Think, Plan, Grow!™ Jim Boomer, CPA.CITP [email protected].

Think, Plan, Grow!™

Industry Roadmap & Vision

Spring 2012

Jim Boomer, CPA.CITP [email protected]

http://www.boomer.com/

Think, Plan, Grow! ™

Agenda

Vision Trends

Opportunities Execution


Vision


HindsightInsight

Foresight

Vision

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


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


10 X Thinking

Self

Team

Experts

Peers

It’s about you!


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


Trends


Hot Topics from BTC

• Positive attitudes – good year so far!• Continued M&A Activity• Salary increases• Mobile, mobile, mobile!• Cloud – changing attitudes• Value pricing


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


Technology

…think faster, better, cheaper & easier – The Cloud

Yupana


Technology is the Accelerator

Planning

People

Process


Opportunities


Bookkeeping

Packaging

Naming

Pricing

Processes

Team

Niche

Change Management

Buy-In


Driving Adoption in a Digital Age

Business Change

Talent

Technology

Most significant challenge


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


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


Execution


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?


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


CEO Advantage: Innovation Factory

http://www.talleynco.com/index.asp


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.


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


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


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


Talley Group

Talley Law Group

Talley & Co. CPA

CTO Advantag

e

Succession

Planning

Group 11 Advisors

HR/Staffing

Relationship ManagerClient


Group11

Advisors

Bookkeeping

Banking/Finance

Back Office

Support

Advisory Services


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


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


Those with passion do. Those without passion try.

Dr. Viktor Frankl 1905-1997 Chad Hymas

http://nsb.com/media/espeakers/photo/5162/10744.jpg

Think, Plan, Grow!™

Think. Plan. Grow!

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Think, Plan, Grow!™ Jim Boomer, CPA.CITP [email protected].

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