AI in Accounting, How to Offboard Clients, Optimizing Your Firm w/Billy Angelo

Podcast

Summary

In this episode, host David Cristello interviews Billy Angelo, the managing partner of Angelo and Associates, who brings over 20 years of experience in the accounting industry. Billy shares insights on steering small businesses, specifically private practice owners, towards financial clarity and success. 

They discuss topics such as off-boarding clients to focus on core strengths, tailored tax and financial solutions for enhanced profitability, and the importance of cash management during tax season. Tune in for a conversation filled with out-of-the-box thinking and valuable industry perspectives.

What you’ll learn

The listener will learn about offboarding clients, pricing, capacity, and AI in accounting firms.

Guest Bio

Billy Angelo is a seasoned professional in the accounting industry, known for his innovative approach to financial clarity and success for small businesses, specifically private practice owners. With over 20 years of experience in the field, Billy has established himself as a leading figure in championing out-of-the-box thinking to steer businesses towards profitability and growth.

Throughout his career, Billy has demonstrated a commitment to providing tailored tax and financial solutions that enhance the value and success of his clients. His ethos revolves around focusing on the work that adds the most value to clients, rather than just providing commoditized services. This philosophy led him to make strategic decisions, such as off-boarding over half of his 1040 clients to concentrate on more impactful engagements.

Billy’s approach to client relationships is marked by a dedication to fostering open communication and providing valuable insights. He encourages clients to reach out with questions and concerns, creating an environment of trust and collaboration. By offering unlimited support and advice to his clients, Billy ensures that they receive the guidance they need to make informed financial decisions.

In addition to his client-focused approach, Billy has also embraced the use of AI technology in his practice. By leveraging AI tools like ChatGPT and Claude, he has found creative ways to streamline processes, generate new ideas, and enhance decision-making. Billy’s willingness to embrace cutting-edge technology demonstrates his commitment to staying ahead of industry trends and providing innovative solutions to his clients.

Detailed Synopsis

• Strategic Off-boarding of 1040 Clients: In a recent podcast episode, Billy shared insights on his firm’s strategic decision to off-board over half of their 1040 clients. This move was significant as it involved letting go of a substantial amount of revenue. The rationale behind this decision was to focus on providing services that added the most value to their clients and that they were truly passionate about. By off-boarding these clients, they were able to concentrate on the services they excelled at and enjoyed, ultimately enhancing profitability and fostering growth for their firm.
• Enhancing Client Value through Off-boarding: Off-boarding these 1040 clients allowed Billy and his team to prioritize more meaningful engagements. By parting ways with clients who only engaged with them once a year for tax preparation, they redirected their efforts towards clients who required ongoing support and advisory services. This shift in focus enabled them to deliver tailored tax and financial solutions that significantly enhanced profitability and growth for their clients. By prioritizing relationships with clients who valued their services year-round, they were able to provide a higher level of service and value.
• Client-Centric Approach: The decision to off-board clients was made with careful consideration, driven by a desire to deepen relationships with clients who required more comprehensive support. By managing these clients throughout the year, Angelo and Associates were able to address issues proactively and ensure a smoother tax season process. This proactive client management approach allowed them to offer more personalized and valuable services, leading to increased client satisfaction and loyalty.
• Strategic Revenue Impact: While off-boarding a significant portion of their 1040 clients resulted in a short-term revenue loss, the long-term benefits were substantial. By focusing on higher-value engagements and services, the firm created a more sustainable and profitable business model. This strategic shift allowed them to optimize their resources and expertise, ultimately leading to a more efficient and effective operation.
• Positioning for Future Growth: By off-boarding clients that did not align with their core focus, Angelo and Associates positioned themselves for future growth and success. This strategic decision enabled them to streamline their services, enhance client relationships, and deliver more impactful solutions. By continuing to prioritize value-driven engagements, the firm is well-positioned to attract and retain clients who appreciate the specialized expertise and personalized attention they provide.
• AI Integration for Creative Solutions : Billy utilizes AI tools like ChatGPT, Claude, and Perplexity for creative brainstorming and idea generation within his firm. He views AI as a valuable resource that can provide innovative solutions and insights that complement his own ideas.
• Efficiency through AI: By leveraging AI, Billy prompts the tools with specific context about his firm, such as profiles of the firm, staff, and clients served. This allows him to seek ideas and suggestions on various topics, such as hiring interns, marketing strategies, or interview questions. AI assists Billy in brainstorming by offering a wide range of ideas and suggestions based on the context provided, providing unique perspectives and recommendations that enhance decision-making.
• Streamlining Operations with AI: He also uses AI to streamline tasks and alleviate repetitive work for his staff, allowing them to focus on strategic activities. By delegating certain tasks to AI, the team can increase efficiency and productivity within the firm.

Timestamps

[00:02:16] Tax season challenges.

[00:04:25] Letting go of clients.

[00:09:41] Offering Advisory Services to Businesses

[00:13:02] Using financial variances for insights.

[00:16:20] Pricing strategies for accounting services.

[00:20:12] Intuit’s strategy with small businesses.

[00:24:10] Resistance to scheduled meetings.

[00:26:16] Extensions and audit risks.

[00:30:24] AI technology in the industry.

[00:32:53] Using AI as a brainstorming partner.

[00:35:36] Interview questions for hiring.