8 minute read
STRATEGIC PLANNING
Adapt and Prosper:
The Future for Accounting Firms
By Christopher R. Cicalese, CPA, MSTFP
If the pandemic has taught the accounting profession anything, it is that traditional accounting firms full of paper, office hours and in-person meetings are officially on the outs, and firms must start to adapt to the new era. The days of ledger paper and in-person meetings are scarcer than ever, and tech stacks and remote work policies are now the focus for many firms. To compound the issue, the profession has started to see a talent shortage that is requiring firms to figure out how to increase capacity to maintain sanity during busy times and leverage their teams appropriately.
Client experience
At the beginning of the pandemic, virtually every professional was forced home. For tax professionals, it came at the worst possible time, with the April 15 deadline looming. Despite the various extensions, firms had to pivot, if they had not already, to adopt an electronic delivery system. Client portal systems and safe file-sharing services that focus specifically on the electronic delivery of tax returns became vitally important. But firms shouldn’t stop there. Consumers are using apps to conduct many facets of business and commerce, and humanto-human interaction is less prevalent. Even with businesses returning to more “normal” operations, customers will still want a choice in how they interact. And this includes clients’ interactions with their accounting firms. In addition to improving the customer experience with apps, overall accounting has changed for the better. Clients who were stuck on outdated software that made seamless collaboration next to impossible were forced to make a change, or at least be more open-minded about change, so they could run their businesses remotely. The increasing prevalence of cloud-based software has opened the possibility for any accounting firm to adopt more of an advisory approach to their services and provide more value by automating lowerend services.
Internal changes
Any accountant who has had the opportunity to follow the #TaxTwitter community on social media will tell you that traditional firms are under fire. Various “members” have been promoting their firms’ low-hour busy season work week,
unlimited supply of talent and absence of time tracking. To some, this all seems too good to be true. But potentially, to some extent, this is the way of the future. Many firms perform a large majority of their services in the first 25% of the year, and this often requires a significant overtime commitment to make sure that the workload gets completed timely in such a compacted period. Successful firms will strive for creative ways to increase capacity and decrease burnout. Hiring per-diem help during crunch time is a solution many firms have used for years. This concept has expanded recently, with more professional service firms offering outsourced business-to-business services. For accounting firms, outsourcing can take various forms. One is sending tax returns to an outsourcing provider, such as CCH, and another could be having a “team member” from anywhere helping the team as a temporary, remote employee. If there was a bottomless talent pool, there would not be an issue; however, it is a struggle for teams to find talent. By adopting remote desktops, firms can add employees from other states. This opens the talent pool but also requires a firm to be able to work, communicate and train remotely. The unicorn for many accountants is the day that they no longer need to keep time sheets. In an age when firms utilize realization statistics and key performance indicators to help evaluate staff members, it may be hard to eliminate the time sheet. But firms with no time sheets still have time as a component of the conversation. The time sheet is more of an internal measurement strictly to ensure that jobs are not a bottomless pit of time. Firms that do not keep time sheets can focus on making sure their staff have short-term, hard deadlines that they are required to meet to promote quick turnaround. This concept is still evolving, and traditional firms will likely not eliminate timekeeping altogether, but it is a step in the direction of the future. When the larger firms figure out how to do this and successfully evaluate team members, other firms will likely follow. The pandemic has proved that working remotely can be successful. While less-experienced staff may need to be in the office to develop their skills and learn from management, it is possible to work remotely for extended periods of time and still get the work done. This gives employees the flexibility to not only choose their own hours, but also to choose where they work. Logging in from a vacation home or Airbnb could be just as productive as logging in from home.
Next steps
While not every firm may be ready to make the leap to future-proof themselves all at once, changes can be made one step at a time. This could be as simple as testing software by putting a small batch of work through it or having a few remote-only days during the slower months to help with work-life balance. At the end of the day, the profession is changing, and those who do not adapt will slowly fade away.
Christopher R. Cicalese, CPA, MSTFP, is an associate partner at Alloy Silverstein Accountants and Advisors. Contact him at ccicalese@alloysilverstein.com
Reprinted from the New Jersey CPA magazine with permission from the New Jersey Society of CPAs (njcpa.org).
Gary L. Hoff, CPA (1937 – 2022) Gary L. Hoff, CPA, of Fitchburg, passed away on Tuesday, Sept. 20, at age 85. Hoff graduated from Lincoln High School in Wisconsin Rapids and continued his education at the University of Wisconsin–Madison. He subsequently became a CPA and worked for RSM McGladrey, retiring in 1997. Hoff was a lifetime member of the WICPA and also a member of the American Institute of Certified Public Accountants. He was an avid Wisconsin sports fan and enjoyed playing softball and bowling, as well as participating in card clubs with his neighbors and friends, traveling, reading and indulging a love of cars. Hoff is survived by his daughter, Kristine Kepke; special friend Toni Andress and her family; two sisters-in-law; and nieces and nephews.
Edwin A. Keller, CPA (1936 – 2022) Edwin A. Keller, CPA, a lifetime member of the WICPA, passed away Thursday, Sept. 8, at age 86. He served on the WICPA board of directors from 1998 to 2000 and served on the Federal Taxation, Wisconsin Taxation and Public Policy committees in years past. Born in Pennsylvania, Keller served his country in the United States Army during the Korean War. He became a CPA and owned and operated Keller and Yoder CPA in Wisconsin Rapids for many years. He also co-owned Aniwa Creek Cranberry for a number of years. Keller was an active member of the Wisconsin Rapids Rotary Club and Christian Life Fellowship Church in Port Edwards. He is survived by his daughter, a grandson, two great-grandchildren, two brothers and a sister.
Karyn Ann Morell (1955 – 2022) Karyn Ann Morell (nee Scheid) passed away at her home in Oregon, Wisconsin, on Tuesday, June 2. She was 67. Morell was born and raised in Fort Atkinson and graduated from Fort Atkinson High School. She attended the University of Wisconsin–Madison and obtained a Bachelor of Science degree in home economics in 1977. Morell began her career as a kindergarten teacher and later owned and operated three kindergarten and day care centers in the Madison area. She operated the centers for over 25 years. After selling the business, Morell became an accountant, working most recently for CliftonLarsonAllen (CLA) in Middleton. She is survived by her husband, David; one son; three granddaughters; and a sister-in-law.
Margaret Noon Pavelic, CPA, MST
(1963 – 2022) Margaret (Maggie) Noon Pavelic, CPA, MST, passed away Wednesday, May 25, at age 59. Pavelic graduated from the University of Wisconsin–Whitewater in 1985 with a BBA in accounting and ultimately became a CPA. She returned to school and earned a Master of Science in management and taxation from the University of Wisconsin–Milwaukee in 1992. Pavelic was employed by Fidelity Information Services (FIS) for more than 27 years, including the first 20 with Metavante Technology Services Inc., which was acquired by FIS in 2009. She was most recently senior director of IT strategy with FIS. Pavelic is survived by her husband, Peter; their two sons; both of her parents; one brother and three sisters; nieces, nephews, other relatives and many friends.
Dennis Winkler, CPA (1942 – 2022) Dennis Winkler, CPA, passed away Friday, Sept. 9. Winkler earned his Bachelor of Business Administration degree from UW–Whitewater and became a CPA. He began his professional career with the IRS and progressed to leading the Tax Accounting Department as a partner for Schenck & Associates, formerly Shinners and Huckovski (and now CLA). After retirement, Winkler served as senior executive at a national cabinetry company. Throughout the years, he volunteered with vigor to causes he held close. He was a member of the Optimist Club for 35 years and championed youth sports — including bringing a national basketball tournament to the region. He served on stewardship committees, including church endowment, buildings and grounds, dairy breakfast and church men’s group. He volunteered for many community organization building projects, aiding in a new start for reformed prisoners. In his younger years, Dennis was a successful athlete. He enjoyed competitive and recreational basketball, football and baseball throughout his life. Winkler is survived by his wife of 52 years, Jeanne; two sons; three siblings; and many nieces, nephews, other relatives and friends.
If you are aware of a member obituary and believe it should be included in Memorials, please send a copy of the obituary or contact Marcia Tillett-Zinzow at mtzinzow@icloud.com.
YOUR WISCONSIN TAX RESOURCE
The Tax Section of von Briesen & Roper, s.c. has the knowledge and experience to address any state and local tax matters. Our strategic approach to state and local tax issues allows us to minimize the impact of property tax valuations and assessments, provide tax audit support, handle Resolution Unit appeals, litigate cases in the Wisconsin Tax Appeals Commission and resolve collection issues. The bottom line? We get results.
