Winning strategies for 2024

STRATEGY 1 - TALENT IS THE KEY TO SUCCESS!

You’ve got to start it now – this afternoon!

“Because your greatest challenge at the moment is getting good people to work with.”

Andrew Geddes, Joint Founder of Financial Management Research Centre (FMRC) at the University of New England, Australian Accounting Legend, Chair for 10 years of Greencross Ltd, a company which developed over 30 years from a very small veterinary surgery to be a top 200 ASX company utilising the ‘Scaling up Process’ that Geddes introduced to the Greencross leadership team 17 years ago. A similar product package will be released by ESS BIZTOOLS in February 2024.

“Partners of accounting firms are saying that there are not enough of them (young accountants) but no, there are enough of them, they’ve chosen not to work in the profession because they’ve been asked to do compliance work only and to obtain 80% productivity which has caused people saying – I’m not sure I want to work in that environment.”

“I think accountants need to look at what there’ve asked people to do, their involvement with clients and taking them out on client visits as part of a business focus of what the outcomes that our stakeholders want.”

“Now we have got to pay them more and we’ve got to teach them, and the Partners and Directors have got to be available.”

“Having younger accountants work as your shadow with you on client’s assignments helps  them work in project teams because we are teaching them about how to improve the business, how to communicate with clients and we are giving them the experiences that develops their experience and their skill base.”

“I think the profession has got to make itself more attractive for people to work in and talk about.”

”How do we make it more attractive?”

“By involving people more with clients and projects.”

“How do we make time available to teach people – I mean I’ve seen people do technical reviews on work and then throw it back at a junior accountant with little explanation and the junior accountant hasn’t got a clue on how to fix it.”

“In these situations they’re not been taught and they feel like their backsides have been kicked.”

“The attitude we take to work has got to be one of encouraging and providing opportunities and growing and developing people, more so than ever before, because there is a shortage of people.”

“Accountancy firms are under a challenge at the moment and, I believe we need to look at the ‘Scaling up methodology’ and apply it to ourselves and our practice so that the firm is a better place to work in.”

“The Scaling up methodology requires a clear definition of the firm’s development, its direction, its purpose and focuses values on the things you’ve got to nail to improve the performance of the firm.”

You can view the video recording of the presentation with Andrew Geddes by clicking here.

Keeping good talent: your practice’s greatest risk

Nearly 18 months ago, CommBank Accounting Market Pulse commented that, “The only limitation that accountants face is the worsening talent shortage.” It doesn’t appear that this situation has changed.

Accountants Daily also pointed out that 70% of employed accountants were looking around to see if there were better prospects elsewhere.

Tax Commissioner’s warning

Then the Tax Commissioner poured cold water on the Tax Compliance Industry and turned more than a few heads. His comments raised concerns amongst employed accountants about the type of work their firm is currently handling.

The Commissioner said: “You must understand that if your business model is high-volume, low margin, simple tax returns your business will not be viable in 3 – 5 years.”

A lot of employed accountants are currently working in practices which are just like that – grinding out tax compliance work and little else.

The Tax Commissioner pleaded with accountancy practice partners to “diversify to remain viable for the longer term and focus on becoming a brilliant and trusted advisor.”

Jordan Lowry, Managing Director of Blackstone Business Group and an expert in Human Resources/People Issues, indicated that:

• it’s an employee’s market at present;

• cost of living is high;

• security of employment is a high concern; and

• more accountancy firms are already moving into the ‘Business Advisory Area’.

Jordan Lowry:

• Pointed out that many employees now assess any offers they receive to join another firm.

• Talent attraction and retention is a major issue for accounting firms.

• Although salary is important to potential employees, many are also very interested in the culture of any new business they may be considering joining.

• Employers should instigate a quarterly 360 review to give feedback to the employed accountant and the team members and to listen to comments and questions from employees – this is very important!

Services you offer affect your talent

Peter Towers, Managing Director of ESS BIZTOOLS' observations:

Most accountants that I talk to list ‘Talent Attraction and Retention’ as the most important issue which they need to get on top of.

Why is this so?

The answer isn’t always simple. You have to ask yourself, “Is my firm offering services that are interesting and challenging? Do these services differentiate our firm from its competitors or does the product menu only include taxation based services?”

A real problem for thousands of accounting firms in Australia is that, in the eyes of an SME, we all look the same. Offering different services that incidentally will assist your SME clients and diversify your firm in the eyes of the SME marketplace. Furthermore, accountants who are looking for employment with firms which have interesting and challenging work will observe your differentiation.

We are indebted to the input that we have benefited from Andrew Geddes on this very important issue.

Andrew Geddes suggested that partners should take younger accountants with them when they make client visits. This way, the younger accountant can observe the reaction between the Partner and the Clients as they discuss a wide range of business issues. Andrew suggested that the younger accountant should be allocated the task of preparing the minutes of the meeting and the action plan.

This is very similar to what used to happen in banks. You would have an appointment with the Bank Manager and a younger bank employee would sit in on the meeting – not saying anything unless he or she was asked but listening to everything and writing down the key points so that he/she could prepare the minutes and the action plan after the meeting.

This was very important staff training for that younger bank employee. I believe it’s a great strategy that you could implement for your younger accountants to introduce them to the ‘real business world’ of the interaction between the Client and the Partner, on your Client’ s business issues – hopefully not just taxation – because taxation services alone will not ensure your Client’s survival!

As we contemplate ‘Setting Strategies for 2024’, hopefully you agree with our belief that the only way you are going to minimise problems with ‘Talent Attraction and Retention’ is to introduce a range of interesting and challenging work that will keep your employed accountants motivated and interested in offering services to SMEs.

ESS BIZTOOLS is launching an updated range of products in February 2024. Join us for our “Creating Strategies for Accountants/Bookkeepers series in February 2024”.

In the meantime, visit our website – www.essbiztools.com.au – if you want to find out more about the services that ESS BIZTOOLS offer to accountants/bookkeepers, to assist in the delivery of a wide range of ‘Business Improvement Services’ to SMEs.

If you have any questions, please contact us on 1800 232 088 or email , and we can arrange a complimentary initial consultation via Zoom, where we can explore the establishment of ‘Business Improvement Services’, to benefit your SME clients, your Talent and your Firm.

ESS BIZTOOLS Product Packages

Product packages to assist your firm to implement Business Advisory Services.

Starter Package

Monthly payment: $197 including GST

Discounted upfront payment (12-month subscription): $2,100 including GST

Click here to find out more and to subscribe.

Advanced Package

Monthly payment: $596 including GST

Discounted upfront payment (12-month subscription): $6,500 including GST

Click here to find out more and to subscribe.

Financial Forecasting Package

(includes PlanGuru Software Package and Predictive Accounting Software Training)

Monthly payment: $908 including GST

Discounted upfront payment (12-month subscription): $9,900 including GST

Click here to find out more and to subscribe.

Want to know more?

Visit www.essbiztools.com.au.

If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 1800 232 088 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.

We believe that this is the blueprint for the delivery of an enhanced range of services by Australian accounting firms to assist SME businesses to add value to their businesses and to assist accountants not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.

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