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The 5-Stage MAP Planning Process

By Eric Runge, Advanced Planning Lead The CPA-Team-Based model offers a structured approach to addressing the needs of the best business owner and high net worth clients, offering tailored solutions in the areas of tax planning, wealth management, business advisory, legal, and risk mitigation. CPAs partner together with an Advanced Planning expert to take clients through the 5-stage MAP Planning Process. Note: "advanced planning" in this context is different from the advanced level of tax planning that many tax professionals already do. In this blog post, we'll discuss this process so that the "why" behind it becomes apparent.

Stage 1: Diagnostic & Prioritization of Client Needs

The foundation of any effective planning strategy lies in a deep understanding of the client's unique circumstances. This initial stage involves a thorough assessment to identify and prioritize the client's specific needs and goals. At this stage we're going a mile wide and an inch deep; later once we know the client's needs we go an inch wide and a mile deep into each planning priority. The output of stage 1 is a one-page profile of the client's financial landscape. This document includes an "opportunity report" showing each area in which we can help the client. We'll then prioritize what the CPA and client feel are the most pressing and important needs, and start with those, circling back to the rest later on.

Stage 2: Due Diligence - Finding and Vetting the Right Experts

Armed with a clear understanding of the client's needs and priorities, the next step involves deciding if the client's needs can be handled by the local team-the CPA and financial advisor-or if wider expertise through the Virtual Family Office is needed. If client needs can be handled locally, then the local team proceeds with their internal expertise. However, if the client need is outside local scope, then the team relies upon the Virtual Family Office-our national team of 50-60 top notch, "best in class" experts. The overarching goal in stage 2 is to determine whose expertise is needed, making certain the expert's speciality is a perfect match for the client's needs. At this stage the CPA who is unfamiliar with a given strategy or expert will get on a call and do their own due diligence.

Stage 3: Deeper Diagnostic - Crafting a Tailored Strategy

With the right experts chosen and the CPA satisfied, the client then engages in a deeper diagnostic phase. If at the beginning we went a mile wide and an inch deep, here we go an inch wide and a mile deep. The chosen specialist(s) work to gain a deeper understanding of the client's unique circumstances, asking for the needed information. This can and often does involve detailed discussions with the team and in-depth analysis from the expert to better grasp the intricacies of the client's situation. The CPA at this stage continues to vet the strategy to ensure it remains in the client's best interest given the specifics. The overall aim is for the specialist to ultimately be able to demonstrate to the client exactly how the strategy can help based on their specific situation.

Stage 4: Options & Choices - Presenting the Strategy

Having distilled the client's needs and refined a given strategy, the expert-with the CPA and local team on the call-presents to the client. This stage is characterized by transparent communication, where the proposed strategies and fees are laid out in detail. With the CPA as the quarterback, the client at this stage is empowered to make informed decisions, weighing the pros and cons of that which is presented. This collaborative approach fosters trust and ensures that, with the guidance of the CPA, the client feels that the proposed strategy is going to meet their aspirations. If they do not, we stop the process.

Stage 5: Implementation - Moving Towards Financial Prosperity

Once the client and CPA have determined the strategy is a good fit, the final stage involves implementation. This is fairly straight ahead-the team and the client work in tandem with the expert to establish and execute the strategy. The expert will also guide the CPA through what forms are needed on the tax return (if appropriate), and make certain the client is comfortable with the process. This is the 5 stage MAP Planning Process we follow for each client need, until we've met each need.

Conclusion

The 5-stage MAP Planning Process within the CPA-Team-Based model represents a comprehensive and client-centric approach to financial success. By prioritizing the client's needs, meticulously selecting the right experts, customizing strategies, providing options, and executing with precision, this model ensures that clients receive tailored solutions that drive them towards their financial goals at an advanced level. Embracing this structured process helps CPAs to feel that their clients are being served in the highest way possible, and paves the way for a client's prosperous and secure financial future. If you would like to learn more about the CPA Team-Based model schedule a 30 minute meeting with me here:

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Why CPAs Can't Quit Smoking

By Eric Runge, Advanced Planning Lead Introduction CPAs seeking to build their revenue often have trouble saying "no" to bringing on new clients, even if they don't have capacity to take them in. This is an admirable dedication to client acquisition, but can come at a high cost. CPAs who can't say "no" are a little like smokers who know the habit is bad for them, but can't quit. In this article, we'll discuss the problem and reveal a groundbreaking solution that can help CPAs break free from the stress and overwhelm, and lead a life with more peace and freedom.

The Perils of Overload: Smokers generally know the risks, but continue the habit. CPAs often do not see the risks of never saying "no" to the wrong type of client, and as such very often (in my experience) find themselves trapped in their own cycle of perpetual client acquisition. "One more won't hurt," never does hurt that same day, but the cumulative effect does. The constant pursuit of new clients creates massive overload and time issues, and CPAs end up drowning in endless hours of work as a result. This overwhelming workload can jeopardize their physical health, relationships, and mental well-being, but is also deadly to real business growth.

The Consequences: This is because the traditional hourly CPA model is a silent assassin. Limited hours in the day means there is a low limit on the amount that can ultimately be billed. The model also places stress and pressure upon the CPA, creating a race against time. We have actually known tax professionals who have died at their desk during tax season. I personally have not known a single CPA who was not stressed out during tax season and in need of staff. For most CPAs, their greatest problem is either "time" or "bandwidth." So what kind of lives are CPAs living, and what kind of businesses are they building?

A Closer Look at the Parallels: Given all this, why can't CPAs quit smoking? To truly appreciate the striking resemblance, one must dissect the underlying motivations. Both groups tend to persist in practices that they know are detrimental, but they're seeking to gain something. CPAs want to build their practice and reach their goals, undergirding a deeper desire for fulfillment and success, and a life well lived, helping the most amount of people possible. However, CPAs who are overloaded are not able to do the best job possible for the client-there are numerous strategies and ways to significantly deepen client tax savings, protect estates, improve clients' businesses, and more. CPAs who must get the return out the door and move on to the next client are doing their clients a disservice.

The Solution: Just as a smoker who sees the problem and wants to quit, CPAs too must realize how unhelpful to their goals their lifestyle actually is, and embrace the highly effective solution-the CPA-Team Based Model. This innovative approach empowers CPAs to transcend the revenue and time limitations of the traditional model, allowing them to not only survive but thrive. Growth minded CPAs usually tend to want to 2x their business, and that is why they can't quit smoking-their goals are just big enough for them to think that doing more of the same will get them to where they want to be. The Team-Based Model teaches CPAs that the only way to leave behind their habit is to set 10x goals-the kind that will force them out of their old habits and make their life better. Achieving these big goals are actually easier, as author Benjamin Hardy points out in his book "10x is easier than 2x."

Kicking the Habit: Delivering Value to A-Level Clients: The heart of this transformative model lies in providing deeper, more comprehensive and holistic planning to A-level clients. By working with a team of Virtual Family Office professionals who specialize in advanced planning, the forward-minded CPA will elevate their service offerings and instantly make themselves much bigger, allowing them to deliver the type of unparalleled value that other similar-sized CPA firms can't even touch. This strategic shift enables CPAs to focus their energy on clients who truly appreciate them and will benefit from these levels of expertise, while gradually shedding the burden of C&D clients.

Benefits Beyond Measure: The CPA-Team Based Model is not just a lifeline; it's a game-changer. By embracing this innovative approach, CPAs can reclaim their time, lower their stress, and finally be able to do the things in life that matter the most to them. Not to mention increasing their revenue substantially. The newfound balance allows CPAs to excel in their profession and feel that they're making a real impact for clients, but without sacrificing their own well-being.

Conclusion: Just as smokers can break free from their addiction, CPAs can liberate themselves from the chains of always seeking new clients. The CPA-Team Based Model offers not only a fresh start but a path to lasting success and fulfillment. Now is the time to take that first step towards a healthier, more prosperous future. Embrace the change, and watch as your practice flourishes. It's not going to be easy-in some ways it will be harder, but CPAs can break free from the chains of the hourly model and perpetual client gathering, and step into a future of maximizing their freedom and your potential. It takes the right CPA to work within this model. To find out if you might be a fit, schedule with me here.

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MIndset for CPAs: Growth vs. Fixed

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Imperfect Action is Better than Perfect Inaction.

By Eric Runge, Advanced Planning Lead

Introduction: In the tax world, there is a tendency to strive for perfection. Tax professionals in a backward-looking compliance role generally seek to meticulously analyze data, scrutinize every detail, and deliver flawlessly accurate results to their clients. This level of precision and accuracy is what clients need and is vital to the fundamental role a CPA plays. However, it's also essential to recognize that the flipside of this coin of perfection is analysis paralysis. As such, it is vital for the forward-minded CPA to recognize the value of imperfect execution as they work on (not in) their business, even when that action is not perfect. In this blog post, we explore the concept of imperfect action and why it is often better than perfect inaction for CPAs wanting to execute on moving toward a more forward-looking 21st century business model. This does not apply to compliance work, which needs to be perfect. This applies to running your business well, which is a separate discipline altogether from doing a tax return.

Embracing Growth and Learning: One of the key reasons imperfect action is preferable is the inherent opportunity for growth and learning. Growth will always feel messy, but CPAs will do well to remember the need to continually evolve in a profession that is dynamic and ever-changing. By executing even if it's not perfect, one will open doors to new experiences, challenges, and insights. Leaping before we see a net allows us to make mistakes and learn from them, adapt to changing circumstances, and refine skills over time. It also pushes us emotionally and mentally to increase our courage, confidence, and maturity as people.

Overcoming Analysis Paralysis: The drive toward perfection can often lead to analysis paralysis, where we spend excessive time analyzing and overthinking, ultimately failing to take any decisive action. It is hard for the person doing it to see they're doing it, and that, incidently, is why CPAs do well to partner with offsetting personalities like financial advisors. However, the tax professional must recognize in principle on their own that analysis paralysis is harmful to them and their clients, and by embracing the idea that imperfect action is perfectly ok, will break free from this cycle of over-analyzing and hesitating. This obviously does not apply to areas of your speciality like tax returns, but rather business development, and executing before it feels perfect empowers tax professionals to make decisions, move forward, and address challenges head-on. Obviously it's not good to fall into the ditch on the other side of the road and fail to think things through at all, but that generally doesn't tend to be the problem CPAs struggle with. It's more the exact opposite. Taking action, even if it's not flawless, helps you gain momentum and make progress in your work.

Seizing Opportunities and Innovation: Imperfect action enables one to seize opportunities and embrace the right kind of innovation. In the fast-paced world accountants operate in, being agile and adaptable is becoming more and more crucial, even as safety and compliance with regulations remain staunchly important. At the 50,000' level of moving one's business forward (working on, not in your business), waiting for the perfect solution or circumstance may cause a tax professional to miss out on valuable opportunities. Think of the hesitation many CPAs feel with outsourcing their clients, and the resultant inaction that occurs. However, by taking action and executing on outsourcing you can really make substantial positive changes to your business that will move your forward into a more comfortable and profitable model. This is because the "imperfect action" approach fosters a mindset of continuous improvement, making you more valuable. This can help to set the stage to position tax professionals at the forefront of industry advancements and move them toward elite status.

Client-Centric Approach: Imperfect action aligns with a client-centric approach. As a tax professional clients rely on you to provide proactive guidance, insights, and solutions to their financial challenges. By taking proactive action and approaching the client with new ideas, even when it may not feel flawless, you can demonstrate your commitment in a tangible way to clients' needs and goals. Imperfect action-which won't feel imperfect forever-allows you to engage with clients, seek their feedback, and refine your strategies based on their specific needs and requirements. It shows clients that you are actively working towards their best interests and are willing to adapt to their evolving needs. At the end of the day "imperfection" is really only a feeling, indicating discomfort with change. That feeling goes away the more you do the new thing, and soon it becomes second nature. By embracing in principle what I am saying here, you can have a mental category to fallback on when the going gets tough, and it will for a while until you get used to the change.

Conclusion: As a CPAs, it's natural to strive for perfection in your work. However,it is important to recognize the principle that imperfect action is superior to perfect inaction. Embracing imperfection, however uncomfortable at first, allows one to grow, overcome analysis paralysis, seize opportunities, and adopt a more and more client-centric approach. It empowers you to learn from your experiences, adapt to changing circumstances, and continuously innovate in your ever-evolving profession. Remember, imperfect action is a stepping stone towards progress and success, and it will feel more comfortable as you go. So, let go of the fear of imperfection and embrace the power of taking action! If you'd like to see how we've implemented this for hundreds of successful CPA practices, schedule with me below. Schedule With Me Website Linkedin

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The Value-Added Billing Model: A Paradigm Shift for 21st Century CPA Practices

By Eric Runge, Advanced Planning Lead Introduction:

In the ever-evolving landscape of accounting, the traditional hourly billing model is proving to be an inadequate framework for the demands of 21st-century clients and accounting practices. As CPAs strive to enhance client satisfaction, remain competitive, and optimize revenue while effectively managing risk, a transformative alternative is emerging—the value-added billing model. In this blog post, we'll explore the inherent limitations of the hourly billing model and discuss the outdated 20th-century approach, showcasing how embracing the value-added model can revolutionize CPA practices in terms of revenue, client satisfaction, and risk management.

The Inherent Limitations of the Hourly Billing Model:

The hourly billing model has been the go-to method for CPAs for decades, but more and more it is falling short in meeting the needs of the modern era. It emphasizes time spent rather than value delivered, which is inherently CPA-focused, not client-focused. Since it is fundamentally price-oriented not value-oriented, it is a part of what is driving the industry toward the commoditization of traditional tax preparation and accounting services. Ironically, it simultaneously restricts the potential for growth of the CPA firm since there are only so many hours in a day (and only so much you can charge for your services before you get underbid). Most importantly it puts an invisible barrier to achieving the highest levels of client satisfaction since the incentive structure is not aimed at utilizing all areas of the 80,000+ page IRS tax code. Thus, as we move into the 21st century the hourly model is becoming less and less effective, as it no longer aligns with the dynamic landscape and evolving expectations of the type of A-level clients accountants are seeking. 2. Embracing Value-Added Billing:

The value-added billing model (and mindset) represents a paradigm shift for CPA practices in the 21st century. It transcends the limitations of the hourly billing model by emphasizing the value delivered to clients rather than time spent. This approach aligns with the modern client's desire for outcomes (solutions), strategic insights based on a holistic planning, and resulting personalized solutions tailored to their unique needs. Clients will pay more for higher value services, as opposed to CPAs always being hassled by a contingency of clients who want to price shop. Consider it this way: a CPA incorporates forward-looking advanced planning services as a part of their practice, and as such learns of a way to save a commercial real estate client $400,000 in tax in a legal, compliant, and safe manner. Would it be worth it to the client to pay the CPA $150,000 in order to save $400,000? Would that client be happy about the CPA bringing it up? 3. Optimizing Revenue Potential:

The above example is a great example of the transformative aspects of the value-added billing model's potential to optimize revenue for CPA practices. By shifting their mindset from one of maxing billable hours to leaning into the value they can create, CPAs will discover ways to offer additional services, develop new revenue streams, and as such position themselves as indispensable partners who deliver tangible outcomes and long-term financial growth for their clients.

4. Elevating Client Satisfaction:

As should hopefully be obvious by now, the value-added billing model places a premium on client satisfaction. By understanding clients' pain points, goals, and objectives, CPAs can tailor their services (and incorporate advanced services) to provide meaningful solutions that address specific challenges. This client-centric approach fosters stronger relationships, builds trust, and positions CPAs as the client's most relevant and respected advisor who is above all invested in their client's success.

5. Enhancing Risk Management:

From a risk management perspective, the value-added model sets the stage to provide CPAs with a wonderful opportunity to proactively identify and better mitigate risks for their clients. Whether they take the time to become experts in forward-looking services like tax-planning (which is better suited toward subscription billing, but gets you closer to value-added in principle), or incorporate the team-based model approach, letting other experts do it for them (the easiest way to more quickly incorporate value billing and not create new bottlenecks in your practice), CPAs will start to gain "eyes in the back of their head" to equip themselves to get ahead of their clients' risks in the areas of tax (with tax planning), and business, legal, estate, and investments (with the team-based model). The great thing about enhanced risk mitigation is that the more comprehensive the CPA's services the more they will function as the quarterback of their team instead of service provider, and the client will take notice. This is exactly what clients want: by shifting their thinking from hourly-minded to a value-based billing mindsset and consequently increasing the value of the service their firm offers, the forward-minded CPA ultimately helps clients better avoid potential pitfalls and helps secure their financial well-being. Remember your commitment and why you got into this business: it's about what is best for the client. If you're convinced this is better for the client and you see the benefits for yourself as well (a win-win!), find a partner to help, and start making moves. Imperfect action is better than perfect inaction.

Conclusion:

The value-added billing model represents a transformative shift for 21st-century CPA practices, providing a pathway to enhanced revenue, elevated client satisfaction, and more effective risk management. Moving away from the limitations of the hourly billing model and embracing a client-centric approach focused on value delivery allows CPAs to thrive in the modern era. By recognizing the shortcomings of the outdated 20th-century model, CPAs can position themselves as most relevant, most respected advisors who offer holistic solutions, strategic guidance, and measurable outcomes. Given the changes happening in the industry, it's time to embark on this paradigm shift, protect yourself and your clients, and unlock the true potential of your accounting practice in the 21st century.

This can be a big change, but it is possible. To discuss how we've helped revolutionize CPA practices, click below to schedule an appointment. Schedule With Me Website Linkedin

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Leap and the Net Will Appear: Shifting Your Thinking to Thrive Amidst Risk and Disruption

By Eric Runge, Advanced Planning Lead

In the ever-evolving landscape of accounting, CPA practices built on the 20th century model face the daunting challenges of stagnation, commoditization of services, and the rising threat of AI. However, the concept of "leap and the net will appear" offers a powerful mindset to counter these risks and help accountants move powerfully into a 21st century practice. By taking bold steps, embracing innovation, and cultivating a growth-oriented approach, CPA practices can not only survive but thrive in this dynamic environment. In this blog post, we will explore how this important concept serves as a vital strategy for CPA practices to overcome some of the biggest challenges they face.

Escaping Stagnation: Stagnation is the enemy of progress and growth for any CPA practice. The only way to break free, however, is to be willing to take smart, calculated risks and explore new avenues. One mustn't fool themselves into thinking that maintaining the status quo isn't risky, while adopting something different is. It only feels that way because we're always more comfortable to that which we are already accustomed. It will feel quite dark and scary at first to stretch and grow, but by adopting a "leap and the net will appear" mindset, CPAs can successfully step out of their comfort zones, embrace change, and execute on opportunities that will achieve their long-term vision. By putting themselves in situations where they are challenged, CPA practices can unlock new avenues for growth and maintain their relevance in a rapidly changing industry. It is important, however, not to try this alone. Forget the DIY approach: all good heroes need a guide. Luke had Yoda, Daniel had Mr. Miyagi, and Neo had Morpheus. Everybody needs a partner for when times get tough.

Defying Commoditization: The threat of commoditization looms over many industries, including accounting. As technology advances, routine tasks can be automated, potentially devaluing traditional accounting services. To combat commoditization, CPA practices must demonstrate their unique value proposition. Embracing the leap means focusing on positioning oneself as a trusted advisor, and providing high value, customized services such as estate planning, tax planning, and wealth management. This will help to nurture strong client relationships, will allow the CPA the chance to offer strategic insights and deliver exceptional experiences. This in turn will differentiate a CPA, making him the go-to advisor for all his client's needs. Most CPA firms aren't yet doing this; thus the CPa who does will distinguish himself from his competitors and ensure his services remain indispensable.

Harnessing AI and Technology: While AI presents challenges to the accounting profession, it can also be leveraged as a powerful tool to enhance CPA practices. Rather than perceiving AI as a threat, tax professionals can embrace it as an opportunity. By embracing the leap and staying at the forefront of technological advancements (or partnering with somebody who loves that sort of thing), CPA practices will likely soon be able to leverage AI to automate routine tasks, streamline processes, and deliver more accurate and efficient services to clients. This will allow tax professionals to focus on higher-value activities such as being the quarterback of their advanced planning team. By adapting and evolving alongside technology, CPA practices can harness the power of AI to their advantage, enhancing their offerings and delivering even greater value to clients.

Conclusion:

In the face of stagnation, commoditization, and the growing influence of AI, CPA practices can find solace and opportunity in the concept of "leap and the net will appear." By cultivating a growth-oriented mindset, embracing innovation, and taking calculated risks, CPA practices can defy stagnation, differentiate themselves from 20th century outdated practices, and leverage technology to their advantage. Through unwavering commitment to providing exceptional client experiences, advanced planning, and higher value, CPA practices can navigate the complexities of the industry and thrive amidst disruption. So, embrace the leap, embrace change, and trust that the net will indeed appear, supporting your own journey toward continued success and relevance in an ever-changing world.

If you'd like to see how we've implemented this for hundreds of successful CPA practices, schedule with me below. Schedule With Me Website Linkedin

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There are Only 4 Ways to Grow a Business

By Eric Runge, Advanced Planning Lead Introduction: A fantastic and logical framework for a business's growth is that there are literally only 4 ways any business can grow. Businesses who understand this concept will be more empowered to make wise and strategic decisions and grow strategically, whereas businesses who miss this may be destined to remain forever in "plate-spinning" mode. In this blog post, we will explore this concept of "Only 4 Ways to Grow a Business" and delve into how understanding this will be important in achieving profitable business growth.

Increase the Number of Customers: This is one that most readily presents itself to many tax practitioners. Adding a wealth of new clients for an up-and-coming accounting practice could make sense, but it is important to bear in mind that for an established tax business who has trouble finding staff, workload issues, and a resulting full schedule for all, it may not be the ideal approach. A tax practice should have firm boundaries around the type of new customer they will take on. Indeed, for an accounting firm who takes on any and all new clients it may actually be impossible to grow much if at all in this way, for the same reason it's impossible to go much faster in a car stuck in 2nd gear with the gas pedal nearly mashed to the floor. The physics just won't allow for it unless something else changes. However, it is important for any firm who wants to grow to increase the number of A-level clients they bring in, and that's what the following 3 ways can achieve if done correctly.

Increase the Frequency of Transactions: A more efficient avenue to boost profitability can be by doing more transactions with existing customers or clients. Repeat business capitalizes on established customer relationships, reducing the cost of acquiring new clients.

Increase the Average Transaction Value: This is important, but one which many CPAs are reluctant to implement inside their own practice, often times out of an understandable fear of losing clients. However, many CPAs are charging well below market rates when it comes to their services. Increasing the cost of a simple tax return, for example, can increase both efficiency and profitability, since it will naturally give way to attrition with the clients who want to price shop, and the firm will enjoy increased revenue from the clients who stay. Each firm should decide if this is right for them. It is impossible to quantify this without taking a deep dive into the numbers at a firm specific level, but we're communicating the concept here in a hypothetical example. Thinking on this, it can feel for many accountants like a risky move, but how risky is it to stay right where you're at if your tax practice is bogging down your schedule, your time, and your energy? Once a CPA has their head and heart around this in principle, a highly efficient way to increase average transaction value is to offer advanced, higher-value services to clients.

Get More Efficient/Reduce Costs: The fourth strategy emphasizes improving efficiency within the business. For an accounting firm a good step can be making moves to eliminate C & D level clients altogether. This can be done through outsourcing, selling them to another firm, or raising the price and allowing them to weed themselves out. Far from being a calloused move, this can actually be what is best for both client and firm, since a firm with an excessive amount of low revenue clients requires a CPA's valuable time and expertise to be spent on people who don't need or require it, instead of spending their time and energy on A level clients who require their levels of expertise. Another way to become more efficient is to eliminate bottlenecks, such as happen in the tax return review process. With the advent of AI and other technology, more and more traditional tax services are becoming commoditized and automated, so the CPA who worries that their greatest value lies in their technical skills should take heart; their deepest value to the client lies elsewhere. Many accounting firms have significant inefficiencies that should be addressed, and dealing with this in an objective, calculating way will allow a firm to maximize their resources, reduce costs, and improve overall productivity, resulting in higher profitability, happier clients, and a better practice. Obviously, there are lots of different ways to approach each of these four options, and we've tried to give some practical examples in this post. Given the fact that there are literally only 4 ways to grow any business, stop and ask yourself: where should I primarily concentrate my efforts? #1, #2, #3, or #4? Figuring this out in greater detail will be monumental to your practice. In summary, the concept that there are only 4 ways to grow a business provides tax professionals with a strategic framework for understanding profitable business growth. By recognizing that to grow any business profitably, one can only focus on 1) increasing the number of customers, 2) the frequency of transactions, 3) the average transaction value, or 4) becoming more efficient, businesses can set the stage for phenomenal growth. By implementing these growth strategies efficiently in a way which is right for their business, a CPA firm can begin to maximize its full potential and pave the way for long-term success and profitability. Need some help implementing all this? Instead of doing it the DIY way, consider scheduling with me. My team and I have a proven business advisory process that has increased business profitability for hundreds of accounting practices. Schedule With Me Website Linkedin

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"Who Not How": A Game-Changer for CPAs Seeking Success

By Eric Runge, Advanced Planning Lead As a tax professional, you're no stranger to the challenges that come with managing a workload, serving numerous clients, battling (maybe?) analysis paralysis, dealing with staffing issues, and striving for higher firm revenues. The constant juggling act can leave you feeling overwhelmed and struggling to find effective solutions to get you to where you want to be. However, there's a concept that can revolutionize the way you handle these problems and help you navigate them with clarity and purpose. Enter the "Who Not How" approach—a powerful mindset shift that can transform the way you tackle challenges and drive your CPA practice to new heights.

The Problems CPAs Face:

1. Workload Overload: As a CPA, you have a never-ending to-do list, leaving you stretched thin and struggling to find time for strategic planning and growth initiatives.

2. Too Many Clients, Not Enough Time: Managing a large client base can be a double-edged sword. While it's a testament to your expertise and reputation, it can also lead to an unsustainable workload and compromised client service.

3. Analysis Paralysis: In an industry that demands precision and accuracy, the pressure to analyze every detail can sometimes lead to decision paralysis on bigger-picture issues like marketing and business development, hindering progress and wasting valuable time.

4. Staff Hiring Frustrations: Finding and retaining top talent can be a daunting task, causing frustration and impacting the efficiency and effectiveness of your firm.

5. Low Firm Revenues: Despite your expertise and hard work, achieving desired revenue levels can be an ongoing struggle, leaving you wondering how to break free from this cycle.

The Power of "Who Not How":

In the midst of these challenges, the "Who Not How" concept offers a fresh perspective and a transformative approach to problem-solving. Coined by entrepreneur Dan Sullivan, this mindset shift emphasizes the importance of focusing on who can help you, rather than how you can do it all yourself.

1. Leveraging Expertise: Embrace the notion that you don't have to be an expert in every aspect of your business. Instead, identify your strengths and seek out experts to handle things for you in areas where you lack knowledge or experience. Don't try to become all things to all people. Instead, stay in your own swim lane and bring in others who are great at staying in theirs. By partnering with specialists, whether through outsourcing, consultants, or strategic collaborations, you can tap into their expertise to achieve better results efficiently.

2. Delegating and Streamlining: Recognize that you can't be everywhere at once. Delegate tasks that are not the best use of your time, allowing you to focus on high-value activities. Consider ideas from business experts, including outsourcing services like Tax Titans or Entigrity, and automation tools and technologies that can streamline repetitive processes, freeing up your time and energy for higher-value endeavors.

3. Collaboration and Networking: Connect with other professionals in your industry, such as financial advisors, marketing experts, or business advisors (only those who have done what you're seeking to do), who can bring fresh perspectives and help you find time-tested solutions. Building relationships with like-minded individuals-especially those who already have a broad team of professionals in place-can provide invaluable support, insights, and potential partnerships.

4. Growth Mindset: Embracing the "Who Not How" approach shifts your mindset from being limited by your own capabilities to one of growth and expansion. It opens up possibilities and encourages you to seek out opportunities that align with your goals, even if they require collaboration or seeking external help.

Conclusion:

By shifting your perspective from "how can I do it all?" to "who can do it for me?", you open up a world of possibilities. Leverage the expertise of others, delegate tasks that are not your strengths, collaborate with industry peers, and nurture a growth mindset that welcomes new opportunities. Embracing the power of the "Who Not How" approach will not only alleviate the burdens of overwhelming workloads and staffing challenges but also enable you to focus on what truly matters – delivering exceptional service to your clients, making informed decisions, and driving your firm's profitability. Remember, success is not about doing it all alone, but rather about building a network of trusted experts and partners who can propel you towards a brighter and more prosperous future. The Team-Based Model is built on "Who not How." Schedule with me today to learn how to incorporate it into your practice. Schedule With Me Website Linkedin

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From Doubt to Synergy: Embracing Collaboration as a CPA

By Eric Runge, Advanced Planning Lead In the world of finance, CPAs and other tax professionals are known for their meticulous attention to detail and inherent skepticism. It's a quality that both distinguishes them and defines their approach to their work. However, this skepticism can be a double-edged sword, as it holds within it the power to be both a CPA's greatest strength and their greatest weakness. In this article, we will explore the multifaceted nature of a CPA's skepticism and delve into how harnessing its strengths while managing its limitations can lead to professional growth and enhanced client relationships.

1. The Strength of Skepticism:

CPAs tend to possess a natural inclination towards skepticism, which enables them to maintain a critical eye and discern potential risks or inconsistencies on behalf of their clients. This tendency toward incredulity serves as a strong protective shield, safeguarding against errors, fraud, and financial missteps. By questioning assumptions, scrutinizing data, and demanding evidence CPAs ensure accuracy, integrity, and compliance within their work. Their skepticism acts as a reliable compass, guiding them toward precise and meticulous decision-making.

2. The Pitfalls of Excessive Skepticism:

While this tendency can be a valuable asset, it's essential for CPAs to understand that it also carries with it the potential for liability, and not doing the best job possible for their clients. An excessive level of doubt or hesitation can hinder collaboration with other professionals, and can erode client trust. Constant questioning without offering constructive solutions can breed frustration and hinder effective communication. People may perceive an overly skeptical CPA as uncooperative or resistant to change, leading to strained interactions, missed opportunities for growth, and a diminished reputation as the client's most relevant advisor. In short, it can work against a CPAs most important goals instead of toward them. For this reason it's crucial for CPAs to be aware of their tendency to "question all things," and instead strike a balance between healthy skepticism and cultivating a "Who Not How" mindset of trust and collaboration.

3. When all you have is a hammer, everything looks like a nail:

CPAs must learn to wield their skepticism as a valuable tool in their professional arsenal, knowing when to utilize it appropriately. If skepticism begins to become the sole lens through which CPAs view this rapidly changing world (think of AI!), it can hinder collaboration and reduce their potency with clients. To transform skepticism from a liability into a true strength, CPAs should emphasize the importance of transparency. By openly sharing their thought processes, methodologies, and rationale with clients, they can build trust and demonstrate their expertise. Transparent communication fosters open dialogue, enabling a shared understanding of complex financial matters. In doing so, CPAs position themselves as reliable partners, fully invested in their clients' success. By striking a balance between skepticism and trust, and engaging in proactive communication with clear explanations, CPAs can bridge the gap and ensure that skepticism serves as a powerful tool rather than an obstacle.

4. Don't Compare Yourself to Yourself

If you're the skeptical type (most tax professionals are, with some exceptions) real growth in this department is going to stretch you, and that stretching going to be uncomfortable. Avoid the tendency at this point to escape this discomfort by comparing yourself to yourself, in which case you will ultimately conclude "I'm not that skeptical." It's likely that this is what you already wanted to conclude, therefore you concluded it. That's very convenient, but it is a trap. Allow yourself a more honest assessment by comparing yourself to an offsetting personality such as a financial advisor. Advisors tend as a whole to be the opposite of skeptical, and often fall into the ditch on the other side of the road. So there you both are, each stuck in your own ditch. It would be best to meet in the middle and learn from each other, but this is not a blog for financial advisors but for CPAs. Let me encourage you to take the initiative and learn from advisors on this one.

5. Collaboration for Innovation:

CPAs can amplify the power of their skepticism by embracing synergistic collaboration. By actively seeking out other points of view, getting out of the silo, and engaging in teamwork (we're not talking about intermural team work with your staff-we know you already do that), CPAs can lower risk for themselves and their clients, foster an expansion of solutions, and gain confidence by learning different approaches to complex financial challenges. Collaborating with experts from different fields such as legal professionals, wealth advisors, or business strategists (let me suggest the Team-Based Model at this point), allows CPAs to tap into a wealth of knowledge and enrich their problem-solving capabilities. They can remain skeptical where they need to be, but embracing collaboration as well is a huge catalyst for growth and expands the CPA's professional horizons.

Conclusion:

The skepticism inherent in CPAs is a formidable tool that can lead to exceptional outcomes when harnessed effectively. By recognizing both the strengths and weaknesses of skepticism, maintaining a balance, fostering transparency, learning from offsetting personalities, and consequently embracing collaboration, CPAs can utilize their skepticism as a guiding force while also transcending its limitations, ultimately propelling their professional growth and delivering exceptional value to their clients. Schedule with me here to learn about how we partner with CPAs to help them achieve that which they cannot accomplish on their own.

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Finding the Power of the CPA Team-Based Model: Revolutionizing Tax Professionals' Practice for Success and Fulfillment

By Eric Runge, Advanced Planning Lead As a non-traditional financial advisor, I have seen first hand the challenges that tax professionals face under the traditional hourly model, including burnout, stagnant revenue, and staffing difficulties. In this article, we will explore how embracing the CPA team-based model can be a game-changer, solving these pain points while empowering tax professionals to realize their true potential.

Understanding the Challenges Faced by Tax Professionals:

The traditional hourly model in which CPAs and tax professionals operate often leads to burnout and unfulfillment. The constant pressure to bill hours leaves little time for either rest or personal growth. Clients desire more than compliance; they seek proactive tax-saving strategies and a deeper relationship with their most trusted advisor. Unfortunately, the limitations of the hourly model hinder many tax professionals from fully satisfying these needs, resulting in missed opportunities and strained client relationships. Moreover, it is not the life most CPAs want to live, nor the practice they want to run. This is part and parcel of the old, outdated 20th-century model, but exploring a 21st-century approach like the CPA team-based model can help maximize a CPA's potential and bring greater fulfillment to their work.

The CPA Team-Based Model: A Paradigm Shift:

The CPA team-based model presents (and requires) a paradigm shift that brings about a profound transformation in how tax professionals operate. By working within collaborative teams, tax professionals can leverage their individual strengths, while bringing to bear the strengths of other team members who are equally proficient in their respective fields of expertise. This approach empowers CPAs, EAs, and LTCs to deliver exceptional service, exceed client expectations, and drive success in their practice.

Benefits of the CPA Team-Based Model:

1. Enhanced Client Experience:

Through the team-based model, tax professionals can provide a superior client experience in the five key areas of advanced planning: tax planning, estate planning, business advisory, wealth advisory, and legal services. However, they don't have to learn to be experts in all these areas; rather they will incorporate team members who are already experts in each of these respective fields. The CPA stays in their swim lane and allows others to do the same, utilizing the "Who Not How" approach. This collaborative team method allows tax professionals to focus on their own expertise, while allowing others to do the same, all for the benefit of the client. The client views it as them receiving comprehensive support and valuable insights from their tax professional since it is all happening under one "virtual" roof. This positions the CPA as the most trusted, most respected advisor committed to the client's long-term financial success.

2. Increased Revenue Potential:

The team-based model breaks the revenue limitations imposed by the hourly billing approach. By assembling a well-rounded team, tax professionals can expand their service offerings, trim off C & D level clients while attracting more A-level clients, and incorporate new revenue streams into their practice. This opens up new avenues for growth and profitability and makes the firm much more valuable for succession planning later on.

3. Alleviating Burnout and Professional Dissatisfaction:

Burnout is a significant concern for tax professionals. However, the team-based model alleviates this burden by eliminating the need to take on so many clients. By removing C & D level clients and focusing on A level clients, CPAs can find much more fulfillment in their work and achieve a better work-life balance. This helps produce renewed enthusiasm and job satisfaction.

4. Achieving the Identity of "Most Relevant Advisor":

The TBM allows tax professionals to realize the potential of becoming the "most relevant advisors" they aspire to be. By connecting to and incorporating a cohesive team of "best of breed" experts into their practive, professionals can cultivate a reputation for excellence in their industry. Their ability to provide comprehensive tax solutions, advanced planning, and deliver exceptional results positions them as trusted authorities in the field, garnering respect from both clients and peers.

Conclusion:

The traditional hourly model has long plagued CPAs and tax professionals, hindering their ability to thrive and provide exceptional service to clients. However, by embracing the CPA team-based model, tax professionals can break free from the limitations of the past and embark on a path to success, fulfillment, and client satisfaction. As financial advisors, let us champion this transformation, guiding and empowering tax professionals to unlock their true potential, achieve their desired identity as respected advisors, and elevate their practice to new heights of success. Together, we can revolutionize the tax industry, creating a future defined by excellence and client-focused innovation. If this is of interest to you, schedule with me to learn more. Schedule With Me Website Linkedin

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The Power of Synergy: Changing Your Mindset from DIY to "Who Not How"

By Eric Runge, Advanced Planning Lead Introduction:

In the tax profession, the tendency to "Do It Yourself" (DIY) is deeply ingrained. CPAs and other tax professionals are known for their individual expertise and their ability to tackle complex financial challenges on their own. However, there is a transformative power in shifting from a DIY mindset to a collaborative approach that embraces the "Who Not How" philosophy. By recognizing the strength of synergistic collaboration and leveraging the expertise of others, CPAs can achieve remarkable success and take their profession to new heights.

The DIY Mindset: A Double-Edged Sword:

CPAs are known for their technical proficiency and their ability to handle intricate financial matters independently. The DIY mindset has its merits, as it demonstrates resourcefulness and self-reliance. However, it can also become a hindrance, leading to limitations and missed opportunities.

1. Limited Capacity: CPAs have finite time and energy. Attempting to handle every aspect of their practice on their own can lead to overwhelm, burnout, and limited capacity to take on new challenges or opportunities.

2. Narrow Perspective: The smartest person in the world cannot see the back of their own head. In the same way, tax professionals solely relying on their own expertise can result in a narrow perspective. Collaboration opens doors to fresh ideas, innovative approaches, and diverse viewpoints that can drive growth and success.

3. Missed Opportunities for Growth: Could Michael Jordan, standing solo-arguably the best basketball player in history-beat a team made up of 5 average players? Probably not. Likewise, the DIY approach drastically limits even the best CPA's ability to leverage the skills and knowledge of others. By embracing the synergistic concept that 1+1=3, CPAs can accelerate their growth and expand their horizons by tapping into the expertise of other professionals who are the MJ's of their respective fields.

The Strength of Synergistic Collaboration:

An effective way to break free from the limitations of the DIY mindset is by adopting a "Who Not How" mindset, which emphasizes collaboration and leveraging the expertise of others to achieve exceptional results. Here's how embracing synergistic collaboration can transform the accounting profession:

1. Access to Specialized Expertise: Collaboration allows CPAs to tap into the unique strengths and expertise of others. Instead of attempting to master every aspect of their practice, CPAs can rely on specialists in areas such as advanced planning, marketing, or business strategy to maximize their effectiveness and provide comprehensive solutions to clients.

2. Time and Resource Optimization: Collaborating with others enables CPAs to focus on their core competencies while delegating non-essential tasks to specialists. This optimizes time and resources, allowing CPAs to dedicate more energy to high-value activities that directly impact their A level clients' success.

3. Innovation and Creative Problem-Solving: Collaborative environments foster innovation and creative problem-solving. By engaging with a team of professionals (consider our Team-Based Model), CPAs can spark new ideas, lower risk, and find solutions to complex challenges that may not have been possible on their own.

4. Client-Centric Approach: Collaboration allows an accountant to deliver a more holistic and client-centric service. By connect to a team of experts who complement their skill set, tax professionals can provide comprehensive advice, more thoughtful solutions, and exceptional value to their clients, that other firms do not.

Conclusion:

Shifting from a DIY mindset to a collaborative approach is a transformative step. In the 21st century embracing the "Who Not How" philosophy will manifest the strength of synergy, propelling CPAs, EAs, and LTCs to greater heights of success and fulfillment in their profession. By tapping into specialized expertise, optimizing resources, lowering risk, and delivering deeper client-centric solutions, CPAs can redefine their role and make a lasting impact in the ever-evolving world of accounting.

By recognizing that there is a deeper strength in collaboration than in doing everything one's self, CPAs can transcend the limitations of an outdated mindset and open extended possibilities, propelling their careers to greater levels of success and creating lasting value for their clients. We collaborate with like-minded CPAs every day. To schedule an appointment to discuss how this approach could help your business, click the link below. Schedule With Me Website Linkedin

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How CPAs Can Thrive Amidst the Rise of AI

By Eric Runge, Advanced Planning Lead In today's rapidly evolving landscape, the rise of artificial intelligence (AI) has made some tax professionals a little nervous. AI has ignited a wave of transformation across various industries, and the accounting profession, including CPAs, EAs, and LTCs, is no exception. The advent of AI-powered technologies has the potential to disrupt traditional accounting practices and raise concerns about the future of CPAs. However, by recognizing the challenges at hand and embracing change, CPAs can not only survive but also thrive in this new era.

The Challenge:

The plain truth is that CPAs face a significant challenge - the potential risk of being rendered obsolete by AI. As AI technologies continue to advance, routine tasks such as data entry, financial analysis, and even basic tax preparation can be automated with increased efficiency and accuracy. This raises the question: What role will traditional CPAs play in a world where machines can perform these tasks at lightning speed?

Adapting to Thrive:

The key to staying relevant and securing a resilient future as a CPA lies in shifting focus and adding value to A-level clients. These are the clients who truly rely on human expertise and personalized advice for their complex financial needs. By understanding their unique challenges and positioning themselves as trusted advisors, CPAs can adapt and thrive amidst the rise of AI.

Emphasizing Human Expertise:

While AI may excel at processing vast amounts of data and performing repetitive tasks, it lacks the ability to provide the human touch, emotional intelligence, and strategic thinking that clients crave. CPAs can leverage their deep industry knowledge, critical thinking skills, and comprehensive understanding of financial regulations to provide a level of service and guidance that AI simply cannot replicate.

Building Strong Client Relationships:

One of the greatest assets CPAs possess is not their technical skill-as important as that is-but their ability to build meaningful and long-lasting relationships with their clients. By nurturing these connections and learning to go deeper, CPAs can gain a deep understanding of their clients' unique goals, challenges, and aspirations. This insight allows CPAs to tailor their advice, offer proactive solutions, and become trusted partners in their clients' financial journeys.

Positioning for Success:

To thrive in the age of AI, CPAs must position themselves as indispensable advisors who offer a unique blend of human expertise, relationship-building skills, value-added service, and innovative thinking. By partnering with others who have offsetting skill sets and adapting their service offerings to meet the evolving needs of their A-level clients, CPAs can secure their relevance and success in the financial industry.

The rise of AI undoubtedly presents challenges for CPAs, but it also offers tremendous opportunities for growth and innovation. By recognizing the shifting landscape, embracing change, and focusing on adding value to A-level clients, CPAs can secure a resilient future and increase their clients' respect for them as their most relevant advisor. Emphasize the human touch, build strong client relationships, and leverage the skill sets and networks of others to enhance your services. In doing so, you will not only survive but thrive amidst the transformative power of AI. This can all be overwhelming for the busy tax professional, but this is exactly what my team and I help CPAs build into their practices. Schedule with me by clicking the link below so that I can learn about what your biggest concerns are. Schedule With Me Website Linkedin

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The Power of Collaboration: How Financial Advisors Complete the Story for Tax Professionals

By Eric Runge, Advanced Planning Lead In the world of finance, CPAs, EAs, and LTCs are revered for their technical prowess and meticulous attention to detail. They possess a wealth of knowledge and expertise that provides a solid foundation for their clients' financial well-being. However, there is a weakness that often hampers tax professionals—their tendency to focus solely on technical aspects rather than proactively implementing new ideas. The key to overcoming this challenge lies in recognizing the power of collaboration and understanding how the unique nature of financial advisors perfectly complements the strengths of accountants.

The Limitations of Technical Expertise:

As a tax professional, you have honed your skills in things such as accounting, taxation, and auditing, becoming a master of your craft. Your clients trust you implicitly with their financial matters, and you diligently navigate the complexities of regulations and compliance. However, our greatest strength is also our greatest weakness: too much reliance on technical expertise can sometimes lead to a reactive approach, addressing issues as they arise rather than anticipating and proactively implementing beneficial new strategies.

The Role of Financial Advisors:

Financial advisors possess a distinct set of qualities that can serve as the perfect offsetting strength to a CPA's skillset. They bring a unique perspective driven by a proactive mindset and a deep understanding of market trends, investment and business opportunities, and financial planning strategies. The right financial advisor is adept at identifying potential for growth, mitigating risks, and crafting comprehensive and holistic plans tailored to each client's goals and aspirations.

Collaboration: The Path to Success:

To take your practice out of plate-spinning mode and achieve the status of most relevant advisor, it is essential to embrace collaboration with a strong financial advisor. This collaboration is fundamentally about recognizing and owning your own weaknesses and understanding how the strengths of financial advisors naturally complement those weaknesses. At the same time your strengths will also complement the weaknesses of most financial advisors, to everybody's mutual benefit. That's how all good partnerships work.

By joining forces with a financial advisor, you can leverage their expertise to:

1. Proactively Implement New Ideas: Financial advisors excel at identifying smart strategies and opportunities. They can help your clients navigate the ever-changing financial landscape and implement proactive measures to minimize risk and maximize growth for your clients.

2. Create Holistic Advanced Plans: Financial advisors are go-getters, and a forward thinking 21st century advisor will connect to teams of professionals who possess deep understanding of investment options, estate planning, business advisory, legal, tax planning, and risk management. Those levels of expertise complement your technical prowess, allowing you to become instantly much larger and provide your clients with comprehensive advanced plans that encompass all aspects of their financial well-being.

3. Build Stronger Client Relationships: By adopting this mindset of synergistic collaboration with a financial advisor, you can offer your clients a more proactive and holistic approach to their financial needs. This partnership allows you to deepen client relationships with your best clients. You become the most relevant go-to advisor who not only ensures compliance but also guides your clients toward achieving their financial goals and dreams.

Conclusion:

As a CPA, you hold a unique position of trust in the financial world. By recognizing the value of a 1+1=3 synergistic partnership with a good financial advisor, you can begin to maximize your full potential and become the highly respected and revered advisor your clients are looking for. Begin to embrace the proactive and strategic mindset that financial advisors naturally possess to complement your technical expertise, and together, you will create a compelling story that propels your clients toward financial success.

Embrace your strengths, acknowledge your weaknesses, and embark on a journey to becoming the most relevant go-to advisor in your clients' financial lives.

If this is compelling and you'd like to explore it further, schedule a time to meet with me. I'd love to learn about your practice and what's keeping you up at night. Schedule With Me Website Linkedin

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The True Value of CPAs Lies Beyond Their Technical Expertise

By Eric Runge, Advanced Planning Lead CPAs have long been regarded as experts in the world of finance and taxation. Their technical prowess and ability to navigate complex financial matters have made them indispensable to businesses and individuals alike. However, there is a commonly held notion among CPAs that their greatest value lies solely in their technical abilities like completing tax return reviews. In this blog post, we aim to challenge this notion and shed light on the untapped potential of CPAs in providing proactive advice across all areas of advanced planning.

The Trust Factor:

One of the unique qualities CPAs possess is the implicit trust they have with their clients. This trust is built over years of working closely together, handling sensitive financial information, and ensuring compliance with regulatory requirements. Clients rely on their CPAs not only for accurate financial reporting but also for guidance on various financial decisions.

The Need for Proactive Advice:

While clients trust their CPAs implicitly, they often find themselves yearning for proactive advice that extends beyond traditional accounting and taxation services. Advanced planning encompasses a wide range of areas, including estate planning, risk management, investment strategies, and business succession planning. Clients seek CPAs who can provide holistic advice that considers their entire financial landscape.

Shortcomings in the Status Quo:

Unfortunately, the traditional model of CPA services tends to focus primarily on compliance and historical reporting. CPAs are often reactive, waiting for clients to approach them with specific questions or issues rather than taking a proactive stance. As a result, clients are left with unanswered questions, missed opportunities, and a gap in the valuable insights their trusted CPA could provide.

Preserving Ethics while Embracing Proactivity:

CPAs, as professionals bound by ethical codes, must navigate the delicate balance between providing proactive advice and preserving their integrity. However, being proactive does not mean compromising ethical principles. On the contrary, a proactive CPA can enhance their ethical standing by identifying potential risks, suggesting appropriate strategies, and promoting transparency.

Leveraging Trust for Proactive Holistic Guidance:

To meet the evolving demands of their clients, CPAs should leverage the trust they have cultivated to offer the type of proactive, holistic guidance A level business owner clients (and others) are looking for. By taking a more comprehensive approach to their clients' financial well-being, CPAs can become the most relevant advisors to their clients rather than mere service providers. This shift requires a mindset change among CPAs and a commitment to expanding their understanding of themselves, their role, and their identity beyond mere technical expertise.

"Who not How":

At the same time CPAs should recognize that they need not be experts in all areas of advanced planning. Instead they should focus on identifying the right professionals (the "who") who possess specialized expertise. Better yet, they can leverage established networks of experts in tax planning, estate planning, risk management, investment advisory, and business succession planning. By embracing this approach CPAs can provide comprehensive and proactive guidance to their clients-meeting their specific demands-while preserving their ethics and leveraging the trust they have cultivated.

CPAs' general conception of themselves as purely technical experts is becoming more and more outdated. Rather, their deepest value lies in their trust with the client. Clients desire proactive advice that goes beyond compliance and embraces advanced planning in its entirety. CPAs possess a unique advantage in the form of this implicit trust, which they can leverage to become proactive, holistic advisors. By embracing collaboration CPAs can bridge the gap between client expectations and the services they currently offer. It's time for CPAs to embrace their full potential and meet the evolving needs of their clients in the dynamic world of finance. This can be a big change, but it is possible. To discuss how we've helped revolutionize CPA practices, click below to schedule an appointment. Schedule With Me Website Linkedin

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Answering Concerns: CPAs Trimming C & D Level Clients

By Eric Runge, Advanced Planning Lead For many CPAs, the idea of strategically trimming C & D level clients can elicit the same concerns as one might have who has just discovered their car is out of control during their scenic drive by the ocean. The concerns of CPAs we talk with often stem from a sense of ethical obligation, fear of letting go, concerns about revenue loss, fear of change, and a lack of trust in the benefits of such a strategy. In this blog post, we will address these objections head-on and highlight why CPAs should consider the advantages of trimming their client base to drive growth, efficiency, and client satisfaction

Ethical Obligation to All Clients: CPAs often feel a strong ethical obligation to serve all clients, regardless of their revenue contribution. However, it's essential to recognize that strategic client trimming is not about abandoning clients in need, but rather about focusing resources where they can have the greatest impact. By redirecting attention to high-value clients, CPAs can deliver exceptional service to those who provide substantial revenue and have the potential for growth.

Fear of Letting Go: Letting go of clients, even those who are not contributing significantly to revenue, can be challenging for CPAs. However, it's important to understand that holding onto C & D level clients can hinder firm growth and limit resources available for higher-value clients. Embrace the idea that by releasing clients who are not a good fit, you create space to attract and serve clients who align better with your firm's expertise and strategic goals.

Concerns About Revenue Loss: One of the primary objections to trimming C & D level clients is the fear of losing firm revenue. While it may seem counterintuitive, focusing on high-value clients can actually lead to increased revenue. By dedicating more time and resources to A level clients, you can deepen relationships, provide tailored solutions, and cultivate loyalty, ultimately resulting in higher revenue streams and long-term profitability.

Fear of Change: Change can be intimidating, especially when it involves altering the structure of your client base. However, embracing change is essential for professional growth and adaptability. Recognize that trimming C & D level clients is a strategic decision aimed at optimizing your firm's performance and aligning with market demands. Embrace the opportunity to refine your client portfolio and embrace new opportunities for success.

Building Trust in the Strategy: While the concept of strategic client trimming makes sense in theory, CPAs may hesitate due to a lack of trust in its effectiveness. It's crucial to review case studies, success stories, and industry best practices that demonstrate how firms have thrived by focusing on high-value clients. By exploring these examples and seeking guidance from experts who have implemented this strategy, you can build confidence in its positive outcomes.

Coming to terms with your concerns is a vital step in realizing the benefits of strategically trimming C & D level clients. By understanding that this approach does not contradict ethical obligations, that embracing change can be good, by seeing the difference increased revenue potential can make for your practice, and in building trust in the strategy and the people like me who help you implement it, CPAs can overcome objections and pave the way for enhanced firm growth, work-life balance, and client satisfaction.

Remember, the goal is to create a practice that optimizes resources, fosters meaningful relationships, and positions your firm for long-term success. By strategically trimming C & D level clients, CPAs can unlock new opportunities, focus on delivering exceptional value to high-value clients, and achieve sustainable growth in the dynamic landscape of the accounting profession. For help implementing this, schedule with me for a free consultation. I would love to hear about what's keeping you up at night. Schedule With Me Website Linkedin

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Strategic Client Trimming: Getting Rid of Your Worst Clients, and Focusing on Your Favorites

By Eric Runge, Advanced Planning Lead We've worked with a lot of CPA firms, and I can say with certainty that of you're a practicing Certified Public Accountant, some of your clients are inevitably dragging down your business. As a CPA (or tax professional) you play a crucial role in managing your clients' financial matters, however, finding the right balance between the types of clients you want to work with, revenue growth, and maintaining a healthy work/life balance can be challenging. Part of the solution lies in strategically segmenting your clients to optimize your resources, increase profitability, and create more time for yourself. In this blog post, we'll explore how CPAs can leverage client segmentation to achieve greater success and enhance work/life balance.

Understand Your Client Base: Take the time to analyze and understand your existing client base. Specifically, do this from the point of view of revenue contributions to your firm. Understanding this will help you identify high-value clients and those that may be draining your resources. Don't worry just yet about all the clients you know generate low revenue but that you don't want to say goodbye to; this is merely an exercise to help you begin to think in terms of increasing your firm's efficiency.

Segment Clients Based on Revenue: Run a report using your billing software which lists all your clients, grouped by family, showing revenue generated last year. Sort the list from highest to lowest revenue. After that identify the top 20% of clients by number, not by revenue. In other words, if you have 1000 clients, take the top 200 families total revenue and divide it by the total revenue generated by the firm. Your top 200 families will likely constitute around 80% of your firm's revenue, while the bottom 80% of your clients will constitute around 20% of overall revenue. Your ratio may vary; it may be 70/30 or even 60/40, but this exercise will allow you to see who your top clients are. Again, forget for now that you know and love some of your lowest revenue generating clients. Nobody is saying you have to get rid of those people you love. This is merely an opportunity to trim off those you don't love.

Strategically trim off C & D level clients: You may not want to get rid of every last one of your lowest revenue producing clients for various reasons, but you're going to want to trim off the majority of them. Think in terms of how much time this will free up for you. There are various ways to do this: outsource the work (either offshore or onshore), raise the price, or send them a break-up letter. You can also partner with firms like Tax Titans (https://tax-titans.com/) to keep some of the revenue from the client while sending the work out. If you're worried about losing revenue, opt to raise your base price for a simple tax return. That will chase off some clients, but the clients who stick around who are paying more will likely cause an overall increase to your bottom line, plus you'll get to see who your most loyal clients are.

Prioritize High-Value Clients: Focus on building strong relationships with your high-value clients. Understand their unique needs, challenges, and long-term goals. By providing personalized attention and tailored services, you can strengthen these relationships and potentially increase their lifetime value to your firm. If you're unsure how to do this, consider implementing the CPA team based model. By strategically segmenting your clients based on profitability you can achieve both revenue growth and an improved work/life balance. Embracing this approach empowers you to focus on clients who drive the most value to your firm while optimizing resources and creating more time for personal and professional fulfillment.

Above all, stay committed to delivering exceptional value to your clients. The CPA team based model is an excellent way of adding value and staying competitive. By thinking this way, you'll unlock new levels of success as a CPA and create a fulfilling work/life balance that allows you to thrive both professionally and personally. If this all seems a bit overwhelming, consider scheduling with me. My team of accountants and "best in class" professionals has helped hundreds of tax professionals implement this process successfully. Schedule With Me Website Linkedin

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Breaking Free From "Business Fatalism" with the CPA Team-Based Model

By Eric Runge, Advanced Planning Lead As a CPA, you possess a wealth of knowledge and expertise that can make a significant impact on your clients' financial success. However, the traditional approach often leaves CPAs feeling trapped in a cycle of reactive problem-solving, where you never seem to have time to proactively implement the things you want to do in terms of marketing, business growth, etc. As a result you end up always putting out fires. Let's call this the cycle of business fatalism. There is a way to break free from this mindset and embrace a new way of doing business that empowers you to take control of your practice, drive growth, and achieve a more fulfilling work-life balance

In this blog post, we'll explore the benefits of the CPA team-based model and how it can help you overcome the challenges you face while maximizing your potential.

Strategic Planning: With the team-based model, you gain access to the Virtual Family Office: a diverse group of best-in-class experts across the 5 key areas of advanced planning: business advisory, estate planning, tax planning, wealth management, and legal. This collaborative approach allows you to develop proactive plans for your clients that go beyond simply reacting to external factors. This in turn allows you to proactively shape your practice's future, navigating uncertainties with confidence while positioning yourself as the most relevant advisor for your clients.

Holistic Client Approach: The CPA team-based model encourages a holistic approach to client service. By collaborating with experts in areas such as advanced tax planning, legal support, risk mitigation, wealth management, and estate planning, you can offer comprehensive solutions that address your clients' evolving needs. This not only adds significant value to their businesses but also strengthens your relationships and fosters long-term loyalty.

Streamlined Processes: Excessive workload and repetitive tasks can bog down your practice and limit your capacity for growth. With the team-based model, you can leverage automation and process optimization to streamline your operations. By eliminating time-consuming manual tasks and optimizing workflows, you free up valuable time to focus on higher-value activities, such as building relationships and providing strategic insights to your clients.

Increased Revenue Potential: Expanding your service offerings beyond traditional tax returns opens up new revenue streams. Through the team-based model, you can tap into specialized services like business advisory, and other areas of advanced planning clients want from you. By offering these additional services to your clients, you not only increase your revenue potential but also position yourself as a comprehensive solution provider in the market.

Work-Life Balance: A thriving practice shouldn't come at the expense of your personal life. The team-based model allows you to regain control over your schedule and create a more fulfilling professional and personal experience. By trimming off C & D level clients while leveraging the expertise of the Virtual Family Office for your A level clients, you can achieve a better balance and enjoy the rewards of a successful practice without sacrificing your well-being. Breaking free is within your reach. Embracing the team-based model empowers you to take control of your practice, enhance client relationships, and drive sustainable growth. By strategically planning, adopting a holistic client approach, streamlining processes, exploring new revenue streams, and prioritizing work-life balance, you can unlock your true potential as a CPA.

Remember, you have the ability to shape your destiny as a CPA. Start today and embrace the opportunities that lie ahead. Schedule with me if you'd like to learn more, or would like to just talk to me about what's bothering you in your practice. Schedule With Me Website Linkedin