referral network, demanding about quality and service and so on….
Consider that partner’s go-to person, usually someone junior (an apprentice) who has these traits: highly valued as a right arm to the partner, no significant book of business, backed-up on work, a forever-manager type, subdued personality, and so on….
Consider the dance that these two dance for years. Did the partner pick the right apprentice? Is the apprentice (the student) taking the right steps?
Find out by reading this insightful post by Michelle Golden on her blog last fall. It is titled, The Apprentice Who Can’t Take Over The Practice – it’s part of her “Fly On The Wall” series.
A man who does not think for himself does not think at all.
Inside your accounting firm, you have younger workers and older workers.
This usually means that the older workers, partners for example, have been working as a CPA for many years and have achieved a high level of success.
An article in TIME magazine asks, “What if the good life isn’t really all that good?”
It has long been believed that low-status (yes, poor) individuals have a very high level of stress that goes away as they move up the social ladder. That’s true to a point.
What research has found is that as you near the top of the status scale, life stress increases so dramatically that its toxic effects essentially cancel out many positive aspects of succeeding.
Do you sometimes feel this way? Are you working so hard – and so many hours – that the “Is this worth it?” fairy visits you more and more often as you age?
At this year’s partner retreat perhaps an important topic should be diving deep into the topic of life work balance – not just for the young crowd that demands flexibility and much more – but for your experienced, successful partners who simply put their health and personal relationships in danger by working too many hours.
An important take-away from the article: Younger workers in high-achieving occupations are often less stressed than their older colleagues, who remember the days when answering work emails and texts was not a 24/7 obligation.
Executive ability is deciding quickly and getting somebody else to do the work.
Today’s title is a take off on the old rhyme we used as children, “Water, water every where but not a drop to drink.”*
