How to Leverage Client Accounting Services

to Build a Profitable Firm

Stephen King, CPA CGMA @skingGForce

How to Leverage Client Accounting Services to Build a Profitable Firm

• Introduction / Overview

• What SSARS 21 Means to CAS

• Decisions to Make

• GrowthForce Model

Agenda:

Stephen King, CPA CGMA GrowthForce President & CEO CPA: Texas, New York | Member: AIPCA, PCPS | Texas Society of CPAs Board | Houston Society of CPAs Board |

Houston Technology Center - Accounting Services Chair | Intuit Premier Reseller – Certified QB ProAdvisor

1979 1982 1989 1995 2013 2001 2004 2009 1988

Email : Steve@growthforce.com

Who is in the room? Survey Says?

• Role

CPA Accountant/Bookkeeper QuickBooks ProAdvisor Non-Qbooks consultant Other

• Doing CAS Now? Considering doing CAS Not doing CAS

What’s changed? SSARS 21

Sales

CPAs Doing CASNow

Source: Accounting Today

1. Define

Strategy

2. Written

Goals

3. Talent

Management

4. Keep

Score

5. Recognize

& Reward

5 Steps To a Profitable Firm

Strategic

Planning

Start With Why?

THINK

WHY are we in business?

NOT

WHAT should my

client buy?

People don’t buy what you do,

they buy why you do it!

- Simon Sinek

“

“

Simon Sinek, Author, “Start With Why: How Great Leaders Inspire Everyone to Take Action”

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

Where do you play?

Most important: culture and core values

• What kind of company do you want to be?

• What does an ideal day look like (Darren Root’s program)

• What organizational capabilities do you need?

• What behaviors help you achieve those capabilities

• Why should someone come to work for you?

• Why should they stay?

The Riches Are in the Niches Who Benefits From Our Bundle?

Service Businesses –

• Engineers

• Energy Services

• Consulting Services

• Architects

• Advertising/Marketing/PR

• IT/Technology Services

• Information Business

• Telecommunications

• Financial Services

Non Profits – • Social Services

• Religious

• Education

• Arts, Culture & Humanities

• Health & Human Services

• International

• Research & Public Policy

• Community Development

• Environment

How we sell to our niche: ANUM

• Authority - We sell to the Financial Decision Makers - CEOs and CFOs

• Need - Use QuickBooks, or willing to switch • Employees are the primary “product” • Payroll is largest expense

• Urgency - They have accounting/people pain now • Staff turnover • Fraud • Late, inaccurate financial statements • Rapid growth, need a scalable solution

• Money - They can afford us • Average fee $3,500/mo.

Value Pricing has Biggest Impact

• Focus on pricing will have biggest impact on profits

• Once you define your strategy then you can define your value

• Lots of great workshops: • Ron Baker: JofA Pricing on Purpose: Implement Value

Pricing in Your Firm

• Mark Wickersham

• AICPA CAS Workshop

Goal Setting 101

• If its not in writing its hard to repeat and get alignment

• Cascade company goals to department to employee

• S – Specific

• M –Measureable

• A – Achievable (negotiated)

• R – Resources

• T – Time based

Insperity mad lib: “I will <action verb> by <measure> with <deadline>”

Talent Management

Value-Drivers in Today’s Business

Source CGMA Report “Rebooting Business: Valuing the Human Dimension,” 2012

Talent Management

• Attracting

• Developing

• Performance Management

• Engaging – lead to loyal employees.

• Transitioning to next career stage

#1 Key = Recruitment Not an HR Function Behaviors not Skills Facebook: Life at GrowthForce

Sr.

Accountant

for net based

co. in

Kingwood.

Min 3 yrs.

exp., Acct.

Deg. Strong

QuickBooks

skills.

2. Developing Staff # 1 reason why People leave – lack of career development

• What is the cost of turnover: 60+% of salary • Lower quality of work

• Loss of Innovation

• Recruiting cost

• Productivity – most small businesses run on tribal knowledge

• Lower customer satisfaction – service business = relationships with people

• Development doesn’t just mean promotions – Primarily training.

3. Performance Management

• Not a trip to principal

• #1 ROI – get company aligned

• Evaluate behaviors and skills

• Personal Development

• Stop / Start / Continue

4. Employee Engagement

• Engagement leads to loyal employees. What engages your staff?

• It took us three COO’s – found dancing / singing CPA to lead us

• Cares deeply about each person issues and goals

• MBWA - Daily coaching for success

• We match behaviors to core values (PerformSmart)

• Goal: ZERO unplanned turnover!!!

Keep

Score

Connect The Dots

What management monitors gets done

Track actual vs. goals Company Dashboard

What KPIs help you make money

Cascade down to Team Performance

Pricing in a Project-Based Service Business

Data Driven Pricing Decisions

Drive down to Their People

Recognize

& Reward

Recognition first

• At home more important than at work

• Catch people doing something good (kudos@growthforce.com)

• Give out awards

Rewards

• Money must be competitive but its not #1 driver

• Growth Opportunities / Training is #1

• Need line of sight between goal and action

• Do not let KPI’s change culture

GrowthForce Tactics

Other Quick Tactical Lessons

• Scope document – what don’t you do?

• Centralize Onboarding – your way every time

• Standardize and document EVERYTHING (e-Myth)

• Select tools you support and go deep

• Use “Traction” process to help execute (Gino Wickman)

• Stay current with Balance Sheet work papers

• Find partners for everything you don’t want to do

Summary 5 Keys to Success

1. Define GTM strategy

2. Create written goals

3. Retain right employees

4. Retain good money clients

5. Recognize and Reward

Thank You!

Please email steve@growthforce.com to get handouts, blog and other questions.