The Accounting Podcast Blake Oliver & David Leary

Blake Oliver sits down with Brannon Poe of Poe Group Advisors to discuss the differences between traditional and subscription-based virtual accounting firms. Brannon shares his expertise on firm valuation, revealing that factors like cash flow to owner and owner hours play a significant role in determining a firm's value. He also emphasizes the importance of pricing strategies, noting that implementing value pricing and subscription models can dramatically improve a firm's profitability and overall value. Throughout the conversation, Brannon provides valuable insights and real-world examples to help firm owners maximize their firm's value in preparation for a potential sale.
Meet Our Guest, Brannon Poe
LinkedIn: https://www.linkedin.com/company/poe-group-advisors/Twitter: https://twitter.com/poegroupadvisorFacebook: https://www.facebook.com/PoeGroupAdvisors/Instagram: https://www.instagram.com/poegroup/
Learn more about Poe Group Advisors
Website: https://poegroupadvisors.com/
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Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040.

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Transcripts
The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Blake and David take a dive into Google's decision to offshore accounting jobs to Mexico and India, which Google’s CFO claims is necessary to free up resources to invest in AI. They also discuss the stagnation of CPA salaries despite a shortage of talent. The conversation touches on a variety of other topics, including the modernization of the IRS, the future of the CPA profession, and advice for young accountants looking to carve their own career paths in a rapidly changing industry.
Chapters
(05:53) - Blake reads some tweets about hours people are working during busy season

(10:32) - Unlimited PTO is worse for employees

(13:02) - College degrees aren't necessary for success

(18:30) - Florida creates retired CPA status

(21:41) - Listener mail on the 150-hour rule and salaries

(26:12) - Update on Boston's commercial real estate woes

(30:44) - Why office rent prices are still so high

(38:35) - Some encouraging IRS news

(43:52) - Internal audit reveals 279 former IRS employees or contractors still had access to logins

(46:18) - Offshoring can be good or bad

(48:10) - Setting a limit on billable hours

(49:56) - Let accounting firms decide what requirements accountants need

(52:14) - The rise of the "remote partner"

(58:06) - Wrap up and Earmark now has a web browser version
 Show Notes
Google restructures finance team as part of AI shift, CFO tells employees in memo
https://www.cnbc.com/2024/04/17/google-restructures-finance-team-as-a-part-of-ai-shift-cfo-tells-employees-in-memo.html
 
Josh Youngblood, EA didn’t work over 40 hours per week in tax season
https://x.com/joshyoungblood/status/1779858374403747847?s=12
 
Skills-Based Hiring Can Shred the Paper Ceiling | BCG
https://www.bcg.com/capabilities/diversity-inclusion/expert-insights/skill-based-hiring-can-shred-paper-ceiling
 
The Office Market Is in Turmoil. So Why Are Rents More Expensive? – WSJ
https://www.wsj.com/real-estate/commercial/the-office-market-is-in-turmoil-so-why-are-rents-more-expensive-d096f961?st=9ieavh5j7ep3wcw
 
Florida Legislature Passes Bill Creating New Retired CPA Status | Florida Institute of CPAs
https://www.ficpa.org/publication/florida-legislature-passes-bill-creating-new-retired-cpa-status
 
Kyle J. Bauman, CPA on X: "“Unlimited PTO” “Only 2100 Hours”
https://twitter.com/kjb_cpa/status/1763595505928442248
 
62% of Americans Lack a College Degree. Can They Solve the Labor Shortage?
https://www.wsj.com/lifestyle/careers/employers-open-more-doors-to-workers-without-degrees-but-few-are-getting-in-732f1098
 
Senior Leaders Nearly Twice as Likely To Receive AI Resources as Junior Staff | CFO
https://www.cfo.com/news/senior-leaders-are-nearly-twice-as-likely-to-receive-ai-guidance/707230/
 
IRS didn't remove contractors' access to sensitive information | Accounting Today
https://www.accountingtoday.com/news/irs-didnt-remove-contractors-access-to-sensitive-information
 
Boston mulls commercial tax hike        
https://www.accountingtoday.com/articles/boston-mulls-commercial-tax-hike-to-counter-office-market-slump
 
IRS Commissioner Delivers End Of Tax Filing Season Message Touting Improvements
https://www.forbes.com/sites/kellyphillipserb/2024/04/15/irs-commissioner-delivers-end-of-tax-filing-season-message-touting-improvements/
 
Florida Creates New Status for Retired CPAs in the State          
https://www.cpapracticeadvisor.com/2024/04/15/florida-creates-new-status-for-retired-cpas-in-the-state/103983/
 
Treasury cash balance jumps most in 2 years as tax payments rise
https://www.accountingtoday.com/articles/treasury-cash-balance-jumps-most-in-2-years-as-tax-payments-rise
 
The rise of the remote accounting firm partner               
https://www.accountingtoday.com/news/the-rise-of-the-remote-accounting-firm-partner
 
Werfel sees IRS budget request yielding $341B in extra revenue
https://www.cfodive.com/news/werfel-sees-irs-budget-request-yielding-341b-extra-revenue-tax-taxation-enforcemen

Blake and David delve into the effects of remote work on accountant salaries and the mental health challenges faced by auditors at Big Four firms. They inspect a recent study showing lower pay for hybrid workers compared to fully remote or in-office employees. They also contemplate the future of work organization inspired by Bill Anderson, CEO of Bayer, and discuss the potential impact of AI on the accounting profession, the accuracy of AI-related surveys, and the misrepresentation of AI capabilities in recent news headlines.
SponsorsLiveFlow - http://accountingpodcast.promo/liveflow Uncat - http://accountingpodcast.promo/uncatEarmark - https://earmark.appSettle - http://accountingpodcast.promo/settle
Chapters(00:34) - Will accountants soon earn overtime pay?

(04:57) - Listener writes in about their own audit experience at a Top-30 firm

(08:14) - Trump's Truth Social audit update

(14:44) - PCAOB proposed audit metrics

(20:44) - 71% of Big 4 auditors worry about mental health

(23:27) - Blake shares a clip from new Bayer CEO

(33:48) - H&R Block employees prefer remote work

(38:14) - Remote accountants get paid less

(39:35) - Executives and managers perceive in-office workers as higher performers

(42:06) - The four day work week is becoming more common

(45:27) - Cody writes in about Big 4 vs industry

(47:09) - Hannah asks about outsourcing and offshoring costs

(49:59) - Amazon Fresh stores were using Indian employees for "just walk out" tech

(55:22) - Shohei Ohtani's translator charged in sports gambling case

(58:14) - Accounting Today wrongly claims accountants are saving 30 hours a week on average using AI

(01:01:34) - Blake shares a clip from the All In podcast on the future of AI

(01:04:48) - Is it time for a new ERP system?

(01:07:47) - Thanks for listening and remember to subscribe
 
Show Notes
71% of Big 4 Auditors Worry About Mental Health | CFO             
https://www.cfo.com/news/71-of-big-4-auditors-worry-about-mental-health/712063/
 
Will Getting Rid of Bosses Fix the Workplace? - The Journal. - WSJ Podcasts
https://www.wsj.com/podcasts/the-journal/will-getting-rid-of-bosses-fix-the-workplace/fc0d31d3-2d08-441e-abd8-d77b660fe258
 
59% of accountants use AI to save about 30 hours a week on tasks | Accounting Today
https://www.accountingtoday.com/news/59-of-accountants-use-ai-to-save-about-30-hours-a-week-on-tasks
 
Y Combinator wants to fund new enterprise resource planning (ERP) software"
https://www.instagram.com/reel/C3-zHmOIqbI/?igsh=dTMxMDBjNGg3a2p0
 
Ohtani translator charged with stealing millions for 19,000 bets | Accounting Today
https://www.accountingtoday.com/articles/ohtani-translator-charged-with-stealing-millions-for-19-000-bets
 
KPMG Fined Record $25 Million in Exam-Cheating Scandal – WSJ
https://www.wsj.com/articles/kpmg-fined-25-million-over-alleged-netherlands-exam-cheating-a4dcba2a?st=yl6xiqm8nh6gug8
 
Botkeeper Infinite replaces outsourcing with more AI to help firms automate | Accounting Today
https://www.accountingtoday.com/news/botkeeper-infinite-replaces-outsourcing-with-more-ai-to-help-firms-automate
 
More Companies Adopt 4-Day Work Week - CPA Practice Advisor        
https://www.cpapracticeadvisor.com/2024/03/27/more-companies-adopt-4-day-work-week/103199/
 
When Layoffs Happen, Remote Workers Are Hardest Hit - WSJ               
https://www.wsj.com/lifestyle/careers/layoffs-remote-work-data-980ed59d?reflink=integratedwebview_share
 
Does Working from Home Boost Productivity Growth? | San Francisco Fed     
https://www.frbsf.org/economic-research/publications/economic-letter/2024/january/does-working-from-home-boost-productivity-growth/
Trump Media's Accounting Firm Has Audit Deficiency History 
https://finance.yahoo.com/news/trump-media-accounting-firm-history-150150627.html
 
Amazon's Just Walk Out Actually Uses 1,000 People in India
https://www.businessinsider.com/amazons-just-walk-out-actually-1-000-people-in-india-2024-4
 
PCAOB

Joe Woodard joins Blake and David to examine how accountants and bookkeepers can increase the value of their services in the eyes of their clients. Joe introduces the Cobb value curve, illustrating how differentiation and relative value impact pricing. He emphasizes the importance of offering unique, high-value services like controllership and financial planning to stand out from commoditized offerings and command premium prices.
Meet Our Guest, Joe Woodard
LinkedIn: https://www.linkedin.com/in/quickbooksadvisorTwitter: https://twitter.com/joewoodard

Learn more about Woodard
Website: http://www.woodard.com
Need CPE?
Get CPE for listening to podcasts with Earmark: https://earmarkcpe.comSubscribe to the Earmark Podcast: https://podcast.earmarkcpe.com

Get in Touch
Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040.

Sponsorships
Are you interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus.

Need Accounting Conference Info? 
Check out our new website - accountingconferences.com

Limited edition shirts, stickers, and other necessities
TeePublic Store: http://cloudacctpod.link/merch

Subscribe
Apple Podcasts: http://cloudacctpod.link/ApplePodcastsYouTube: https://www.youtube.com/@TheAccountingPodcastSpotify: http://cloudacctpod.link/SpotifyPodchaser: http://cloudacctpod.link/podchaserStitcher: http://cloudacctpod.link/StitcherOvercast: http://cloudacctpod.link/Overcast
Classifieds
Want to get the word out about your newsletter, webinar, party, Facebook group, podcast, e-book, job posting, or that fancy Excel macro you just created? Let the listeners of The Accounting Podcast know by running a classified ad. Go here to create your classified ad: https://cloudacctpod.link/RunClassifiedAd

Transcripts
The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Blake and David dive into the concerning trend of small CPA firms conducting shoddy audits of large companies and SPACs, raking in big fees while facing minimal consequences for deficient work. They also discuss the latest accounting app funding news, the power of AI for crafting persuasive arguments, and the American Institute of CPAs' puzzling resistance to changes in CPA licensure requirements and touch on the growing importance of client accounting services for public accounting firms.

Sponsors Cloud Accountant Staffing - http://accountingpodcast.promo/cas Uncat - http://accountingpodcast.promo/uncatEarmark - https://earmark.app
Chapters(00:38) - Blake is back from a conference in Atlanta

(03:12) - The truth behind Trump's Truth Social SPAC audit

(18:41) - AI startup Fieldguide secures $30 million in Series B funding

(21:57) - FundGuard secures $100 million in Series C funding round

(23:42) - BotKeeper launches BotKeeper Infinite

(29:29) - Scientists find that AI is more persuasive than humans at changing people's opinions

(37:41) - Formula 1 team using Excel to track car parts

(39:34) - CAS is the fastest-growing service in Accounting Today's annual survey

(41:34) - The AICPA warns about losing the 150-hour rule

(48:46) - Send us an email and remember you can earn FREE CPE for listening to this podcast!
 
Show Notes
Fieldguide Raises $30 Million to Combat CPA Shortage With AI
https://www.pymnts.com/news/investment-tracker/2024/fieldguide-raises-30-million-to-combat-cpa-shortage-with-ai/
AI accounting startup raises $100M
https://www.accountingtoday.com/articles/ai-accounting-startup-fundguard-raises-100m-in-new-funds
On the Conversational Persuasiveness of Large Language Models: A Randomized Controlled Trial (PDF) 
https://arxiv.org/pdf/2403.14380.pdf?utm_source=www.therundown.ai&utm_medium=newsletter&utm_campaign=nvidia-s-new-ai-chip-competitor
 
The year CAS took over
https://www.accountingtoday.com/opinion/the-year-cas-took-over-accounting
Need CPE?
Get CPE for listening to podcasts with Earmark: https://earmarkcpe.comSubscribe to the Earmark Podcast: https://podcast.earmarkcpe.com

Get in Touch
Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040.

Sponsorships
Are you interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus.

Need Accounting Conference Info? 
Check out our new website - accountingconferences.com

Limited edition shirts, stickers, and other necessities
TeePublic Store: http://cloudacctpod.link/merch

Subscribe
Apple Podcasts: http://cloudacctpod.link/ApplePodcastsYouTube: https://www.youtube.com/@TheAccountingPodcastSpotify: http://cloudacctpod.link/SpotifyPodchaser: http://cloudacctpod.link/podchaserStitcher: http://cloudacctpod.link/StitcherOvercast: http://cloudacctpod.link/Overcast
ClassifiedsRoyalwise - https://royalwise.com/partnerForwardly - https://www.forwardly.com/
Classifieds
Want to get the word out about your newsletter, webinar, party, Facebook group, podcast, e-book, job posting, or that fancy Excel macro you just created? Let the listeners of The Accounting Podcast know by running a classified ad. Go here to create your classified ad: https://cloudacctpod.link/RunClassifiedAd

Transcripts
The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Blake and David dig through the latest accounting news, including the effectiveness of pizza parties in boosting accounting firm morale, the record number of baby boomers reaching retirement age, and the impact on Social Security, as well as the massive amount of COVID-related fraud originating in South Florida. They also take a look at audit integrity issues, the long working hours in accounting, and some of the latest app headlines.

SponsorsLiveFlow - http://accountingpodcast.promo/liveflow Relay - http://accountingpodcast.promo/relay Bookkeep - http://accountingpodcast.promo/bookkeep
Chapters(00:22) - Thomson Reuters says pizza parties boost accountants morale

(03:33) - Trump cheats at golf

(04:50) - Truth Social goes public

(07:41) - Grant Thornton sells majority stake to private equity firm

(12:28) - Almost 20% of all PPP fraud happened in South Florida

(17:59) - 49ers docked 5th round draft pick for accounting error

(20:08) - Sam Bankman Freed sentenced to 25 years in prison

(22:29) - David shares WSJ video on the future of social security

(31:16) - Tingo audit faulire update

(41:48) - Big 4 Transparency firm awards

(50:28) - Blake takes on a Reddit user's problem

(56:35) - Microsoft Teams combining business and personal offerings

(57:04) - Thanks for listening and remember to subscribe
 
Show Notes
FTX Founder Sam Bankman-Fried Sentenced to 25 Years https://www.wsj.com/finance/currencies/sam-bankman-fried-sentencing-ftx-fraud-2d92fce9?st=d45lmr6uc8gg6wc

Trump ‘cheats like a mafia accountant’ at golf, writer who played with him says - pennlive.com https://www.pennlive.com/news/2024/03/trump-cheats-like-a-mafia-accountant-at-golf-writer-who-played-with-him-says.html

Big 4 Transparency - Awards Season 🏆 https://big4transparency.beehiiv.com/p/big-4-transparency-awards-season?utm_source=big4transparency.beehiiv.com&utm_medium=newsletter&utm_campaign=big-4-transparency-awards-season

PCAOB bars Colorado firm Gries & Associates from doing audits | Accounting Today https://www.accountingtoday.com/news/pcaob-bars-colorado-firm-from-doing-audits

San Francisco 49ers docked 2025 fifth-round draft pick for accounting error | FOX Sports https://www.foxsports.com/stories/nfl/san-francisco-49ers-docked-2025-fifth-round-draft-pick-for-accounting-error
Grant Thornton gets major PE stake from New Mountain Capital | Accounting Today https://www.accountingtoday.com/news/grant-thornton-gets-major-pe-stake
How Miami Became a Hub of PPP Fraud After Pandemic
https://www.cpapracticeadvisor.com/2024/03/26/how-miami-became-a-hub-of-ppp-fraud-after-pandemic/103156/
 
Audit Plan to Flag Illegal Acts Needs Do-Over, Critics Charge
https://news.bloombergtax.com/financial-accounting/audit-plan-to-flag-illegal-acts-needs-do-over-critics-charge
 
Blackrock larry fink annual letter 8484e68e      
https://www.wsj.com/finance/investing/blackrock-larry-fink-annual-letter-8484e68e
 
Ahead of sentencing, SBF team argues for 5-6 years in jail because FTX customers will get money back          
https://www.cnbc.com/2024/03/27/sbf-team-argues-for-5-6-year-sentence-ftx-customers-to-get-money-back.html
 
The Home Stretch: Strategies & insights for today’s tax professionals as their busy season concludes              
https://www.thomsonreuters.com/en-us/posts/tax-and-accounting/home-stretch-tax-professionals/
 
Trump's social media company rises 16% in first day trading gains, but the stock could fall 95%, says an IPO expert  
https://fortune.com/2024/03/26/trump-social-media-rises-trading-gains-fall-expert/
 
FTX founder Sam Bankman-Fried gets 25 years in prison           
https://www.bankingdive.com/news/sam-bankman-fried-25-years-prison-fraud-conspiracy-ftx-crypto-sbf-kaplan-alameda/711601/
 
IRS Criminal Investigation Says COVID-Related Fraud Totaled Nearly $9 Billion
https://www.forbes.com/sites/kellyphillipserb/2024/03/28/irs-criminal-investigation-says-covid-related-fraud-totaled-nearly-9-billion/