The Bridge: Fall 2018 | CPA Edition by Oak Street Funding

C PA P R O F E S S I O N A L K N O W L E D G E F R O M O A K S T R E E T F U N D I N G

a first financial bank company

Fall 2018 CPA Edition

Three building blocks for blockchain Page 6

Competition: The race towards the future Page 8

FEATURES

CPA Edition

Fall 2018

Publisher Oak Street Funding

Embracing new ways for a successful future.

14 4 Managing the

Associate Editor Walter Niemczura Art Director/Designer Aidreen S. Hart

The Bridge is a newsletter produced by:

The new digital landscape is changing the customer journey Alexa: Who’s the best accountant?

Contributing Editor Sharon Robbins

Graphic Contributor Beth Winchell

cost of disruption

The industry is experiencing unprecedented change. Find out how to keep up.

Editorial Director Meghan Milam

Adam Farag

We sat down with our Vice President of Strategic Markets Sales.

Share Your Thoughts If you have any questions, comments or ideas for The Bridge®, let us know. Email us at marketing.box@oakstreetfunding.com or visit us on social media. Oak Street Funding does not make any representation as to the accuracy or suitability of any of the information contained in third party advertisements or websites and does not accept any responsibility or liability for the conduct or content of those advertisements and websites and the offerings made by the third parties. Third party advertisements and links to other websites where goods or services are advertised are not endorsements or recommendations by Oak Street Funding of the third party sites, goods or services. Oak Street Funding assumes no responsibility for the content of the ads, promises made, or the quality/reliability of the products, services, or positions offered in any advertisements.

2 | w w w.oakstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8

Oak Street Funding 8888 Keystone Crossing, Suite 1700 Indianapolis, Indiana 46240 844-357-9346 Loans and lines of credit subject to approval. Potential borrowers are responsible for their own due diligence on acquisitions. California residents: Loans made pursuant to a California Department of Business Oversight, Finance Lenders License (#6039829). The materials in this newsletter are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional or legal advice or legal opinion and should not be used as a substitute for obtaining professional or legal advice. The use of this newsletter, including sending an email, voice mail or any other communication to Oak Street, does not create a relationship of any kind between you and Oak Street.

www.oakstreetfunding.com

LETTER FROM THE FOUNDER/CEO

Destination: DISRUPTION

As both professionals and consumers, we’ve all noticed a dramatic shift over the last few years in how individuals seek information and make buying decisions. How you choose to market your business, communicate with both prospects and customers alike, and generally adapt to this new digital era will determine the future success of your business. Disruption is in full swing and it’s up to you to either forge ahead or be left behind. This edition of The Bridge is all about tackling the challenges that disruption brings as well as recognizing the opportunities that exist – as I believe the greater the disruption, the greater the opportunity. Is the fear of change or failure holding your business back from adopting new, modern practices? Are you intimidated by all of the exponential advances in software in the financial services industry? Do you have a strong online presence, or perhaps don’t feel tech savvy enough to keep up? Not sure where to start or what to do next? Strategically adapting to the changing marketplace is no small feat. Doing so may require a capital investment. Oak Street Funding provides

Free Whitepapers on Demand Our resources are packed with expert advice and best practices. Read now! oakstreetfunding.com/whitepapers-cpa

CPA practices with capital for growth, acquisitions, successions and more. While challenging, disruption also provides opportunity whether you are maturing, expanding or planning your exit strategy. We’ll get you there.

Oak Street Funding® Vision Statement Rick Dennen,

Founder, President & CEO

To be the market leader in client experience for commercial financing by delivering unique and diverse product offerings through cutting edge technology and exceptional employee and client service. 844- 343- 1428 • w w w. o a k s t re e t f u ndi n g.c o m | 3

managing the cost of

From breakthrough technology solutions, to a tighter labor market, to all sorts of surprising competition, our profession is experiencing a period of unprecedented change. Many of these changes have such a dramatic impact on familiar business practices and environments that they’re referred to as “disruptive.” While it can be difficult for businesses like yours to stay on top of these changes, it’s critical to be open to transformations if your long-term plan is to remain in business for your clients and your own compensation. Keeping up with innovation is not a one-shot effort. The businesses that thrive in coming years will be those who embrace change and position themselves for constant adaptations. What are some of the ways in which your organization can prepare for disruption?

Staffing. As technology assumes more of the lower-level work, the staffing structure of organizations is likely to see an emphasis on mid-level and professional roles. That emphasis on technology may also create a need for employees who are focused primarily on developing, managing, and leveraging technology for the business to better serve its clients, supporting the more traditional work of the practice’s professionals. As personal relationships become increasingly important in both landing and retaining clients, companies will increasingly look to add professionals and other staff members who are adept at networking in person and through social networks. If current staff members lack those skills, bringing in new people may provide an affordable approach. Training. If your team is going to stay ahead of the factors that are disrupting the industry, they’ll need to acquire new knowledge and skills. That’s particularly true for professionals who are in the middle or twilight of their careers, and who may be apprehensive about changes to what they’ve done for years. In addition to sending staff to industry conferences and workshops, it may be advantageous to contract with trainers to provide instruction and support in your offices. Technology. Given that so many of the potential disruptors

involve technology, it shouldn’t come as a surprise that businesses will find themselves making substantial investments in the sector. The industry continues to move toward a cloud environment, which offers businesses notable advantages, including improved collaboration, scalability, and less in-house system maintenance. However, shifting operations from your own network to a cloud environment may carry additional costs. In addition, as your business becomes increasingly reliant on online operations, you’ll need to ensure that your internet security is robust enough to stand up to the newest threats. Some businesses will want to consider getting into the development of proprietary mobile apps for their clients and employees to use. As the trend for using smartphones and smart 4 | w w w.oakstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8

devices becomes even more widespread, the value of apps will increase. The right app can give you a competitive advantage and improve your organization’s efficiency. And with today’s opensource architecture and tools, creating a new app is likely to be more affordable and practical than you may realize. The other technology change you’ll want to prepare for is the inevitable adoption of digital currency. Bitcoin is still in its early stages, but the many advantages offered by digital currency will likely see its use expand, and foster the development of other forms of digital currency. A generation ago, futurists spoke of the end of paper currency; digital currency may be the development that finally renders pocket money obsolete.

Marketing. In the ever-more-competitive marketplace, promoting your business will become even more critical. Getting the word out in the most effective ways is likely to require additional investments in multiple marketing channels. Fortunately, the growth of digital marketing is making it easier to develop highly targeted and trackable approaches for building your business. Unfortunately, success with these tools requires additional knowledge and expertise that your internal team may not have, so you’ll need to invest in people and companies that can help you make the connections you need. Adequate working capital. Many of the elements described here, from technology to training, will require some capital to support them. Having a strong base of working capital gives businesses a way to invest in those changes without having a negative impact on other aspects of operations. If your business doesn’t already have excess working capital for investment, you may want to consider obtaining a working capital loan. Such a loan can be used for the specific needs facing your business, whether it’s to fund a new initiative, invest in a marketing strategy, upgrade technology, create training programs, add to your staff, update your current space, or any combination of these and other plans. A loan that’s structured to be funded from future cash flows can offer an affordable alternative to traditional funding sources.

Digital landscape is changing the customer journey ALEXA: Who’s the best accountant?

Most CPAs have noticed a shift in how customers seek information and make buying decisions. How you market your practice in this new, electronic and fastpaced world can determine whether your practice stands out among the crowd. Learn to adapt and thrive, and you’ll discover you can connect with customers and prospects in ways you never thought possible.

Reasons for the Customer Shift

Before we examine ways to flourish in this new era, let’s look at what has impacted the customer in recent years: • Going digital: Customers have grown accustomed to communicating with businesses digitally and may prefer this method over traditional phone or in-person communication. • Prevalence of mobile technology: Mobile web browsing, shopping and researching has now become the new norm. • Instant gratification: In this era of technology, people expect to receive information or service immediately. • Shorter attention spans: With more and more data cluttering our phones and inboxes, customers are easily distracted and overwhelmed by information. • Millennials rule: Younger adults born in the Millennial generation have come of age and have now become the largest buying group in the world. • Purpose-driven decisions: Customers have not lost their strong sense of community and still look for compelling reasons for buying products or using a service, especially for local or cause-related purchases.

Digital Marketing Strategies To Try

Some of the benefits of digital marketing strategies that agencies can enjoy include lower cost, improved visibility (SEO), better targeting and personalization, and a shorter

sales cycle. Here are some digital marketing ideas to get you started: • Website: Your website is more than just a static brochure. Innovative firms use them to showcase customer testimonials, offer helpful advice or even service customers. • Blogging / Content marketing: What news, trends or information do you wish you could share with your customers? Use blogging and content marketing for better search engine optimization and showcase your expertise. • Social media: Your customers are using social media. Find out which channels through experimentation or surveying them. Share helpful information, local stories or behind-the-scenes footage on your practice social media pages. • Email: Whether you send out a monthly newsletter or a listing of community events, most practices under-utilize email newsletters as an effective marketing tool. Consider driving traffic to your website or social media accounts via email. • Video: Try several options in this category, from live social media videos to your own YouTube® channel. Share facts, stories, customer successes, or answer frequently asked questions via video. Don’t forget to include some of these on your website and link to them from other channels. • Online chat: Many CPAs have added online chat features to their websites to answer questions that prospective customers or current customers may have. You may be able to find an industryspecific service who can handle the chat service on your behalf. • Online listings: From Google® Local profiles to business review sites, many online directories exist to help customers find what they need. Do research to find which can best direct customers to your website. Also consider association listings as an option. • Internet advertising: With tools like cookies and paid search, consider investing

in either pay per click advertising or remarketing ads. Pay per click will help move your practice listing higher up on a Google page, inspiring visitors to choose your business over competitors n which to click. Remarketing will show an ad for your business to a website visitor after they have left your site, reminding them of who you are and to come back. • Geo-fencing: Advances in marketing have enabled advertisers to specifically target consumers in a geographic region. Using geo-fencing tools, you can deliver your advertisement to a pre-defined set of boundaries, when they are most likely to see it. For example, when someone is near your office or location, you could invite them over to discuss their financial goals and plans. • Voice marketing: Amazon® Alexa, Google Home, Google Assistant and other conversational user interfaces have changed the way consumers are searching for information. In the future, advertisers will discover ways to advertise subtly through these methods by developing a skill or incorporating content into the query responses. • Influencer marketing: Many national brands have discovered the power of social media or online influencers who can serve as spokespeople for their brand by representing it on their channels. What companies or partners might make good influencers for your firm?

Keys to Success in the Digital Marketing Era

To succeed with digital marketing, remember to keep in mind your core customers, personalizing your messaging to fit their unique needs. Determine ways to reach them through trial and error and keep the strategies that are most successful. Integrate your new marketing tactics with your traditional ones and tie them all to your operational and sales methods for greater success. And don’t forget to track your return on investment!

844- 343- 1428 • w w w. o a k s t re e t f u ndi n g.c o m | 5

As the pace of change accelerates, it can be challenging to keep up with new jargon. These days, people in many corners of financial services discuss a concept called blockchain, suggesting it will flip the financial industry upside down at any moment. While nearly everyone has heard some rumblings about blockchain, it’s clear that many people lack a distinct understanding of exactly what it is, how it may affect our industry, and how quickly this is all going to happen. In this article, we’ll demystify blockchain and cut through the hype to provide a quick summary. 1 6 | w w w.oakstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8



What exactly is blockchain? Blockchain emerged in late 2008 as part of another concept for a virtual global currency system that came to be called Bitcoin. To be accepted by business and consumers, that cryptocurrency required a safe, reliable means for issuance, transfer, and recordkeeping, and blockchain technology was the answer. 1 In simple terms, blockchain is a peer-to-peer network that uses the internet. It serves as a digital ledger of transactions that exists on the computers of participating members, any of whom can review past transactions and enter new ones, and none of whom can delete or destroy recorded transactions. As transactions are entered, they’re grouped in blocks, which are linked or “chained” to previous blocks. Those blocks and the links between them are protected by cryptography, making it impossible (at least in theory) to alter or forge them. 2 What makes blockchain particularly remarkable is that it operates without any kind of central authority or regulation. The ledger is open equally to everyone who participates in the market. Transactions are permanent and verifiable. Blockchain requires no broker, floor trader, or other intermediary to manage or delay transactions. 3 While that lack of central organization might unnerve those who find comfort in control and standardization, the nature of blockchain means that users in the network create its procedures, rules, and standards as it expands, reducing the potential for a bad actor or group to make malicious changes. Because the complete ledger is simultaneously housed on every computer on the network, the system is far more secure and resilient than it would be if data were concentrated in one location. If part of the network fails, the rest of the nodes keep the system operational. And while every transaction carries a digital signature with the user’s unique public key, that user’s private information is encrypted and available to nobody else. 4



How will it change our industry? Even with recent innovations, the financial system is a fundamentally inefficient structure that mixes paper-based processes with industrial arrangements that are covered with a thin digital veneer. That system is also centralized, making it more vulnerable to attacks and more difficult to change. It’s only accessible to “insiders,” keeping billions of people from having direct access to financial tools. 5 Blockchain creates the potential for a system in which contracts and other financial records are stored digitally in shared databases that cannot be altered or deleted. That means every transaction and record would be maintained in a way that verified its accuracy and legitimacy. Individuals could conduct transactions and other business activities

without the need to involve intermediaries such as bankers and attorneys. Computers could transact business safely with little need for human interaction. 6 One consulting firm suggests that consumer use of blockchain-based applications could eliminate $16 billion in annual consumer fees charged by banks and insurers. 7 No wonder more than half of executives surveyed by Accenture expect blockchain to play a critical role in their businesses over the next three years. A Deloitte survey of global executives found than 43 percent identified blockchain as an important strategic priority. 8



When will this happen? Already, large financial organizations such as JPMorgan Chase, Citigroup, and Credit Suisse are investing in blockchain technology. That may lead organizations such as yours to consider making blockchain a priority. 9 However, the hype about blockchain appears to be outpacing the technology’s practical development. Much of what’s being promoted as blockchain technology is actually existing databases that are trying to capitalize on the excitement. 10 In reality, observers believe that substantial transformation of the financial services industry by blockchain is many years away. Unlike disruptive technologies that attack and replace existing approaches, blockchain is more of a foundational technology that will gradually transform the economy, most likely in a gradual process that may take decades. For now, businesses like yours would be wise to monitor the development of blockchain and deepen your understanding, but hold off before making major changes or investments. 11 Footnotes 1 Iansiti, Narco and Lakhani, Karim, “The Truth About Blockchain,” Harvard Business Review, January/February 2017 2 Boersma, Jacob, “5 blockchain technology use cases in financial services,” Deloitte.com, undated 3 Iansiti, op. cit. 4 Hewlett-Packard Enterprise, “Blockchain in the financial services industry,” blockchainlab.com, undated 5 Tapscott, Alex and Tapscott, Don, “How Blockchain Is Changing Finance,” Harvard Business Review, March 1, 2017 6 Iansiti, op. cit. 7 ibid. 8 DiCamillo, Nathan, “Blockchain’s next big targets in financial services,” American Banker, May 21, 2018 9 Tapscott, op. cit. 10 Ito, Joichi, et. al., “The Blockchain Will Do to the Financial System What the Internet Did to Media,” Harvard Business Review, March 8, 2017. 11 Iansiti, op. cit.

844- 343- 1428 • w w w. o a k s t re e t f u ndi n g.c o m | 7

Ever-increasing competition: The toward the future In the changing financial services marketplace, practices aren’t simply competing against other practices in the same city or town, or with the same product or service offering. Practice owners today must have the right business practices in place to compete on a national and even global level. This involves finding innovative ways to attract and retain the modern client in these days of digital transformation. It includes automating processes and workflow to streamline operations. It even includes expansion and hiring practices. Practices who work to master the changing marketplace will race toward the future, while others will sadly get left behind. How are you differentiating your practice from the pack? Has your business become stagnant, or are you advancing your business practices to compete? Knowing ways that you can transform your business can help you avoid this fate.

Appealing to Today’s Consumer

Human behavior has changed with the technological advances of our time. Therefore, as an owner, you must adjust your current business, marketing and sales strategies to make your business more attractive to customers. Some ways that you can address current trends and come out ahead of the game include: •E mphasizing your value: Price-competition, particularly online, has made the modern consumer expect the lowest price possible. Position your practice to compete by showcasing your value aside from price to overcome these price-wars. • Providing instant accessibility: Whether it’s offering online quotes and applications or allowing customers to submit requests and handle customer service online, offering fast and easy service is the way of the future. • Using the latest technology: Find ways to service customers using new, online tools that can improve the customer experience. Examples include CRM (customer relationship 8 | w w w.oakstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8

management), social media, online quotes, and customer service chat features. • Keeping the human touch: Customers still look for accountants who understand their needs. Don’t abandon all your traditional methods of communication in favor of electronic ones. A well balanced customer communication strategy that mixes face-to-face communication with online interaction is key.

New Technologies to Help You Compete

Luckily, advancements in technology have enabled the modern accounting practice to stay competitive and profitable. Here are some ways you can keep up with the changes and maximize growth: •D igital marketing tools: Practices who use social media, blog regularly and give their websites regular content and design upgrades benefit from increased visibility and top-ofmind awareness among potential customers. New targeting tools even allow for accountants to customize advertisements by geographic, demographic and other profiles to ensure they reach their ideal customers. Investing in digital marketing makes sense for most practices because of the high return on investment from this low-cost promotional method. • Technology for serving clients: A wealth of tools exist for accountants to service their clients better. These include VoIP technology, auto-attendants, web-based client portals, CRM, advanced phone systems, online data storage/retrieval, online quoting/chatting, customer service and more. Discover gaps in your current customer service process and uncover tools that can help you sell and service your customers more effectively. If the thought of implementing these tools is overwhelming to you, start slowly. Begin by integrating one or two technologies into your operational

process, and you’ll start to see the benefits of the change in your business.

Hiring to Compete

Another way your practice can stay competitive includes hiring and retaining the best talent. Fresh producers will require all the latest resources at their disposal to succeed. If you offer new team members the latest software tools for selling and serving customers, you will give them an added advantage in the field. In addition, providing them with training and opportunities for professional development will ensure that they can perform well and will thrive in your practice. Once you have hired your talent, it’s important to keep them happy and thriving so that they will remain loyal to your company. Ensure that they assimilate well with other members of your team and understand their role. Finally, mentor them and provide them with advice along the way, particularly if you are a seasoned accountant hiring a producer with less experience.

Mergers and Acquisitions

Depending on the goals of your practice, staying competitive may include opportunities to merge with, purchase or sell to another practice. Collaborating or acquiring another practice with a similar or complementary service or product line may give your company a competitive edge, while giving your customers added value. Whether you position your practice to sell, merge or acquire another practice, some ways you can appeal to buyers and sellers include: • • • • • • • • • • •

Upgrading your technology Streamlining and documenting your operational processes Refreshing your brand/logo/marketing message Updating your website and blog Maintaining a regular presence on social media Conducting targeted marketing campaigns Staying active and involved in the community Hiring and retaining top talent Updating and expanding your customer database Maintaining optimal data security practices Analyzing and documenting your marketing ROI

Obstacles for Success:

Staying profitable in this highly competitive industry can prove challenging for some practices. Some of the obstacles many businesses encounter on the road to success include: • The cost of competing: Trying to manage marketing, adopting new technologies, new hires and acquisitions can be quite overwhelming for anyone. Working capital investments can take the pressure off these new ventures as it can free up resources for those investments. • Time required to implement: Practices shouldn’t expect to change overnight. Hiring properly, improving processes, implementing new technologies and expanding your client base will take some time. If you are patient throughout the process, you’ll manage your expectations realistically without becoming frustrated. • Getting your team on board: Educating and training your team on all the new processes, technologies and changes may prove to be a daunting task, especially if employees have done things the same way for some time. Hold a collaborative meeting to get everyone on the same page and explain

the reasons for the shift in processes and systems so that employees are more receptive to the changes.

Manage Your Growth and Master the Marketplace

Practices striving towards expansion in the next decade must do more than maintain the status quo. Employing any or all the following tactics will work to your advantage: •L earn from industry leaders: Look to seasoned practices in your area or even outside your area and learn from their successes. Ask where they network, how they market their business, and what has worked or not worked in their practice. Contact them to gain wisdom on how to implement similar strategies in your business. Consider finding an accountant in another geographic area that is not competitive with yours •C ontinue to hustle: The best accountants maintain a go-getter mindset when it comes to selling, servicing and growing. Be on the lookout for ways to adapt to trends, new clients to attract, or new technologies or systems to implement to improve your practice and out-hustle your competition. • Always be available: The best accountants are there when customers need them. Work toward building a relationship with your customers so that they know they can count on you when they have a question, and that you have their best interests at heart. • Embrace digital communication: If your current processes don’t allow you to reach your customers online, or communicate or service them electronically, it’s time to upgrade your methods. Customers seek to research, get quotes, manage their accounts, and submit service requests online. Make it possible for them to do so with Web technologies and electronic systems. • Integrate digital and traditional: Even if you have started employing digital marketing efforts, make sure you are integrating these with tried-and-true, traditional approaches for maximum impact. And don’t forget adding a personal touch: customers may prefer to communicate digitally, but that doesn’t mean they don’t appreciate personalization or one-on-one time. •S howcase your brand: Communicate to your customers and prospects why your practice is unique and what you offer. Be sure to include these marketing messages, unique aspects of your practice and your product differentiators in your marketing efforts. When you differentiate yourself from competitors in the marketplace, your customers will feel confident in their decision to choose you as their accountant. No matter how competitive the financial services industry becomes, or how much technology improves the processes and ways of communicating, accountants must remain nimble and adaptable. Those accountants set in their ways may struggle to keep up with the changing marketplace but should take advantage of any opportunities available to move their business forward. Following some of the strategies above for hiring, marketing and managing processes will ensure that those practices have a chance to compete and thrive in the new, technologically-savvy economy. 844- 343- 1428 • w w w. o a k s t re e t f u n di n g.c o m | 9

:industry news

European nationals and US expats can now sit for the CPA Exam in Europe On October 1st, CPA candidates living in Europe will no longer need to travel back to the United

Heroes of Hurricane Florence relief include the SEC

long they are deemed eligible by a US board

The Securities and Exchange Commission recently announced

of accountancy. 300 candidates per year are

assistance to help reconstruct lost records for individuals and

initially expected to take the exam in one of the

businesses affected by Hurricane Florence. To facilitate its

nine locations throughout the UK, Ireland, and

order that states, “an audit client may look to its auditor for

Germany. Since a similar launch in Japan in 2011,

assistance in reconstruction of its accounting records because

more than 14,000 candidates have taken the exam

of the auditor’s knowledge of the client’s financial systems and

there. Exam expansion is due to the global value

records,” the SEC has loosened requirements that would

of the US license, and the increasing presence of

normally prohibit this. All filings, due October 29, 2018, should

multi-national corporations.

States to take their CPA Exam so

mention they are relying on the SEC’s relief.

Uncovering fraud requires a coordinated effort The Department of Justice, the Federal Bureau of Investigation, and the Securities and Exchange Commission have joined forces to uncover and combat various forms of fraud. “It’s an unprecedented time…fraudsters are leveraging and utilizing everything from the dark web to myriad schemes involving cryptocurrency and virtual currency,” said Sandra Moser, acting chief of the DOJ Fraud Section. Task forces using data analytics to identify areas of risk, the development of the National Exam Analytics Tool (NEAT) to facilitate analysis of trading, and technology to detect suspicious activity with cryptocurrencies are a few of the joint efforts by the organizations to combat fraud. 10 | w ww.o akstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8

What does the next gen think it means to be a “trusted professional”? Researchers recently surveyed international and domestic accounting students to evaluate students’ perceptions of professionalism in four areas: general traits and behaviors, responsibility for developing professionalism, communication devices and social media, and attire and appearance. Here are some of their findings: • Nearly 50% of all respondents listed “being honest and ethical” as an essential trait

Technology continues to disrupt CPA Education Disruptive technologies, including robotic process automation (RPA), artificial intelligence (AI), blockchain, smart contracts, and advanced analytics, may help graduating students be better prepared for the accounting workplace of the future. Estimates claim that at least 50% of the work that accountants and

• 86% of domestic and 61% of international students

other professionals are paid for is automatable through

said that cell phones should never be used for personal

existing technologies. This automation will result in a

calls or text messages during a meeting

substantial reduction of hours spent on traditional work,

• More than 60% of students indicated that CPA firms should have a formal, written dress code

but will also lead to an increasing need for professionals who possess IT, software, and analytics skills.

Avoid cyber disasters after natural disasters Victims, volunteers, and infrastructure may become vulnerable to cybercriminals following disasters due to their increased interaction with unfamiliar people and organizations. Cybercriminals often pose as reputable sources wanting to aid victims, impersonating government entities, insurance companies, or not-for-profit organizations. “Be cautious and stay vigilant,” says Maria Thompson, North Carolina’s chief risk officer. “Let’s ensure one disaster does not lead to another.” Unlike natural disasters, cyber-attacks can be prevented if proper precautions are taken.

https://www.accountingtoday.com/news/sec-offers-relief-for-hurricane-florence-victims

https://www.journalofaccountancy.com/news/2018/sep/cpa-exam-in-europe-201819537.html https://www.accountingtoday.com/news/doj-fbi-and-sec-use-new-tools-to-combat-fraud?brief=00000158-5504-dc42-a1fe-55d7045f0000 https://www.cpajournal.com/2018/09/17/student-perceptions-of-what-it-means-to-be-a-professional/ https://www.journalofaccountancy.com/news/2018/sep/cyber-criminals-prey-on-natural-disaster-victims-201819720.html https://www.cpajournal.com/2018/09/13/the-impact-of-disruptive-technologies-on-accounting-and-auditing-education/

844- 343- 1428 • w w w. o a k s t re e t f u n di n g.c o m | 1 1

Adam Farag, Vice President of Strategic Markets Sales Adam Farag is Vice President of Strategic Markets Sales at Oak Street Funding. If you need capital to support your CPA business goals, we encourage you to connect with Adam. Here he shares his thoughts on the impact and influence of disruption in the CPA profession. What is a disruptor that you have seen in the CPA profession? There are constantly new disruptors and everyone reacts differently, but in my line of work, a big disruptor I see is the overall notion that the CPA space is an underserved market from a lending perspective. CPAs have limited niche lending choices that understand how CPA revenue works. The sheer lack of options creates untimely disruption when CPAs are seeking a funding source for an available acquisition or to execute a perpetuation plan. As a CPA, you can get an SBA loan, or go to a local community bank, or you can come to a niche lender who understands cash flow lending. We have higher lending limits than your typical SBA or community bank and don’t take a lien on your home. Currently, there are more transactions in the CPA space than there is available lending. Much like the RIA space, there are an exorbitant amount of people retiring and executing their succession plan. However, all of this requires some sort of liquidity event that Oak Street Funding can support. How can you relate to the professional disruptions that CPAs experience? Because of this lack of funding in the space, CPA practices are often forced to resort to private equity options. Bringing in additional ownership limits the original owner’s control of the business that they’ve built. The end result is not only someone with a financial stake in the company, but 12 | w ww.o akstree tf un di ng.com

depending on the investment, high levels of influence in future growth opportunities and operations. We want to be a financial partner- not an investor- and help CPAs grow their businesses in the way that they want to grow, whereas funding sources from private equity or venture capital don’t have the same intent. It really hits home with me because I take pride and a strong sense of ownership in our process of lending money. As I’ve developed my lending philosophy over the last decade, I’ve invested a lot of time and energy in something that I can be proud of, that’s part of my brand as a professional. So I’m empathetic to practice owners that are seeking funding. Being forced to give up equity in your practice in order to advance it – that seems painful to me. Because Oak Street Funding doesn’t broker deals out to another lender, we don’t have to play by someone else’s rules. We’re a subsidiary of a bank so we can set our own standards and we have access to capital. We all work together to find the right answer for your company. It’s one of the major reasons I work here.

While CPAs are navigating disruptions, what advice can you offer to help them remain successful? Staying committed to their client service is the most important thing CPAs can do. We absolutely believe that the success of your business is directly related to your client service. For us, service is our top priority. There are so many things that we do to maintain our client relationships through disruptions like personnel movement, fluctuations in the market, regulatory updates, economic shifts, exponential growth, and the digital marketplace. We have surveys that we send out at the end of every closing that impact our Net Promoter Score, like our report card. We want to know: • Would you recommend us? • What worked well, and what didn’t? • How was your overall experience? We take these responses seriously and adjust our services and products as needed based on the feedback. Ultimately, customer service is really the bridge between completing a transaction and building a relationship. That’s the customer service that we like to have- and what will sustain your business through disruption. Getting a form and running the numbers to see if they work is one way to run a business. Building a sustaining relationship with your clients will stabilize your practice. Are you ready to connect with Adam? You can reach him at adam.farag@ oakstreetfunding.com or 317-814-2671.

Your Profession is Under Siege Succession issues are rampant. Many ﬁrms do not have a succession plan and need a transition path. These ﬁrms either merge upward, sell, or develop an internal succession.

RIA & CPA Specific Support If you are an RIA seeking to acquire an accounting firm, we know how to find, structure and accomplish these mergers.

Consult With the Experts The Visionary Group conducts custom merger and acquisition searches and creates functional internal succession plans. Begin the discussion with a no-cost assessment - 800.995.9186.

thinkvisionary.com | 800.995.9186

844- 343- 1428 • w w w. o a k s t re e t f u n di n g.c o m | 1 3

As an accounting practice owner, have you been stuck in the status quo? Have you been working in your business the same way you have for years? The market is changing, and so are your customers. The time has come to step out of your comfort zone and experiment with some new strategies for growth. But for some, fear of change keeps holding us back. What is it about fear that keeps us from moving forward and trying something new? Let’s explore the psychology of our fears and how we can overcome them to implement lasting changes.

Why do we fear change? We like to be in control: Because we’re comfortable where we are, a lack of change may simply mean we feel more control over our environment and our business processes and practices. For example, in the past, everything has been organized and filed in the same place. We follow the same paper trail for new clients. We use the same method of selling to customers and following up with them promptly. What could change in this scenario to improve our outcome? For starters, a new data entry or CRM system could better capture customer data and make sales and customer service staff more organized. It could help identify upsell opportunities or help your practice send more targeted marketing campaigns. This could result in increased sales, better satisfied customers and improved loyalty. An electronic system could store customer data where it is easier to access and keep confidential information safe from attack. Instead of fearing change in favor of control, try making small changes that allow you to maintain control over your overall business operation, slowly modifying it to achieve the results you want. We fear failure: Another reason we may shy away from making change could be a fear of disappointment if things don’t work the way we planned. Perhaps we invest in new technology that becomes challenging to implement. We worry it won’t work properly or that we don’t have the tech savvy skills needed to make it a success. Or let’s say you decide to send out a new advertising campaign to a new audience. What if you spend hard-earned dollars on the campaign and it produces lack-luster results? Is the lesson never to try? No, because sometimes change requires trial and error. We may not achieve perfect results the first time we attempt something, but the process of working through the challenges that come along with change will help us adapt and arrive at the best result. Positive change is worth the risk. Learn from others who have implemented the same change successfully.

14 | w ww.o akstree tf un di ng.com • 8 4 4 - 3 4 3 - 1 4 2 8

We lack the time to focus on change. In today’s ever-busy world, many practice owners are overworked and overstressed. Therefore, tackling a new trend or implementing a new procedure simply gets pushed to the back burner. This can be okay for a while until competitors start invading our territory. Those practices who focus on implementing change will move ahead much quicker if they are paying attention to trends in the marketplace and looking for new technologies to make their practice nimbler. It’s worth the effort to stay on top of opportunities for change or growth, and to take the time to implement the ones that will give your business enhanced market share, or offer your customers needed value. While practice owners train themselves to be risk-averse, in the world of business survival, sometimes these decision makers must take risks and try new things to succeed. Take the time to pay attention to trends, listen to what your customers want, and identify opportunities when they arise. Then take a chance by implementing new strategies that will move your business forward. Remain persistent and patient as you adapt to change in your practice, and never lose sight of staying a trusted advisor to your customers. This will help you achieve the right balance of traditional and new business methods. Eventually your business will evolve and grow more than you could ever expect.

DOWN: 1. mobile 3. chat 4. website 6. disruption 7. SEC 8. social 10. linked 12. economy 15. capital 16. decade 17. app 19. VoiP 22. CRM 23. YouTube 24. Florence

ACROSS: 2. logo 5. permanent 9. Millennial 11. ROI 13. fear 14. UK 15. CPA 17. Alexa 18. attire 20. niche 21. psychology 25. loyal 26. cloud 27. SEO

ACROSS symbol of a company

enduring

after Gen-X

11. ret. on inv.

crossword

>>>Click here to fill in the crossword digitally.

13. t error 14. Unit. King. 15. a ccountant

17. A mazon person

18. a cceptable dress 20. s pecialized

21. s tudy of the mind

25. d evoted

26. i nternet-connected network 6

12 13 14

15 16

DOWN 1.

on the go

discuss

URL for company

6. disturbance

27. s earch engine optim.

24 25

sec. & exchg. comm.

_______ media

10. joined 12. production & consumption of goods & services 15. money

16. 10 years 17. mob. device software 19. voice over int. prot. 22. client relationship mgmt. 23. video social channel 24. 2018 Hurricane

844- 343- 1428 â&#x20AC;˘ w w w. o a k s t re e t f u n d i n g.c o m | 1 5

Presorted STD U.S. Postage PAID Indianapolis, Indiana Permit #9555

8888 Keystone Crossing, Suite 1700 Indianapolis, Indiana 46240

Check out Oak Street Funding’s® CPA Practice Exchange! Oak Street’s FREE and personalized CPA Practice Exchange service connects practice buyers and sellers across the country. • List a practice to sell • Receive email alerts for new listings • Join our Buyer Directory