Today's Technology for Tomorrow's Firm.
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VOLUME 22, NUMBER 8 MY PERSPECTIVE t XXX $1"1SBDUJDF"EWJTPS DPN Publisher: Jim Baker Executive Editor: M. Darren Root, CPA.CITP Technical Editor: Brian Tankersley, CPA.CITP Editor: Isaac M. O'Bannon Managing Editor: Jill Burnett Associate Editor: Taija Jenkins Columnists: David McClure Doug Sleeter Jim Boomer, CPA.CITP Kristy Short Michelle Golden Randy Johnston Rene Lacerte Roman H. Kepczyk, CPA.CITP Art Director: Rhonda Cousin National Sales Manager: Barry Strobel Site Manager: Rhonda Dennis Media Production Representative: Barb Evenson Audience Development Manager: Angela Kelty Editorial Advisory Board: Bob Cedergren, CPA.CITP, CISA, CISM, CISSP, CGEIT Chris Fraser, CPA.CITP, CISA, MCP Jason Lawhorn, CPA.CITP Gary A. Masino, CPA Ryan McCowan, CPA.CITP Linda O'Neal Troy Patton, CPA David Primes, CPA.CITP Donny Shimamoto, CPA.CITP Doug Sleeter Sandra L. Wiley CYGNUS BUSINESS MEDIA CEO: John French CFO: Paul Bonaiuto EVP, Digital: Tom Kohn VP, Human Resources: Ed Wood VP, Audience Development: Julie Nachtigal VP, Technology: Eric Kammerzelt CYGNUS PUBLISHING Executive Vice President: Gloria Cosby Vice President of Production Operations: Curt Pordes Reprints - To purchase article reprints, please contact Foster Printing, Attn: Jill Kaletha, 4295 Ohio Street, Michigan City, IN 46360, 866-879-9144 ext. 168, jillk@fosterprinting.com or 1-800-875-3251, email sales@fosterprinting.com The opinions given by contributing authors are their own and are not the opinions of our staff. All trademarks used are the property of their respective owner. ———————————————————————————————————————————— Practice Advisor, (ISSN #2160-8725 (print), ISSN #2160-8733 (digital); USPS #017-576) is published eight times a year (April/May, June, July, August, September, October, November and December) by Cygnus Business Media, Inc., incorporating two editions known as CPA Practice Advisor and NSA Practice Advisor, 1233 Janesville Avenue, Fort Atkinson, Wisconsin 53538. Periodicals postage paid at Fort Atkinson, WI 53538 and at additional mailing offices. Printed in the U.S.A. Send all subscription inquiries or change of address to: Practice Advisor, PO Box 3258, Northbrook, IL 60065-3258. Phone: (877) 382-9187 (toll free); 847-559-7598 (local) Fax: (847) 564-9453 Email: Circ.CPA@omeda.com Subscription Rates: The basic annual rate is $3, based on qualifying associations of 10,000 or more public accountants that may also subscribe for all their public accountant members (certain restrictive covenants apply) for a basic subscription rate of $9 per member for a three-year subscription. One year subscription for all others: USA - $48; CAN $70 GST; INT'L $99 GST #131910168. POSTMASTER, please send address changes to: Practice Advisor, P.O. Box 3258, Northbrook, IL 60065-3258. Canadian address changes to: Canada Post PM40612608. Return Undeliverable Canadian Addresses to: Practice Advisor, PO Box 25542, London, ON N6C 6B2. It's a Niche World I t seems like every conference I attend, I hear someone talking about the niche business model. It's the hot topic these days, and for good reason. Firms that have adopted this model are enjoying standardized processes, higher revenues, and operating at peak efficiency. Of course, the niche model certainly isn't a new concept, but for some reason it has taken longer to emerge in the accounting profes- sion. However, despite a late arrival, the niche business model is infiltrating the profession. And trust me…it's here to stay. I am an outspoken advocate of the niche model because it's one that I implemented in my own firm with great success. Years ago I decided that I needed to "define" my firm; that is, figure out what services I was good at providing and the type of clients I wanted to serve. Like many other firms, I held on to a "take-any- client-that-comes- through-the-door" mentality. Because I lived in constant fear of losing clients, I worked to consistently onboard new clients… no mater the industry or service level. The only thing I accom- plished by doing this was working long hours trying to please a diverse client base with vastly different needs. Eventually, I figured out that by not BY SERVING ONLY SELECT NICHE MARKETS, I WAS AS ABLE TO GAIN EXPERTISE IN A FEW INDUSTRIES, MASTER THE ACCOUNTING NEEDS OF EACH, AND IMPLEMENT UNIFORM PROCESSES FOR SERVING EACH NICHE. having a defined business model, it was my clients who defined my firm's workflow processes. Because I was trying to serve so many different types of clients, I was unable to standardize any process. Te end result was a lot of chaos and wasted billable hours. So, I took a step back from the anarchy, con- ducted an honest evaluation of my firm, and started to define what I wanted my firm to look like. I knew that if I was to regain control of my firm and lead my clients instead of my clients leading me, I needed to simplify things. Tat's when I adopted the niche business model. By serving only select niche markets, I was as able to gain exper- tise in a few indus- tries, master the accounting needs of each, and implement uniform pro- cesses for serving each niche. Over time, my firm transitioned from a state of disorder into a highly efficient operation. Most importantly, by defining my client base, I got to select the clients I wanted to serve and enjoyed working with. And it's a really great feeling to go into work when you enjoy the clients you serve! Te accounting profession may be a bit slow to adopt new concepts, but we certainly know a good thing when we see it. And the niche business model is a keeper—offering firms the power to define their business and their clientele. For those who have yet to research this model, I'm here to confirm that it is indeed a niche world. M. Darren Root, CPA.CITP Executive Editor Darren is the Executive Editor of CPA Prac- tice Advisor. He remains in public practice as the principal of Root & Associates, LLC, in Bloomington, Indiana, and is president of his consulting practice, RootWorks. He formerly served on the Board of the AICPA's CITP Credentials Committee and is a former member of the Board of Directors for the Indiana CPA Society. He speaks at dozens of professional organizations each year and frequently serves as a guest lecturer at Indiana University's Kelley School of Business. August 2012 t www.CPAPracticeAdvisor.com 3