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What I wish I had known before buying an accounting firm
If you’ve read my previous articles on acquiring 3 accounting firms so far, you’ll know that it has been anything but a smooth ride. Some of the challenges could have never been anticipated, while others would likely have been seen with a more experienced eye.
Now that I’ve been through the gauntlet, I hope to share those insights with you.
1. Don’t assume things are being done correctly
On day 1, you’re in charge of all the people and all the work. You think you want to take it slow and let things continue operating as before, but this should only be the case if you can confirm things are working well.
In my case, several months in, a few things began to slowly blow up. The accounting was being done at a subpar level of accountancy and professionalism, and a few clients took their business elsewhere.
The initial days and weeks should be spent truly understanding who is doing what and how. Sometimes, this requires a deep dive and staff sitting down and walking through, while in other cases, it involves staff interviews and trusting your gut.
The latter was the case for my two last acquisitions. We got some excellent staff and processes that were absent with the first. But don’t guess this will happen without first wrapping your hands and eyes around the work.
2. Staffing: Bookkeepers vs Corporate Professionals
I spent 11 years of my career in the corporate accounting and FP&A world. Here, professionalism is high and the way my peers and I would approach work, authority, and responsibility was done at the highest levels of accountability.
I emphasize this because I assumed accounting professionals everywhere would have a similar approach toward their work.
Errrrnt.
In smaller workplaces and accounting offices, work is more informal and gossipy in many ways. Many folks want to come in, clock exactly 40 hours and go home. Professional development, training, certifications, and a desire to continuously improve isn’t common.
