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The Proactive Accountant

The Proactive Accountant






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    The Proactive Accountant The Proactive Accountant Presentation Transcript

    • The Proactive Accountant
    • Rob Nixon CEO, Accountants NZ CA conferenceEvangelist, Author & Future Astronaut @therobnixon www.robnixon.com #proactivejourney
    • YouNow Cashflow, Profit, Happiness, Growth, Lifestyle Where
    • Success NZ CA conference
    • Doing what you want, when you want, in a manneryou want, with whom you want
    • The comfort zone – Bob Riggs “Many of us have established a comfort zone in our lives. We’re justcoasting along taking the path of least resistance, and just getting by.This is a very common and understandable attitude. We’ve all worked hard to get where we are and it may seem a good place to be. The problem with this is that once we stop reaching, stretching, seeking and risking, we actually stop growing. The comfort zone frame of mind is settling for what you are TODAY.This may be fine today, but without continued growth YOU ARE NOW ALL YOU ARE EVER GOING TO BE.If you’re in the comfort zone, beware – the danger of a comfort zone is that it doesn’t hurt, and it may even feel good!”
    • Your peerssay…. Stewart Blizard www.rocg.com Balcatta, WA
    • What’s yourFerrari?
    • DreamsAspirationsGoalsDesiresWishes
    • YouNow Cashflow, Profit, Happiness, Growth, Lifestyle Where 0 1 2 3 4 5 6 7 8 9 10 Poor Reasonable Good Very Good Legendary
    • Your peerssay….Matthew Snellekszwww.snelleksz.com.au Stones Corner, QLD
    • Sustainability index – entire team•
    • Sustainability index – without partners•
    • Sustainability Worst Lower Median Upper Best Your Result Quartile Quartile Result firm? IndexProfit per labour -$50.47 $17.71 $31.71 $40.36 $212.62hour – entire teamProfit per labour -$1251.72 -$11.25 -$9.04 $13.51 $156.83hour – withoutdirectors revenuecontribution
    • Success formulaBM + LPP + WCS + GP+ FP + NM + M + S x VP – LC + CFM = FE
    • BM Burning motivation+ LPP Low partner productivity+ WCS World class service+ GP Great people+ FP Fabulous products+ NM Niche markets+M Marketing+S SalesX VP Value Pricing- LC Low costs+ CFM Cashflow management= FE Fix Everything
    • Now Cashflow, Profit, Happiness, Growth, Lifestyle Where • People mix & selection • Client service • Niche markets External performance • Capacity modelInternal performance • CSC Admin team • Classification & • Training & Development Selection – ‘A’ strategy Why • Implementation process • Management & People Clients • Value Added Services: Profit Leadership improvement, Cashflow, Reven ue, KPIs in • Team performance. Roadmap to cloud, Planning, Monitoring, H ealth Check, Benchmarking, Strateg y, Coaching. • Lock up - WIP & Success • Branding Debtors • Productivity – producers • Lead generation • Productivity – partners Workflow Revenue • Services productised • Sales - process & skills • Average Hourly Rate • Write ons • Value Pricing • Systems & Technology • Retention rate • Pricing up front • Average project value • Policy & Processes • No. of projects per client. • Efficiency model. Implementation timeframe
    • BreakNZ CA conference
    • Welcome NZ CA conference back
    • Now Cashflow, Profit, Happiness, Growth, Lifestyle Where External performanceInternal performance People Clients Roadmap to • Lock up - WIP & Success Debtors • Productivity – producers • Productivity – partners Workflow Revenue • Average Hourly Rate • Write ons • Systems & Technology • Pricing up front • Policy & Processes • Efficiency model. Implementation timeframe
    • Ben Hayden-SmithAccountantsconference NZ CA Business Coach @ben_nixonadv
    • Lock up – WIP & Debtors
    • Lock Up formula Accurate Efficient Efficient Lower  collection of doing of billing WIP days raw materials the work process = Upfront Efficient Rigorous Lower pricing ofthe project  billing process  follow up process = debtor daysLower WIP days + Lower debtor days = Improved Lock Up
    • Your peerssay…. ZJL Partners >>Helping you achieve amazing resultsPeter Locandro www.zjl.com.au Nobel Park, VIC
    • Productivity- Producers
    • Questions to ask1. Is there plenty of work in progress in the shop?2. Are you supposed to put all time on the clock?3. Are you trained and have the right tools?4. Then why does only 65% hit the clock – what do you do for 2 days per week?It’s a dumb measure!It drives the wrong behaviourSolid productivity yes (75%) – excessive no!
    • Productivity - Partners
    • Partners job description – just 3!1. Chargeable time – low percentage, high value work only2. Nurturing existing clients – making sure they are well serviced (sales)3. Leadership – driving performanceEverything else….Hire a Business Manager and/or a PA!
    • Average Hourly Rate– entire team
    • The AHR all team equation FTE people Working Total paid  including hours (say working partners & admin 37.5 x 45 = 1687) = hoursTotal annual Total paid Average hourly rate revenue working hours = of the entire team
    • Margin progression 6 No time sheetsMA 5 Value Pricing + $1 per hour + time budgetR 100% price up front + efficiency + chargeG 4 rates stillIN 3 Some price up front + some write upsS 2 Price arrears + AHR targets + some new services 1 Price arrears + AHR aware + charge rate increase YOUR VALUE BELIEF & YOUR CLIENTS VALUE PERCEPTION
    • Write Ons
    • Getting rid of write offs1. Make a decision to write on2. Price up front3. Hours budget on each job4. Monitor during the WIP5. Drive time down with efficiency measures
    • Systems &Technology
    • What systems?1. Cloud everything2. Ipad, smart phones etc.3. Intranet4. Online document management5. Online knowledge management6. Online procedures & templatesIf you do it more than once, turn it into asystem and then get someone else to do it!
    • Pricing up front
    • Why price up front?1. Common courtesy2. Known price to client3. Team work faster – hours budget4. You are incentivised to be efficient – and not drive productivity!5. You make more margin and get capacity – aka more profitBTW – the price will always be wrong!
    • Policy &processes
    • Example policies1. Get paid before you start2. Every job priced in advance3. Brainstorming how you can help every client4. Schedule all work in advance5. Don’t start the work until all info. is in6. Time budgets (not hours) on all jobsRemember….it is not your clients business oryour teams business – it is YOUR business. Takecontrol
    • Efficiency Model
    • 18 step workflow processSteps in process Who manages or does1. Schedule the work in advance – using calendar system Client Service Coordinator (CSC) Selling2. Meet with client to scope and sell the value of the job3. Value price the job, communicate in writing (scope & price) to client Partner or Client Manager Partner or Client Manager4. Client signs off on scope / price and pays deposit or full amount Client Service Coordinator5. Send checklist and gather raw materials Client Service Coordinator6. Check everything has been received Client Service Coordinator7. Contact the client for any missing information Client Service Coordinator Setup8. Log the job onto your electronic and visual workflow system9. Do a draft internal team budget – in hours Client Service Coordinator Client Service Coordinator10.Set up the electronic workpapers – basic data entry Client Service Coordinator11.Challenge the hours budget (drive time down), lock in max time Client Manager / Accountant & CSC12.Allocate & explain the job to the person doing the work Client Manager13.Do the job & find any Awesome 8 opportunities for the client Accountant Doing14.Communicate any technical queries to client & then finish job15.Review the job and fully understand Awesome 8 opportunities Client Manager and Accountant Client Manager and Accountant16.Print / Collate / Bind / Prepare final Invoice / File Client Service Coordinator17.Meet client – present job, explain new ideas and sell next job Partner or Client Manager Selling18.Ask for a referral at least one per year - and follow up! Partner or Client Manager
    • BreakNZ CA conference
    • Welcome NZ CA conference back
    • Now Cashflow, Profit, Happiness, Growth, Lifestyle Where • People mix & selection External performance • Capacity modelInternal performance • CSC Admin team • Training & Development • Implementation process • Management & People Clients Leadership • Team performance. Roadmap to Success Workflow Revenue Implementation timeframe
    • People mix& selection
    • Do we have the RIGHT people? Are they MOTIVATED?Do we have the right Do they know ENVIRONMENT? WHAT to do? Do they know HOW to do it?
    • Capacity Model
    • How to get capacity1. Be more efficient2. Hire more (different) people3. Hire the right people4. Get rid of clients5. Charge higher prices6. Get more work in!People fill the available time with what work theyhave to do!
    • CSC Admin team
    • Accountants spend 1 to 3 hours each daydoing administrationwork associated with accounting jobs!
    • Capacity model No. of Hrs per fee Days in Total hrs fee  earner per day  the week = per earners week Total hrs “Open Annual per week admin  time” in the year = hrs doing admin tasks (50 weeks) tasks Annual Your Your current hrs doing current additional admin tasks  AHR (clients) = capacity $ $
    • Training &Development
    • Implementation process
    • Lasercution™
    • The power of a networkResultsUltimate lifestyleOptimal GrowthPersonal excellenceClient Delight Proactive coachingTeam Excellence & network supportOptimal ProfitOptimal SecurityMaximum Cashflow Learning only Accountability, Learning, Sharing
    • 3 levels of membership1. Proactive coachingclub “lite” <$650K in fees2. Proactive coachingclub “regular”3. Proactive Accountants Network
    • Your peerssay…. Evan Bulmer www.ebaa.com.au Seaton, SA
    • Management& Leadership
    • Breaking down the silos Partner A Partner B Partner C Creation Wealth Broking Finance Coaching Business My… My… My… My… My… My… Mktg Mktg Mktg Mktg Mktg Mktg Sales Sales Sales Sales Sales Sales Clients Clients Clients Clients Clients Clients Team Team Team Team Team Team Services Services Services Services Services Services
    • Vision / AccountabilityStrategy Product Marketing Sales Fulfillment Support Innovation New enquiries Revenue Efficient work Office logisticsFocusRolesClients
    • Your peerssay…. David Carpenter www.cutcher.com.au Newcastle, NSW
    • Teamperformance
    • Your peerssay…. Leah Peacock www.sudburys.co.nz Whangarei, NZ
    • Now Cashflow, Profit, Happiness, Growth, Lifestyle Where • Client service • Niche markets External performanceInternal performance • Classification & Selection – ‘A’ strategy People Clients • Value Added Services: Profit improvement, Cashflow, Reven ue, KPIs in Roadmap to cloud, Planning, Monitoring, H ealth Check, Benchmarking, Strateg y, Coaching. Success Workflow Revenue Implementation timeframe
    • Colin DunnDirector, product guru & an NZ CA conference Accountant) @col_nixonadv
    • Reactive – type 1 Proactive – type 2Clients... You...1. Call you when they have an issue 1. Call frequently to check how going2. Visit you only when they have to 2. Visit clients frequently @ no charge3. Hear from you for bad / history things 3. Communicate new ideas4. Are surprised when you contact them 4. Have a client communication program5. Feel you charge them for everything 5. Do not charge for calls/emails6. Feel you do not understand them 6. Make an effort to understand them7. Get a bill from you after the fact 7. Price in advance as a matter courtesy8. Get surprise bills from the tax office 8. Educate how much & when due9. Never get asked for their feedback 9. Consistently ask for feedback10. Talk less than you do in meetings 10. Listen more and ask better questions
    • Reactive – type 1 Proactive – type 2Clients... You...11. Feel like you tell what to do – not how 11. Educate what to do and how to do it12. Do not understand what to send in 12. Educate and send checklists13. Buy grudge / historian based services 13. Offer all value added services14. Send in work when they are ready 14. Schedule work when you are ready15. Get their work when you are ready 15. Offer an agreed delivery deadline16. Are pre-judged by you what they need 16. Ask questions to determine all needs17. Have a limited relationship with you 17. Build enduring relationships18. Do not understand your value 18. Articulate the value you add19. Do not understand their financials 19. Educate them on their results20. Feel like they are on their own 20. Work with them very closely
    • Expert Body of Work Marketing Database ContentClear offering
    • Why?How? What? Who?
    • „A‟ class clients – criteria• Decent fee• Affordability – revenue >$1M with decent profit margins• Scope for improvement• Desire to improve• Takes advice• Positive mindset• Referrer or potential to refer in future
    • „A‟ class clients – criteria• Good payer• Case study / testimonial• Well known in community• Supports your events• You like them• Your team likes them
    • Business Improvement Process Needs • TRUST What‟spossible? • What-if planning Action plan • Planning session • KPIs in the cloudMonitoring • Profit improvement program Bespoke projects • Awesome 8
    • In theNZ CA conferenceflesh!
    • BreakNZ CA conference
    • Welcome NZ CA conference back
    • Now Cashflow, Profit, Happiness, Growth, Lifestyle Where External performanceInternal performance People Clients Roadmap to Success • Branding • Lead generation Workflow Revenue • Services productised • Sales - process & skills • Value Pricing • Retention rate • Average project value • No. of projects per client. Implementation timeframe
    • Branding
    • What makesyou unique?
    • Leadgeneration
    • Remember the experience!
    • rob’s rule of 27
    • Marketing gravity plan 25. Online boardroom briefing17.Direct email Reports papers 1 Leads EndlessBlog 9
    • ServicesProductised
    • Salesprocess & skills
    • Opportunity management Payment or signature – 100% Implementation plan – 80% 2nd meet – no TRUST – 30% Lead in - Meeting booked – Initial meeting held – 25% TRUST Assessment – 35% Follow up meeting – 85% Follow up meeting – 50% Verbal agreement – 90% OMV Meeting – 70% Est. Close Date ProbabilityProspect Lead 10%Name source Notes TeleseminarProspect # 1 12/2 17/5 90% 17/4 17/4 17/4 30/4 1/5 1/5 2/5 3/5 7/5 NewsletterProspect # 2 30/5 80% 17/4 17/4 17/4 10/5 12/5 14/5 15/5 April ‘11 Old lead –Prospect # 3 seminar ‘10 17/6 35% 1/4 1/4 1/4 17/5 Direct Mail -Prospect # 4 15/3 30/6 30% 13/5 13/5 17/5
    • Limiting Sales Beliefs “I’m no good at “I’m too busy, “If I visit clients I it, so what’s the there is real work will come back use?” to be done” with more work” “I don’t want to seem desperate “My clients will or like a used car call me when salesman, I’m a they need me” professional” “All of our clients “What if they say “I’m afraid of have everything no to me” what the client they need” will think”
    • MotivationGreat Questions Background BQ MQ Problem Decision PQ making DQ MMQMeasurement VQ Value CQ Consequence TQ Timing
    • Valuepricing
    • How much for this sandwich?
    • Your peerssay…. Tony Monisse www.brentnallswa.com.au Mt. Hawthorn, WA
    • Retention Rate
    • Proactive Loyalty
    • AverageProject Value
    • No. ofprojects per client
    • Client / service matrix mthly / quarterly Planning Session Annual Accounts Asset protection Corp Secretarial Health Check development Tax planning Monitoring – Coaching Cashflow Systems Budget SMSF FBTClient name             Client name             Client name             Client name             Client name             Client name             Client name             Client name             
    • Your „proactive‟ scorecardBracket 1 – total score between 0 & 56 - PoorBracket 2 – total score between 57 & 112 - ReasonableBracket 3 – total score between 113 & 168 - GoodBracket 4 – total score between 169 & 224 – Very goodBracket 5 – total score between 225 & 280 - Legendary
    • Feedforward
    • YourNZ CA conferenceFuture
    • Predictions1. Technology (web based) will drive business efficiency in compliance2. Governments will simplify compliance3. Compliance will become a commodity4. There will be less firms but larger firms5. The next partners (Gen Y) will want faster results and be less patient6. Unmotivated accountants will fade away
    • Predictions7. Business coaches will aggressively pursue SME’s8. Clients will demand additional services9. Marketing and sales focus will be needed to thrive10. Corporate culture will prevail – CEO’s, consolidation, public companies11. Unless the culture changes it will be a less attractive option for young people12. The new accounting firm will become a “Business Success Centre” and a hub of business – a network of likeminded providers