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NextGen Magazine

 
 

What It Takes for CPAs to Adopt an Entrepreneurial Mindset

By:
Karen Sibayan
Published Date:
Sep 18, 2024

With the current talent shortage in the accounting sector, Forbes suggested that CPAs adopt a more entrepreneurial mindset to strengthen and develop their teams and enhance their client services.

In this vein, members of Forbes Finance Council, a professional organization for senior-level finance executives, made a list of 20 practical tips and suggestions to inspire CPAs to take command of their careers. Council members also gave some helpful tidbits to business leaders on how they can adapt their models to support the transition into entrepreneurship and help CPAs and leaders find that inclination and mindset in themselves.

The Council members' tips for fostering the entrepreneurial track generally fall into three different avenues: incentives, education and technology. Among those tips were the following:

Providing good benefits to CPA professionals can encourage them to think like entrepreneurs, some Council members advised. Work-life balance is a key element of this goal, as well as allowing CPAs free reign on the clients that they take on is another way to encourage this mindset.

Pankaj Vasani, group chief financial officer at Cube Highways InvIT, said that addressing the talent gap by using innovative recruitment and retention approaches while improving service delivery through technology and client-centered approaches allow firms to have sustained success.

Geanette Rodriguez-Ojeda of GRO Accounting and Tax suggested offering equity stakes or profit sharing to CPAs. This would allow them to act like business owners and motivate them to invest their time in the company's success while fostering a partnership culture, resulting in solid commitments and more high-value client services, she said.

Work-life balance is an important component as well. Adopting work-life integration and flexibility through remote work and outsourcing repetitive tasks helps teams get right to more strategic and business-like partnerships. Encouraging CPAs to engage in innovative projects also allows the company to explore new areas, said Oluwatoyin Aralepo, finance director at Mastercard Foundation.

Aside from remote work, Andre Pennignton of Universal Wealth suggested offering continuing education on emerging technologies and business strategies. “Leaders can adapt their business models by fostering a supportive culture, providing flexible work environments, and investing in professional development,” he said.

Flexible hours are also a good selling point. Jody Grunden of Summit Virtual CFO by Anders recommended giving teams autonomy over their time, income control by allowing them to create a book of business with the goal of earning the income they desire, and the ability to say no by letting employees take on as many clients as they would like rather than overworking them.

Taking a page out of financial advisory firms, Zach Brody, founding and managing partner at Lumiere Financial, suggested that CPA firms offer entrepreneurship continuing professional education (CPE) sessions. Adopting performance-based compensation models, similar to advisory firms, can reward employees for business development while helping build a book of business. 

Various Council members emphasized the merits of continuous learning as a key to developing the entrepreneurial skills of CPAs and addressing the talent crisis in the industry

Mark Kane, CEO of Sunwise Capital, encouraged CPAs to take entrepreneurship classes to foster innovation and continuous learning. “They need to act like business owners and be more proactive rather than reacting after the fact,” he said, adding CPAs should be viewed as “strategic advisors” who spot trends early to drive client success and firm growth. 

E. Martin Davidoff, partner-in-charge at Prager Metis CPAs, said that the problem is that junior professionals in public accounting firms do not usually get face-time with clients. By allowing junior accountants into meetings, they can develop their soft skills. Observing successful partners at work can also help young CPAs learn how to deal with clients independently. Talent mentorship is important and busy CPA partners need to allocate a lot of time to this endeavor.

Khurram Chohan, founder of Together CFO, said that CPA firms should create an innovative culture characterized by continuous learning. One way is for leaders to offer flexible work-from-home schedules, reduce repetitive tasks through technology and AI, and offer clear career paths.

Council members also suggested that leaders establish mentorship programs and innovation labs to build morale and stay on the cutting edge. These initiatives give CPAs the chance to experiment with new ideas while receiving expert guidance. In conjunction with flexible business models that promote work-life balance and career development, these initiatives will boost job satisfaction and service quality, said Gomathy Periathiruvadi, CFO at Alita Systems.

One path into a more efficient future is using technology to perform monotonous tasks. CPAs and other leaders need to identify trouble areas that are weighing down staff, including tedious duties. By bringing in technology such as artificial intelligence-powered tools to help with the monotony, Mike Whitmire, co-founder and CEO of FloQast, said that accountants can redirect their efforts to more crucial tasks to encourage talent retention. 

Omar Choucair, Trintech's CFO, recommended using the latest digital transformation software. When done correctly, state-of-the-art technologies can eliminate inefficient processes and allow CPAs to grow their careers by spending less time on spreadsheets and more time on tactical items.

Leveraging automation also improves efficiency and effectiveness, enhancing client services and overall productivity. said JD Morris, managing general partner at RHC 21.

Ultimately, to get CPAs to become more entrepreneurial, Nick Chandi, CEO at Forwardly suggested providing them with chances to lead projects and make decisions,   He admonished against viewing CPAs as "another cog in the machine." He said that doing so can lead to high rates of burnout. "If you give them the chance and support to grow in the company, you can keep them happy while innovating to offer better services to your clients," he added.