Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/39633
COVER STORY Building a Firm for the Next Generation T is year, I celebrated my 50th birthday … and it was quite a turning point. It made me stop and refl ect on my career and the vast changes I've observed and experienced professionally and person- ally. During this period of refl ection, I was overcome with a powerful drive to change the public's perception of the tax and accounting profession. Media across the board does a great job of perpetuating the image of the traditional accountant as a boring, nerdy number cruncher in a bad suit. T at simply isn't the case. T ey know it; I know it; and I hope you know it, too. We are tech-savvy, creative and working to build fi rms that support an environment of positive thinking, inventiveness and next-generation allure. I grew up in the accounting profession. My father opened his own small fi rm when I was three years old, and only recently, at the age of 83, did he offi cially retire. Having turned 50, that means I've been a part of the profession, whether as an observer or active participant, for nearly fi ve decades. In all this time, if there is one thing I've learned, it's that accountants are some of the hardest working professionals I know. And today, they are also evolving as some of the coolest and most creative. The Elements of a Next Generation Accounting Firm I started my accounting career at Deloit e Haskins & Sells. A few years into my career, I decided to go off on my own and launch an accounting practice. From the start, I never had the desire to operate a traditional fi rm, based on the standard model within the profession. I wanted something diff erent, something new. A fi rm that, looking forward, my kids would be proud to work in and, at some point, take over. With my kids now grown, my wife and I are soon to be empty nesters. T e day is also coming that my children may join me in running Root & Associates. My oldest son is fi nishing up his bachelor's degree in accounting at Indiana University (IU), and my daughter, already having obtained her undergraduate degree in accounting, is now wrapping up her MBA at IU. For the past 15 years, I've focused on building a business that my children would want to be a part of someday. T e goals I set for myself were lofty, but obtainable. I wanted to run a fi rm that: • Enabled a good life-work balance • Allowed me to work on my terms • Supported a professional yet comfort- able environment • Allowed me to earn what I needed to earn • Harnessed the power of technology • Provided a feeling of satisfaction among all staff • At racted long-term, loyal clients of the best, if not the best, professions … which is why I feel so strongly about building a fi rm that is structured for the next generation of professionals. Here's my mantra: By building our businesses right today, we are securing the future of the next generation of accounting professionals. Life-work balance, a happy staff , loyal clients, increased profi ts — these are all obtainable goals, but require work to achieve. T ose building next-generation fi rms have a solid grasp on niche strategies, advanced technologies, workfl ow and branding. T e following are the compo- nents required of a next-generation-ready fi rm: • A clearly defined niche strategy, enabling fi rms to specialize and become experts within certain niches, and ultimately serve the type(s) of client they want to serve. • A masterfully developed internal workfl ow system, off ering a model that supports ease of communication and a streamlined, paperless workflow for BY BUILDING OUR BUSINESSES RIGHT TODAY, WE ARE SECURING THE FUTURE OF THE NEXT GENERATION OF ACCOUNTING PROFESSIONALS. T e more fi rm leaders I meet in my travels, the more I see that many want the same things. And more and more, I'm witnessing professionals put ing in the work to change their fi rms into something spectacular — a place where people want to work, where clients are with you for the long haul, and where they just feel good about what they've built. I fi rmly believe that accounting is one By M. Darren Root, CPA.CITP, Executive Editor Darren is the Executive Editor of CPA Practice 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 Direc- tors 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. 6 September 2011 • www.CPAPracticeAdvisor.com both staff and clients. T is includes the following elements: – Online client accounting to support real-time collaboration and ensure that you are always working with current data. (NO MORE BACKUPS!) –Client portals for real-time delivery of documents, tax returns, financial statements, payroll journals, and more. – A professionally branded, tech-advanced website that embodies the personality of the fi rm and off ers a dedicated place to conduct business with clients. Your website should not be a static online brochure. It is the new front door to your fi rm. • A sound, thoughtful branding strategy, allowing fi rms to always put their best foot forward. Every interaction (email, let er, outdoor signage, interior offi ce, business card, invoice, website, etc.) should represent a strong, professional brand image. We live in a service-oriented, brand-savvy society, and if the purchasing habits of clients and prospects are anything like mine, then they are buying based on the feeling they get when they see or interact with your fi rm. Make sure that feeling is a positive one! The Next Generation of Accounting Professionals So is it possible to build a firm that encompasses all of these elements and achieves the laundry list of goals outlined? Absolutely! Is it easy? Absolutely not. It takes work and perseverance … and an ongoing commitment throughout the life of your business. However, it does get easier over time. Once the machine is built, it's simply a mat er of maintaining. Professionals are out there doing it with great success. T ey are building fi rms that operate at maximum effi ciency, emit a powerful brand presence, and are attracting the younger generation of professionals. One such practitioner, Jason Blumer, CPA.CITP, has become of friend of mine and has just writ en his fi rst column for this issue. Jason is younger than me by about 10 years, but we have many similarities. Jason's father practiced before him, so he too grew up in the business. He also has a burning desire to make the profession a place where young professionals want to work — and earn the props it so deserves. Jason is quirky, cool and runs his practice on his own terms. After getting to know Jason and maintaining a steady watch on the younger generation of accountants get ing ready to enter the profession, I've realized that we aren't all that diff erent. T e notion of Gen X, Y and Millennials being vastly diff erent from the Boomer generation, in my mind, is not even close to the truth. In the end, we all want the same things: a great place to work, security, a balance between our personal and professional lives, the fl exibility to work remotely, and the opportunity to build solid