How CPA firms can Navigate the Coronavirus Pandemic
Now more than ever, firms need to be proactive and pivot as we all address many new daily challenges and do our best to continue operating in a ‘new normal,’ which is nothing close to being ‘normal.’ Most businesses are being forced to move to a remote working environment. This shift, which comes right in the middle of tax season, has affected the accounting profession and clients in many significant ways. To follow are recommendations on sustainability, communications and security measures to get your firm through these challenging times.
Market to Clients of Larger Firms
By developing and promoting a competitive value proposition, firms can market to clients of larger CPA firms that are seeking to reduce fees. Focus on selling your firm’s value proposition and make a compelling argument that your services can be offered at a lower fee and provide even more value to the prospective client. For example:
Showcase the number of current clients that are of similar size and in the same industry.
Develop case studies to demonstrate your expertise, the services you provide, how you are assisting clients during these turbulent times.
Promote that you have provided advisory and special project services.
Tell the prospective clients that they will be premier clients of your firm versus an average client at their current CPA firm.
Explore Merger & Acquisition Opportunities
The pool of CPA firm M&A candidates will likely increase due to the difficulty in sustaining business operations during this Corona induced crisis and due to the drop in the stock market. The M&A market may also become more attractive to buyers as valuations of selling firms may decrease during these challenging times. CPA firm M&A during economic and financial uncertainty can create greater value for buyers when they target firms that were economically not attainable in the past and have now become more affordable. Proactive firms will balance the M&A risks and capitalize on the current state affairs and directly target M&A opportunities.
Increase Communications with your Staff
Communicate often with your staff on a variety of topics, including news about the firm, technology and related tools and issues, their health, and tips to stay healthy and safe, insurance/health plans, etc. Consider having a virtual town hall meeting with staff and firm leaders ASAP including time for a Q&A. Be transparent as to what is happening at the firm and with clients. Since staff are working remotely, it is important to periodically hold them accountable for work productivity. Business communication tools such as Slack and Microsoft Team allow for you to chat with your staff online. They can allow communicate with each other when collaborating on projects. For conference calls, use Zoom or FreeConference.
Continue to have Face-to-Face Meetings
With Partners and staff working remotely, firms can use video conference technology to hold company meetings and communicate with clients. Tools like WebEx, Zoom, GoToMeeting and Skype allow you to develop a face-to-face connection online. On a video call, you can share your computer screen so the others can view the documents that you are referencing. These companies have increased their customer support and online tutorials to help workers effectively use their products as we all navigate the coronavirus pandemic. Here’s an article on how to use Zoom and how to effectively work from home:
Take Security Measures
With Partners and staff now working remotely, there is a much greater risk of a data breach. Make sure that you have established clear work at home security policies, procedures, and technical controls to manage risk.
1. Only sign-on to the internet connections using secure connections with a password. Avoid using public networks that don’t require a password. Anyone on that open network can see what’s on your computer.
2. Upload important documents to the cloud. Avoid keeping files on your computer. Explore using Dropbox, OneDrive or Google Docs to store your documents securely.
3. Share access to documents from the cloud with those who need to view it. Avoid attaching documents to emails.
Ensure Staff Retention
In addition, recruiters will take advantage of staff working remotely and the ease of contacting and communicating with them. Staff who might be feeling unsure about their positions at your firm could ‘jump ship’ as larger firms and corporations will take advantage of these challenging times to increase the quality of their staff and terminate underperformers. Be sure to continue to recognize achievements and tell them that you appreciate them. Your leadership can give them hope and security in a time of need.
While these unprecedented times will be a difficult course to navigate, constantly learning, adapting, and listening to your clients, staff and professional advisors will provide the insights you need to move forward in the best possible way.
Joe Tarasco, CEO and senior consultant, Accountants Advisory Group, LLC, assists the leaders of public accounting firms by consulting in all areas of firm practice management, including succession and strategic planning, firm governance, mergers and acquisitions, partner compensation structure, practice development, facilitating partner retreats, and leadership consulting. He can be reached at joe@accountantsadvisory.com.