I started my CPA firm in 1996. After eight years, I felt I had to either do something or close the doors because the practice was killing me. During tax season, I would work until 3 a.m. and be back in the office by 9 a.m. the next morning—seven days a week. I was putting out fires all the time. My wife was afraid I would work myself into an early grave.

Despite my long hours of hard work, we were struggling. I was not making any progress in billings, profitability or client growth. I was drawing a small salary, had debts and was just making the bills. My level of satisfaction was not there; I was burned out.

The staff had certain unspoken expectations about compensation and time off. Despite the lack of growth across the boards, they expected raises. Their attitude was, “I’ve been here another year so I should get a 5% pay increase.” With stagnant billings and collections, it was hard to justify. And I didn’t take the time to track what the staff were getting done. If an employee was nice and seemed to work hard, I would give them extra money, but I had no reasonable way of explaining how they were paid.

We expected the practice to get better even though we had no plan to make it better and just kept doing the same things over and over again. Whenever a problem arose that needed handling, we would react rather than think it through.

My wife wanted to get involved and help. I didn’t know how to effectively utilize her so I wasted a valuable resource.

I realized being a good CPA and a good business owner were not necessarily the same thing. I contacted Sterling to request a copy of their CPA practice management seminar on DVD.

My wife and I watched the DVD together and felt as if the speaker were talking directly to us. We also received a free consultation which zeroed in on the key issues in the practice, and their underlying causes. My wife and I decided the Sterling program was a worthwhile investment in ourselves and the future, so I signed up for their Executive Booster Program.

The Executive Booster Program consisted of practice management courses at Sterling’s offices and customized consulting. I completed my training line-up over two different trips and learned the principles of managing a business. My wife came with me on the first trip and took the management courses she felt she needed.

My consultant and I created a strategic plan tailored to my practice. It was a straightforward plan designed to implement the Sterling program and turn the practice around. I spoke to my consultant regularly over the phone and she helped me through every step of the plan.

I asked Sterling to send an “external” consultant to my practice for five days to help get my staff on board with the program. The external consultant trained them on the basics and helped on implementation; it was a very positive action. As the staff saw the results and personally benefited from the program, they came on board.

One key change in our practice was the implementation of a client progress board. The progress board lists each job and tracks it from cradle to grave. Every job is assigned to an employee and there are notes on any late jobs explaining why. All staff receive a fresh copy of the progress board every two days and we review it at staff meetings. It can be very embarrassing for the staff to have overdue jobs on the progress board.

We organized the practice and created an organizational hierarchy that didn’t previously exist. It put a lot of stability in the practice, streamlined our operations and raised efficiency. The implementation of a bonus system made the staff more productive and kept them interested.

I do a much better job of delegating. Everything used to come through me but I’ve given my staff the responsibility to do their jobs and they’ve run with it. The staff take the initiative to talk to clients and the clients appreciate that the staff are willing and able to help them.

During tax seasons, we have daily meetings to review which jobs need to get done and make sure everyone is in sync. The administrative people need to know what’s coming and what needs to go out that day. This daily coordination is vital to keep the work flowing smoothly.

We also adopted several promotional initiatives and steadily added new clients. We created a web site, we selectively advertise in local newspapers, confidently ask clients for referrals and keep in regular contact with clients by sending out quarterly newsletters.

Since becoming a Sterling client, my billings and collections have doubled and my profitability is light-years ahead of where it once was. I am making much more profit with zero debt and a surplus cash reserve. Since I know how to run a business, I help clients run theirs and this has strengthened our relationship with them. Our clients really value what we do.

Our practice continues to grow and as we’ve grown, our challenges have changed. The monthly calls with my Sterling consultant have really helped us focus on managing the practice by setting goals, measuring performance, planning ahead and keeping our staff focused, happy and productive. It is said that “Happiness is a journey, not a destination,” and the same can be said of managing a business. We’ll never run out of challenges and we’ll continue to utilize our relationship with Sterling to meet those challenges as they arise or to identify them beforehand and confront them head-on. I enjoy my life and work now that I manage the practice instead of it managing me. - Donald Franty, CPA