The hardest part of modernizing your firm isn't the tech

You run a multi-generational firm with deep roots in your community. How did you identify which areas you wanted to modernize while still keeping what was working well?

Identifying what needed to change was not difficult—the challenge was letting go of familiar processes and embracing new ones. Our biggest pain point was workflow. We managed incoming work with physical folders stored in boxes, organized alphabetically with paint sticks separating sections and dates written on each folder to track when it arrived. 

Work was manually pulled based on those dates, and then we relied on status tags within our tax software to track progress. While the system worked, it was inefficient. There is something reassuring about physically handling a client folder, but we recognized that modernizing our workflow would allow us to serve clients more effectively and efficiently.

Instead of trying to figure everything out alone, you started talking with other accountants and researching online content for firms. What specific questions and topics were you focusing on, and how did you use that new information to make changes in your firm?

I focused on understanding other firms' technology stacks, the number and types of tax returns they handled and their staffing structures. My primary area of research was workflow and practice management software, particularly how those systems would integrate with our existing software and processes. I also made a point of asking what had not worked for them and what challenges they were still facing. Learning from both their successes and mistakes helped us make more informed decisions and avoid common pitfalls as we modernized our firm.

You work in a smaller community, where pricing increases and client offboarding can feel personal. How do you make those decisions and then navigate those tough conversations? Any advice for other firm owners who feel guilty about raising prices with long-term clients?

This is still one of the most challenging areas for us, and it is something we continue to work on. When appropriate, we have encouraged clients who do not require our level of service to utilize free tax clinics or lower-cost alternatives. While some clients chose to leave after pricing adjustments, the number was smaller than we expected. 

We are also refining what we consider our ideal or 'A' client. Some of the qualities we value most are strong communication, respect and a willingness to learn, adapt and grow. We want to provide meaningful value to our clients’ businesses and lives. Ultimately, the conversation comes down to value. If clients recognize and appreciate the value we provide, they will stay. If not, it may be the right time for both parties to move on.

What operational change has delivered the biggest return for your firm so far?

Implementing practice management software has had the biggest impact on our firm. It serves as the foundation for our workflow, improves visibility across projects, and helps keep our team organized and accountable. It has become the building block for many of the other improvements we have made.

Many firm owners are trying to figure out where AI fits into their practice. Which use cases or workflow improvements do you believe are most worth exploring right now?

I am particularly interested in using AI to help manage firm capacity and workflow. Ideally, AI could monitor workload, identify bottlenecks and help optimize scheduling by filling available time on my calendar. I also see significant potential in document collection and organization. We spend a tremendous amount of time gathering information from clients and AI-powered tools could streamline that process, reduce administrative work and improve the client experience.

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