{"id":66261,"date":"2019-09-20t12:30:01","date_gmt":"2019-09-20t16:30:01","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=66261"},"modified":"2019-09-26t16:22:20","modified_gmt":"2019-09-26t20:22:20","slug":"farm-aid-for-cpas","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/09\/20\/farm-aid-for-cpas\/","title":{"rendered":"farm-aid for accountants?"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/onpkik5ugno\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_selres_start\">?<\/span><\/iframe><br \/>\n<strong>rain on the keyboard, blood on the mouse: changes in the accounting business recall the plight of the small farmer in the 1980s.<\/strong><\/p>\n<p><em>by frank stitely<br \/>\n<a href=\"\/\/www.g005e.com\/shop\/fs18rel\/\"><i>the relentless cpa<\/i><\/a><br \/>\n<\/em><\/p>\n<p>john mellencamp\u2019s hit song, \u201crain on the scarecrow\u201d chronicle the decline of the small american farmer in the 1980s.\u00a0 farmers faced economic devastation caused by new technology and emerging international competitors.<\/p>\n<blockquote><p><strong>more by frank stitely:\u00a0<\/strong><a href=\"\/\/www.g005e.com\/2019\/09\/18\/wip-ing-clients-into-shape\/\">wip-ing clients into shape<\/a> |\u00a0\u00a0<a href=\"\/\/www.g005e.com\/2019\/09\/13\/how-the-annual-tax-meeting-died\/\">how the annual tax meeting died<\/a><b>\u00a0 | <\/b>\u00a0<a href=\"\/\/www.g005e.com\/2019\/09\/05\/whittle-down-wip\/\">whittle down wip<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/08\/28\/maximize-your-role-as-visionary\/\">maximize your role as visionary<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/08\/07\/land-mines-lurk-in-tax-returns\/\">the land mines in tax returns<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/07\/17\/give-your-people-the-resources-they-need\/\">give your people the resources they need<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/06\/26\/4-tips-for-managing-advanced-preparers\/\">4 tips for managing advanced preparers<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/05\/29\/assigning-projects-to-staff\/\">the right way to assign staff projects<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/05\/01\/how-to-define-project-workflow-and-statuses\/\">workflow for dummies<\/a>\u00a0|\u00a0<a href=\"\/\/www.g005e.com\/2019\/03\/13\/how-effective-project-management-makes-your-life-easier\/\">how effective project management makes your life easier<\/a><br \/>\n<span style=\"color: #c9990a;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-49700\" src=\"https:\/\/4f2bur4nuye2cgakm2rm61qk-wpengine.netdna-ssl.com\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1470686574894.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/>exclusively for pro members.\u00a0<\/strong><a style=\"color: #c9990a;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2019\/09\/13\/how-the-annual-tax-meeting-died\/\">log in here<\/a>\u00a0or\u00a0<a class=\"external\" style=\"color: #c9990a;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>expensive new machinery and international competition transformed farming from a sleepy vocation handed down between generations to international global commerce driven by technology and sophisticated business metrics.\u00a0 farming became a real business.<\/p>\n<p>small farms disappeared as expensive machinery demanded economies of scale that could create a sufficient return on capital investment.\u00a0 international competition lowered prices to where new technology was required to compete with lower-cost international labor.<\/p>\n<p>farmers needed to raise the level of planning beyond pushing seeds into the ground and waiting for favorable weather.\u00a0 they began to pay attention to detailed yield metrics and weather patterns, planning irrigation to effectively use natural rain patterns.\u00a0 they used monte carlo simulations to plan which crops to plant and sell.<\/p>\n<p>the ones who didn\u2019t change went bankrupt or sold and retired.\u00a0 musicians held a concert, farm aid, to call attention to the farmer\u2019s plight.<\/p>\n<p>driving to work this morning, i realized that changes in the cpa industry parallel the plight of the small farmer in the 1980s.<\/p>\n<p><!--more-->solo and small firms face fundamentally the same challenges small farmers faced in the 1980s.\u00a0 competition disrupts pricing and profitability in traditional service areas.\u00a0 foreign competition from outsourcing demands lower labor costs at the same time domestic employees are increasingly expensive and in short supply.<\/p>\n<p>expensive new technology demands sufficient scale to create a sufficient return on investment.\u00a0 the best tax and accounting technology is too expensive for small firms.\u00a0 yet small firms need efficiency boosts most.<\/p>\n<p>the hot-off-the-internet presses \u201c<span style=\"text-decoration: underline;\"><a href=\"\/\/www.g005e.com\/shop\/afot\/\">accounting firm operations and technology survey<\/a><\/span>\u201d from industry tech gurus randy johnston and brian tankersley rips the band-aid off the coming pain and disruption solo and small firms will suffer over the next decade.<\/p>\n<p>who makes the technology acquisition decisions for solo and small firms?\u00a0 the survey suggests partners and maybe firm administrators make these decisions. of course, the decisions are limited by their tech knowledge, which is likely to be lacking compared to it professionals and even tech partners in larger firms.<\/p>\n<p>the survey shows that solo and small firms don\u2019t even use it consultants extensively.\u00a0 how informed can these decisions be?\u00a0 we can logically conclude solo and small firms will fall even further behind in technology, which impacts their ability to compete in commoditizing traditional markets.<\/p>\n<p>from the survey, solo practitioners rate understanding new technology as a bigger challenge than attracting new clients.\u00a0 small firms rank practice improvement as their number two challenge. \u00a0that\u2019s really just a proxy for identifying the right tech solutions.<\/p>\n<p>in the survey, solo and small firms rate examining technology to solve workflow inefficiencies as their second most effective way to control costs.\u00a0 yet, how can they do that with limited knowledge?<\/p>\n<p>avoiding the issue by selling at retirement won\u2019t work.\u00a0 the survey also shows that the likely suitors for small firms, medium-sized firms, aren\u2019t that interested.\u00a0 less than 20% of medium firms believe firm acquisitions are an effective way to generate revenue.<\/p>\n<p>show that to the broker, who tells you that you\u2019ll get a 1.2 collections multiple on your sole proprietorship.\u00a0 i had lunch recently with a cpa firm owner, who had made four recent acquisitions.\u00a0 he told me that the maximum multiple he paid was 0.8 times.\u00a0 he avoids any firm that has \u201cbrokered up.\u201d they don\u2019t know the reality of the declining value of 1040 practices.<\/p>\n<p><strong>if selling and retiring isn\u2019t a solution, what is?<\/strong><\/p>\n<p>rather than listening to vendors and consultants, \u00a0who have never worked five minutes in a cpa firm, maybe we can generate the solutions ourselves.\u00a0 we need a new type of vendor\/consultant, who brings solutions from experienced cpa\u2019s to other cpa\u2019s.<\/p>\n<p>effective practice management arises from interdependent components:<\/p>\n<ol>\n<li>workflow<\/li>\n<li>software<\/li>\n<li>human resource management<\/li>\n<\/ol>\n<p>we need a new type of vendor\/consultant, who can marshal resources to solve challenges with all three components.\u00a0 good workflow means nothing without good software.\u00a0 good software means nothing without a good workflow.\u00a0 both workflow and software fail in the face of poor staff management.<\/p>\n<p>our current vendors know little about the day-to-day grind of solo and small firms.\u00a0 at best, they are great software developers.\u00a0 at worst, they are international conglomerates, who had the misfortune of acquiring companies serving cpa firms.<\/p>\n<p>they have no emotional investment in our success or our clients.\u00a0 they haven\u2019t known the joy and challenge of preparing thousands of tax returns in a small firm.\u00a0 they couldn\u2019t care less about the small businesses, who depend on small cpa firms for advice that literally keeps small businesses open.<\/p>\n<p>these vendors provide training led by product specialists, who know every little bit of product functionality but have zero knowledge leveraging the features for small firm success.\u00a0 they know the software, but not workflow or people management.\u00a0 they address an isolated piece of the practice improvement equation.<\/p>\n<p>our version of farm aid won\u2019t be led by musicians.\u00a0 our plight just isn\u2019t as tears-worthy as farmers.\u00a0 our version of cpa aid won\u2019t be a concert.\u00a0 it will be support for cpa\u2019s by other cpa\u2019s.<\/p>\n<p>start by following the advice from our industry visionaries like <span style=\"text-decoration: underline;\"><a href=\"\/\/www.g005e.com\/author\/johnston\/\">randy johnston<\/a><\/span>, <span style=\"text-decoration: underline;\"><a href=\"\/\/www.g005e.com\/author\/tankersley\/\">brian tankersley<\/a><\/span>, <span style=\"text-decoration: underline;\"><a href=\"\/\/www.g005e.com\/author\/shimamoto@www.g005e.com\/\">donny shimamoto<\/a><\/span>, and <span style=\"text-decoration: underline;\"><a href=\"\/\/www.g005e.com\/author\/mendlowitz\/\">ed mendlowitz<\/a><\/span>.\u00a0 then demand solutions from vendors with real-world experience running cpa firms.<\/p>\n<p>john mellencamp won\u2019t be writing a song that will solve our problems.\u00a0 we\u2019ll write that song ourselves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><a href=\"\/\/www.g005e.com\/2019\/09\/20\/farm-aid-for-cpas\/\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-66262 aligncenter\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/09\/screen-shot-2019-09-20-at-4.01.32-pm-424x239.png\" alt=\"\" width=\"200\" height=\"113\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/09\/screen-shot-2019-09-20-at-4.01.32-pm-424x239.png 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/09\/screen-shot-2019-09-20-at-4.01.32-pm.png 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2019\/09\/screen-shot-2019-09-20-at-4.01.32-pm.png 554w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><br \/>\n<strong>today&#8217;s changes in the accounting business recall the plight of the small farmer in the 1980s.<\/strong><br \/>\n<em>by frank stitely<\/em><br \/>\n<a href=\"\/\/www.g005e.com\/?p=66261\">click to play: john mellencamp at farm aid<\/a><\/p>\n","protected":false},"author":1362,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3120,3002,2306],"tags":[],"class_list":["post-66261","post","type-post","status-publish","format-standard","hentry","category-pro-member-exclusive","category-special","category-tech-and-fintech"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>farm-aid for accountants? - 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