Launching an Accounting Firm While Battling Cancer w/Kelly Mann

Podcast

Summary

In this episode of Growing Your Firm, host David Cristello welcomes Kelly Mann, co-founder and CEO of AuditMiner. Kelly shares her journey of launching her own CPA firm, a decision that surprised her given her background in audit and the male-dominated landscape of firm ownership. 

She discusses the challenges of changing firm culture and her desire to build a business that aligns with her authentic self. The conversation delves into her experiences in the accounting profession, the shift to entrepreneurship, and her focus on 401k solutions. 

Tune in to explore Kelly’s insights on starting a firm, selling a firm, and the development of innovative software in the accounting space.

Guest Bio

Kelly Mann is a dynamic entrepreneur and a pioneering force in the accounting profession, known for her innovative approach to audit practices and her commitment to empowering others in the industry. 

As the co-founder and CEO of AuditMiner, Kelly has transformed the landscape of 401(k) audits, creating software that streamlines and standardizes the auditing process, ultimately saving professionals valuable time and resources.

Kelly’s journey into the world of accounting was not a straightforward path. Initially pursuing a degree in marine biology, she discovered her passion for accounting during a college course that revealed her aptitude for numbers and analytical thinking. 

This newfound interest led her to a successful career in public accounting, where she honed her skills in audit over a span of 12 years. Despite her accomplishments, Kelly often felt like an outsider in a male-dominated field, particularly when it came to entrepreneurship. 

However, her experience at the AICPA Leadership Academy in 2018 was a turning point. There, she found a community of like-minded individuals who challenged the status quo and encouraged her to embrace her unique strengths.

In 2018, fueled by a desire for autonomy and a vision for a better work-life balance, Kelly made the bold decision to leave her stable job and launch her own CPA firm. This leap of faith was not without its challenges; she started with limited resources and no client base, relying on her network and sheer determination to build her business from the ground up. 

Through relentless networking and a commitment to providing exceptional service, Kelly secured her first audit client within just a few months, marking the beginning of a remarkable entrepreneurial journey.

Kelly’s firm quickly gained traction, and by 2020, she was diagnosed with stage three breast cancer. Rather than allowing this life-altering diagnosis to derail her ambitions, Kelly demonstrated extraordinary resilience. She continued to manage her firm while simultaneously developing AuditMiner, a software solution designed to address the inefficiencies she had encountered in her auditing career. 

Under her leadership, AuditMiner achieved remarkable success, reaching $2 million in annual revenue within just two and a half years of its launch.

Throughout her career, Kelly has been a staunch advocate for women in accounting and entrepreneurship. She believes in the power of mentorship and community support, often sharing her experiences to inspire others to pursue their dreams, regardless of the obstacles they may face. 

Her philosophy centers around perseverance, authenticity, and the importance of building a supportive network. Kelly’s journey is a testament to the idea that success is not merely about financial gain but about creating a meaningful impact in the lives of others.

Today, Kelly continues to lead AuditMiner, focusing on innovation and growth while also mentoring aspiring entrepreneurs and accounting professionals. Her story serves as an inspiration to many, illustrating that with determination, resilience, and a commitment to one’s values, it is possible to overcome adversity and achieve extraordinary success.

Detailed Synopsis

Kelly Mann’s journey from public accountant to the founder of her own CPA firm is a compelling narrative that highlights the importance of finding a supportive community and nurturing self-belief, especially when navigating the challenges of a traditionally male-dominated field.

Initially, Kelly never envisioned herself as a firm owner. She noticed that most entrepreneurs in the accounting space, particularly those specializing in tax, were men. 

As a female auditor, she often felt out of place in this landscape. However, her perspective began to shift when she attended the AICPA Leadership Academy in late 2018. This experience was pivotal for Kelly, as it introduced her to a community of like-minded individuals who were also challenging the status quo. 

They shared her vision for a better work-life balance and a more equitable treatment of auditors. It was here that Kelly found her “people”—a supportive network that encouraged her to embrace her unique strengths rather than conform to traditional expectations.

This newfound confidence led Kelly to a significant epiphany: she realized that she could be a “bull” without being destructive and that she could create a firm that aligned with her values. The decision to quit her job and launch her own CPA firm was not just a career move; it was a declaration of her belief in herself and her vision. She recognized that it would be easier to build her own firm than to attempt to change the culture of the existing firm she was part of, which often resisted change.

Kelly’s approach to building her firm was grounded in authenticity. While many in the industry focused on being more delicate or sensitive, she chose to remain true to herself and build her universe around her strengths. This authenticity resonated with her clients and helped her establish a solid foundation for her business.

In the early stages of her firm, Kelly faced significant challenges, including financial uncertainty and the pressure of being the primary breadwinner for her family. With only $18,000 in savings and three young children, she had a limited runway to establish her client base. 

However, she leveraged her network, reaching out to former colleagues and industry contacts to build relationships and secure clients. This proactive approach was fueled by the encouragement she received from her supportive community, which reinforced her belief in her capabilities.

Kelly’s journey also underscores the importance of resilience and perseverance. After facing a life-altering diagnosis of stage three breast cancer in April 2020, she continued to push forward with her business and the development of AuditMiner, a software platform she co-founded. 

Despite the challenges of treatment and the pandemic, she maintained her focus on progress, taking things one step at a time. Her ability to adapt and keep moving forward, even in the face of adversity, is a testament to her strength and determination.

The Journey of Kelly Mann: From CPA to Entrepreneur and Beyond

In the podcast episode featuring Kelly Mann, co-founder and CEO of AuditMiner, we delve into her inspiring journey from being a traditional CPA to launching her own firm and eventually developing a successful software platform. Here are the key highlights of her journey:

The Decision to Start Her Own Firm

Kelly’s journey began in 2018 when she made the bold decision to quit her job and start her own CPA firm. Despite never envisioning herself as a firm owner—especially as a woman in a field dominated by male tax accountants—she felt compelled to create a space that aligned with her values and work style. 

After attending the AICPA Leadership Academy, she found a community that resonated with her desire for a better work-life balance and a more supportive culture for auditors. This experience led her to embrace her identity as a “bull” in the accounting world, ultimately deciding that it was easier to start fresh than to change the culture at her previous firm.

Building the Client Base

Upon launching her firm, Kelly faced the daunting challenge of building a client base from scratch. With only $18,000 in savings and a tight timeline of about two months to generate income, she relied heavily on her network. She engaged in coffee meetings with contacts, primarily financial advisors and third-party administrators, to discuss her specialization in 401k audits. Additionally, she sought contract work with small CPA firms, leveraging her extensive audit experience to secure engagements. This proactive approach allowed her to gradually build her client base, culminating in her first audit client in March 2019, which brought in $10,000 in revenue.

Overcoming Adversity

Kelly’s journey took a significant turn in April 2020 when she was diagnosed with stage three breast cancer. This diagnosis coincided with the onset of the COVID-19 pandemic, adding layers of complexity to her life as a business owner and mother of three young children. 

During this challenging time, she had to balance her health struggles with the demands of running her firm and developing AuditMiner, a software solution aimed at streamlining the audit process.

Despite the difficulties, Kelly demonstrated remarkable resilience. She learned to take things hour by hour, relying on her parents to help care for her children while she focused on her treatment. Even in the midst of her health challenges, she continued to make progress on her business, ultimately leading to the successful launch of AuditMiner.

The Growth of AuditMiner

Initially, Kelly had modest expectations for AuditMiner, anticipating it might generate around $30,000 in revenue. However, the software exceeded her expectations, achieving $1 million in revenue within its first year of launch. This rapid growth was attributed to its product-market fit, as it addressed a significant gap in the market for 401k audits by automating and standardizing data collection processes.

Kelly’s strategic approach to marketing played a crucial role in this success. While undergoing treatment, she built an email list of 1,100 CPAs and executed a cold email campaign that resulted in immediate sales upon the software’s release. The efficiency and accuracy that AuditMiner provided not only saved auditors time but also reduced the potential for human error, making it an attractive solution for firms.

Transitioning Ownership

In 2022, recognizing her desire to focus on AuditMiner, Kelly made the decision to sell her CPA firm. She found a promising candidate in Kristen Ryan, a woman she had connected with during a demo of AuditMiner. After initially offering Kristen a partnership, Kelly ultimately decided to sell the firm to her, allowing Kristen to take over operations while Kelly shifted her focus entirely to AuditMiner.

Building a Client Base Through Personal Connections

Kelly’s approach to networking was both proactive and personal. She recognized that the best way to establish her firm was to connect with individuals who could either become clients or refer her to potential clients.

Instead of opting for traditional lunch meetings, which she found time-consuming and less productive, Kelly focused on coffee meetings. This choice allowed her to maximize her time and resources while fostering meaningful conversations.

During these coffee meetings, Kelly reached out to her existing network, which included financial advisors and third-party administrators, as she aimed to specialize in 401k audits. 

By leveraging her past relationships, she was able to tap into a pool of potential clients who already knew her capabilities and expertise. This strategy not only helped her gain initial clients but also facilitated referrals, as those she met would introduce her to others in their networks.

The Power of Referrals

Kelly’s networking strategy was further enhanced by the power of referrals. She described a “Red Crumb” approach, where one connection led to another, creating a chain of introductions that expanded her reach. 

This method proved effective, as many of her clients came from recommendations made by those she had previously met. The trust established through personal connections played a crucial role in her ability to secure contracts and build her reputation in the industry.

Timestamps

[00:01:28] Launching a CPA firm.

[00:06:14] Building a client base.

[00:10:32] Cancer diagnosis during business growth.

[00:14:17] Perseverance during challenging times.

[00:16:20] Cancer journey and business growth.

[00:20:47] Selling a CPA firm.

[00:23:50] Product market fit during cancer.

[00:26:17] Time saved with AuditMiner.

[00:12:45] Maximizing returns for accounting firms.