Scott Scarano set up a podcast with me and Ronald J. Baker and Scotty as the moderator that was intended to be a debate about time sheets. I had some apprehension since I have the highest regard for Ron and did not want to debate him on time sheets or anything, but also did not want to turn down this unique opportunity.
I spent an enjoyable hour and a half discussing the state of the profession and ways to grow, retain staff and provide better and more appropriate services to clients. This recording is available for free at the link at the end of this column.
I consider Ron one of the great thinkers about our profession and, while time sheets were discussed, the main focus was on bigger issues in public accounting. We did not agree on the use of time sheets. I feel they are necessary, and Ron feels they are a hindrance to more effective management and providing services to clients. We did not agree to disagree. We just disagreed on that issue. But the more important part of the discussion was how to be more effective running a practice and being more relevant to our clients.
The three of us touched on a very wide array of important and essential management of an accounting practice (MAP) issues. I feel this podcast should be required listening for everyone working in public accounting or who works in any type of accounting position elsewhere. We had a discussion with no set agenda, other than we began talking about the benefits or detriments of using time sheets. However, that framework discussion segued us into many other MAP issues. Ron, Scotty and I have different vantage points, but we seemed to agree on many things about how a practice should be managed. The discussion and the process of our out loud thinking is what would provide our listeners with benefits.
I cannot properly summarize the discussion in a short column but can present some takeaways you could think about:
- A subscription model of pricing can be an effective way of upgrading a relationship with your clients and speeding up your cash flow. It takes time out of the price-creating equation and also permits a growth of ideas and the initiation of new services that would benefit the client. It also sows seeds for added billing opportunities to flush out or implement the ideas.
- Most of the information CPAs provide is with lagging indicators. CPAs need to be more interpretive and predictive with the data. Elucidating what a client sees with its own data is important but driving the client to be better will be a more valuable use of our time and knowledge of the client.
- Excitement comes in many formats, but helping a client do something that helps them better perform or run their business creates the most satisfaction for partners and staff. Look to create excitement for your clients and also train and mentor your staff to do likewise. This will increase client and staff satisfaction and retention of both.
- Having a deliberate system in place and then having everyone follow it will make everything in your practice easier to do and train staff as well as deliver value and excitement to your clients.
- It's important to reach out to high school students about our great profession. Each of us should try to speak to high school students and share some of our experiences. Use that to open their young eyes and minds to careers in public accounting.
- Each firm should determine and develop a business model for itself and follow through with the appropriate and driving marketing, recruiting, training and client services.
I regret this list is so short because there are many ideas and takeaways in the podcast. Listen and get your own ideas, but the above are some that jumped out at me.
I think this podcast provides valuable insights. I do not think any minds will be radically changed from listening to the podcast, but I definitely think the listeners will get many ideas they will add to their own arsenal of methods which will definitely provide unexpected shape or progress to the ideas they already have. A suggestion is to play the podcast in the background while doing some nonclient work but keep a notepad handy so you could easily and quickly jot down some of the many ideas you might want to follow up with or think about later on.
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