New Times, New Strategies
CPAs find creative ways to mitigate the economic downturn.
Creativity isn’t the first word that springs to mind when you think of the CPA profession. But in today’s economic environment, creative strategies are exactly what CPAs need to maintain, and even build, their businesses. As many firms have struggled with staffing issues, the loss of clients and the pressure to reduce fees, there has been one constant theme: resilience. Through the downturns and disappointments, this industry has found ways to adapt — and even thrive — thanks to out-of-the-box strategies.
CPAs regularly receive calls from existing clients who want advice on cutting costs, new revenue generation or even tactics for designing more efficient processes. In other words, today’s CPA often takes on the role of business advisor. Several national firms have developed practice groups that serve as reliable business advisors for companies who’ve been hit hard by the recession, particularly in the banking, real estate and retail markets. Before you engage in any new service, there are three key steps to help you get the job done:
Listen to your clients. As the environment changes, client needs change, too. Engage them in conversation to discuss their needs and pain points. All too often we assume we know what clients want, and many times we miss the mark.
Consider your resources. For any new endeavor, you’ll need help from others. Conduct a realistic evaluation of your staff and determine if you have the manpower and technology to support your new services. Once you identify what your needs or gaps are, you can make savvy decisions.
Develop your skills. Having the desire to provide a new service and actually doing it are two very different things. If you see an opportunity, find out what it really takes to obtain it. Network with other CPAs in your region or in your association. Ask questions and take notes.
To remain competitive and boost your business, there are two schools of thought. One, you can learn to hone your current skills to the point that you become an irreplaceable partner to your current clients. Or two, you can set out to learn an entirely new niche market or set of skills so you can attract new clientele.
Providing better service and defining best practices is the crucial foundation to establishing yourself as a critical business advisor to your clients. Clients need assurance, and proof, that their accounting firms are giving their all — and this holds true particularly in rocky financial times when the competition for business is higher.
And because today’s economic environment is stimulating significant changes to accounting and tax guidance, practitioners who don’t hone mission critical skills will be left out in the cold. For example, in April 2009, four new FASB staff positions on fair value accounting were issued. Also, the proposal time for new standards was shortened. Here’s proof: On March 17, 2009, FSP FAS 157-4 was proposed. The comment period ended on April 1, 2009, and final issuance was on April 9, 2009.
This means that CPAs can become overwhelmed with the volume of changes in accounting guidance, then are given shorter periods to absorb, comment and implement the changes.
Take a breath. It’s time to get creative and hone current skills to learn as much as you can in a relatively quick time period.
To help practitioners navigate the new rules, CPE providers now offer the PPC and AuditWatch Conference on Accounting and Auditing in Turbulent Times. Conferences like these are ideal in that they provide information on timely and forthcoming topics —topics you need to understand in order to remain competitive. These conferences can be the bridge between first listening to your clients and then developing the skills to actually provide the service to assist them.
Focusing on time-sensitive guidance that addresses current economic conditions, this conference features national experts who discuss topics such as “Issues in Auditing Troubled Companies,” “Recognizing and Measuring Impairment” and “Evaluating and Addressing Going Concern.” The seminars help auditors interpret and apply both new and old standards in light of the current economy.
Practitioners who want to expand their repertoire should look into conferences that delve into niche areas. Getting creative can also mean addressing a clientele you hadn’t previously considered. For example, PPC’s Conference on Tax Planning for Wealth Preservation was designed to address the many tax ramifications that have come out of, or will materialize from, the 2009 stimulus bill as they relate to and affect high net worth clients. These topics provide the basis for a sort of hands-on workshop for what’s going on in the real world.
“We have developments impacting taxpayers — and higher income taxpayers — that are being proposed and happening in the news daily,” says Bob Ranweiler, conference chair and speaker.
Whether practitioners need guidance dealing with the tax ramifications of Ponzi schemes or answers to questions about retirement funding, this conference addresses the current administration’s budget proposal for 2010, which suggests there will be significant tax increases and changes impacting wealth preservation and management.
Other topics, such as “Roth Conversions in 2010” and “Debt Relief: Advising Clients with Distressed Businesses,” are geared toward helping practitioners build their businesses by meeting the needs of this niche clientele. This conference also enables practitioners to meet with leaders from other disciplines who can help to generate new ideas and create strong business ties that can help you build their practices.
Whatever the current state of your firm, or wherever your vision leads you, developing a plan is the first step to navigating today’s tough economics. Firms that focus on updating strategic plans while making a commitment to offer impeccable quality of service will be better suited to survive. Throw in a little creativity, and firms will thrive, regardless of what turns the economy takes.
Written by Laurie Dent |
