When looking for professional services today people are looking for experts in the field. To be an accountant offering accounting services you need to develop verticals/ niches that you will serve to be that true expert and become the trusted business advisor to your clients. Review the selection process, tools to arm yourself with and how to expand in a vertical niche.

1. Selecting Vertical Markets for a Digital Firm
Thomas R. Gawne, CPA, Director of Professional
Services, CPA.com

2. Thomas Gawne, CPA
Director, CPA.com
28 years in the tax and accounting technology sector
Speaker, Facilitator, Consultant

3. AICPA & CPA.com
Transforming how firms deliver Client Accounting Services as
they transition their practices to be more efficient and productive by
leveraging innovative new technologies and services.
Empowering CPA’s and businesses for the digital age

4. CPA.com Firm Solutions Portfolio
Practice
Workflow
Professional
Services
LMS
Mobile Apps
CPA.com
Services
AICPA Store
Audit
Confirmations
General
Ledger
Payroll
Bill Pay
Training

5. Professional Services
Guiding your journey
to meet the unique
needs of your firm:
• Training
• Consulting
• Change Management
• Firm Tested Processes
• Firm Centric
• Client Centric
• Client Implementations • Webcasts
• Live Workshops
• Onsite Consulting

6. Vertical Focus

7. Agenda
Vertical Selection
Right Tools in the Toolbox
Vertical Expansion
Putting it in Action

8. Wikipedia
vertical market (plural vertical markets)
1.(marketing) A market made up of similar businesses
and customers with particular specialized needs.
2.A vertical market is a market in which vendors
(Accounting Professionals) offer goods and services
specific to an industry, trade, profession, or other group
of customers with specialized needs.

9. Geoffrey Moore

10. Whitepaper Released
http://www.cpa.com/conference

11. Why Target Market Focus?
Clients aggregate into market segments
Communities with shared interests
Self-organized around industry, geography, & profession
Who talk to each other before making buying decisions
Two lessons from Marketing 101
Cost-effective growth is impossible without target market focus
Tipping point dynamics accelerate your success
Target marketing success factors
Participate in the segment’s relationship network
Develop domain expertise relevant to the segment
Over-deliver to create strong reference accounts
Encourage word-of-mouth referrals

12. More Specialization = More Value!
Medical Practices
Orthopedic clinics
Pediatricians
Chiropractors
Construction
Electrical Companies
Plumbing Companies
Non-Profit
401(c3)
401(c6)
401(c7)

13. Service opportunities grow
HR/Staffing decisions
Software consultation
Business expansion decisions
Business analytics/comparisons
Insurance decisions
Deeper more impactful client relationships!

14. How the Restaurant Niche Got Started for One
Firm . . .
Passionate about the
food service industry Existing clients
• Accounting Cleanup
• Disparate Systems
• Inaccurate Data
• Out-of-balance
accounting
• Tax Compliance
•Employer Tip Credit
• Cost Segregation
•Opening new
locations
Client Needs
•Management
reporting
•Uniformed,
standardized
accounting system
and structure
• Internal Controls
Restaurant
Industry
Niche
Why the Restaurant Industry?

15. To Transform Restaurant Accounting
Today: Disconnected Systems Ideal: Connected/Holistic
Consistent
Processes
Restaurant
Group
Cash Control
Consolidated
Financials
Multi-Entity
Reporting
Cloud Based
Systems
Full Financial
Visibility
QuickBooks POS Payroll
Manual
Processes
Restaurant
Managers
Many
checkbooks
Several
locations
Bookkeeper Inventory

16. Digital CPA
Client Accounting Services
Virtual
Controllership
Collaborative
Advisory Services –
Virtual CFO
Bookkeeping
Business Process
Outsourcing
Advisory
Transactional
Specialize in Client Industry Verticals
 Healthcare
 Not-For-Profit
 Technology
 Professional Services
 Property Management
 Government Contractors
 Retail
 Franchises

17. Selection

18. It Starts with Why
Golden Circle:
“Start with Why”
Critical to Firm Success
Source: Simon Sinek

19. Vertical Selection – The “Why” Fit
Passion, Mission – the “why”
What is your firm most passionate about?
Tie in to Firm or Personal “Mission”

20. Existing Expertise Fit
Is there already expertise in this vertical?
Do you have existing clients in this vertical?
Untapped expertise within your firm?

21. Market Assessment Fit
Big enough to matter
Small enough to lead
Marketplace penetration
Room for growth?
Can we make money at it?
Need overall market analysis

22. Client Needs Assessment
What is the key information they need for
success?
Develop “core” then expand down to key KPI’s
Attain a deep knowledge of client best practices
Periodicals
Trade Associations
Web Chat, Blogs, etc.

23. Vertical Selection – Culture Fit
Does the firm culture fit the vertical?

24. Getting Vertical through the Cloud
Business
Intelligence
Reporting
Real-Time
Client
Collaboration
Standardized
Workflows
Client
Accounting
Capability
driven
through
cloud
computing
Most Popular Client Verticals
for Outsourced Accounting Services
• Professional Services – 90%
• Construction – 76%
• Retail – 75%
• Not-for-Profit – 73%
• Manufacturing – 65%
• Wholesale Distribution – 61%
• Technology Companies – 59%
• Transportation – 48%
• Hospitality – 45%
• Franchises – 40%
• Government – 29%

25. Tools

26. Tools
Key Principles
All Digital, all in the cloud
Designed for timely “prospective” insight
Collaborative

27. Tools – Core Elements
Signature Functions Applications
A/P – Bill Pay
A/R – POS
Payroll
Inventory Control
Accounting – G/L
Document Management
Tax System
Other Industry Specific
Bill.com
Industry Specific
Paychex, ADP
Industry Specific
Intacct, Xero, QuickBooks
Sharefile, Box, etc.
CCH, Thomson, Etc.
As needed

28. Tools – Workflow Effects
Digital Core
Transaction
Capture
Information
& Insight
Delivered
Prospectively
Intelligent,
Timely
Business
Decisions
Made

29. Tools - Collaboration
Video Conferencing – Skype, Zoom, etc.
Web Conferencing – WebEx, GoTo Meeting, etc.
Social Media – Linked In groups, Twitter feeds

30. Tools – Management Tracking
Workflow Management – XCM
Contact Management – CRM
Internal KPI trackers

31. Expansion

32. Expansion – Within Existing Vertical
On going
services
Additional
Need
Identified
Services
scope
expanded

33. Expansion - like parallel verticals
Review “like” parallel verticals for need &
process
Dentists vs. Optometrists
Differing types of Restaurants
Auto Repair vs. Body Shops

34. Expansion – New Start Ups
Create new start-ups among different verticals
Template appropriate process steps

35. Concluding Thoughts
Selection key concepts
Tools of the vertical trade
Expansion past that first vertical
Make it happen!

36. Resources

37. Reference Material
“Start with Why” by Simon Sinek
Ted talk “The Golden Circle” video
“The Power of Real Time Financial Data & Analytics to
Penetrate the Restaurant Niche Market”
A case study whitepaper by Dixie McCurley of Trusted
CFO Solutions available at CPA.com
“Leveraging the Cloud to Start or Grow a Vertical Niche
Practice”
A Whitepaper by C. Keith Willis CPA.CITP, Cohen &
Company available at CPA.com

38. Your Title Goes Here

39. Staying Connected
@CPAcom
@ThomasGawneCPA
@PetePotsosCPA
@pwhitmo

40. Thank You
Enjoy the remainder of the
Conference!