According to the CCH Accounting Firm Client Survey: Improving Retention Through Better Client Connections, more than a third of clients surveyed are considering switching CPA firms and more than half of business clients surveyed report being actively prospected by other CPA firms.

The need to retain clients and increased competition  highlights the need for New Firm thinking-now.

CCH recommends doing the following in order to improve retention (excerpt). This is EXACTLY what the New Firm is doing:

“1. Keep lines of communication open and active. The top reason clients say they would leave a firm is that it failed to check in with them and keep up with their changing needs. Formal surveys, client advisory groups and site visits are among the techniques to consider. In addition, optimize your website, email, newsletters and social media as “touch points” to connect with clients.

2. Extend services to cement relationships. Many clients say they are unaware of the full range of services their CPA firm offers. Put a plan in place to periodically evaluate client needs and communicate about firm capabilities.

3. Re-evaluate service channels. Make sure every touch point delivers value. Clients place a premium on speed, responsiveness, convenience and easy access. While face time with partners is still highly valued, consider using a client portal to achieve new levels of client service efficiency.

4. Close any performance gaps. For example, both business and individual clients surveyed say their firms don’t perform as well as they’d like when it comes to guidance on new regulations or tax-saving opportunities. This may require investing in staffing, training, technology or process improvements.

5. Leverage technology wherever possible. Business clients say a firm’s use of technology is a key factor when selecting a firm to serve their needs. Firms need to have technology in place that enables anytime, anywhere service delivery, streamlines workflow and enhances staff productivity. Look for ways to increase connectivity and collaboration with clients. “

Just checked out this article on WebCPA entitled “Gen Y Anatomy Lesson”. While the article was geared at how to manage a Gen Y workforce, there were several interesting excerpts.

Do these sound like future New Firm leaders to you? They sure do to me.

“Technology is ubiquitous to Gen Y. It connects them to the world and to one another. Gen Y is the first generation to be constantly connected and in continual communication with friends and family. In the past few years, texting has replaced voice as the primary way of communicating for Gen Y, and e-mail is “old” technology. Gen Y, because of the Internet, see information as always accessible — no need for a physical reference library — and they participate in content creation via blogs, Web pages and social networks.”

“Gen Y places high importance on autonomy and work-life balance, while Boomers are thought to focus on a more traditional model of dedication to work. This does not mean that Gen Y will not work hard and spend the time necessary to complete a task, but they want flexibility and may not understand the idea of “face time” or the need for a fixed schedule. The publication Catalyst interviewed young CPAs to see what they expected from their employers and the profession. One CPA commented, “Our generation wants to get in, get our stuff done, and get out. We even like to work from home some days. Face time isn’t as important to us as getting the job done.”

“Gen Y appreciates authenticity, especially in leaders. Authentic leaders are aware of their own and others’ values and demonstrate high moral character. Gen Y has high expectations, and if those expectations are not met, they leave. Generally, loyalty to a company or firm ranks below loyalty to self. Gen Y has a much higher loyalty to their work and the people they work with than to the firm.”

“Kathryn Yeaton, in the CPA Journal, describes Gen Y as having a strong sense of morality. They are goal- and achievement-oriented, digital natives who value intelligence, innovation, and work-family balance. They are multitaskers, and enjoy group work and collaboration.”

Finding a CPA seems so easy, but I think it’s so important to get the fit right, which is exactly what Joe is talking about here.

Remember, your CPA is one of your key advisers and a good Tax specialist should be able to save you serious money and eliminate serious IRS audit risk for you personally and for your business.

Check out the full article here and let Joe know what you think in the comments.

Here’s the run down:

1) Make sure you get a FREE CONSULTATION and that the preparer is interested in YOU and YOUR BUSINESS. This is where a New Firm CPA really shines- they can’t wait to get to know the person behind the business.

2) Get an ENGAGEMENT LETTER and watch out for people who act like they know everything-with the ever changing tax code, there’s just no way.

3) Make sure you get the right-sized and right type (i.e. New Firm) CPA firm for your business-big firms may not pay enough attention, but small firms may not have the quality or expertise you need. Red Flag: Beware of firms not leveraging technology- there’s too many cool tools these days that actually help CPAs serve you better for firms not to use at least something.

3) Don’t get blinded by the CPA or Attorney job title- make sure the CPA has a TAX background if they will be doing your taxes. Seems simple enough, but something you need to actively seek out since so many CPAs specialize (i.e. audit, IT, management consulting, etc.). One point I would add: make sure they have solid experience in YOUR industry since accounting rules can be highly specialized for certain industries.

4) Make sure your CPA is willing to take a stand for a well researched & correct, but gray area position.

I think Joe nails this below (excerpt):

“Ask yourself this: if you hire an attorney to defend you in a lawsuit, do you expect them to defend you to the letter of the law, or simply comply with the prosecution?

Choose a tax firm with preparers who know how to take positions based on the [actual] tax code, rulings and court cases instead of just following IRS publications. Otherwise, they are no different than the IRS doing your tax return.

Pay attention to this if you can. Is your preparer communicating different issues with you? Do they seem to offer the highest level of competence, and even creativity?

Make sure your tax preparer offers the most value to your business.”

Link: http://www.deepskyaccounting.com/2010/12/challenge-your-processes/

Now this is what’s up (excerpt):

“Challenge it. Challenge every step, every piece of paper (and every copy of that piece of paper *eww*), every hand that touches those paper, every key-in and every print out.

Remember what it is that you are trying to accomplish in each process and question if each step is efficient or even necessary (tip: if the person doing the work feels stupid doing it.. there’s probably a smarter way.)

Don’t be afraid to go against the “rules” that you’ve learned in the past – F the “rules” – it’s your business, your processes and you are responsible for the success of it.”

Link: http://atlantasmall.biz/management/finance-accounting/becoming-a-virtual-cfo/

Check out her current site to learn what she’s up to these days: www.IconisGroup.com

The THRIVEal +CPA Network is proud to announce their first online conference. $49 for two hours of what’s sure to be thought provoking content.

Wish I could attend.

I’m reposting it as a reference for myself and others since it contains a lot of great ideas.

Link : Pioneering the ‘New Firm’.

This excerpt pretty much sums up what we’re talking about here:

Q: What is the biggest difference between Baby Boomer CPAs and the Millennials?

A:”Baby Boomers are more transactional and the Millennials are more relational.

My dad’s relationship with clients was really a transactional relationship, which is you hire me, I will perform a transaction for a fee and I will do it and you will give me a check and I will give you a tax return. That defines our relationship.

Whereas a relational way to do it, I have a lot of interactions, I have to manage a lot of opportunities for interactions. My clients text me, Skype me, direct message me on Twitter and Facebook.

Whereas if you’re in a transactional mentality, the nature and the quality of the client doesn’t matter as much; it’s really if they have a checkbook with a check that will clear.”

The world of accounting and tax is changing as more and more practitioners are adapting their business models to truly serve clients and become invaluable advisers to their businesses. They do this by creating new services, leveraging technology to improve efficiency, and providing a constant stream of advice and communication through new media.

My hope for this blog is that it becomes a good way to shine a spotlight on the good work that so many are doing.