Referrals: What CPAs Really Want

By Daryl Logullo | October 12, 2007 | Popularity: 7% | 266 views

I was interviewed for the August 2007 cover story for Research Magazine, entitled "What Do CPAs Really Want?" The story was written by Ellen Uzelac, an intelligent editor who mentioned that she writes on this subject annually.

The story delved into two issues, all hinging on the article title: What Do CPAs Really Want?… in order to bond with you and, (2) What Do CPAs Really Want?… in order to become better positioned in their clients eyes.

Both are distinctly separate issues. But at the same time, they are key components to building trust and turning on referral "flow." It still amazes me how many people–across differing professions–don't understand these simple concepts.

The worst, I would say, are financial advisors. No dig on them, mind you. But they're stuck in old-skool thinking when it comes to CPAs. Here's what I mean…

Let me talk about these two issues further.

I laid it on the line with Ms. Uzelac, and she quoted me…

“Every CPA wants this: They want to move away from tax counselor to comprehensive business advisor. They want to be re-branded. They want to be involved in all aspects of a client’s life. And herein lies the problem. They don’t know how to do that. Who does? The financial advisor.”

Amen to that brother (and sister).

So what's really going on here?

1. CPAs have the inner desire to bond with other professionals. They really do. Just ask them. The problem is their work-load (they say) often keeps them from doing so. (Okay. So whether you believe that (excuse) or not, is an entirely different subject. That's not the point here.)

True, a CPA may not always take the first step. They may not be the person hosting networking events for everyone–as they enjoy doing business in current client details of tax returns, IRS responses, ongoing audits, and other paper-related details. It's an introversion focus that shys away from hints of sales and development related activities. Plus, their sense of responsibility and obligation is very high.

You're not going to channel that thinking elsewhere. It's a losing proposition if you try. So you have to find reasons and ways to reach out, into the CPAs world. These need to have depth and substance, not be shallow gimmicks. 

Tip: Profile a current client's situation in writing, cloak the identity for condentiality reasons, and the reach out to a CPA. Ask for them to review the situation and comment at their conveience. This breaks down initial barriers to meeting, and also places you and the CPA on a level playing field with a common professional theme: a client.

2. CPAs are facing large business challenges. A lack of hiring talent, commoditization of accounting pricing and services, increased accounting and ethical standards in recent years – it all adds up.

Let me quote from an article by Gary Boomer, CPA, president of Boomer Consulting, in Manhattan, Kan. It appeared recently on  WebCPA:

A depleted industry is characterized by commoditization and increased internal and external regulation. Regulation continues to increase in the accounting profession (e.g., Sarbanes-Oxley, NASBA and new auditing standards). Industry transformers design ways with intellectual capital and unique processes to bypass the depleted industry, to differentiate themselves and create an emerging industry. From an emerging industry comes a growth industry, and from a growth industry comes a status industry.

What he's driving at is simple (but complex to the accountant):

  • Sustain the status quo to pay the bills; but on the other hand, create the firm of the "future."

Quite the quagmire for the CPA.

CPAs have to be visionaries and leaders in order to change. Especially the ones you are attempting to network from and earn referrals from. (Notice I underlined the word attempting. Wink)

Start understanding these forces. Embrace them into your own world. And figure out ways to relate to the CPA and his/her challenges.

Otherwise you will continue to be ignored. Promise.

 

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