Product vs. Service

Accounting profession leader Gale Crosley once wrote, “Not so long ago, the business of an accounting firm was as predictable as men’s business attire.  Tax preparation and audits were about as far as it went.”

We all know it’s a different ballgame now.  Think back to the year 2000, right after that silly Y2K business, and pretty much only the big firms had strategic marketing efforts in conjunction with non-compliance products and services.  Indeed, there’s a massive difference in creating and unleashing products and services to a target audience.  Think about it this way: starting an activity-based costing service or deciding to sell software
(product with no support) to your clients.

As Gale has pointed out, there’s a significant difference between introducing a service and introducing a product.  How does your firm go about introducing new services?  What is your process in determining whether there’s a market for the new service?  How involved is your marketing leader?

2011 is clearly a far cry from 2000.

My tax season 2012? Part I

If you’re not familiar with Eva Rosenberg, a.k.a., TaxMama, you should be.  These words describe TaxMama:

*Dedicated to the profession
*Intelligent
*Nationally-known speaker and writer
*Hard working
*Exceptionally nice

In the first of a series of comments about next year’s busy season, the Curator (that’s me, Rob) offers Eva’s comments:

“I am teaching several CPE Link courses this year.  And although I really am, finally, divesting myself of most of my client base this year, I will be busy writing, with several weekly columns.

It’s also the time to build in improvements to my EA Exam Review class so it’s even better when tax season ends.

All in all, we’re going to be busy. And our income will keep increasing.  Handled properly, with the right level of expertise, a tax practice can be a gold mine–whether you’re DOING tax returns or writing and teaching about them.”


Goodby AMT Patch

The Alternative Minimum Tax (AMT) “patch” that was enacted late last year cut the number of people paying AMT to four million, from a potential list of 20 million or more.  Well, as you know, it expires at the end of this year.

I wonder how many clients of public accounting firms know this?  What are your thoughts on AMT?  Is it a good idea or another failed government initiative?  Speak out!

It’s quiz time, accounting folks

Trivia Question:
What Top 100 accounting firm has only one client?

Hint #1:
The firm is based in Alexandria, Virginia.

Hint #2:
The firm’s sole client is the federal government.

Hint #3:
The CEO’s name is Ed Kearney.

Answer:
Kearney & Co.

You can use this around the office water cooler if you like.  No charge.

Are the times a-changin’?

On this post-holiday weekend Monday morning, is change in the air at your public accounting firm?  Being an Ohio State University football fan, the news of ex-University of Florida coach Urban Meyer taking over the pigskin reigns in Columbus calls for a post about change.  This time of year, there’s typically not a whole lot of change in public accounting.  Budgets are set for the following year; the period between Thanksgiving and the end of the year is rife with staff taking vacation time; and there’s not a huge amount of M&A activity in the profession.

What can you do today to enact positive change, within your firm or company, one of your clients, or merely within yourself?

Will busy season be busier?

On this Thanksgiving morning, one thing that we can all be thankful for is making it through a tough economic climate in 2011.  Looking to next year, I started thinking about busy season, which will be here before we know it.  I will soon be writing an article about busy
season and would love to include some of your comments.

What’s your forecast for busy season 2012?

Better or worse than this year’s busy season?

To comment for an article, please reply to this e-mail.

On a related note, our good friend Rick Telberg has done some
terrific survey work.  Take a look here:

http://tinyurl.com/czpmgx3

Save some of that green bean casserole for me.  Enjoy your Thanksgiving.

Who’s going to mind the shop?

As a public accountant, I’ll bet you’re talking about succession plans and issues with your business clients on a very regular basis.  Plante Moran’s Managing Partner Emeritus Bill Hermann and current Managing Partner Gordon Krater have crafted a splendid book called Succession Transition: A Roadmap for Seamless Transitions in Leadership that speaks to the needs of privately-held businesses.

For more information:
http://leadershiproadmap.plantemoran.com/

Are You Winning?

There will be no references to Charlie Sheen in this article.  You’re welcome.

What are the reasons you either don’t attend conferences or you attend only the “essential” conferences?  Cost and time certainly are easy choices.  Travel hassles, for sure.  Potential bad food, periods of inaccessibility for clients, being gone from the family, making new unwanted friends with TSA agents, the list can go on ad nauseam.  But you’re an accountant, a skilled manager who values ROI and will scrap the above criteria when you see an investment that can pay off for you and your accounting life.  Shake your head accordingly in agreement.

The folks behind the Winning Is Everything Conference, The Advisory Board, set out eleven years ago to create a more rewarding, meaningful conference experience that held lasting impact well beyond the flight back home.

One of the presenters, L. Gary Boomer, CEO of Boomer Consulting, Inc., states, “The conference has professional speakers who are leaders.  They force the participants to think, plan and grow.”  Roughly 400 people representing 30 countries attend, largely managing partners and key partners from the top 300 public accounting firms.  Adds Boomer, “The conference brings the leadership from the larger and most progressive firms into an environment where they are exposed to trends inside and outside of the profession.”

It’s been said that a theme of past conferences is one of “don’t just think of yourself as running a firm…think of yourself as someone running a business.”

Gary S. Shamis, Managing Partner of SS&G Financial Services, Inc., in Cleveland, is a founding member of the conference, along with Boomer, Rebecca Ryan, Allan Koltin and Kathy Sautters.  Offering different perspectives was the genesis for this endeavor and that mantra has held true over time.  The attendees have become a “community” of sorts, much more so than for other conferences.  Being a bit skeptical when hearing such positive remarks about the conference, I naturally dug into why this particular conference series seems to carry more weight and longevity.  The answer: the special, unique nature of the networking and information sharing, coupled with the management strength and experience of the attendees.  Indeed, the value proposition is realized.

Allan Koltin, President and CEO of Koltin Consulting Group, Inc., stresses the importance of building these lasting relationships with fellow attendees.  “There have been nearly a couple of dozen people who have attended all of our conferences.  The high-quality networking and relationship building opportunities exist because the thoughts leaders stimulate and advocate change within firms.” states Koltin.

This conference series is a bit more cutting edge than most when it comes to creating and utilizing an online community to enrich the experience for those involved.  One new addition, allowing registrants to download handouts, post questions and keep the networking going long after the conference is over, can be found at: http://www.ishade.com/group/296/view.  This online community connects the presenters and guests all together, 365 days a year.  States Kathy Sautters of The Advisory Board, “We add value to the participants before, during and after the conference.”

Interacting with the presenters in Las Vegas in January is a possibility.  This opportunity goes well beyond gathering continuing education credits; it’s a step towards having a “winning” 2012 and beyond.

Percolating Profits

Many accountants enjoy a fine cup of coffee.  If you’re a java junkie, you’ve probably had some Green Mountain coffee.  I am drinking a cup of Green Mountain’s French Roast variety as I type this (visualize it).  Did you read about this company recently?  Apparently, Green Mountain Coffee Roasters missed their earnings forecast a bit.  On news of their revenue increase falling a smidgeon short–only 91% against expectations of 100%–their shares price took a tumble of 39%.  Ouch.

Whether you’re in public accounting or on the corporate side, I think any of us would be thrilled with a 91% increase.  Make no beans about it.

Please comment.

USPS needs accounting stamp of approval

As professional business advisors, CPAs provide tremendous value to their clients in a variety of ways.  This is not news to you.  With clients regularly having to make hard choices in terms of proper forecasting and expense allocation, it’s often the eagle-eyed CPA honing in on why certain expense line items are escalating and what can be done to reverse the tide.

What better example of poor expense control is there right now than the U.S. Postal Service?  For example: 89 percent of U.S. Postal Service expenses go to labor costs.  For Federal Express it’s 41 percent; UPS claims 48 percent.

I think the ole USPS should:
*Only deliver Monday, Tuesday, Thursday and Friday
*Cut benefits
*Close as many branches as possible
*Make it easier for people to conduct their postal business via the Web (they’ve made great progress on this front, though)
*Consult with a sharp public accounting firm and act on what they advise

Losing over $5 billion annually is just not acceptable.  Perhaps a break-even scenario isn’t
realistic; most likely, some sort of government subsidy is required, but not to the tune of the current massive shortfall.  What do you think the U.S. Postal Service should do?