Creating vertical depth in a horizontal firm
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CREATING VERTICAL DEPTH IN A HORIZONTAL FIRM Samantha Mansfield June 25, 2015
Transcript of Creating vertical depth in a horizontal firm
CREATING VERTICAL DEPTH IN A HORIZONTAL FIRMSamantha Mansfield
June 25, 2015
Samantha MansfieldDirector of Corporate Communications, CPA.com
• 15+ years of experience in tax and accounting technology industry
• Consultant on workflow and web implementations
• Designed and built educational events for practice development
CPA.com, an AICPA company Formerly CPA2Biz
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AgendaWhy Think Vertically
Firm Success Stories
The Effect on Your Firm
WHY THINK VERTICALLY
Outsourcing
Automation
Commoditization
Differentiation
Specialization
Optimization
20th Century Firms Will Either Evolve or Dissolve
21st Century Darwinian Dynamics
Dr. Geoffrey Moore, “Accounting Services – Harness the Power of the Cloud” whitepaper
Digital Disruption in Accounting
Digitizationo From Paper to Paperlesso Cloud Computingo Overcoming barriers of
productivity
Virtualizationo From Physically Present to
Digitally Presento Systems of Engagemento Overcoming barriers of
location
Transformationo From compliance vendor to
trusted advisoro Business Intelligenceo Overcoming barriers of
commoditization
Dr. Geoffrey Moore, “Accounting Services – Harness the Power of the Cloud” whitepaper
The Evolution of a Practice
A Necessary Evil
A Viable Practice
A High-Growth Practice
A High-Value Practice
Targ
et M
arke
t Foc
us
Digitization
Virtualization
Transformation
Client Accounting Services Roadmap
Dr. Geoffrey Moore, “Accounting Services – Harness the Power of the Cloud” whitepaper
Why Target Market Focus?Clients aggregate into market segmentso Communities with shared interests o Self-organized around industry, geography, & professiono Who talk to each other before making buying decisions
Two lessons from Marketing 101- Cost-effective growth is impossible without target market focus- Tipping point dynamics accelerate your success
Target marketing success factorso Participate in the segment’s relationship networko Develop domain expertise relevant to the segmento Over-deliver to create strong reference accountso Encourage word-of-mouth referrals
Dr. Geoffrey Moore, “Accounting Services – Harness the Power of the Cloud” whitepaper
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“CPAs and accountants actually say it’s easier to focus on what they know really well, rather than always trying to learn a new industry or spread themselves too thin across too many different
industries.”
- “Riches in Niches”By Tom Hood and Pascal Van Dooren
http://www.accountingtoday.com/news/firm-profession/riches-in-niches-74407-1.html#Login
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Virtualization Driver
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FIRM SUCCESS STORIES
CHOOSING THE RIGHT VERTICAL FOR YOU
Picking Your Vertical
Business Intelligence Reporting
Real-Time Client
Collaboration
Standardized Workflows
Client Accounting Capabilities
driven through
cloud computing technology
• Professional Services – 90%
• Construction – 76%
• Retail – 75%
• Not-for-Profit – 73%
• Manufacturing – 65%
• Wholesale Distribution – 61%
• Technology Companies – 59%
• Transportation – 48%
• Hospitality – 45%
• Franchises – 40%
• Government – 29%
Most Popular Client Verticals for Outsourced Accounting Services
VERTICAL SUCCESS
Nursing Home Back Office Outsourcing
STEVE ZICHERMANCPALTC Consulting
Charter School Comprehensive Accounting and Management Services
GAVIN HUTCHINSONCPA, CGMA, MBAAcademica West
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Firms with a Focus Lumix CPAs and Advisors
Over 20 years offering client accounting services (CAS) – most of that time focused on not-for- profitsCAS accounts for 80% of firm’s revenue
“’[Nonprofits] have complex accounting issues, and we felt we can make a difference,’ said Maribel Torres-Pinero, CEO…”- “CAS 2.0” special report from Accounting Today
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MarketingCommunicate your passion (mission)
Make your focus clearo Help your customer identify themselves
Know what is important to your audience and communicate thato Make your message human
WHY BUSINESSES USE PROFESSIONAL SERVICES28.8
%To attract new clients
35.1
%Solve high impact critical problems
61.7
%No in-house expertise
Source: Hinge – Finding Experts: Why & How Clients Seek Visible Experts
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Niche MarketingTrusted CFO Solutionso http://trustedcfosolutions.com/back-office-accounting/restaurant-accounting-solutions/
FusePhaseo http://www.fusephase.com/benefits/#.VYASfPlVhBc
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THE EFFECT ON YOUR FIRM
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Value for Your FirmReduces price pressure
Build on specialized knowledge
More connectivity to clients creates stickiness
Harness the Power - Moore
Start with
Why - Sinek
The Big Switch – Carr
Future Smart - Canton
Strong FoundationWHAT?
WHY?
WHERE?
WHEN?
Trusted Advisors Role ‣ Transcend the routine
‣ Develop specialized knowledge
‣ Stay ahead of automation wave
‣ Be valued for expertise and insight
‣ Translate data into wisdom
Source: “The Big Switch & Beyond” – Nicholas Carr, author, 2014 Digital CPA Conference Keynote
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Think vertically Let passion and needs drive you
29Additional Resources
“Accounting Services – Harness the Power of the Cloud” whitepapero By Geoffrey Mooreo http://www.cpa.com/whitepapers/accounting
-services-harness-power-cloud
Digital CPA Webcastso “2 Emerging Services for
Trusted Business Advisors”o July 16, 2015; 2-3pm ET
Case Studies: Client Accountingo http://www.accountingtoday.com/ato_
issues/28_12/accounting-technology/case-studies-client-accounting-72879-1.html
Client Advisory Services Workshopso http://www.cpa.com/client-advisory-w
orkshops
Slideshare.net/CPAcom
“CAS 2.0” reporto http://www.accountingtoday.com/digit
al_edition/digital/cas-20-73807-1.html
Find a copy of this presentation at:
Slideshare.net/CPAcom
Thank You!@SnMansfield#DigitalCPA
