How to Disrupt Accounting Firms – Moneyball Metrics

Discover how Bob Lewis shapes CPA firm futures with M&A, advisory services and growth tactics. Essential listening for accountants and CPAs

In this episode, host Rob Brown interviews Bob Lewis, CEO of The Vision Group, about major disruptions happening in the accounting industry.

They discuss the key inflection points causing disruption such as aging partners, workforce shortages, emerging technologies, and private equity investments. Bob explains the importance of recognizing these disruptions and taking proactive steps to get "disruption ready".

He shares insights on managing people, improving firm profitability, preparing for leadership transitions, and rethinking service offerings to meet evolving client needs.

Key Takeaways:

• Aging partners, workforce shortages, and emerging technologies are disrupting accounting firms, requiring changes in strategy.
• Firms must invest in technology, people, and new service offerings to stay competitive. Lack of investment reduces profitability.
• Metrics like revenue per professional and realization rates indicate a firm's pricing, profitability, client mix and other performance factors.
• Future-focused firms are expanding into advisory services beyond compliance work to add value.
• Staff want vision, training, and empowerment - not just remote work options - to stay engaged.
• Private equity investments are changing ownership models and bringing new leadership approaches to firms.

Quotable Quotes:

"The disruption is occurring all around them and they can't control it."

"CPA firms, accounting firms, they're becoming consultant agencies."