7 Accounting Firm Acquisitions in Nine Years w/ Cory Gayman, CPA

Podcast

Summary

On this episode of Growing Your Firm, host David Cristello welcomes Cory Gayman, CPA, the CEO/CFO/Founder of JCG Tax & Advisory Firm. Cory shares insights on establishing common ground with entrepreneurs, addressing the accounting talent shortage, improving accounting efficiencies, and navigating the world of virtual firms. Tune in for valuable tips from a firm owner in the trenches.

What you’ll learn

You will learn about the challenges and strategies of balancing pricing, demand for employees, and growth in a CPA firm, as well as the benefits and challenges of acquiring accounting firms as a retirement strategy.

Guest Bio

Cory is a seasoned entrepreneur and business leader with a wealth of experience in the accounting industry. 

With a career spanning over nine years, Cory has successfully grown his firm through a combination of organic growth and strategic acquisitions. His firm now boasts seven offices and a team of 45 employees, serving clients across multiple regions.

Cory’s approach to business is rooted in establishing common ground with fellow entrepreneurs and business owners. He aims to be a relatable coach, providing valuable insights to business owners who are scaling their businesses and in need of financial assistance. Cory’s philosophy revolves around creating a cohesive and efficient organizational structure that allows for seamless operations and client service.

One of Cory’s notable achievements is his adeptness at identifying and seizing opportunities for growth. Through strategic acquisitions, he has expanded his firm’s footprint and client base, while also modernizing the firm’s processes and services. His ability to navigate the complexities of mergers and integrations showcases his strategic vision and leadership skills.

In addition to his business acumen, Cory is known for his commitment to fostering a positive work culture and empowering his team members. 

By appointing leaders at each office location and implementing a collaborative approach to problem-solving, Cory ensures that every employee feels valued and has the opportunity to contribute to the firm’s success.

His dedication to driving efficiency through streamlined processes is evident in his approach to continuous improvement. He emphasizes the importance of scalability, clarity, and adaptability in all aspects of the firm’s operations. By regularly reviewing and refining processes, Cory ensures that the firm remains agile and responsive to changing market dynamics.

As a forward-thinking leader, Cory also understands the importance of embracing technology and innovation in the accounting industry. By leveraging digital tools and virtual solutions, Cory has positioned his firm for success in an increasingly remote and digital landscape. 

His commitment to staying ahead of industry trends and providing top-notch services to clients sets him apart as a visionary leader in the accounting field.

Detailed Synopsis

Balancing the need for quality employees with the increase in demand and prices in the accounting industry is a critical challenge faced by many firms, as highlighted in the podcast episode. 

Cory discussed how the demand for quality employees has surged, leading to higher prices and competition for talent. He mentioned that the quality of talent decreased for a period, with potential employees demanding significantly higher pay, up to 25% more than before.

To address this challenge, Cory emphasized the importance of finding a balance between pricing, employee quality, and client satisfaction. He mentioned the need to systematically raise prices on clients to accommodate the higher costs of hiring quality employees. 

However, he also highlighted the importance of not raising prices too quickly, as this could lead to client loss. Cory mentioned that they had to find a balance to ensure they could service their clients with the right employees while also bringing in new talent at a reasonable rate.

Moreover, Cory discussed the impact of the COVID-19 pandemic on the industry, noting that firms that did not adapt to hybrid or virtual work environments were struggling and potentially looking to exit the industry. He emphasized the importance of shifting towards remote work options to attract and retain quality employees in the current market.

Importance of Establishing Scalable and Efficient Processes in a Growing Firm

In the podcast episode, Cory emphasized the critical importance of establishing scalable and efficient processes in a growing firm. Here are key points highlighting the significance of this aspect:

1. Continuous Improvement : Cory stressed the need for ongoing process improvement. He mentioned that it is crucial to find processes that not only work but are also scalable and not confusing. This highlights the idea that processes should be constantly reviewed and adjusted to ensure they remain effective and efficient as the firm grows.
2. Seasonal Review : Cory mentioned that they have a seasonal approach to process review, with the fall being a good time to evaluate and tweak processes. This structured approach ensures that changes are made at appropriate times, avoiding disruptions during busy periods like tax season.
3. Employee Involvement : Cory encourages employee involvement in the process improvement. He empowers his employees to raise concerns, provide feedback, and suggest improvements. This collaborative approach ensures that the people directly involved in the processes have a voice in shaping them for better efficiency.
4. Leadership Involvement : While employees are encouraged to raise concerns and suggest improvements, Cory and his COO, Newman, play a crucial role in overseeing the process improvement efforts. They have regular meetings to discuss process changes and ensure that any modifications align with the firm’s goals and objectives.
5. Balancing Change : Cory also highlighted the importance of balancing change within the firm. Too much change can be overwhelming, especially in a multi-generational workforce. Therefore, a careful balance between maintaining stability and implementing necessary improvements is essential for sustained growth and efficiency.
6. Recruitment of a COO : Cory’s decision to hire a Chief Operating Officer (COO) was a strategic move to streamline operations and drive efficiency. This decision indicates the recognition of the need for strong leadership to oversee and optimize processes as the firm expands.

Regular reviews, employee involvement, strategic leadership, and a balanced approach to change are key elements in ensuring that processes evolve to support the firm’s growth and success.

Hiring a Chief Operating Officer (COO) for Firm Growth and Efficiency

Cory discussed the importance of hiring a Chief Operating Officer (COO) to help alleviate operational burdens and provide fresh perspectives for growth and efficiency in the firm. 

Here are some key points from the episode that highlight the benefits of bringing in a COO:

1. Operational Relief : Cory mentioned that hiring a COO allowed him to delegate day-to-day operational functions and focus on more strategic aspects of the business. This operational relief is crucial for business owners who are looking to scale their firms without getting bogged down in the minutiae of daily operations.
2. Fresh Perspectives : By bringing in a COO, Cory was able to gain a new generational perspective. The COO was ten years younger than Cory, providing a fresh outlook on the business and bringing in new ideas for growth and efficiency. This diversity in perspectives can lead to innovative solutions and strategies that may not have been considered otherwise.
3. Strategic Decision-Making : The COO played a key role in implementing processes that were scalable and not confusing. This strategic approach to decision-making ensures that the firm is constantly evolving and adapting to changing market conditions and internal needs. The COO’s involvement in setting up scalable processes can drive efficiency and effectiveness across the organization.
4. Collaborative Leadership : Cory and the COO maintained regular communication through weekly meetings to discuss updates, address issues, and align on strategic priorities. This collaborative leadership approach ensures that both leaders are on the same page and working towards common goals. It also allows for open communication and feedback, fostering a culture of continuous improvement within the firm.

The insights and expertise brought in by a COO can help streamline operations, optimize processes, and position the firm for long-term success in a competitive market.

Timestamps

[00:01:16] Where’s all the talent?

[00:06:01] Acquisition and future referrals.

[00:08:04] What makes a firm great?

[00:12:56] Talent shortage and recruitment challenges.

[00:14:29] Hybrid work situations.

[00:19:28] Minimum Price for Tax Returns.

[00:21:30] Hiring a Chief Operating Officer.

[00:25:21] Driving efficiency through process.

[00:29:19] Ways to connect with the guest.

[00:30:47] Scaling small businesses efficiently.