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What You Need to Know Before You Start an Advisory Business – CPA Practice Advisor Survey

Isaac M. O’Bannon’s article in CPA Practice Advisor sheds light on the transformative potential of advisory services for accounting firms, offering insights into how firms can balance compliance and advisory work while carving out niches. He dives in to one of the most important question that firm owners must address if they start an advisory business: as you build your firm and find its niche, “is specializing or niche specializing the only path to profit as tax compliance work becomes commoditized?”

With research conducted by the Center for Accounting Transformation, CPA Trendlines, Avalara, and Dr. David Wood of BYU Marriott School of Business, the Accounting Advisory 360 Survey provides a data-driven look at what makes firms successful. If you’re considering starting an advisory business, you should definitely check out O’Bannon’s full article, but I wanted to cover a few highlights and share some thoughts on what the survey tells us about starting an advisory business.

The Survey and Its Goals

Before we get too far ahead of ourselves, let’s understand the puropose of the survey and some high level insights. The survey examined how firms balance compliance and advisory services, highlighting success factors like technology, culture, and specialization. The data, coupled with perspectives from industry leaders at the Accounting Meta Influencers roundtable, offered a comprehensive view of the advisory landscape.

The overarching takeaway? Firms that integrate advisory services effectively tend to grow faster and report higher success levels. But starting an advisory business isn’t just about adding services and worrying about a niche later. It’s about building a sustainable model with intentional strategies from the very beginning.

Key Insights for Aspiring Advisory Firms

1. Technology as a Game-Changer

Survey participants who rated their firms as highly successful consistently credited technology as a key differentiator. From automation tools to data analytics, technology enables firms to streamline compliance work and free up resources for advisory services.

For those looking to start an advisory business, investing in the right tech stack is essential.

2. Balancing Advisory and Compliance Services

Donny Shimamoto, CPA, emphasized that successful firms strike a balance between compliance and advisory work. While compliance remains a steady revenue stream, advisory services offer higher value and differentiation.

However, firms often struggle to shift focus due to the sheer volume of compliance work. This highlights the importance of strategic planning and resource allocation when starting an advisory business.

3. The Role of Specialization

Specialization can be a double-edged sword, according to the survey. Hyper-specialized firms often excel in niche markets but may face challenges with employee satisfaction and adaptability. Meanwhile, firms with moderate specialization often strike a better balance.

For those starting an advisory business, identifying a niche without overcommitting can be a smart strategy.

4. Productizing Advisory Services

Rick Telberg of CPA Trendlines stressed the importance of structuring advisory services like products during the roundtable discussion. Many firms fail to monetize advisory work because they don’t package or price it effectively, Telberg said.

As you start an advisory business, think of advisory services as products with clear deliverables, pricing, and marketing strategies.

5. Fostering a Strong Culture

A distinct culture focused on team development is another hallmark of successful firms. Jennifer Wilson of ConvergenceCoaching noted that understanding clients’ needs beyond accounting builds trust and strengthens advisory relationships.

When starting an advisory business, prioritize training and a client-centric mindset within your team.

Challenges to Overcome

Despite the promise of advisory services, firms often grapple with obstacles like overwhelming compliance workloads and a lack of advisory expertise among staff. Leaders must give their teams permission and resources to focus on advisory work, as noted by Rob Brown of Accounting Influencers.

Yvonne Scott of CIO Concierge added that effective advisors need to be deeply involved in their clients’ businesses, not just reactive problem-solvers.

Final Thoughts

Starting an advisory business is a promising venture, but it requires intentional planning, investment in technology, and a strong focus on culture and training. The insights from the Accounting Advisory 360 Survey and industry leaders offer a roadmap for success.

Once again, I’d highly recommend you check out the full results of the survey and the insights from the roundtable discussion over on CPA Practice Advisor. Isaac M. O’Bannon did an incredible job of picking out the most important information and highlighting the perspective of CPAs doing the work each day.

For accounting professionals considering this path, the key is to balance innovation with practicality, leveraging your firm’s strengths while staying adaptable in a rapidly changing industry. Universal Accounting Center’s Profit & Growth Expert certification program is designed to give you the tools and support you need to start an advisory business that can provide you with more income and your own schedule. Call 435-344-2060 to discuss how, or schedule a consultation today at this link.

building an accounting business

Effective Knowledge Transfer: A Catalyst for Building an Accounting Business

In today’s fast-paced business landscape, transferring knowledge effectively within an organization is more critical than ever. Whether it’s onboarding new employees, streamlining operations, or fostering innovation, knowledge transfer can be the differentiator between thriving and merely surviving. Insights from a recent episode of the Building the Premier Accounting Firm podcast with Roger Knecht and Greg DeVore provide valuable lessons on this topic.

The Pitfalls of Tribal Knowledge

Many businesses rely heavily on tribal knowledge—the unwritten, informal know-how that exists within the minds of experienced employees. While this can be an asset, it often leads to inefficiencies and inconsistencies, particularly during onboarding or when scaling operations. Greg DeVore, co-founder and CEO of ScreenSteps, highlights how reliance on tribal knowledge can create bottlenecks and stress for both employees and customers. To address these issues, companies must develop clear standard operating procedures (SOPs) that ensure consistent, high-quality outcomes.

SOPs: The Backbone of Knowledge Transfer

Creating effective SOPs is not just about documenting processes but about anticipating challenges. DeVore’s work in the medical equipment industry exemplifies this. By crafting SOPs designed to account for human forgetfulness and stress, his team improved both employee performance and customer satisfaction. This approach underscores the importance of simplifying complex tasks into manageable, repeatable steps—a strategy that can be applied across industries.

Revolutionizing Training and Onboarding

Traditional training methods often fall short in equipping employees to perform at their best. Roger Knecht advocates for a paradigm shift: instead of overwhelming employees with information, empower them with task-specific guidance and performance indicators. This “recipe-like” approach to knowledge transfer not only enhances learning but also accelerates onboarding, enabling new hires to contribute more quickly and effectively.

Empowering Teams Through Technology

Automation and technology play a pivotal role in bridging knowledge gaps. Universal CRM, as discussed by Knecht, exemplifies how automating client processes can boost employee morale and productivity. By integrating tools that streamline workflows and provide on-demand access to information, businesses can reduce the burden of manual processes and foster a culture of continuous learning.

The “Knowledge Operations Flywheel”

Efficient knowledge sharing isn’t a one-time event but an ongoing cycle. Knecht introduces the concept of the “knowledge operations flywheel,” which emphasizes creating, sharing, and refining knowledge-based resources. This iterative process not only ensures that information remains relevant but also empowers employees to take ownership of their learning and development.

Flexibility and Continuous Learning

Entrepreneurship often demands adaptability, a lesson DeVore learned firsthand as he transitioned from music composition to business ownership. Flexible work arrangements and continuous professional development are essential for fostering a resilient workforce. Offering resources like curated training playlists and opportunities for networking, such as annual conferences, can further enhance employee engagement and skill development.

Profitability Through Process

For accounting firms and other businesses, profitability often hinges on the integration of marketing, accounting, and production processes. Knecht’s “In the Black” framework provides actionable insights into prioritizing profit while maintaining operational excellence. By aligning knowledge transfer initiatives with profitability goals, companies can achieve sustainable growth.

From Music to Mastery: Devore’s Inspiring Path

Greg Devore’s story is a testament to the transformative power of necessity and innovation. His pivot from music to entrepreneurship highlights a critical issue many organizations face: the effective transfer of knowledge. While aiding GE in staff training, Devore uncovered the pitfalls of “tribal knowledge”—the unspoken, undocumented know-how that hinders employee engagement and operational efficiency.

Initially, Screen Steps encountered challenges with product life cycles, but Devore and his team redirected their focus to the heart of the problem—knowledge transfer. This shift was particularly impactful in medical offices, where equipment often went underutilized due to inadequate training. Instead of merely refining training techniques, Screen Steps developed robust tools to streamline knowledge dissemination.

Universal CRM: Enhancing Efficiency and Morale

The conversation introduces Universal CRM, a powerful tool designed to automate client processes. By addressing procedural confusion, Universal CRM enhances employee morale and productivity, making it a game-changer for accounting firms. Devore emphasizes the necessity of ongoing training to bridge knowledge gaps, ensuring current employees remain adept and confident in their roles.

Knowledge Operations Flywheel and “In the Black”

The episode also touches on a book that provides a replicable approach to success with knowledge-based products. It introduces the concept of a “knowledge operations flywheel,” a method for efficient knowledge sharing that addresses the limitations of traditional documentation systems. For accountants, implementing effective processes that prioritize profit is crucial, and the book “In the Black” offers valuable insights into integrating marketing, accounting, and production with profitability principles.

Professional Development and Networking Opportunities

Universal Accounting is committed to fostering professional growth in the accounting field. With resources like curated playlists and an annual conference, they provide invaluable opportunities for networking and learning. This commitment to ongoing development ensures that accounting professionals remain at the forefront of industry advancements.

Final thoughts

Effective knowledge transfer is more than a business strategy; it’s a cornerstone of organizational success. By addressing the challenges of tribal knowledge, leveraging SOPs, and embracing innovative training methods, businesses can unlock their full potential. As Roger Knecht and Greg DeVore demonstrate, investing in knowledge transfer not only empowers employees but also drives profitability and long-term growth.

To learn more about transforming your business through effective knowledge sharing, explore resources from Universal Accounting Center and tune in to the Building the Premier Accounting Firm podcast.

building an accounting firm

Burnout Among Accountants: A Crisis We Can’t Ignore

I recently read an article titled “Beyond the Busy Season Excuse,” over on CPA Practice Advisory (which is an awesome resource) and it really resonated with me, especially as we’re deep in tax season. Burnout in accounting isn’t a new topic, but the article brought up some important points that I think are worth sharing and reflecting on.

I wanted to share some of the insights Amy Vetter shared in her piece and add a few thoughts of my own.

Why Burnout Is More Than “Just Busy Season”

For too long, burnout has been normalized in the accounting profession. We shrug it off with phrases like, “It’s just how it is,” or “that’s public accounting for you.” But the article points out that this mindset is damaging—not just to individuals, but to entire firms. Burnout leads to high turnover, strained client relationships, and stagnation. Replacing a burned-out employee can cost up to 200% of their annual salary.

What hit me hardest was the idea that we wear long hours and overwork like a badge of honor. Responding to emails at 2 AM or skipping vacations isn’t dedication—it’s unsustainable.

Root Causes of Burnout

The article highlighted some key factors that drive burnout in accounting:

  • Compressed busy seasons requiring impossible hours.
  • Technology that makes it hard to disconnect.
  • Unrealistic client expectations for immediate responses.
  • A perfectionist culture that leaves no room for mistakes or human needs.

Interestingly, while technology was supposed to make our lives easier, it often blurs work-life boundaries even more.

How to Prevent Burnout

The author suggests that preventing burnout isn’t about another time management hack—it’s about fundamentally changing how we work. Here are a few ideas they shared:

  • Structure your day around your natural energy levels. Save mornings for deep work and routine tasks for energy dips.
  • Set clear communication windows for clients and use automated responses to manage after-hours expectations.
  • Take real breaks, not just “working vacations.”

On a firm level, systemic changes matter too. The article mentioned examples like creating specialized teams for busy seasons or implementing work sprints followed by recovery periods.

Leadership’s Role in Burnout Prevention

As firm owners, you’re the one who set sthe tone. If we’re always on, our teams will feel like they have to be too. The article emphasizes the importance of modeling sustainable practices—taking breaks, respecting off-hours, and having honest conversations about workload.

Final Thoughts

Burnout isn’t just a personal issue; it’s a systemic one that requires action at every level. I’d love to hear your thoughts—what’s one change you could make this week to better support your team or yourself?

Let’s rethink how we approach this profession and stop wearing burnout as a badge of honor.

bench accounting

Bench Accounting Acquired by Employer.com: What It Means for the Accounting Industry

The abrupt closure of Bench Accounting on December 27, 2024, sent shockwaves through the small business and accounting communities. Known for its online bookkeeping services, Bench’s shutdown left approximately 11,000 clients scrambling to access their financial data and find alternative solutions. However, just two days later, San Francisco-based workforce management provider Employer.com stepped in with a swift acquisition, ensuring continuity for Bench’s clients.

This unexpected turn of events carries significant implications for the accounting industry. Let’s explore the details of this acquisition, what it means for small businesses, and the lessons accountants can learn from this series of events.

Employer.com Steps In

Employer.com, a leader in workforce management and business solutions, acquired Bench Accounting for an undisclosed sum. This strategic move aims to integrate Bench’s bookkeeping services into Employer.com’s existing suite of offerings, which includes payroll, compliance, and workforce management tools.

For Bench’s clients, this acquisition provides relief and continuity. Employer.com has pledged to resume Bench’s services with minimal disruption, ensuring that small business owners can access their financial data and continue their bookkeeping processes. Additionally, the integration of Bench’s financial tools with Employer.com’s platform promises enhanced features and support for small business clients.

Implications for the Accounting Industry

The rapid acquisition of Bench highlights several key trends and challenges within the accounting industry:

  1. The Fragility of Fintech Companies: Bench’s closure, despite raising over $100 million in venture capital, underscores the challenges fintech companies face in achieving sustainable profitability while maintaining service quality. Scaling operations without compromising customer satisfaction remains a significant hurdle.
  2. Client Trust and Continuity: The sudden shutdown eroded trust among Bench’s clients, many of whom relied heavily on its services. Employer.com’s acquisition provides a lifeline, but it also serves as a reminder of the importance of stability and reliability in financial services.
  3. The Role of Human Expertise: Bench’s increasing reliance on AI and offshore teams contributed to client dissatisfaction. This highlights the enduring value of human expertise in delivering personalized and accurate bookkeeping services.
  4. Opportunities for Accountants: The disruption caused by Bench’s closure creates opportunities for independent accountants and small firms to step in and offer superior, client-focused services.

Lessons for Accountants

The Bench saga offers several critical lessons for accounting professionals:

  1. Prioritize Quality Over Scale: Rapid growth can strain operations and lead to declining service quality. Accountants should focus on delivering consistent, high-quality services to build trust and long-term client relationships.
  2. Embrace Technology Thoughtfully: While AI and automation can enhance efficiency, they should complement, not replace, human expertise. Clients value personalized service and the assurance that their financial data is handled with care.
  3. Be Prepared for Industry Disruptions: The fintech landscape is dynamic, with new technologies and business models constantly emerging. Staying informed and adaptable is essential for success.
  4. Invest in Professional Development: To meet the evolving needs of clients, accountants must continually enhance their skills. Comprehensive training programs like the Universal Accounting Center’s Professional Bookkeeper course can help accountants deliver exceptional service and stand out in a competitive market.

The Path Forward

The acquisition of Bench Accounting by Employer.com underscores the critical role of high-quality bookkeeping services in supporting small businesses. For accountants, this is a pivotal moment to reflect on the importance of trust, expertise, and adaptability in building a successful practice.

If you’re ready to elevate your skills and provide the exceptional service that small businesses need, consider enrolling in the Universal Accounting Center’s Professional Bookkeeper course. This program equips you with the tools and confidence to thrive in today’s dynamic accounting landscape.

Call 435-344-2060 today to learn more and start your journey toward professional excellence.

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start an accounting business

Accounting Is Universal: Why Now Is the Perfect Time to Start an Accounting Business

The end of the year is officially behind us, and for many business owners, that means one thing: tax season is on its way. As entrepreneurs scramble to get their financial records in order, the demand for skilled accountants and bookkeepers will only continue to rise. If you’ve ever considered launching your own firm, there has never been a better time to start an accounting business.

At Universal Accounting Center, we believe in the mantra, “Accounting is universal,” because accounting is a cornerstone of every successful business. Whether it’s a tech startup, a local coffee shop, or a growing e-commerce brand, every business owner needs accurate bookkeeping and tax preparation to stay compliant and profitable. This universal need creates a massive opportunity for aspiring accountants to fill a vital role in the business world.

Here are three reasons why this is the ideal time to start an accounting business:

1. High Demand During Tax Season

Tax season is one of the busiest times of the year for small business owners. Many struggle to navigate the complexities of tax filings, deductions, and credits, often leaving them overwhelmed. This is where your expertise can make a difference. By starting an accounting business now, you can position yourself as a go-to resource for entrepreneurs who need help preparing their financial records and filing taxes accurately.

Small businesses are the backbone of the economy, and many lack the resources to hire full-time accountants. This creates a growing market for independent accounting professionals who can provide affordable and reliable services. Whether it’s preparing tax returns or offering advice on maximizing deductions, your services will be in high demand.

2. A Universal Skill Set That Transcends Industries

Accounting isn’t just for one type of business or industry. From retail to real estate, every entrepreneur needs to understand what’s propping up or dragging down their bottom line. By starting an accounting business, you can offer services that benefit clients across various sectors, making your skill set universally valuable.

This time of year, businesses are closing their books, reviewing their financial performance, and planning for the year ahead. Your expertise can help them identify opportunities for growth, avoid costly mistakes, and set realistic financial goals.

3. A Flexible and Scalable Business Model

One of the best things about starting an accounting business is the flexibility it offers. You can start small, working from home and serving a handful of clients, and gradually scale your business as demand grows. With the right systems in place, such as cloud-based accounting software and efficient workflows, you can manage multiple clients without sacrificing quality.

This scalability is especially important during tax season when demand peaks. By building your client base now, you can establish long-term relationships that extend beyond tax preparation into year-round services like bookkeeping, payroll, and financial consulting.

Steps for Starting an Accounting Business

If you’re ready to start an accounting business, the first step is to equip yourself with the right tools and knowledge. At Universal Accounting Center, we specialize in training aspiring accountants and bookkeepers with turnkey systems designed to help you launch and grow your firm. From mastering the basics of bookkeeping to understanding tax preparation and marketing your services, we provide everything you need to succeed.

Why Wait? Start an Accounting Business Today

As tax season heats up, small business owners need skilled professionals more than ever. By starting an accounting business now, you can tap into this high-demand market and build a rewarding career helping entrepreneurs achieve financial clarity and success.

Remember: accounting is universal. It’s the language of business, and it’s your ticket to making a meaningful impact while creating a thriving business of your own. Don’t wait—start your accounting business today and make this tax season the beginning of something extraordinary.

Contact Universal Accounting Center to Get Started

Ready to take the first step? Contact Universal Accounting Center today to learn how we can help you start an accounting business that thrives. Call us at 435-344-2060 to speak with our team and discover the tools and training you need to succeed, or schedule a time to discuss your future with our team here. Let’s make your accounting business dreams a reality!

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