632 How Every Accounting Firm Changes After 6 Employees [You must plan for this!]
Accounting Firm Coach: Office HoursShow Notes
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In this episode, I break down the three identities accounting firms can adopt once they grow beyond roughly six employees and approach $1 million in revenue: the one-face firm, the two-face firm, and the no-face firm. I explain who each model suits, how each one scales, and why choosing intentionally can prevent you from building a firm you no longer want to run. I also review an LOI offering 1.5 times revenue for a virtual bookkeeping practice, share five ways to use AI to classify QuickBooks Online transactions, explain how Claude can send emails through custom connections, and answer questions about CPA credentials, tax workflow training, cloud hosting, and building a consulting practice around IRS controversy expertise.
🔥 Here’s that Roast-My-Firm intake form: https://airtable.com/appZ7dtNz3oaTWWZT/shrybn5166E9t12ag📚 A curated list of the apps I actually use and recommend: https://www.jasononfirms.com/apps
💰 Today's Sponsors Cloud Accountant Staffing: https://portal.cloudaccountantstaffing.com/candidates Financial Cents: Book a demo https://hubs.li/Q03PYVrp0 and use code Jason10 to receive 10% off the Team or Scale annual plan for firms with 2+ users. Karbon: https://karbonhq.com/?utm_source=podcast&utm_campaign=jason-staats Soraban: https://www.soraban.com/ Verito: https://verito.com/jason?utm_campaign=42071442-Jason&utm_source=Podcast&utm_medium=Podcast&utm_content=show-notes
// Chapters: 00:00 - The Firm Identity Tipping Point 01:20 - Why Firms Hit the $1M Wall 02:46 - #1 The One-Face Firm 05:02 - Becoming the Industry Expert 06:24 - Scaling Beyond One-to-One Work 08:03 - Who the One-Face Model Fits 09:31 - #2 The Two-Face Firm 10:43 - The Traditional Partner Problem 13:28 - Who the Two-Face Model Fits 14:20 - #3 The No-Face Firm 15:20 - Building a Repeatable Machine 16:27 - The Outcome Must Be Consistent 17:01 - Finding the Golden Problem 19:00 - Who the No-Face Model Fits 20:08 - Choose Your Firm’s Identity 21:29 - 🏹 Firm Hunters 21:40 I- s 1.5x Revenue a Good Deal? 23:10 - Is a 30% Margin Too Low? 26:37 - What Makes This Acquisition Work? 29:09 - Accounting Firm Valuation Benchmarks 30:00 - Should the Owner Sell? 31:17 - ☎️ Accountant Support 31:32 - Five Ways AI Can Classify QBO Transactions 31:53 - #1 AI Browser Use 32:36 - #2 AI Computer Use 33:12 - #3 Build a Chrome Extension 33:46 - #4 Automate QBO Bank Rules 34:48 - #5 Use a Dedicated App 37:33 - Is the CPA Still Worth It? 38:54 - Can Claude Send Emails? 41:21 - Are Tax Workflow Programs Worth It? 42:51 - Complex Property Classifications 43:03 - How Much Is Claude Paying Me? 44:15 - Best Cloud Hosting Providers 45:38 - Building an IRS Controversy Firm 49:00 - Closing Thoughts
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More from Accounting Firm Coach: Office Hours
🚀 Get smarter faster by learning with other firm owners: https://www.rlz.io/ 📩 Want a simple way to keep up with accounting firms and AI? I break it down every week in my newsletter: https://www.jasononfirms.com/newsletter 📌 Check out the cool stuff our sponsors are doing here: https://accountingfirmcoach.com/sponsors/ Welcome to Accounting Firm Coach Office Hours presented by Canopy. I’m Jason Staats. Ready to get 1% better at running an accounting firm? In this episode, I break down the three biggest priorities accounting firm owners need to tackle before year-end, including tech transitions, hiring, client renewals, and getting ahead of January production. Then, in 🏹 Firm Hunters, we look at a $1.4 million accounting firm with an unbelievable 87% of revenue going to the owner. I also introduce a new segment called 👿 Mean Bag to tackle whether AI is about to get dramatically more expensive, rethink the all-in-one versus best-of-breed software debate in 🤓 Nerd Corner, and answer 📬 Mailbag questions about accounting ledgers, getting clients to sign proposals, AI agents, and keeping client data secure. // Chapters: 01:32 - Do This By November 1 11:06 - Do This By December 1 20:44 - Do This By January 1 22:49 - This $1.4M/yr Firm Is Running An 87% Margin!? 28:38 - Is AI About To Get Expensive? 34:03 - Is All-in-One A Mirage? 42:38 - Double vs New AI Ledgers 45:38 - Simplify That Proposal! 47:28 - Create An AI Agent User? 49:12 - Claude MAX Plan Made Secure? 52:07 - Lester Returns 📞 Leave me a voicemail at +1 (516) 980-4968! 📧 Email me! [email protected] 📌 Here’s that $1.4M/yr firm https://privatepracticetransitions.com/business-listing/1265-established-cas-practice-with-strong-growth/ 💰 Today's Sponsors Canopy: https://www.getcanopy.com/jason Gusto: https://gusto.com/ Kick: https://www.kick.co/ Stanford Tax: https://stanfordtax.com/ Realize: https://www.rlz.io/ Cloud Accountant Staffing: https://www.cloudaccountantstaffing.com/ 🗣️ Continue the discussion on social! X https://x.com/jasononfirms LinkedIn https://www.linkedin.com/in/jstaats/ YouTube https://www.youtube.com/@jasoncpa
🚀 Get smarter faster by learning with other firm owners: https://www.rlz.io/ 📩 Want a simple way to keep up with accounting firms and AI? I break it down every week in my newsletter: https://www.jasononfirms.com/newsletter 📌 Check out the cool stuff our sponsors are doing here: https://accountingfirmcoach.com/sponsors/ Welcome to Accounting Firm Coach Office Hours presented by Canopy. I’m Jason Staats. Ready to get 1% better at running an accounting firm? In this episode, I explore how to build a niche accounting firm by tapping into industry-specific communities and partnerships. In 🤓 Nerd Corner, I cover eight major tech updates from Canopy, Financial Cents, Digits, Karbon, Gusto, Double, Kik, and RightTool. Then, in the 📬 Mailbag, I tackle delegating more work to admins, construction accounting software, Microsoft Copilot, tax workflow tools, lead tracking, and building a remote accounting firm. // Chapters: 00:00 - These Industries Need YOU 15:14 - 8 Tech Updates 29:19 - Push This Work to Admins 33:44 - Construction Accounting Software? 36:09 - Microsoft AI Use-Cases 37:59 - Don’t Buy This Tax Workflow Software 42:54 - Lead Tracking App 44:53 - Transitioning A Firm To Remote Work 51:31 - We Love Them 📞 Leave me a voicemail at +1 (516) 980-4968! 📧 Email me! [email protected] 💰 Today's Sponsors Canopy: https://www.getcanopy.com/jason TaxBandits: https://www.taxbandits.com/ Stanford Tax: https://stanfordtax.com/ MakersHub: https://makershub.com/ Verito: https://verito.com/jason?utm_campaign=42071442-Jason&utm_source=Podcast&utm_medium=Podcast&utm_content=show-notes Realize: https://www.rlz.io/ 🗣️ Continue the discussion on social! X https://x.com/jasononfirms LinkedIn https://www.linkedin.com/in/jstaats/ YouTube https://www.youtube.com/@jasoncpa
🚀 Get smarter faster by learning with other firm owners: https://www.rlz.io/ 📩 Want a simple way to keep up with accounting firms and AI? I break it down every week in my newsletter: https://www.jasononfirms.com/newsletter 📌 Check out the cool stuff our sponsors are doing here: https://accountingfirmcoach.com/sponsors/ Welcome to Accounting Firm Coach Office Hours presented by Canopy. I’m Jason Staats. Ready to get 1% better at running an accounting firm? In this episode, I break down two surprisingly profitable accounting firms for sale, including one generating over $1.6 million with just two people, and explain why outsourcing and offshoring can create very different business models. In 💾 You Need This Tech, I share a $400 artificial skylight designed to bring natural-looking light into your office. Then, in 🤓 Nerd Corner, I challenge some of the guidance around AI and taxpayer data presented at an IRS National Tax Forum session. Finally, I answer 📬 Mailbag questions about Double as a practice management tool, seller financing when buying a firm, AI for nonprofit accounting, software security, Grok, and why heavily funded tax AI startups aren’t on my app recommendations list. 📌 The skylight https://www.amazon.com/PHILIPS-Skylight-Ceiling-NatureConnect-inches/dp/B0HDTPRNSD?sr=8-1 💲 The tax firm that’s for sale https://privatepracticetransitions.com/business-listing/1262-established-virtual-tax-practice/ 🧾 And the CAS firm that sold https://poegroupadvisors.com/practice/cp2024/ // Chapters: 00:00 - A 2-Person $1.6M Firm 11:32 - A 60% Margin CAS Firm 21:52 - You Need This Tech 26:05 - Bad AI Advice From The IRS 36:56 - Double As A PM? 40:04 - Up-Front Cash? 44:16 - AI For Fund Accounting 47:35 - How To Know if an App Is Secure? 49:21 - Firms Using Grok!? 52:53 - BlackOre Basis and Accrual 📞 Leave me a voicemail at +1 (516) 980-4968! 📧 Email me! [email protected] 💰 Today's Sponsors Canopy: https://www.getcanopy.com/jason Gusto: https://gusto.com/ Kick: https://www.kick.co/ Stanford Tax: https://stanfordtax.com/ MakersHub: https://makershub.com/ Verito: https://verito.com/jason?utm_campaign=42071442-Jason&utm_source=Podcast&utm_medium=Podcast&utm_content=show-notes 🗣️ Continue the discussion on social! X https://x.com/jasononfirms LinkedIn https://www.linkedin.com/in/jstaats/ YouTube https://www.youtube.com/@jasoncpa
🚀 Get smarter faster by learning with other firm owners: https://www.rlz.io/ 📩 Want a simple way to keep up with accounting firms and AI? I break it down every week in my newsletter: https://www.jasononfirms.com/newsletter 📌 Check out the cool stuff our sponsors are doing here: https://accountingfirmcoach.com/sponsors/ Welcome to Accounting Firm Coach Office Hours presented by Canopy. I’m Jason Staats. Ready to get 1% better at running an accounting firm? In this episode, I break down a new AI accounting study suggesting that leading models can outperform human accountants, and explain what that actually means for our firms. I share why public booking links are a bad idea, explore Claude’s faster AI models and new ChatGPT features, and explain why AI won’t fix bad business decisions. Then I highlight accountants available for hire and answer questions about selling a firm to private equity, why I dropped Xero from my recommendations, and whether standalone receipt management software still makes sense. 📌 Here’s that AI vs accountants study https://www.mercor.com/blog/human-baselines-for-benchmarks-ai-now-outperforms-junior-accountants/ // Chapters: 00:00 - The End Is Near 13:45 - Bad Booking Links 17:35 - This AI Model is FAST 24:20 - Hormozi Pops The Balloon 26:20 - ChatGPT Updates 31:45 - Accountants For Hire 34:25 - Sell His Firm to PE? 42:45 - I Dropped Xero 47:55 - New Receipt Tech? 📞 Leave me a voicemail at +1 (516) 980-4968! 📧 Email me! [email protected] 💰 Today's Sponsors Canopy: https://www.getcanopy.com/jason Gusto: https://gusto.com/ Kick: https://www.kick.co/ Stanford Tax: https://stanfordtax.com/ MakersHub: https://makershub.com/ Verito: https://verito.com/jason?utm_campaign=42071442-Jason&utm_source=Podcast&utm_medium=Podcast&utm_content=show-notes 🗣️ Continue the discussion on social! X https://x.com/jasononfirms LinkedIn https://www.linkedin.com/in/jstaats/ YouTube https://www.youtube.com/@jasoncpa
🚀 Get smarter faster by learning with other firm owners: https://www.rlz.io/ 📩 Want a simple way to keep up with accounting firms and AI? I break it down every week in my newsletter: https://www.jasononfirms.com/newsletter 📌 Check out the cool stuff our sponsors are doing here: https://accountingfirmcoach.com/sponsors/ Welcome to Accounting Firm Coach Office Hours presented by Canopy. I’m Jason Staats. Ready to get 1% better at running an accounting firm? In this episode, I break down whether you can build a bookkeeping firm without QuickBooks or Xero, and why specializing around a painful industry-specific accounting system may be a much bigger opportunity than simply choosing a newer ledger. I also look at Meta’s upcoming VR glasses, debate separating technical production from client relationship management, dissect a supposedly self-sufficient $1.2 million accounting firm for sale, empty out September’s Swear Jar, and answer Mailbag questions about sponsorships, advisory positioning, buying versus building a firm, AI-powered email management, and tax research tools. 📌 Here’s that firm we talked about https://poegroupadvisors.com/practice/va2036/ // Chapters: 01:54 - Building a Bookkeeping Firm Without QuickBooks or Xero 11:20 - The Industry Ledger Opportunity 17:05 - Meta VR Glasses: Goodbye, Monitors? 23:25 - Technical Hire or Relationship Manager? 26:49 - Planning for When Someone Leaves 31:58 - A CPA Firm Run in 30 Owner Hours a Year 33:46 - What You're Really Buying 38:05 - The September Swear Jar 42:41 - How Sponsors Work at Accounting Firm Coach 45:01 - What's Wrong With the Word "Advisor" 48:07 - Buy a Firm or Grow Organically? 50:55 - Admin vs AI for Email Management 57:00 - CoCounsel vs. Claude, ChatGPT or Blue J 📞 Leave me a voicemail at +1 (516) 980-4968! 📧 Email me! [email protected] 💰 Today's Sponsors Canopy: https://www.getcanopy.com/jason Gusto: https://gusto.com/ Kick: https://www.kick.co/ Stanford Tax: https://stanfordtax.com/ MakersHub: https://makershub.com/ Verito: https://verito.com/jason?utm_campaign=42071442-Jason&utm_source=Podcast&utm_medium=Podcast&utm_content=show-notes 🗣️ Continue the discussion on social! X https://x.com/jasononfirms LinkedIn https://www.linkedin.com/in/jstaats/ YouTube https://www.youtube.com/@jasoncpa