think, plan, grow!™ jim boomer, cpa.citp [email protected]
TRANSCRIPT
CPA2Biz, Inc. - Proprietary and Confidential Information
Digital InnovationDecades of Disruption to Business as Usual
• 1980s: Digital Office Work Begins– Personal Computing, Excel, Quicken, etc.
• 1990s: Digital Value Chains– Internet, Networks, Email, Tax & Audit Software,
e-Commerce
• 2000s: Digital Consumption– Paperless, Online Research, Mobile, Social Media,
Self-Service
• 2010s: Digital Engagements– Portals, Cloud, Collaboration, Apps, etc
20th C
entu
ry21
st C
entu
ry
Geoffrey Moore Slide – Adopted for CPA Marketplace
CPA2Biz, Inc. - Proprietary and Confidential Information
1990
2000
Today
Client Accounting Over Past 20 Years
Today’s Opportunity
Cloud based
Integrated
Paperless
Dashboards
Real Time
Small Businesses push work back to
firms to focus more on their business
Role of Firms ReducedQuickBooks introduced
to small businessesRe-claiming of Client Accounting
& Trusted Advisor Role
Think, Plan, Grow! ™
Why is innovation important?
• Directly linked to growth• Two different types of innovation
Directional Innovation• Improves a service based
on fairly predictable steps• Improve delivery skills
Intersectional Innovation• Multiple disciplines meet to
solve a problem/improve a solution
• Focus on discovery skills1
Think, Plan, Grow! ™
Hot Topics from BTC
• Positive attitudes – good year so far!• Continued M&A Activity• Salary increases• Mobile, mobile, mobile!• Cloud – changing attitudes• Value pricing
Think, Plan, Grow! ™
Boomer Circle Metrics2007 2008 2009 2010 2011
Revenue per FTE (see definition below)
$153,779 $142,677 $138,859 $143,685 $161,947
Average hourly rate $147 $138 $140 $146 $161
% chargeable 50.4% 49.5% 47.8% 47.5% 48.2%
% of revenue invested in technology
5.44% 5.3% 6.0% 6.4% 6.4%
Investment in technology per charge hour
$7.99 $7.39 $8.45 $9.34 $10.32
Ratio of IT personnel to end users
1-34 1-32 1-35 1-32 1-32
FTE = 2,080 hours
Updated 5/6/2012
Think, Plan, Grow! ™
Bookkeeping
Packaging
Naming
Pricing
Processes
Team
Niche
Change Management
Buy-In
CPA2Biz, Inc. - Proprietary and Confidential Information
Driving Adoption in a Digital Age
Business Change
Talent
Technology
Most significant challenge
Think, Plan, Grow! ™
Desktop Software on Client PC
Desktop Software on CPA Firm PCFile Transfer to CPA FirmClient enters Data
Create Financials Export to T/B SystemCleanup/Fix Client MessAdjusting Entries
PrintImport into Desktop
Software on Client PCFile Transfer to ClientMail to Client
Workflow in Desktop Accounting
Think, Plan, Grow! ™
Client Dashboard & 24/7 Access to Downloads
Electronic Data Capture Create Financials & ReportsAdjusting Entries
Workflow in Cloud Accounting
Direct to DMS/PortalTrusted Business Advisor
Advisory Services• Cash Flow Analysis• Budgeting• Tax Planning & Compliance• Business/Strategic Planning
Think, Plan, Grow! ™
CoreBusiness
Accounting &
Reporting
Payroll
Workflow
Document Mgmt.
HR-Benefits &
Training
Technology & Phones
Planning & Budgeting
Bookkeeper 3,000$ ControllerCFO 3,000$ HR 3,000$ Business Analyst 5,000$ Technology 7,500$
21,500$
Think – Like an Entrepreneur
What do I need?
How much am I spending on these services?
Think, Plan, Grow! ™
M
A
Top 100 FirmsOver $30M
Firms-90%Under $3M
What is thedifference?
TheMissingStructure
Leadership & Management
Talent Development
Client Development
Technology
Compensation
The Missing Structure
Think, Plan, Grow! ™
Client Needs
• Business owners are good at their specific business services or operations, but…
• Struggle running their businesses as a business.
• In the past we offered a limited means to serve their needs.
Think, Plan, Grow! ™
The Need: Financial Services
• Bookkeeping Budgeting• Bill Pay Cash Flow• Billing Banking Relationship• Payroll Compliance: ABC, Regulations• Property Tax Tax Planning and Projections• Depreciation Tax Preparation• Bank Reconciliations Strategic Planning
Think, Plan, Grow! ™
Solution
• Create a service platform that allows business owners to focus their energy growing their business
• They focus on revenues and production, we focus on “back office” operations
Think, Plan, Grow! ™
Win-WIn
• Clients are able to concentrate on their strengths and growing their business
• We combine our strengths to support their weakness
• A stronger interactive client relationship is formed with each client with each service
Think, Plan, Grow! ™
Talley Group
Talley Law Group
Talley & Co. CPA
CTO Advantag
e
Succession
Planning
Group 11 Advisors
HR/Staffing
Relationship ManagerClient
Think, Plan, Grow! ™
Group11
Advisors
Bookkeeping
Banking/Finance
Back Office
Support
Advisory Services
Think, Plan, Grow! ™
Client Discovery
Financial Services Mix
Tax Service Mix
Fee
ExpectationBookkeeping
Tax Prep
$300 – 1,000/mo
ExperienceCompliance, Bookkeeping, bill pay, business filing and renewal
Compliance (above), tax planning and compliance, financial forecasting, legal, banking management, legal
$1,200 – 7,200/mo
CPA2Biz, Inc. - Proprietary and Confidential Information
Client Accounting Services…
Virtual Controllership
Collaborative Advisory Services –
Virtual CFO
Write-Up
Accounting Software Needs to Scale with Firm and Client Needs
Business Process Outsourcing
Advisory
Transactional
Span a Service Spectrum
Specialize in Client Industry VerticalsHealthcareNot-For-Profit
TechnologyProfessional Services
Property ManagementGovernment
Contractors
RetailFranchises
Think, Plan, Grow! ™
Those with passion do. Those without passion try.
Dr. Viktor Frankl 1905-1997 Chad Hymas