Firm Management
The Emperor of Enlightenment
A Productivity in Practice Feature
Apr. 16, 2010
From the April/May 2010 Issue
To say that accounting professionals have seen some changes over the past
few decades is, quite obviously, a major understatement. As with other professions,
the continuing development of technology has had a dramatic impact, changing
virtually every aspect of how accountants practice, from client work and communications
to practice management and internal workflow processes.
These advancements in technology, along with the changing accountant-client
relationship, have also led many firms to change the services they provide.
That has been the strategy of Brotemarkle, Davis and Company, LLP (BDCo; www.bdcocpa.com).
Located amidst the vineyards of the Napa Valley, the St. Helena, California,
accounting consultancy has evolved significantly since its founding in 1979.
By 1995, BDCo had grown into a successful, yet generally traditional firm.
That’s when Craig Underhill joined the practice, with a goal of helping
the principals transform it into a more productive practice. The CPA and CSPM
(Certified in Strategic Performance Management) wasn’t looking to change
the practice just for the sake of change. He saw several trends emerging in
the profession, including the commoditization of many services, and he knew
that for a firm to continue to succeed, it needed to work smarter and focus
more on its client relationships … or as he prefers to say, its customer
relationships.
“I think many firms focus too much on the end product, whether producing
financials, a tax return or other engagements,” Craig notes. “Almost
any accounting practice can deliver those products, and business owners know
this. The key is developing loyalty, and that comes through building strong
relationships with your customers.”
In order to achieve these higher levels of customer service, the firm also
had to work differently internally. So instead of a “my client, your client”
mentality between partners and staff, the firm created a team-based model, where
everyone works toward similar goals and shares in customer successes.
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Strategic use of technology has also helped BDCo work toward its vision. The
firm went paperless nearly 10 years ago, uses multi-screen monitors on all of
its workstations, and offers remote access capabilities for its 15 team members.
The firm has also developed a customer tool on its website called Cash Builder.
As well, Craig manages and writes the firm’s Perspective blog (http://blog.bdcocpa.com).
Because of its successful implementation of technology at many levels, the
practice scored a 390 on The CPA Technology Advisor’s
Productivity Survey (www.CPATechAdvisor.com/productivity),
a free tool that helps accounting and tax practices assess and benchmark their
use of technology.
Other transformations over the past 15 years have led to the firm moving away
from write-up, payroll and other services that were once mainstays of the profession,
and toward a more consultative model, with business services including strategic
performance management, financial forecasting, helping customers develop and
monitor key performance indicators, team facilitations, leadership development,
and compensation planning. The practice also performs A&A engagements, tax
compliance and planning services. The firm’s transformation has been largely
successful, too. Over the past 15 years, it has nearly tripled its revenues
while only doubling its staff. That’s evidence that they’re “working
smarter.”
With its Napa Valley location, the firm has developed a strong specialty in
the wine and tourism hospitality industries and has worked closely with local
business organizations to create the Napa Valley Winery Education Center. Led
by Craig, the firm’s educational services are geared toward helping small
winery owners become more strategic in their business development planning,
as well as identify untapped opportunities, measure results and maintain better
internal accountability.
“Accounting and business management principles are a mystery to most
business managers and owners, and this is mostly because the accounting profession
has essentially developed its own language over the years,” Craig noted.
While he was intrigued by the concept of accounting’s “secret language,”
and it was one of the reasons he was drawn to the profession, he’s made
a mission out of trying to create a better level of business and financial understanding
among his customers.
“With any type of business, public accountants can really help their
customers by acting as educators of financial information. By increasing their
business IQ and helping them understand how specific business actions can affect
things like cash flow or their P&L, we are also helping them be financially
stronger and more successful.”
For the 400 or so wineries in the Napa Valley, this education can be especially
valuable, since Craig sees many owners who are often overcome with the romantic
aspects associated with producing wine. “It’s a challenging and
very heavily regulated industry, so not only do they need to have a very sound
understanding of financial management, but also of various state, national and
international issues that can affect vintners of any size.” To assist
clients with accounting requirements in other countries, BDCo is affiliated
with the Alliott Group (www.alliottgroup.net), a worldwide alliance of independent
accounting, legal and consulting firms.
In addition to being good educators, though, Craig also believes that accountants
must be good learners. “We can never know our customer’s business
as well as they do, but in order to help them with their business processes,
we have to learn as much as we can, and that means asking a lot of questions
so that you can eventually get to the real issues and help them be more successful
and strategic in their operations.” With remote access to his accounting
systems, he’s also able to get out to customer sites several times each
month, which helps further his knowledge of the winery business.
Although it may seem that Craig and his teammates at BDCo are all about business,
they also have a lighter side. Each of the team chooses their own title, with
Craig’s being the “Emperor of Enlightenment.” Yes, that’s
actually on his business cards, and it fits him well, considering his goal of
educating his business customers. “We try not to take ourselves too seriously
around here, so we decided to have some fun with our titles.”
The firm also helps foster a positive work-life balance by allowing the team
flexibility around family events, as well as hosting annual parties, outings
and various goal-based awards that can include cruises or other vacations. The
firm even has a Quality of Life committee that looks at both productivity and
the team needs.
An avid photographer, when Craig is away from the office he is often trekking
the Napa Valley. “Even when I don’t have my camera, I tend to look
at things through a lens; it helps me visualize situations more clearly.”
With the vineyards and lush hillsides as a backdrop, he is certainly never lacking
for inspiration. Many of his pictures are included on the firm’s blog.
Many members of BDCo’s team are also active in the St. Helena and Napa
communities. Craig serves as the board chair for Junior Achievement of Napa
County and in a leadership role with his church. Other team members are active
with Rotary, Kiwanis, Soroptimist International, the Sierra Club and other organizations.
“There’s more to life than just practice, revenue and paychecks,”
Craig says. “We want our team to have time to be involved in the community,
to be good friends and neighbors.” Their community involvement isn’t
just about marketing the practice, though. “When people go out and do
something that is important to them and that they love, it helps make them a
better person and member of the community.”