Doing the math on CPA firms

accountants cash flow change client experience compliance v advisory labor staffing strategy succession technology workflow Aug 01, 2021
math problem

Roy Keely is a Strategic Advisor to ReNew

Roy recently posted a short blog we think you’ll find relevant.

The formula

Here is the formula that is upon many CPA firms (and many other businesses):

More work than ever +
Expansion of corporate America (IE stealing talent) +
Recalibrated workforce expectation (IE home/anywhere & less) +
Labor cost increase +
Lack of new CPAs entering the market +
Aging partners wanting to work less not more +
Flush with cash +
Exhausted from change 

This is equaling =

High staff turnover (to corporate and/or 30-year-olds taking sabbaticals!)
Partner burnout and/or collapse
Lack of proactive client touch

…which will soon equal the great clients looking for a new firm and/or bringing as much as possible in-house (there goes advisory!)

Back to a compliance focus

(Not bad but not en vogue!)

This should be equaling: (all of which should have been done pre-COVID)
Adopting new tech that reduces labor need in every area
Firing clients
Accelerating around niches
Hiring more non-CPAs
Squeaky wheels get the grease… unless of course you are too busy… and then the wheels fall off.

ReNew's additional thoughts

Target client expansion (Target the Targets)
Product definition and managing scope
Increasing prices!

A proven leader of people, product and the P&L, Roy Keely specializes in working across teams to build a cohesive strategy that rallies both people and profit for a sustainable future. Roy also vehemently dislikes bios so we shall stop here! Read more about the whole ReNew Group team here »

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