Archive for the ‘Change’ Category

Monday, July 26th, 2021

The Latest On Accounting Firm M&A

“Success is not final; failure is not fatal: It is the courage to continue that counts.” – Winston Churchill

If you haven’t seen the recent interview of Allan Koltin by Russell Shapiro, it’s time you took a few minutes and watched it.

CPA firm leaders need to keep current on the latest trends in M&A and there is no one more in-tune than Allan Koltin.

  • It is better to fail in originality than to succeed in imitation.
  • Herman Melville

Monday, July 19th, 2021

Considering A CRM For Your Firm?

“Failure isn’t fatal, but failure to change might be.” – John Wooden

When I worked at a CPA firm, I was always proud of the fact that the firm was on the leading edge when it came to new ideas, processes, and software tools. We were paperless very early on but waited several years for a Document Management System that actually fit the CPA profession.

One technology tool we never purchased and one that I hesitate to recommend for CPA firms is a CRM (Client Relationship Management). Data is only as good as what is fed into the system. I knew that our partners would simply not expend the extra effort to record important client information and conversations into the system. The old slogan applied: Garbage in, garbage out.

That is why I enjoyed a recent article by Gene Marks (the famous guy you see on TV) who is a CPA. The title: On CRM: The Best CRM For An Accounting Firm Is Probably No CRM.

He explains particular things that apply to accountants that make them poor candidates for a CRM. His company has even tried and failed to implement CRMs in a dozen firms.

Be sure to read his article. I am sure the reasons for CRM failure will sound very familiar to you!

  • The only real mistake is the one from which we learn nothing.
  • Henry Ford

Thursday, July 8th, 2021

What One Firm Is Doing

“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” – Francis of Assisi

Elliott Davis, a business solutions and accounting firm with nine offices across the Southeast,

In the new office, less than 10 employees have assigned workstations while the rest of the firm’s Greenville team members reserve seats a week in advance. By utilizing a reservation system, employees may be able to use a certain type of space at any given time such as a private office, collaboration space or open workstation.

Elliot Davis also added multiple monitors with an integrated web camera in each workstation and equipped meeting spaces with Microsoft Teams video technology to help connect with remote participants.

The above information is from a press release. What is your firm thinking about, planning, and/or doing? Your people will want to know.

  • Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.
  • Albert Schweitzer

Thursday, June 24th, 2021

Retention – A Dual Responsibility

“Just imagine how great a workplace could be if employers and employees worked together to improve retention.” – Sharlyn Lauby

We have discussed and discussed the talent wars in public accounting for years. I couldn’t imagine how it could get much worse. But it has.

Sharlyn Lauby (@hrbartender), in a recent article, acknowledges that retention is on the shoulders of the employer. However, employees should also share in the retention efforts.

“Organizations are unable to put retention strategies in place if they don’t understand what employees want (i.e. what makes them stay with the company). Some of you might be saying that this means the obligation is on the employer. True – but the employee has to give them the information. That’s where the employee plays a part in retention.”

Firm leaders cannot provide what employees want unless employees provide honest feedback. As a person working in a CPA firm do you provide honest feedback when asked? The main reason employees don’t give honest feedback is the fear of retaliation .

Read Lauby’s article to learn about the three basic employee needs:

Power needs are the ability to influence.

Affiliation needs are related to being a part of the team.

Achievement needs are focused on the ability to get things done.

If you wonder why your team members do not provide feedback, ask yourself – Do our employees feel safe giving feedback? Have we always acted upon feedback received in the past.

  • Organizations need to figure out if culture is keeping employees from providing the feedback you’re looking for.
  • Sharlyn Lauby

Monday, June 21st, 2021

The Great Resignation

“Your employer brand is your external experience, and your talent brand is the internal experience.” – Cassie Whitlock

Has your accounting firm started to experience the resignation crisis? It is happening to employers now and the prediction is that it will continue.

Last week, I wrote about how the talent pool for CPAs will be shrinking. Now, it seems, you will be facing the fact that your people can work for a firm, no matter where that firm is located. Firms in large cities are willing to pay large city salaries to remote staff that live in more affordable localities.

Per a recent article via Fast Company, Texan A&M University Associate Management Professor Anthony Klotz coined the phrase (the great resignation) during an interview with Bloomberg Businessweek.

The article also notes:

Employees are also seeking more rewarding work, adds Cassie Whitlock, head of human resources for the talent management software platform BambooHR. “Many have lost a sense of connection to the workplace,” she says. “Even if they’re getting time with their manager, we discovered they’re having fewer interactions, and the quality of those interactions is diminished. They’re not having a feeling of genuine connection. They feel less seen, recognized, and appreciated.”

Remember something I have written about often – people don’t leave companies, they leave managers. Your managers have that first-hand contact with your staff both in person and remotely. It’s time again to help your managers to become very skilled at managing and engaging people.

Whitlock stresses something that CPA owners need to embrace:

“They (managers) spend the most time with employees, and they make or break an organization’s goals, objectives, and outcomes,” says Whitlock. “They carry the water. Invest in growing managers to make sure you have the quality and caliber you want.”

  • You need to be great at telling stories in your organization. How are you making a difference? And are you sharing those successes with team members to help them feel good about the goals and outcomes you’re driving?
  • Cassie Whitlock

Friday, June 18th, 2021

The Big Things

“Your comfort zone is a place where you keep yourself in a self-illusion and nothing can grow there, but your potentiality can grow only when you can think and grow out of that zone.” – Rashedur Ryan Rahman

Do you get caught up in so many little things that you always procrastinate on the big things? Don’t do it. It’s summer – focus on the BIG things. Here’s a Friday Flashback post about thinking big.

  • No one plows the field just by thinking about it.
  • Ljupka Cvetanova

Wednesday, June 16th, 2021

The Talent Pool Is Shrinking

“The climb might be tough and challenging, but the view is worth it. There is a purpose for that pain; you just can’t always see it right away.” – Victoria Arlen

I received the following press release from the Illinois CPA Society. They are unveiling the findings from research they have done relating to the decline in CPA candidates. If you think finding and hiring future leaders is difficult now, just wait.

How will your firm prepare for the future? It seems that accounting students don’t see the value in devoting the time and energy to become a CPA.

My advice? Share your partners’ salaries with your future CPAs and with college students you talk to or interview. Is it worth it to become a CPA, in public accounting, when average partner compensation in $5 to $20M firms is half a million? In many larger firms, partner compensation is over $1,000,000. Plus, flexible work arrangements make public accounting very attractive.

Illinois CPA Society Releases New CPA Pipeline Report

CHICAGO, June 14, 2021– Unveiling the findings of its previously announced research into the decreasing supply of new certified public accountants (CPAs), the Illinois CPA Society (ICPAS)—one of the largest state CPA societies in the nation—is pleased to release its 2021 Insight Special Feature, “A CPA Pipeline Report: Decoding the Decline.”

The result of an in-depth survey of more than 3,100 accounting students, graduates, and professionals predominantly under age 35, “Decoding the Decline” reveals respondents’ top challenges, perceptions, and influencers impacting their decisions to pursue the CPA credential or not and what, if any, value it may bring to their personal and professional lives. The eye-opening responses—particularly among non-CPAs and those who are still unsure about becoming CPAs—provide invaluable insights the CPA profession and its stakeholders cannot ignore while trying to counter the declining number of first-time CPA exam test takers—which hit a 10-year low in 2018, and further declines are expected when new data becomes available.

“Five years ago, I delivered the warning that a stagnating CPA pipeline is a threat. It’s an issue that will only get worse and grow more troubling without action. Today the issue has, in fact, grown worse and more troubling,” says Todd Shapiro, ICPAS president and CEO. “It used to be that if you earned an accounting degree, earning the CPA credential was the given next step regardless of career paths or time commitments—that’s no longer the case.”

“From this initial survey, we learned that individuals—who we believe should be future CPAs—are not pursuing the CPA credential because they feel they can succeed in their anticipated or chosen careers without it,” explains Kari Natale, CAE, ICPAS senior director of planning and governance, who led the survey’s development alongside Association Management Center, ICPAS’ research partner on the project. “They believe any value the CPA credential holds is outweighed by its lack of relevance to their personal and professional endeavors and the time commitment necessary to obtain it. They do not see the return on investment; they do not see their employers or prospective employers supporting or requiring it; and they see other credentials or specialties as being more valuable to their careers.”

Additional notable findings in “Decoding the Decline” include:

  • The costs associated either with obtaining the additional credit hours to meet the educational/licensing requirements or preparing for and taking the CPA exam were not the top barriers cited by any respondent category.
  • The likelihood of becoming a CPA drops dramatically after age 22.
  • Many respondents do not have an interest in pursuing a credential at all.
  • Accounting, auditing, and tax preparation are the words most associated with the CPA credential, further narrowing the credential’s scope and attractiveness.

“As the survey findings shared in ‘Decoding the Decline’ show, reversing the CPA credential’s downtrend will not be without its challenges,” Shapiro cautions. “The CPA credential and the CPA profession are in a race for relevance, and the time to act is now.”

Decoding the Decline” is available now in PDF and digital formats at www.icpas.org/cpapipeline, and print editions are available upon request. Both Natale and Shapiro welcome reader feedback and are available for further commentary on the factors impacting the CPA pipeline.

  • There are no shortcuts to any place worth going.
  • Beverly Sils

Tuesday, May 25th, 2021

Don’t Delay!

“Ideas are useless unless used. The proof of their value is in their implementation. Until then, they are in limbo.” – Theodore Levitt

To be able to run an efficient and profitable accounting firm you need to do more than talk about the changes you need to make. Talking about change is an active exercise inside firms. Actually, implementing and executing the steps necessary for change is another topic altogether. This is where many firms settle on a plateau rather than to continue climbing the mountain.

In my early days in public accounting I worked for the founder of the firm, a person in what we now call the Veteran (or Mature) Generation. If we had an issue or challenge he would proceed with Ready, Aim, Fire. We would research solutions (ready), adopt them to fit our size firm (aim) and then implement (fire). He did not hesitate.

As the Baby Boomers took over leadership of firms or founded firms, many of them seemed to find implementation more difficult – for various reasons. Even today, I observe so many firms that have adopted: Ready, Aim, Aim, Aim, Aim, Aim……

In today’s rapidly changing environment in public accounting and especially in technology and in the nature of our workforce, practitioners (Gen-X and Millennial leaders) must be able to Fire, Fire, Fire if they want the firm to stay ahead of the competition.

In dealing with succession, many firms are still in the “aim, aim, aim, aim” mode.

  • Ideas are easy. Implementation is hard.
  • Guy Kawasaki

Friday, May 21st, 2021

One of Your Biggest Challenges

“The best way out of a difficulty is through it.” – Will Rogers

This week for Flashback Friday, I encourage you to read about one of your biggest challenges. Here is a post from 2019.

  • The difficulty lies not so much in developing new ideas as in escaping from old ones.
  • Maynard Keynes

Monday, May 17th, 2021

The New CPA Exam

“The only place where success comes before work is in the dictionary.” – Vidal Sassoon

They are changing the CPA Exam again. It is shifting to put an increased focus on technology. July 1, 2021 is when this shift in the Exam will take place.

From Accounting Today: As the accounting profession evolves to meet today’s needs, the Uniform CPA Examination is also evolving to reflect these industry changes. On July 1, 2021, the CPA exam is shifting significantly to put a heavier focus on technology, digital mindsets, data analytics, and the other skills that newly licensed CPAs need to succeed. Candidates preparing to take the CPA Exam must take these updates into consideration.

Here’s the informative article, What every candidate needs to know about the updated CPA exam, via Accounting Today. Read it and share it.

I wonder how many CPA partners could pass the exam if they had to take it in 2021. I have often heard partners joke about it (meaning they couldn’t pass it now, let alone after July 1).

  • Study while others are sleeping, Work while others are loafing, Prepare while others are playing, and Dream while others are wishing.
  • William Arthur Ward