Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/49996
PRODUCTIVITY IN PRACTICE BY ISAAC M. O'BANNON, TECHNOLOGY EDITOR Building a Practice for the Future How One Firm Transitioned its Business Model and its Clients Tax and accounting professionals who start their own fi rms from scratch face benefi ts and signifi cant challenges. On the pro side, they have the opportu- nity to build the fi rm as they wish, from internal practices to staffi ng and management styles. Of course, there can be signifi cant startup costs, and the fi rm starts with a client roster of zero, presenting the very pressing hurdle of income generation. T ose who take the route of acquiring an existing practice also have unique positives and potential drawbacks. Although starting with clients and busi- the most part, they'd already been co-managing the fi rm, but there were still noteworthy transitional challenges, starting with what to name the practice. Faced with the prospect of two name changes over a comparably short term, which could diminish client relationships and branding, they chose to keep the Hardee name. Since 2007, the two have steered the fi rm on a more stable path, with services focused on virtual bookkeeping, payroll, controllership, business consulting and taxation. "Our core services are Jennifer Pierce Cook, CPA Managing Partner, Hardee Accounting, Inc. LOCATION: Hendersonville, Tennessee . WEBSITE: www.HardeeCPA.com PRODUCTIVITY SCORE™ 275 PRACTICE SPECIALTIES: Virtual CFO and Bookkeeping, Payroll, Taxation, Training, Consulting EDUCATION: Middle Tennessee State University PROFESSIONAL ASSOCIATIONS: AICPA, Tennessee Society of CPAs, THRIVEal +CPA Network MOST RECENT BOOK READ: "123 Magic for Parents," by Thomas W. Phelan HOBBIES: Dancing, singing, cooking, spending time with family SOCIAL NETWORKING: http://twitter.com/ahsumcpa http://www.facebook.com/people/Jennifer-Pierce-Cook/100002557407517 http://www.linkedin.com/pub/jennifer-pierce-cook/2b/a09/669 ness relationships, this professional is inheriting the workfl ow, technology and reputations that were built by or that evolved with the previous owners and partners. Jennifer Pierce Cook, a CPA in the northern Nashville suburb of Hendersonville, Tennessee, followed the second route, and she and business partner Kathryn Gupton, also a CPA, have defi nitely experienced the challenges inherent in taking over a fi rm. T e two are 50-50 partners in Hardee Accounting (www.HardeeCPA.com), which retains the name of Jeff Hardee, the previous owner. T ey actually both started at the fi rm about seven years ago when it was owned by yet another professional, and then stayed as the practice transitioned to Hardee, with incorporation that provided Jennifer and Kathryn each with a 15 percent stake, and more direct managerial control. When Jeff , who has the unique skillset of being a CPA and commercial airline pilot, decided to return to the skies less than two years later, Jennifer and Kathryn acquired full ownership of the practice. For 26 January 2012 • www.CPAPracticeAdvisor.com centered around helping small businesses establish effi cient accounting practices and streamline their own workfl ow," said Jennifer. "T is serves as a foundation from which we can help them plan for short-term or long-term goals, whether it's growth or occasional downsizing to bet er sustain their business model." Hardee Accounting has grown by more than 40 percent since Jennifer and Kathryn took charge, and they've implemented technologies they see as more benefi cial to internal practices and client service. Jennifer says that they've also been more selective when taking on new clients. "Managing client expectations is one of the hurdles we face, so we look for clients of a certain personality, those who are working for more than just money and whom we can train to adapt to our workfl ow and processes." Her client base, therefore, isn't really focused on a few industry areas, but rather on innovative entrepreneurs who share the same passion and spirit. As a result, the fi rm did drop a few clients at fi rst. Consulting "If you can't maintain respect both ways between the fi rm and the client, then it's not a happy or ben- efi cial relationship and you're both bet er off without each other." T e most dramatic change Jennifer says they have made is the adoption of the value pricing model. T ey recently at ended the "Firm of the Future" sympo- sium, led by Ron Baker, who as a founder of the VeraSage Institute (www.verasage.com) is one of the best-known proponents of value pricing. "Get ing rid of time slips was a great step forward because it helped change our per- spective from 'what is my time worth,' to 'what is this service worth he client,' which is more important," be sp wo to to the ennifer notedted. "Every client has diff erent needs and expectations, a, nd value pricing gives greater fl exiib Jennifer biliitty soy so that w needs." She said it also helps set the parameters of the client relationship. "It's much bet er to give them accurate pricing instead of vague estimates, and it also helps the fi rm bet er manage its time." T eir new growth has generally been with those who are more progressive with technology, which matches the service style of Hardee Accounting. T e young and all-female fi rm has a staff of six, with multiple monitors on all workstations. And they try to steer clients into technologies that help both the client and the fi rm, such as online accounting and billing solutions, as well as document sharing and collaboration tools. T e practice scored a 275 on CPA Practice Advisor's Productivity Survey (www.CPA PracticeAdvisor.com/productivity), a free online assessment tool that helps measure and benchmark a fi rm's use of technology and workfl ow processes. "EVERY CLIENT HAS DIFFERENT NEEDS AND EXPECTATIONS, AND VALUE PRICING GIVES GREATER FLEXIBILITY SO THAT WE CAN FIND A WAY TO MEET THOSE NEEDS." Jennifer is also an active user of remote computing technologies, which allows her to spend less time at the offi ce (six to seven hours per day) than partners at other fi rms, and more time with her family. With about 350 individual returns, tax season does stretch the workday a bit, of course, during which time she at we can fi nd a way to meet those