accounting professional – Page 7 – Cooper Mann Consulting

April 29, 2014December 7, 2017

The CPA for Small Business: Proactive, Responsive, and Helps Paint a Beautiful Picture

I once read an article written by Doug Sleeter which describing the findings of a published report titled What SMBs Want from Their CPA. The report was a summary of results from a study conducted by The Sleeter Group, and was intended to help accounting professionals understand the factors in the market which influence business use of professional accounting services. While adoption and use of technology was not named as the top item on the list, capabilities which can be rendered only if such adoption occurs were. In short, it’s not the technology that clients demand, but the level of service that professionals can only deliver by embracing advancements in technology and applying them to the client engagement.

The report and article placed a specific focus on trends relating to technology adoption and use in the professional practice, and establishes a foundation for firms to understand why technology is and always has been a key factor in the success of the CPA-client relationship. It’s not that the accounting professional must become a skilled technologist and promote high technology to the client. Rather, the success factor rests with the firm’s motivation to implement technologies and tools which will improve their ability to deliver more (and more valuable) service to the client in a more direct and timely manner.

The survey’s two critical questions posed to small business owners who use the services of a CPA were 1. What factors played a role in your decision to leave your former CPA?, and 2. What types of services would you like to receive from your CPA? Both questions are pretty straightforward, and the top responses from surveyed SMBs were equally unambiguous.

To the first question (factors playing into a decision to leave former CPA), the top two answers indicated that reactive and/or unresponsive are the problems which ultimately cause a small business owner to change accounting professionals. The top response was “Former CPA didn’t give proactive advice, only reactive”. The close second response was “Former CPA had poor responsiveness”.

Unfortunately, these responses more than accurately describe many professional firms and their approach to client service. These firms are perfectly content with waiting for clients to deliver after-the-fact information, delivering reports long after their relevance has past, and providing no sense of urgency in helping clients address business issues facing them here and now. These firms are content to work with their write-up and trial balance solutions, depreciation and amortization and tax products – and give little consideration to how they could adjust their operation to a better, more relevant and rapid delivery of service and insight to the client.

The second question, “What services do SMBs want from their CPAs?”, was met with the same responses professionals have been hearing for years; small business owners need help with business planning and business strategy and they wish the help would come from their CPA. It is surprising how many accounting professionals list business planning and strategy among the services they promote on their websites, and then just sit back and wait for clients to ask. Communication with clients remains relegated to annual reminders for tax information, or maybe slightly more frequent notes about other tax or compliance work to be done. It may be a bit unfair to place all the blame on the professional. Regulatory and reporting impacts on business are increasing and are increasingly complicated. Many professionals find it challenging enough simply to keep up with changes relating to the services they currently and regularly provide.

This is where practitioners should seriously take notice, and accept that the ability to meet changing market and customer demands is by intelligently leveraging technology to accomplish what people and process cannot do alone.

It takes information technology to speed up the bookkeeping, accounting and reporting processes; technology is required to help turn information into useful and relevant data;
technology facilitates the faster collection of information from and the delivery of information to clients;
technology is applied to reflecting numbers as pictures and helping users visualize the meaning of the data, and
technology enables the collection and analysis of “big data”, which leads to AI advancements and greater intelligence delivered through the applications businesses use.

The Sleeter Group report clearly demonstrated that small business owners continue to need and want more than just tax returns and post-facto reports from their accounting professionals, and that the lack of attention in these areas pose a direct threat to the small business/CPA relationship. Professionals can remove the threat by working closer with their small business clients, applying technology and process controls to get better information in a more timely manner, and returning the result with greater insight. Be proactive and be responsive, and apply the necessary technologies and business philosophy to get there before the client base looks for satisfaction elsewhere.

I’ve said before that small business owners don’t care about the numbers, they care about the picture the numbers paint, and they care about getting to a place where the picture is absolutely beautiful. With the right tools in place, their CPA can help guide them there.

jmbunnyfeet Make Sense?

December 20, 2013

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

It has been an eventful year, hasn’t it? With the NSA lurking about collecting data, innovative new approaches to information and identity theft emerging almost daily, and complete turmoil in the IT services industry challenging trusted sales and distribution models, most of us have simply become numb to the noise. Information technology is evolving at an increasingly rapid pace and the way people and businesses interact with and use technology is being forced to change along with it. It’s starting to become almost, weirdly, natural.

Much of this change can be attributed to “The Cloud”, which is not a thing or a place. Cloud has become the term which applies to just about anything having anything to do with the Internet. For technology “purists”, cloud means something fairly specific, but for normal people (no offense to the nerds and geeks, but you know what I mean), cloud applies to pretty much anything accessible via the Internet. Photos back up to “the cloud”; music gets stored in “the cloud”, websites are hosted in “the cloud”; businesses run their applications in “the cloud”, and you can do darned near anything you need (or want) to with a phone. The cloud could be some guy’s server in his basement, or it could be a sophisticated network of systems housed in secure facilities around the globe. They both qualify, sort of. The point is that mobility, Internet services, subscription access to technology, and social computing are changing how people view technology – resulting with changes not simply in how IT is purchased, but in how IT is used and applied to daily life.

There are, however, some things that do not change even if the working environment does. The accounting profession, for example, is undergoing a great deal of change, and much of it fueled by the advancements in technology and social computing. But accounting fundamentals – the “truth of debits and credits” and the good old accounting equation – remain. The basics of running a business are also unchanged, even as methods of doing business evolve and globalization of markets continues. Business fundamentals – fiscal responsibility, cash and growth management, and focus on value and sustainability – are as necessary now as every before.

With all this change and IT “advancement”, there have certainly been impacts to how and where we work. But the more things change, the more they remain the same. Good business generates goodwill and more business – that doesn’t change – and bad news still tends to spread faster than good news (much faster, given social platforms that are designed to spread the word far and wide). And when it comes down to the fundamentals – the basic and essential foundations supporting building, operating, and accounting for business – we generally find that they remain constant even as the environment in which they exist experiences change.

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Here are the top 20 ranked posts for 2013 from CooperMann.com

Posts by category – with Accounting Professionals, QuickBooks Hosting, QuickBooks Software, and Small Business being the top categories with ranking articles.

ACCOUNTING PROFESSIONALS

Small Business Owner to Accountant: Make Accounting Valuable to ME

Accounting Professionals, You’re right – your clients don’t care about the numbers.

The Language of Accounting: Disconnect between Accountants and Bookkeepers

Why Accountants and Bookkeepers Use the Cloud

Bookkeeping and Benchmarks – Getting the Numbers Right

In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing

Re-defining the role of the accountant, or going back to the good old days?

The Collaborative Online Model for Small Business Accounting Professionals

Remote access to client bookkeeping comes in many forms because clients come in many forms

QUICKBOOKS AND BUSINESS APPLICATION HOSTING

What Small Businesses Need To Know about QuickBooks and the Cloud

Intuit Introduces Changes to Authorized Commercial Host for QuickBooks Program, Introduces QuickBooks Enterprise Rental Licensing

Hosting All My Applications in the Cloud

Intuit Hosting Program for QuickBooks Website Goes Live

Cloud Computing for Small Business: It’s All About 3 Apps

QuickBooks Hosting: New Program Tier Announced for QuickBooks Hosting Providers

Managed Applications, Cloudpaging, and a New Flavor of Hosted QuickBooks

QUICKBOOKS SOFTWARE

Changing How We See Software: QuickBooks 2013 interface frustrates power users

SMALL BUSINESS

4 Rules of Thumb for Business Success

4 Rules for Building Service Customer Loyalty

December 12, 2013January 8, 2018

4 Rules of Thumb for Fiscally Fit Business

Most folks who start a new business go in to it with a rather naïve belief that a good idea, product, service and/or group of people can be successful just because their idea, product, service or people are good. Unfortunately, that isn’t’t the reality of starting up and running a business. Regardless of how great and innovative the idea is, the business only works if it is sustainable and profitable. Otherwise, it was just a great idea. For many entrepreneurs, developing an understanding of the financial underpinnings of running a company isn’t the most exciting of ideas. The compulsion is to outsource the responsibility to someone else like an accountant or financial advisor. While I completely and utterly agree that every business owner should work closely with their accounting professional and financial advisor, I also know that those very same business owners will get more value from their advisors if they have a common language to speak (business finance) and are working toward a common goal. The goal is fiscal fitness – the creation of a sustainable and profitable business. Just as physical fitness supports a healthy body, fiscal fitness supports a healthy business.

The successful business operating in this economy adheres closely to 4 main beliefs, rules of thumb perhaps, relating to fiscal management and fitness and which are generally communicated in detail using the language of business finance.

Rule 1. Plan before you start. Then plan some more. Starting a business isn’t like going to college; you’re supposed to know what you’re going to do BEFORE you start up rather than paying to explore the options. It is also very important to recognize that the plan may require some adjustments as you go along (“No plan survives contact with the enemy”), taking care to not equate focus with intractability. This plan should also include the “exit strategy”, which is really a plan for what the owner wants to ultimately get out of the effort. It could be a plan to sell out for gobs of money, to leave a legacy for the children, or maybe just to have an awesome quality of life and do what they love at the same time. Knowing what it will take to get in, get it done, and get out the way you want is all part of the plan.

Rule 2. Keep a close eye on the numbers. No, not all of them, but the really important ones. Some of these numbers have to do with the relationships between price, volume and cost. This is the stuff a business owner needs to know like the back of their hand – hairs and all. Not every business will focus on the same key numbers (mostly, but there are certainly variations), but every business owner should know what to look for. And they should be looking very frequently so things don’t get out of whack before corrections can be made.

Rule 3. Manage the cash, manage the growth, and know how one impacts the other. Cash flow and growth are priorities number 1 and 1 in business but they aren’t the same thing. Consider that reducing prices (and profits) to get more sales may work as long as the volume of sales supports the effort and generates the cash. Without the extra sales revenue to rely on, reducing profits could result in devastation (maybe sticking with the prices the way they are and not pushing for fast growth is a better idea).

Rule 4. If you must borrow, be informed and do it smartly. There are a lot of different options for borrowing money for the business, just as there are a lot of different reasons to do it. There is a great deal of research available which describes the benefits of borrowers being educated in basic financial literacy, with better financial decision-making being among those benefits. Looking for financing is kind of like choosing between the apple and the candy bar: one may promote the fitness you’re looking for while the other does not (but it looks sweet!). It’s nice to have the foundation to support knowing which one you should choose.

Building and maintaining a fit business requires an understanding of how the business works – how and why it makes and spends money, what makes it profitable and what it takes to create and support growth. While outside advisors may be available to help, the best performance is achieved when the business owner masters the essential skills required to run and grow a fiscally fit and sustainable business.

Joanie Mann Bunny Feet

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Measure, Manage and Succeed. It’s all about knowing how to speak the language of finance

November 11, 2013

Lawyer Immunity from Delivering Customer Value is No More

All indications are that business and revenue growth for law firms is no longer a function of head count. As with other professional service providers, lawyers are experiencing increased competition from a variety of new sources, and client demands and needs are changing as society adopts and embraces technology, social computing, and self-service solutions. The problem is that many partners and firm leaders don’t really know what do to about it, and are attempting to fuel continued growth of revenues and profitability while essentially maintaining status quo.

Looking to reduce costs and pushing for more billable hours is standard fare among firm managers, yet the results to be gained from these efforts have pretty much reached their maximum potential. You can only cut so much, and you can only work your people so hard. Unfortunately, many partners and managers simply look away from the problem and continue along the path that has been successful in the past. But growth has slowed, revenues have not grown as expected, and firms are literally being forced to adjust to market forces or go out of business. It’s just too competitive and the pace of change is too rapid. There is no immunity for lawyers in this changing market – service quality and value must improve.

Instead of taking the legacy approach of hiring more people so they can bill for more hours, successful firms are taking a few queues from other professional service providers and are recognizing that individualized client service, consistently high-quality and timely service, and service priced commensurate with the value delivered are at least parts of the solution.

There is quite a lot that law firms and accounting firms have in common, particularly when it comes to the fact that most of these entities are viewed – perhaps rightly so – as being “old school”, with a managing partner or board with intractable views and grey hair. Lawyers, like accountants, are inherently wary of new-fangled concepts and wild ideas. They’re a cautious bunch, and tend to be resistant to change. Yet accounting professionals are beginning to embrace new tools and new ideas when it comes to delivering service and value, and forward-thinking law firms are following suit.

For successful firms, the focus is on the client and the value delivered – on internal process improvements and a better value proposition for the customer – not on the billable hour. Yes, there are investments required. The firm must invest time most of all. It takes time to get everyone educated about issues the firm is facing in the changing marketplace. Unless everyone knows what they’re up against, there will be continued resistance to new ideas and concepts. It also takes time with clients to understand their needs, which is the essential element to delivering service valuable to them. And it takes time to develop and nurture a long-term vision, recognizing that the vision may change as conditions change, and that regular monitoring and adjustment may be necessary.

Investing time and consideration in these areas is the key to delivering customer (and shareholder) value. The result is satisfied and loyal clients, repeat business and increased growth and profitability. Rather than viewing this brave new world as a challenge to the firm’s traditional model, it should be viewed as the opportunity to deliver new and greater value to the firm’s customers.

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Read more about providing Client Solutions, not just Professional Service
Read more about Taking a Holistic Approach to Cloud-Enabling Your Law Firm
Read more about using the cloud to extend “connectedness” beyond traditional boundaries

October 28, 2013

New York or Las Vegas? It doesn’t matter if you can work online.

The 10th annual Accounting Solutions Conference, held by The Sleeter Group, is being held in Las Vegas on November 3-6. By all accounts, it’s looking like the conference will again bring together some of the best and brightest in accounting and business technologies.

The annual “Sleeter Conference” event is among the best opportunities accounting and bookkeeping professionals have to explore and learn about the technologies, service models, client management tools and other elements involved in delivering accounting, bookkeeping and consulting services to small business clients. With the introduction of so many new ideas and solutions designed for small businesses and their accountants, it is no wonder that professionals look to this conference to help make sense of it all.

With the right strategy and through the innovative and efficient use of technology, people and processes, even the smallest of organizations can compete with the big boys. Accounting professionals, pro bookkeepers, and small business consultants and advisors are not simply participants in the financial processes of these small organizations – they are the influencers and implementors of the solutions and methodologies which will generate the positive impact in the client business. Information technology -mobile access solutions and innovative tools for working together – makes it possible to deliver these benefits to clients, whether they’re in Vegas or the Big Apple. Come to the conference and hear all about it.

While you’re there, stop by the Uni-Data Skyline Cloud Services booth and check out some of the new stuff that’s going on in the QuickBooks and general application hosting world. It’s pretty cool! I give it 5 bunnies.

Read more about Sleeter Peeps and New Technology in Las Vegas

October 17, 2013

Accounting Professional Value is Insight and Advice, Not Just a Hosted Server

Back in the late 90’s, when the application service provider model was first established, a number of providers recognized how beneficial it would be for public accountants to use hosted applications to work more closely with their accounting and bookkeeping clients. Seeking markets which would rapidly adopt a hosted application model, these providers focused on hosting small business accounting solutions such as Intuit QuickBooks desktop products, and then sought participation by the largest addressable communities of users working with those products – QuickBooks ProAdvisors, bookkeepers and accountants. The idea was that the community of QuickBooks professionals would benefit by bringing their clients onto the hosting platform, and service providers could sell to one professional and gain a bunch of small business users. It made sense, too, as it allowed the professional to have a single service and login that allowed them to access all their client QuickBooks company files. The client could log in to the system, too, delivering remote access and managed service benefits to the client, as well. But there was a catch, and it didn’t fully reveal itself until recently as cloud-based applications and true SaaS applications began to gain market adoption.

The problem actually started to reveal itself as more businesses elected to adopt hosting services. There’s a saying amongst the QuickBooks hosting providers that “nobody uses just QuickBooks”. Saying “nobody” uses just QuickBooks is a bit of a stretch, but the reality is that numerous businesses use other applications and software solutions in addition to their QuickBooks product. Sometimes these products integrate with QuickBooks and sometimes they don’t, but it is not often that a business utilizes just the one software solution. At minimum, there are likely email or productivity tools in use, too. The point is that the QuickBooks hosting providers – those hosts focusing on providing service to QuickBooks accountants and small business clients – realized that the number and variety of applications desired by their customers would grow very quickly, as would the variety of needed implementation models. The unfortunate solution of the time was to just put it all on the same environment.

The original selling message to the QuickBooks consultant and accountant markets was that they should get all their clients on to the hosting service, and then the accountant could benefit from an “economy of scale”, making the cost of the overall delivery lower. Further, by grouping the firm and the clients into a single hosting environment, it would make application and data sharing easier. Both of these messages are true, but putting the firm and its clients into a single environment – with the firm as the “sponsor” and front line promoter of the service – began to have impacts which were not clearly foreseen.

Accounting professionals and consultants changed the nature of their relationship with the client, going from trusted advisors to technology and solution vendors.
Client business technology needs were placed as secondary to “enabling” the working relationship between the accountant and the small business client.
Attempts to fully satisfy client technology requirements overburdened and impacted the environment, reducing overall service quality and satisfaction and diminishing the value of the scale economy (as well as the clients’ perception of their accounting professional).
Firms structured their processes to support a single technology and operating model, and found difficulties in adopting new strategies or solutions.

In concept, having accounting professionals and their clients all working seamlessly together in the same systems sounds great. For some firms, a cloud server packed with all the firm and client applications and data enables an entirely new business and service model, which is very cool and it actually works (for some firms and their clients). But the problem – a problem which may not be fully revealed in the short term – is that the various businesses involved, from the accounting practice to each and every client, has different business needs and operates as a unique organization. While there may be fundamental similarities, “the devil is in the details” as they say, and a single platform or hosting solution is unlikely to really work well for all. Even more potentially damaging, the perception of the trusted advisor who is now viewed as a vendor of IT services or software erodes the value of the client engagement and the potential for the firm to deliver greater benefit through their core offerings. A business owner is more likely to change vendors of IT service than they are their trusted accounting or finance professional. And they’re also more likely to change IT service providers if the provider cannot deliver exactly the application or service desired. When the accounting professional is perceived to be the IT service provider, the lines are blurred and the client ends up attaching their loyalty to a software product or business solution instead of the accountant advisor OR the IT provider.

With SaaS and native web-based applications being broadly adopted by small businesses, the opportunity for firms to engage with clients in different ways and with different solutions started to break the one-size-fits-all hosting approach. Professionals found that empowering their clients by supporting properly fitted solutions which work for the client business delivered the opportunity to become more operationally and strategically involved with the client business. Deeper operational and strategic involvement with the client became the means to drive increased value in the engagement and services offered and delivered. The client business was able to benefit from the involvement of their trusted advisor, regardless of what platforms or systems might be in place.

Accountants and bookkeepers are recognizing that the previous model of aligning the practice with a particular software product or delivery system may not be the best approach to building and retaining the customer base. With new business accounting and bookkeeping solutions emerging regularly – and gaining broad market adoption – and as more and more varied cloud based services and solutions are applied to various business problems – professionals will further recognize that their value is not tied to a cloud server, a single small business accounting solution, or to any particular technology. The value of the accounting professional is not in the software they support or the server it runs on. The value of the accounting professional is in the insight gathered and advice provided – services offered which help support better business management, growth and profitability.

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Accounting, Technology and Small Business – The Best of 2013 from CooperMann

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4 Rules of Thumb for Fiscally Fit Business

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Lawyer Immunity from Delivering Customer Value is No More

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New York or Las Vegas? It doesn’t matter if you can work online.

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Accounting Professional Value is Insight and Advice, Not Just a Hosted Server

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