Are you tired of hearing about the “talent drought” in the accounting industry yet? I know I am. Are accountants retiring at a faster rate than before? Are there fewer young people graduating with accounting degrees? Yes, and yes.

Is this happening in nearly every other industry in the US? Also, yes.

Does this mean you are doomed to recruiting headaches and staff retention issues?

Nope! Absolutely not.

Is your group/mastermind/business coach filling you with wrong information?

Everyone has an opinion about why people no longer want to be accountants. And those same people have opinions about how to fix it.

They tell us to develop a Mission, a Vision, and a Plan.

To Find your Why.

Of course, the people saying this also want to sell you something. Namely, coaching services or membership into their mastermind program.

Call it your Why. Call it MVP. Call it whatever you want, if your mastermind group or business coach is telling you to find it or create it but NOT telling you how to fund it, they are selling you a pipe dream.

This is how you resolve the talent drought

People don’t want to work for a firm. They don’t want to work for a business. And – sorry – they don’t really care that much about your MVP or your “Why.”

They also don’t work only for the salary. Sure, they want a great paycheck, but if they’re miserable, they will never stay.

People want to be part of a culture. And culture comes with a price tag.

You must have a plan to fund a culture top-notch employees want to work in. Otherwise, your firm is going to be just as susceptible to the talent drought as the tax sweatshop down the street.

What you should be funding

True, salary is important, but that is only one very small part of the culture equation. Here’s what your coach or mastermind group should be teaching you:

• How to design your pricing with your company culture in mind. If you don’t nail this, you’re setting yourself up to lie to your employees and prospects. Unintentionally, of course.
• How to provide your staff with annual salary increases of 10%.
• How to offer 8 weeks of paid vacation time to employees, every year.
• How to have “summer hours” all year round.
• How to create a plan to give to charity. Not just the ones you support, but the ones that matter to your team.
• How to pay for FUN quarterly staff events.
• How to gift services (house cleaning, pet sitting, lawncare, etc.) to employees experiencing a hardship.
• How to fund the expansion of your business, be it technology upgrades, new hires to maintain a healthy work/life balance for your team, or something else.
• How to have a FAMILY-FIRST environment…and really mean it.

Solving your talent shortage, once and for all

We teach our Profit First Professionals members how to fund all of the above, and more. This “how to” is included in all three of our membership levels.

Interested? Then click here to apply now.

Once you have dialed this in, you will never have a hard time recruiting or retaining top-notch talent again.

Unless you’re a jerk…and that’s not something we can help you with.

You may have already heard by now, but we’re thrilled to announce that Relay is an official banking platform for Profit First Professionals. Many of our members already know and love Relay. But in case you don’t know them, Relay is a business banking and money management platform that is thoughtfully designed to help you and your clients put Profit First into action.

Why we’re partnering with Relay

We know how challenging it is for PFPs to find a banking solution that works both for them and their clients. It takes convincing, negotiating, and adapting to do Profit First banking. This costs time and forces you and your clients to make difficult tradeoffs. We’re putting a stop to that. We’ve been on the hunt for solutions that truly embrace the Profit First method—not the other way around—so you can focus your time on your clients’ success. We also wanted a partner that is as invested in both the Profit First method and the success of our PFP family as we are. Finding the right partner has taken several years. But it was worth it. We’ve found that partner in Relay.

Building better business banking

Relay knows accounting, bookkeeping and client advisory. The company was founded in 2018 by co-founders Yoseph West and Paul Klicnik, who have a long track record of working in payments (previously Wave and Hubdoc), with small businesses, and with small business advisors. But there’s an even deeper alignment between Profit First and Relay: a shared belief that business advisors—accountants, bookkeepers and coaches—play a critical role in the lives of business owners. At Relay, this belief is reflected in their banking platform, which is built to meet the needs of advisors as much as business owners. It can be seen in their content, through series like Gearing Up, aimed at uncovering the tools and strategies that help accountants and bookkeepers thrive. And of course, it’s something that we believe here at Profit First Professionals. Because of these shared communities and commitment to business owners, we’re so excited to come together to make it easier for businesses to be profitable. We know the impact that Profit First has in building permanently profitable businesses, but we often hear from business owners that they don’t have time to go to the bank and set it up. With Relay, not only does their product truly enable Profit First banking, but it can be set up for free in just 10 minutes. With this partnership, Relay has built dedicated Profit First features, such as auto-transfer rules, to make implementing the system easier than ever before.

The gold standard for Profit First banking

Here’s why we’re making Relay an official banking partner of Profit First and giving them the Profit First Professionals stamp of approval:

• • Sign-up online, from the comfort of your own home, in just 10 minutes.
  • Forget about fees. You and your clients can bank with Relay with no monthly fees, no minimum balance requirements, and no overdraft fees.
  • Open up to 20 individual business checking accounts (i.e., real accounts — not just virtual envelopes) per business entity. And each account can have its own unique nickname, like “Profit – 5%”.
  • Allocate your money by your Profit First percentages. Transfer money from your Income account to your other accounts all at once and have the math done for you.
  • Create automatic transfer rules based on account balances, so your Profit First transfers will get done no matter what.

Reliable bank feeds that don’t break, skip or duplicate. Relay integrates directly with Quickbooks Online and Xero so you can reconcile accounts faster.

• Streamline accounts payable with Relay Pro to automate bill approval rules for your team and unlock faster, same-day ACH and free wires.
• Get secure, role-based access to your client’s Relay account to review expenses, strategize, and keep you accountable.
• A partner portal to manage all of your clients who bank with Relay, so you can advise them and keep them accountable from one login.
• Get hands-on support from the Relay team that’s here to help you every step of the way.

 

A Profit First Certified banking partner

Relay is building a banking platform that gives you total clarity and control over your cash flow because they know how critical it is to entrepreneurial success. Most of all, Relay believes in the impact that our two matching tools—Profit First and Relay—can create for business owners. The team gets it. As part of their commitment to Profit First, Relay has become a Profit First Certified firm, with members of their team—Deanna Zubrickas and Olivia Cummings—completing the PFP training. Having invested the time in becoming PFPs, they know deeply the pain points that PFPs face and are committed to building features that are a perfect fit for your practice.

Tailored onboarding for current and aspiring PFPs

Profit First Professionals new to Relay can get a personalized demo, including how to get the most out of Relay’s newly-launched auto-transfer rules. You can book a 1:1 onboarding session with Relay’s Certified Profit First Professional Deanna here. In it, you’ll get a personalized session where you’ll learn:

• How to get started with Relay
• How to set up your Profit First accounts
• How to set up automatic transfer rules
• Tips for moving clients to Relay

Helping businesses become permanently profitable

We’re excited to join forces with Relay to provide Profit First Professionals with the tools they need to gain total cash flow clarity and help their clients build successful, profitable and long-lasting businesses.

Sign up for Relay

You already provide advisory services to your clients. Cash flow management and forecasting are second nature to you. And, on top of that, you’ve read Profit First.

So, why should you become a Certified Profit First Professional?

Lessons from the pharmaceutical industry

Tylenol. Benadryl. Claritin. These are well-known brand name drugs. So well-known, in fact, that you probably refer to them by their brand names even if you take their generic equivalents: acetaminophen, diphenhydramine, and loratadine.

In pharmaceuticals, the brand name is the go-to, gold standard. The original. The safe, tested, and proven choice. Once the company that owns the brand name loses its patent, other companies are free to create generic equivalents based on the information available about the core components of the medication.

In other words, they are free to copycat the original.

Now, I won’t get into the efficacy of generic drugs vs. their brand-name predecessors. Plenty of people claim the generic works just as well as the brand name, and the FDA requires this to be true, to an extent. But there are certain, proprietary components in most brand-name medications that aren’t always present in the generic version. The “secret sauce,” if you will. And for some patients, that “secret sauce” makes all the difference.

Profit First Professionals Certification is the Secret Sauce

As a member of Profit First Professionals, you will learn much more than you can learn from simply reading Profit First. Our certification is the global standard for safety and growth. Business owners look for credentialed Certified Profit First Professionals badges to be sure they are working with a qualified “prescriber” of the Profit First methodology. That is why our badges include a “click to verify” tagline – it’s like the state board certification you see on your doctor’s office wall.

When it comes to finances, business owners do not want to work with an accountant, bookkeeper, or coach who provides Profit First services without certification. Why? Because – unlike with generic pharmaceuticals – there are no testing standards or regulations for Profit First services outside of our membership and certification process.

Become the Prescription-Strength Gold Standard

Can you use the Profit First methodology with your clients without being a Profit First Professional? Sure…in the same way a pharmacist can recommend an over-the-counter medication for a minor illness. But if you want clients and prospects to know that you are authorized to provide prescription-strength cash management and profitability consulting, that you have access to the “secret sauce” only our brand provides, that are you are part of the gold standard, then apply today to become a member.

“Is cash king?” my friend asked me.

With all the confidence in the world, I said, “Duh! Of course it is!”

But then I started thinking about it. And I wondered… is cash really king?

As you read this, you’re probably thinking, “Yes, Ron! Cash is king! It’s the blood that flows through the veins of a company.” And you might be wondering if I’ve taken a knock on the head. After all, isn’t Profit First all about cash?

When your business is in a cash crunch, the “obvious” solution is for you to pull up your bootstraps, buckle that sales helmet chinstrap, and sell, Sell, SELL. It works; you successfully bring in the cash and go from cash crunch to cash flush. Boom! Nice job.

But wait a second. What happens with that new cash becomes your new problem. And you know what that is because it’s happened before: You spend the money, have little idea where it all went, and wonder why you still can’t pay yourself enough and why your business isn’t profitable.

And the cycle repeats.

Business owners make the same cash-based mistakes over and over because they don’t correct the behaviors that cause their cash flow problems. But there’s an easy way to correct those behaviors: implement a system that works with the behaviors instead of vowing that this time things will be different.

For many businesses, more cash isn’t the answer. A cash flow system to manage their cash is. A solid cash flow system will put guard rails in place to curb overspending, prevent wasted spending, and give you measurements to determine the ROI of cash you do spend.

A cash flow system will make sure you stop financially neglecting yourself and your family.

Without a solid cash flow system, you will continue to make the same cash-based mistakes you’ve always made. Not having cash is a problem, but it’s a problem that’s easily solved with sales and innovation. Implementing a cash flow system takes a bit more work, but a Profit First Professional will make the transition as painless as possible.

You have systems for hiring, marketing, fulfillment, and inventory, but you probably don’t have a system for cash flow management. In fact, a cash flow system is the number 1 neglected system in businesses. Do you remember the relief you felt when you got your hiring, marketing, and fulfillment systems in place? Now multiply that by the frustration your cash position causes, and you’ll begin to understand the relief that having a cash flow system brings.

If your business truly needs more cash, by all means, bring it in. But make sure you have a system in place to manage the cash so you don’t find yourself in the same boat again and again.

I’ll ask you again, “Is cash king?” No, a cash flow system is king. The cash is the queen. (And you can always get another queen. Giggle, giggle, giggle)

clean (someone/something) up
verb
to make a person or place clean and tidy

Growing up in the 70’s and 80’s was a ton of fun. We played outside every day, and we made a mess!!!

I can’t recall a day when my mother did not tell me to “clean up that mess!” Yes, with an exclamation mark. Usually said with frustration. Sometimes said with anger. To this day I cringe when I hear the words “clean up.”

I didn’t realize that while I was having fun, my mother was working hard.

She was an office manager for a small manufacturing firm. She went to work early and was home by the time school finished. I loved that my mother was home for my brother Justin and me.

At the time, I did not appreciate how hard she was working to keep the house clean, to keep food on the table, and to have dinner ready for my father. What kid does?

My mom didn’t like to clean. She did not get joy out of vacuuming, dusting, or folding clothes. But she did it. She did her best, and she did it every day.

I didn’t understand that when my brother and I tracked mud into the house, spilled drinks, left food out, didn’t wash our dirty plates, left toys and clothes everywhere, etc., that it was a mess my mom was always battling. How frustrating for her!

You’re insulting your prospects.

To this day when I hear a professional say, “We need to clean up your books,” I cringe.

As accounting professionals, our professional opinion is that many (most? all?) of the books we take over need to be “cleaned up.” Many times, we take over bookkeeping from a business where the owner did it themselves.

What we fail to understand is how hard that person worked to get their books into the shape they’re in when we see them for the first time. How hard they worked to get them to the point of running a business and paying taxes.

When the first thing you tell a prospect is that you’ll start by “cleaning up the books,” you are INSULTING them. You’re insulting their hard work. You’re insulting their lack of bookkeeping knowledge. You’re insulting their business.

WOW!

Ever wonder why a meeting seemed to go well but you still did not get the opportunity to work with the prospect? Maybe you insulted them – or their spouse or another family member – without realizing it.

You’re insulting your profession.

Now, think about what you’re doing to the profession when you take over the books from a peer and say, “We need to clean up your books.”

You are insulting the previous professional.

Ever wondered why bookkeepers don’t get the respect they deserve? Business 101 is “do not insult the previous provider.” But our profession does it every day.

No wonder business owners don’t what to pay higher prices! Why would they when every time they switch providers they are told that the previous professional made a mess…and now they have to pay a lot of money to have it “cleaned up.”

mess /mes/
noun
1. a dirty or untidy state of things or of a place:
2. a situation or state of affairs that is confused or full of difficulties:” the economy is still in a terrible mess”

Don’t call it a cleanup!

The remedy is simple: Stop calling it a cleanup!

Choose a positive descriptive word instead. I like renovation.

ren·o·vate (rĕn′ə-vāt′)
verb
tr.v. ren·o·vat·ed, ren·o·vat·ing, ren·o·vates
1. To return to a condition of newness, as by repairing or remodeling.
2. To impart new vigor to; revive.

Whatever word you choose, take a novel approach and complement the demanding work that has been done…even if it is not up to your standards. Which are largely personal vs. technical, by the way.

Stop beating up your predecessor when you evaluate a prospect’s books. All you are doing when you tell the customer they need their books cleaned up is that the previous bookkeeper did a bad job! That the prospect themselves, who selected that bookkeeper, did a bad job. That the owner should have known better, and that they “let” the books get this way.

How deflating. You can see how the prospect might think, “Am I making the right decision to move to another provider? I know what I have now, but what assurances do I have that this professional is any better than what I currently have?”

The next time you speak to a prospect, try saying, “I have reviewed your books, and they have done a great job getting you to where you are. However, my suggestion is that we renovate them and implement a slightly different structure. One that not only supports you where you are today but also has the flexibility to scale as we work together.”

By simply using a different word to express how you’re going to help the prospect, you are providing a much better EXPERIENCE. That is how you unseat the incumbent.

Regardless of what word you use: renovate, remodel, optimize, etc. just remember this: “cleanup” is now a dirty word in your firm’s vocabulary.

Ron Saharyan
Co-Founder of Profit First Professionals