Moving from Local to National, Designing Culture for Working Moms, Acquisition Offers w/Katie Lilly

Podcast

Summary

In this episode of the Growing Your Firm Podcast, host David Cristello welcomes back Katie Lilly of Lillyfield Accounting Solutions. Katie discusses the transformative changes her firm has undergone since her last appearance on the show, pre-COVID. 

She shares insights on her firm’s transition from serving primarily local clients to expanding regionally and nationally, and how they navigated the shift to remote work with ease, having been originally designed as a remote firm for stay-at-home moms since its inception in 2016. 

Katie also highlights the importance of maintaining a strong remote work culture, the logistics of moving her own presence without disrupting the firm, and the value of annual retreats for her team. Tune in to learn about Katie’s innovative approaches and the secrets behind her firm’s growth and adaptability.

What You’ll Learn

The listener will learn about the growth and transformation of Lillyfield Accounting Solutions, including their shift to national clients, focus on remote work culture, and success with QuickBooks Online.

Guest Bio

Katie Lilly is a distinguished figure in the accounting industry, known for her innovative approach to remote bookkeeping and her commitment to creating flexible work environments for women. 

As the founder and CEO of Lillyfield Accounting Solutions, Katie has built a firm that not only excels in providing top-notch bookkeeping services but also champions a progressive work culture that accommodates the unique needs of stay-at-home moms and part-time professionals.

Career and Achievements

Katie’s journey in the accounting world began with a vision to create a firm that was remote from its inception. In 2016, she founded Lillyfield Accounting Solutions with the primary goal of offering flexible work opportunities to stay-at-home moms. 

This forward-thinking approach proved to be prescient, as the firm was already well-equipped to handle the remote work transition necessitated by the COVID-19 pandemic.

Under Katie’s leadership, Lillyfield Accounting Solutions has grown significantly. The firm now boasts a team of ten employees spread across two states, managing over 60 sets of books exclusively through remote operations. This growth is a testament to Katie’s strategic vision and her ability to adapt and thrive in a rapidly changing business environment.

One of the key decisions that propelled the firm’s success was the transition to using QuickBooks Online exclusively. 

Recognizing the efficiencies and standardization this move would bring, Katie mandated that all clients switch from QuickBooks Desktop to the online platform. This decision not only streamlined operations but also ensured that her team could work more cohesively and efficiently.

Katie’s firm specializes in service-based businesses and nonprofits, deliberately avoiding construction and retail clients to focus on areas where they can deliver the most value. This niche focus has allowed Lillyfield Accounting Solutions to develop deep expertise and provide exceptional service to their clients.

Philosophy and Ethos

Katie’s ethos revolves around creating a supportive and flexible work environment that empowers her team. She has structured her firm to accommodate various work preferences, allowing employees to choose their hours and work part-time if needed. 

This flexibility has attracted a dedicated and talented team, many of whom are women balancing professional and personal responsibilities.

Katie’s commitment to her team’s well-being is evident in the firm’s culture and practices. She organizes annual beach retreats that focus on connection and reflection rather than just training. 

These retreats are designed to explore personal and company values, fostering a sense of unity and shared purpose among the team. The retreats also serve as a platform for discussing long-term goals and strategies, ensuring that everyone is aligned and motivated.

In addition to fostering a positive internal culture, Katie is also focused on the growth and development of her team members. She has implemented a comprehensive bookkeeping training program, allowing individuals without prior experience to join the firm and develop their skills. This commitment to training and development ensures that Lillyfield Accounting Solutions remains a place where employees can grow and thrive.

Katie’s innovative approach extends to her business strategy as well. She is exploring the idea of creating a “Lillyfield constellation of services,” where specialized bookkeeping firms operate under the Lillyfield umbrella. This model allows entrepreneurial team members to take on leadership roles and develop niche services, further expanding the firm’s reach and impact.

Credentials and Recognition

Katie Lilly’s credentials are not just limited to her role as a CEO. She has demonstrated exceptional leadership and strategic thinking, guiding her firm through significant growth and transformation. Her ability to maintain a high level of service while expanding her client base from local to regional and national levels speaks volumes about her expertise and dedication.

And her innovative practices and commitment to her team’s well-being have earned her recognition and respect within the industry. Her firm, Lillyfield Accounting Solutions, is a testament to what can be achieved when a leader is dedicated to both professional excellence and creating a supportive, flexible work environment.

Detailed Synopsis

Katie Lilly’s Firm: A Remote-First Vision from Inception

Katie Lilly founded Lillyfield Accounting Solutions in 2016 with a clear vision: to create a remote-first accounting firm catering primarily to stay-at-home moms. This innovative approach was ahead of its time and positioned the firm to navigate the challenges of the COVID-19 pandemic seamlessly.

A Vision for Flexibility and Inclusivity

From the outset, Katie designed her firm to operate remotely. This decision was driven by her desire to provide flexible work opportunities for women, particularly stay-at-home moms, who needed to balance professional responsibilities with family commitments. 

Employees could work from home and set their own hours, whether they wanted to work five hours a week or twenty.

“I created the firm for women who wanted to work the way a woman or mom has to work. I told them they could work whatever hours they want.” – Katie Lilly

Seamless Transition During COVID-19

When the COVID-19 pandemic forced many businesses to transition to remote work, Lillyfield Accounting Solutions was already operating this way. The firm did not experience the same level of disruption that many others faced. 

Katie mentioned that the switch to remote work during COVID was like “blinking an eye” for her team, as they were already accustomed to working from home.

“So when the switch came to COVID, we were like blink an eye. We just kept doing what we were doing.”

Growth and Expansion

Despite the challenges posed by the pandemic, Lillyfield Accounting Solutions continued to grow. The firm expanded from serving local clients to regional and national clients, thanks in part to strong word-of-mouth referrals and a robust social media presence. 

Katie’s firm now boasts ten employees across two states and manages over 60 sets of books, focusing primarily on service-based businesses and nonprofits.

“Now, there’s 10 of us in two different states. We’re over 60 sets of books because we do bookkeeping only. So we’re a remote bookkeeping firm, well over 65. 20% revenue growth every year, including COVID year. It’s been an amazing ride.”

A Culture of Connection and Innovation

Katie has fostered a strong sense of community and connection within her remote team. The firm uses tools like Microsoft Teams for daily communication and holds weekly accountability meetings to ensure everyone is aligned. 

Additionally, Lillyfield Accounting Solutions hosts an annual beach retreat to strengthen team bonds and reflect on the firm’s values and goals.

“We do the retreat, I try not to do a lot of training because we do that in our monthly meetings. I really want it to be about connection and reflection.” – Katie Lilly

Future Aspirations

Looking ahead, Katie envisions further growth and diversification for Lillyfield Accounting Solutions. She is open to exploring new niches, such as retail and construction, and is considering the idea of creating specialized branches under the Lillyfield brand. 

Katie’s ultimate goal is to build a legacy firm that continues to provide flexible, remote work opportunities and exceptional service to clients.

“I would love to see Lillyfield just have a legacy and keep going. And what would be ideal for me is we’re starting to hire younger people and train them really well.”

Firm Growth and Client Focus

Lillyfield Accounting Solutions, founded by Katie Lilly, has experienced significant growth since its inception in 2016. The firm now boasts a team of 10 employees spread across two states. 

This expansion is a testament to the firm’s robust business model and its ability to adapt to changing circumstances, such as the shift to remote work even before the COVID-19 pandemic.

Focus on Service-Based Businesses and Nonprofits

From the beginning, Lillyfield Accounting Solutions has specialized in providing bookkeeping services exclusively to service-based businesses and nonprofits. This niche focus has allowed the firm to develop deep expertise in these areas, ensuring high-quality service tailored to the specific needs of these clients. Katie Lilly mentioned that the firm does not currently handle construction or retail clients, although she is open to the possibility if the right expertise becomes available within the team.

Shift in Client Referrals

One of the most notable changes in the firm’s growth trajectory has been the shift in how new clients are referred to Lillyfield Accounting Solutions. In the early years, most referrals came from tax accountants. This was particularly true during the first four years of operation. 

However, by the fifth year, there was a noticeable shift: client referrals began to outpace those from tax accountants. This change indicates a high level of client satisfaction and trust, as existing clients began to recommend the firm’s services to others.

Regional and National Reach

Initially, the firm’s client base was primarily local, concentrated in Florida. Over time, however, the firm expanded its reach to regional and even national levels. This growth was fueled by word-of-mouth referrals, which extended beyond the local tax accountants to clients in other states. 

The firm now serves clients up and down the East Coast and even has a nonprofit client in Chicago. This broader reach has been supported by a strong social media presence and brand awareness efforts, rather than traditional paid advertising.

Organizational Structure

The firm’s growth has also been supported by a well-defined organizational structure. Katie Lilly has built a team that includes part-time and full-time employees, managers, and a Director of Accounting. This structure allows for efficient management and delegation of tasks, ensuring that the firm can handle its growing client base without compromising on service quality.

Maintaining a Strong Company Culture

Katie Lilly, founder of Lillyfield Accounting Solutions, places a significant emphasis on maintaining a strong company culture. She achieves this through a combination of regular meetings, annual retreats, and leveraging tools like Microsoft Teams to keep her team connected and engaged.

Regular Meetings

Katie ensures that her team stays aligned and connected through a structured meeting schedule. She holds weekly accountability meetings, which she refers to as “WAMs” (Weekly Accountability Meetings). 

These meetings are designed to address any issues and keep everyone on the same page. Katie uses a Trello board with the cover of “Make It Big” by Wham! as a fun backdrop to list all the issues they need to discuss. These meetings typically occur on Mondays and Tuesdays, allowing for a deep dive into various topics.

Additionally, the Director of Accounting meets weekly with the managers to troubleshoot and ensure smooth operations. The entire team also comes together for a monthly meeting, which can be attended in person or virtually. For those who attend in person, a free lunch is provided, fostering a sense of community and camaraderie.

Annual Retreats

One of the standout features of Lillyfield’s company culture is the annual beach retreat. These retreats are not just about fun and relaxation; they are also an opportunity for reflection and connection. During the most recent retreat, the theme was exploring personal and company core values. 

Employees were asked to identify their top five personal core values and then compare them with Lillyfield’s core values. This exercise helped to highlight the synergy between individual and company values, fostering a deeper connection among team members.

In the afternoon session of the retreat, the focus shifted to how these values could create value for clients and the firm. This naturally led to discussions about the company’s 10-year plan, ensuring that everyone is aligned with the long-term vision. 

The retreat also included fun activities like “Flawed Financials,” where employees highlight errors in a balance sheet, and “Bookkeeping Jeopardy,” which adds a competitive and engaging element to the event.

Leveraging Microsoft Teams

Katie also leverages technology to keep her team connected on a daily basis. Microsoft Teams is a crucial tool for maintaining communication and collaboration. 

During the recent beach retreat, Katie asked her team if they felt connected while working remotely. The feedback was positive, with many employees citing the effective use of Teams as a key factor in feeling connected and engaged.

Timestamps

[00:02:01] Remote bookkeeping firm growth

[00:07:29] Word of mouth referrals

[00:10:08] Beach retreat and connection

[00:11:22] Exploring Personal Core Values

[00:15:28] Employee revolt over firm sale

[00:19:54] Lilyfield constellation of services

[00:21:54] Share it with a fellow