vertical selection for your accounting services

Aria Resort and CasinoLas Vegas, NV

D3 – Selecting Vertical Markets for a Digital Practice – A Panel DiscussionMonday June 9th 4:40 PM – 5:55 PM

Thomas R. Gawne, CPA

#PSTECH

American Institute of CPAs® #PSTECH

Thomas R. Gawne, CPADirector of Professional Services

• 28 years in the tax and accounting sector• 14 in public practice, 14 in technology

sector• Workshop and on-site leader for CPA.com• Key passion is to lead the profession in

leveraging emerging technologies


Thought Leader Panelists

Nicole M. Ksiazek, CPACloud Accounting Practice LeaderFesnak Outsourcing, LLC

Dixie McCurleyPartner, Trusted CFO Solutions


Vertical focus


Agenda

Vertical Selection

Right Tools in the Toolbox

Vertical Expansion

Putting it in Action


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.

http://en.wiktionary.org/wiki/Wikipedia

http://en.wiktionary.org/wiki/vertical#English

http://en.wiktionary.org/wiki/market#English

http://en.wiktionary.org/wiki/vertical_markets#English

http://en.wiktionary.org/wiki/vertical_markets#English

http://en.wiktionary.org/wiki/market

http://en.wiktionary.org/wiki/business

http://en.wiktionary.org/wiki/customer

http://en.wiktionary.org/wiki/specialized

http://en.wikipedia.org/wiki/Market

http://en.wikipedia.org/wiki/Vendor_(supply_chain)

http://en.wikipedia.org/wiki/Goods_(economics)

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Trade_(occupation)

http://en.wikipedia.org/wiki/Profession

http://en.wikipedia.org/wiki/Customer


Digital CPA

Client Accounting Services…

Virtual Controllership

Collaborative Advisory Services –

Virtual CFO

Write-Up

Business Process Outsourcing

Advisory

Transactional

Span a Service Spectrum

Specialize in Client Industry VerticalsHealthcareNot-For-Profit

TechnologyProfessional Services

Property ManagementGovernment

Contractors

RetailFranchises


Selection


It Starts with Why

Golden Circle:

“Start with Why”

Critical to Firm Success

Source: Simon Sinek

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

http://www.cpa.com/conference/index.html


Vertical Selection – The “Why” Fit

Passion, Mission – the “why”

What is your firm most passionate about?

Tie in to Firm or Personal “Mission”


Thought Leader Insights

What is your “why” in relationship to your vertical selection?

Thoughts and experiences on developing the “why”


Existing Expertise Fit

Is there already expertise in this vertical?

Do you have existing clients in this vertical?

Untapped expertise within your firm?


Market Assessment Fit

Too small to succeed well?

Too large to matter?

Marketplace penetration

Is their room for growth?

Can we make money at it?


Vertical Needs Assessment

What is the key information they need for success?

Develop “core” then expand down to key KPI’s



Did existing expertise play a role in your vertical selection for your firm? How?

What steps did you take to assess the market that your vertical resides in?

Speak to how you determined the needs of your vertical(s) initially? How has that changed over time?

How important are vertical KPI’s to the decision?


Vertical Selection – Culture Fit

Does the firm culture fit the vertical?


Getting Vertical through the Cloud

Business Intelligence Reporting

Real-Time Client

Collaboration

Standardized Workflows

Client Accounting Capabilities

driven through

cloud computing

• 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%

Most Popular Client Verticals for Outsourced Accounting Services



Speak to your process of selecting a vertical market

Looking back – what would you change?

What other factors should drive the decision vertical decision?

Questions from the audience


Tools


Tools

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


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

Industry Specific

Intacct

Sharefile, Box, etc.

CCH, Thomson, Etc.

As needed

Tools – Core Elements

Signature Functions Applications


Tools – Workflow Effects

Digital Core Transaction Capture

Information & Insight Delivered Prospectively

Intelligent, Timely Business Decisions Made


Tools - Collaboration

Video Conferencing – Skype, Zoom, etc.

Web Conferencing – WebEx, GoTo Meeting, etc.

Social Media – Linked In groups, Twitter feeds


Tools – Management Tracking

Workflow Management – XCM

Contact Management – CRM

Internal KPI trackers



What does your tool box look like?

Can you speak to the sequence of implementing key tools?



Expansion


Expansion – Within Existing Vertical

On going services

Additional Need

Identified

Services scope expanded


Expansion - like parallel verticals

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


Expansion – New Start Ups

Create new start-ups among different verticals

Template appropriate process steps



What has been your vertical expansion strategy?

What role does your staff play in your expansion strategy?

What comes first, second, etc.?



Concluding Thoughts

Selection key concepts

Tools of the vertical trade

Expansion past that first vertical

Make it happen!


Resources


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

“Making the “shared services” Vision a Reality!”• A case study whitepaper with Nicole M. Ksiazek, CPA, Senior

Manager, Cloud Accounting Practice Leader, Financial Management Outsourcing at Fesnak and Associates, LLP

“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

vertical selection for your accounting services

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