Mentoring For Better Accounting Firms

The new staff accountant is wrapping up the first-day orientation upon starting with her new accounting firm.  After a day of meeting key employees and signing paperwork, the firm’s newest member listens to the administrative partner once again describe the firm’s mentoring program.  Finally, the administrative partner assigns the young CPA to a partner with instructions to meet him first thing in the morning.

Day two, the bright-eyed and bushy-tailed CPA politely knocks on the mentoring partner’s half-opened door early in the morning.  From inside the office a voice growls, “make an appointment with my assistant to talk to me about mentoring!”  Upon returning to her cube, the young CPA emails her mentor’s assistant a meeting request for the following week.  At lunchtime when the CPA is going through her LinkedIn contacts she begins to wonder who in her network is working for a firm that gives good career support and is also hiring.

Mentoring relationships fundamentally involve two people who agree to share professional experiences and insights.  Ideally, the relationship is close and informal.  It features a mature professional contributing industry or organizational wisdom connecting with a younger professional bringing exuberance and energy.  Essentially, mentoring relationships are good for building trust and understanding within different levels of the firm.  The desired benefit is better productivity among the professionals in the relationships.  Unfortunately, firms pursuing that expected outcome often get a stale program that standardizes mentoring relationships throughout the firm.

To maximize the benefit, mentors and mentees require an inherent sense of mutual respect.  They must establish fair and reasonable expectations for each other which they can leverage for mutual benefit.  Mentoring works best when each party earnestly tries to out-give the other.  In accounting firms, mentoring relationships often suffer when they are institutionalized.  Once they are institutionalized, they tend to lack the necessary authenticity to be productive.  The personal connection facilitates the respect for each other’s opinions and the desire for each individual’s improvement.  Then, the relationship intentionally grows toward the desired outcome of building value.

A structured program is a good way to bring both individuals together for a mentoring relationship.  But to be successful, eventually an authentic relationship has to develop.  Without authenticity the experience is merely a scheduled engagement, instead of an exchange of developmental experiences.

A “mentoring program” requires a partner to take a staff accountant on a sales call.  A “mentoring relationship” permits that staff accountant to participate in the sales presentation, then accept honest feedback on the return trip to the office.  Mentoring delivers maximum benefit when focused on individual growth and not necessarily career advancement.   It is not a human resources checklist item.  However, mentoring is a powerful way for a firm to establish working relationships that focus on growing individual contributions and productivity.

By Glenn Hunter
Director of Member Development, Enterprise Worldwide/ The APA

Stop Complaining and Network!

As professional services providers, certified public accountants are uniquely positioned to solve very complex and personal challenges for their clients.  CPAs must stay up-to-date on the latest developments within their specialty areas, as well as cultivate an environment for innovation.  What client really wants their CPA solving today’s problems with ten year old solutions? 

The two primary tools at a CPAs disposal for cutting-edge knowledge are continuing professional education (CPE) requirements and individual networking.  The structured education is a condition of a CPAs license, but the networking is where true learning is acquired.  Having trusted colleagues with whom you can ask “the dumb question”, or get an expert opinion on a recent development is a critical weapon to service clients who demand great answers to their individual issue.  For obtaining answers, relationships with trusted colleagues save time which equates to more profitable client interactions.

But, where does a busy accountant find these trusted colleagues?  Accounting associations are great places to start.  Progressive associations are often comprised of firms with similar philosophies.  Some associations even target accountants who specialize in specific niches.  In nearly all cases, associations are full of accountants seeking to engage other accountants to exchange ideas and improve their individual practices.  Conferences, members-only email lists, and conference calls provide proven vehicles to nurture these valuable relationships and share intelligent solutions among professionals who can quickly satisfy clients.

Unfortunately, these gatherings sometimes become gripe sessions.  While an accountant’s role involves pressure and high expectations resulting from demanding clients and exacting firm leaders, a kindred spirit from the same profession can be a sympathetic ear.  Nevertheless, using your fellow association members to whine and complain is like using a Ferrari to teach a teenager how to drive.  It can serve that purpose, but is that really how you want to use such a highly prized asset?

Associations and professional groups maximize accountants’ success when used properly.  All interactions should begin with a plan.  Prepare in advance any specific business issues to discuss during interactions with fellow members.  Whether in person, or on conference calls, respect your colleague’s time and talent by plainly stating that you seek guidance and that you value their insight.  Dedicated time for networking needs to be spent intentionally building relationships.  The discussion does not have to be all business, but the tone needs to be supportive and reassuring that the group’s resources can solve problems.  Networking does not occur exclusively at the cocktail reception any more than every hour at a conference is dedicated to CPE.  However, CPAs that build leading practices have relationships in place to continue strengthening their practices and satisfying clients.  Connect with other accountants who share your appetite for superior performance and be ready to exchange your best ideas.  Let you competitors get together and spend their time whining about how you continue to kick their butts in the marketplace!

By Glenn Hunter
Director of Member Development, Enterprise Worldwide

Coordinate Your Team for Healthy Construction Projects

Business headlines scream about the US economy’s ongoing struggles in the real estate markets.  Despite the financial, economic and social factors that drive the insanity, the resultant impact on the construction industry is inextricably linked to the challenges.  For the construction industry, times are tough.  For business people who entered the business because it seemed easy, now is probably a good time to get out.  Lending is tight.  Subcontractors and material vendors continue to have a hard time keeping their doors open.  Construction has always been a tough industry for hardnosed business people.  Now it is getting harder!

The standard for success keeps rising and successful players in the construction industry must better understand their business.  Financial IQ is no longer a luxury.  The numbers no longer “just work themselves out”.  The winners pay attention to accounting details and are willing to learn what really is “the new normal”.  That education comes from having a professional team in place purposely attending to every element of construction deals.  Accountants, bankers, attorneys, insurance agents all must come together for the success of a construction business and its projects.  For construction leaders who don’t have the skill set to manage this three ring circus of degrees, certifications and specialists, your construction industry-specific CPA is a great place to start.

In looking at winning bids and initiating new projects, bonding is more critical and elusive than it has been in distant memory.  How do construction companies communicate their capability to perform the proposed project?  The winners equip their CPAs to produce the necessary financial reports that speak directly to the needs and concerns of the bonding agent.  Likewise, the CPA does the same for bankers.  Without the internal capacity to manage relationships with the other parties, as well as produce meaningful financial documents to their specific satisfaction, construction business owners are wildly guessing and unknowingly wasting a lot of time.  In this environment, no one has time to waste!

Furthermore, experienced CPAs can deliver tactics to improve the construction companies’ financial position in anticipation of bonding and banking needs.  While all accounting maneuvers have trade-offs, in certain circumstances the benefits have significant paybacks.  For example, reclassifying short-term debt from a related party into long-term debt with a subordination agreement may improve debt ratios so that the business’ financials now reflect less risk and funding is more attractive.  As appealing as it is that the possibility of implementing a few reporting changes will create new opportunities, the reality reveals that hard work, strategic planning and time will be necessary to significantly improve the entity’s health in many cases.  But to reiterate, professionals who entered this business because it seemed easy probably need to get out.

In essence, the construction industry now operates under a new paradigm.  A strategic game plan featuring tactical relationships is imperative for success.  A CPA with a successful track record working with construction bankers, in addition to having earned credibility with bonding agents, will help position new bids and projects for success.  Submitting printed financial statements from a contractor’s internal bookkeeping software is likely to yield as much success as using asbestos for a fire retardant.

The economic facts are that the construction industry is presently full of fear.  Throughout the value chain: funding, bonding, subcontractors, materials and legal advice, all providers are fearful in this environment.  Consequently, relationships are more critical than ever.

Contractors can individually cower in fear, holding onto antiquated business practices, until greed dominates again.  Or, they can find comfort in uniting with service providers who communally want to face the fear with a game plan, discussion, facts and intentional consideration of each other’s interests.  To conduct business in construction, winners now come together with a plan.  Start with bringing an experienced, well-connected CPA who is fluent in the language of money which can get all parties’ attention.  Information and communication alleviate fear.  Less fear leads to more strategic clarity, then more trust.  Construction companies that coordinate their financial efforts through experienced, well-connected, construction CPAs will realize that doing business just got easier.

By

Jim Laubinger, CPA
Principal – Corbett, Duncan & Hubly P.C.
and
Glenn Hunter
Director of Member Development – Enterprise Worldwide

Accountability: Who Really Wants It?

Professionals want to be part of high-performing teams. The tangible and intangible rewards can be extraordinary. But few professionals really want to be held accountable. Even fewer, want to hold someone else accountable. However, without accountability, who is really sure that everyone is contributing to the group’s expected performance level, or toward the desired rewards?

According to Partners in Leadership, an international leader in accountability training, “most organizations only worry about accountability when something goes wrong”. But why can’t accountability be a proactive activity? Instead of accountability invoking fear, blame and powerlessness, let it be a weapon to foster honest feedback, disciplined preparation and measurable improvement. Use it as an active part of a leader’s arsenal for high performance within an organization’s sphere of influence: clients, staff and stakeholders.

Enterprise Worldwide has taken this proactive leap through the annual Enterprise Worldwide Membership Satisfaction Survey. The survey requests anonymous feedback on executing key initiatives, as well as on making available the resources and relationships which improve performance for accounting firms who are the association’s members. Enterprise Worldwide has a unique position where it’s success directly aligns with its clients’ (members‘) success. When EW connects its clients with successful resources, the client benefits. Then, symbiotically EW benefits with better retention and growth.

The survey enforces EW’s accountability to its members to whom they have the privilege of providing guidance and leadership. The accounting firms are independent organizations, but they look to the association to improve their independent performance and to achieve their individual objectives. The questions measure perceptions and tangible results that are important to the members’ success. Then, the results are benchmarked against prior years results.

Most importantly, the EW Annual Membership Satisfaction Surveys captures the results and the benchmarked analysis to directly apply to the association’s strategic plan. An advisory group comprised of leaders within the independent accounting firms overlook the execution of the strategic plan.

At Enterprise Worldwide accountability features honest feedback, disciplined preparation and measurable improvement. EW believes in the process to the point that it exposes itself to its clients to ensure clearly hearing expectations. Then, EW permits its clients to evaluate their performance. Every business allows clients to evaluate their performance, but typically the results are learned when the client walks away. Enterprise Worldwide intentionally requests and accepts the evaluation while they have time to show corrective action and results. To demonstrate true and meaningful accountability, any business who accepts a leadership mantle needs to require honest feedback, disciplined preparation and measurable improvement. Complete the EW survey!

By Glenn Hunter
Director of Member Development, Enterprise Worldwide

Service is a Core Value

Enterprise Worldwide is quick to boast that Five Star Client Service is key to our association’s culture.  Furthermore, business development is firmly embedded in our DNA.  EW firms focus on serving their clients and generating profits.  In the spirit of the United States’ Independence Day weekend, “We hold these truths to be self-evident”.  Consequently, our conferences, newsletters, and messages focus on building better practices, increasing revenue, improving firm performance, and creating value.

Typically, we advocate that these points all work together.  Today, members of the Enterprise Worldwide team broke these rules.  We spent a few hours not helping our members build better practices, nor increase revenue, nor improve firm performance.  However, we did create value.  Today, we served at a local homeless shelter.

EW members and their clients are astutely aware of the economic environment.  Likewise, the EW team works hard to stay in tune with it also.  A common anecdote from our current economic environment is the professional that is one paycheck from the street.  But has anyone really seen this person?  Well today, I did.

This particular shelter does not have overnight accommodations.  Their clientele has to leave in the evenings.  Their service offering features meals, shower facilities, washing machines, warmth in the winter, coolness in the summer, safety and dignity. Some clients even have jobs.  The extremely competent manager was formally on the street.  Clients are victims of substance abuse, violence, poor decisions and bad luck.  Perhaps less dramatically, but does that describe any of your clients?

Roy Disney (of the Walt Disney Company) said. “When your values are clear to you, making decisions becomes easier.”  The EW and Rainmaker team values service.  The decision to service the “least of these” was easy.  The second half of the calendar year starts today.  As our members continue to make decisions toward achieving your goals, let your values clearly guide you.  Today, the Enterprise Worldwide team did.

By
Glenn Hunter
Director of Member Development, Enterprise Worldwide