Hi. My name is Amber. I was trained as an accountant. Which means I was taught to be professionally skeptical. As much as I believe accounting firms would benefit from an evolved business model, I feel trepidation about the surge of interest in private equity (PE). This month I will share perspective on how we got here, my optimism, my skepticism, and how to consciously navigate the evolving landscape of our industry.

How We Got Here

It is estimated that ten of the 30 largest US accounting firms could soon be in private equity hands. Shift happens. So why am I nervous about PE? I made a point to attend Alan Koltin’s session at the AICPA Engage conference. Koltin said “If I was a quality-of-life firm, I wouldn’t do PE. PE is for profitability.” 😳

Yet we need change. The common narratives I hear from equity partners includes:

Working harder than ever- 7 days per week during busy season is a theme, not an anomaly

Employee turnover continues to be high

Boomers are ready to throw in the towel

Gen X are wondering how they are going to make this work for ____more years

I can’t see a way out of this

It’s as if our profession is having an existential crisis- a period of life when there is inner conflict, confusion about one’s identity, and a nagging feeling there should be more to life. If only accounting could get a divorce and buy a sports car to feel better about all of this. 😝

My Optimism

The world has changed but the business model of accounting firms has not. Younger workers are less likely to stay with one employer for more than five years, and they don’t necessarily want to become a partner when they grow up. Private equity can help shake things up in a much needed way.

I listened to an episode of Randy Crabtree’s podcast, The Unique CPA that gave me hope. In it Tim Petrey, the CEO of HD Growth Partners, shared about his firm’s “strategic partnership with Ascend.” Tim is a younger partner who aims to grow his firm with an influx of cash. That sounded different than what I am hearing about more often- a show me the money campaign with books being sold at wildly inflated purchase prices.

What I mostly appreciated hearing is how Tim’s managers are now part owners in the firm. Back in 2006, I had an opportunity to study at the Mondragón Corporación Cooperativa in Spain. We learned how their companies balanced the individual and organizational needs, as well as the dignity of the person and work. All of their entities were co-ops, where every single employee was an owner.

Back then I wondered: How might CPA firms be different if staff accountants and managers had real skin in the game? Now I am wondering:

Can we create an evolved business model and stay sovereign?

My Skepticism

In addition to the Koltin commentary that sent shivers down my spine, my skepticism was amplified after hearing about another firm’s collaboration with Ascend. Fellow psychonaut Scotty Scarano interviewed Steven Hoffman in his Accounting High podcast. Hoffman is one of those uncredentialed C-suites that PE brings in to manage the firm. I certainly see the value of a) having a much stronger operational structure and b) bringing diversity of experiences into accounting but c) this guy did not resonate with me.

You see, coaches are trained to listen for what someone is not saying. Hoffman said nothing about how PE improved the employee experience. He claimed Ascend is mission driven and my boy Scotty countered with, “the mission of PE is to make money.” Which is the crux of all of this.

“PE only cares about numbers. It is the antithesis of humanity.” At least that is what Mathew Rushing had to say. Matthew worked with PE – a space that he described as being filled with Harvard MBAs who will say anything to make a deal. The deals usually entail sacrificing important stuff to eek out specific margins so the business can be sold in five years. Rushing said “PE often runs things into the ground over the long term.” This meme from Reddit backs up Rushing’s commentary.

Consciously Being with Change

Whether we are skeptical of it or excited for it, private equity is here. Times like this call for us to take a coaching approach and ask thought-provoking questions. Here are some places to look:

Groupthink- Most of our profession has never read The Abilene Paradox, and it shows. Our current discomfort cannot be solved by money alone yet we are overly hyped on the cash PE brings. Shouldn’t we evaluate other ideas? What if it was as simple as keeping the partnership model but cascading equity to all staff and offering liquidity events before retirement (e.g. downpayment for a house)?

Partner buyouts might be too high- If a partner group built an unsustainable practice- one that isn’t adequately staffed and doesn’t have the right leverage- why would a younger partner group pay a premium on a poorly performing asset? I heard about a younger partner group that chose sovereignty and renegotiated the partner buy-out with the retiring partners. Things that make you go hmmmmmm.

Exercise due care- Talk with your clients, your equity partners, and your future firm leaders to understand what would be a reasonable way to act under the circumstances of your firm. What does staying true to your values look like in your firm?

Constructive vs. Extractive Capital- Dr. Bronner’s defines this as “the idea that the purpose of business must extend beyond personal financial gain and instead be for the benefit of humanity and the planet.” You know, that triple bottom line that was a fad a few years ago. By all accounts, PE is extractive. What would be possible if our profession embraced constructive capital instead?

Final Thoughts

PE seeks to maximize profitability. This can involve aggressive cost-cutting measures, increased pressure to meet financial targets, and reduced investment in longer term development initiatives. For goodness sake, I heard Citrin Cooperman stopped paying for some employee’s cell phone bills while simultaneously increasing expectations on client work. 🫠 And I have heard good things, like PE money being used for leadership development initiatives 🥳

I believe employer accolades, like being a Best Place to Work, are going to the wayside. Prospective employees are going to want to know the firm’s stance on PE because their employment experience will be impacted by it. Sophisticated job hunters will ask PE backed firms what has changed for the better and the worse.

Ain’t nothing wrong with grinding and going for the money. That will attract some. But others, like me, know the concept of enoughness and value quality of life. And on that note, you may not hear from me for a month or two. I am taking August off to rest and it may take me another month to get back on track. #rolemodel #practicewhatyoupreach

It’s that time of the year. Compliance deadlines are behind us and accounting conferences are in full swing. Wheeeeeeee!

Attending conferences can be exhilarating yet overwhelming experiences. With the right approach, you can transform these events into invaluable opportunities for networking, learning, and personal growth.This month, we delve into five essential strategies to help you navigate conferences like a boss, ensuring you make the most out of every moment.

Assess Conference Fit: Is This the Right One for You?

Before diving headfirst into a conference, take a moment to reflect on whether the event aligns with your goals and interests. If your firm automatically sponsors your attendance, don’t remain on autopilot. Delve in the agenda, speakers, and roster of other attendees. Being selective ensures you invest your time and treasure wisely, opting for events that offer the most value for your needs. And above all, follow my cardinal rule. I only attend conferences that align with my family commitments. I’ve learned the hard way: that if I stretch myself too thin, my best self won’t show up to the events.

Identify Your Intention for Attending: Prep With Purpose

Ask yourself: What do I want to get out of this experience? (Coaching clients reading this know this is how we start every single coaching conversation.) Clarity of intention guides your preparation and engagement throughout the event- whether it’s expanding your network, gaining industry insights, or seeking specific opportunities. When you are clear on your purpose, you will be empowered to prioritize activities and connections that align with your goals.

Know Who You Want to Meet: Strategic Networking

Preparation is key to making the most of your conference experience. Ask yourself: Where can I find the most relevant insights and connections for my professional and personal development? Research speakers, panelists, and attendees in advance to identify key individuals you’d like to connect with. Set specific goals for each interaction, whether it’s seeking mentorship, exploring collaboration opportunities, or learning from industry experts. Approach networking with authenticity and genuine interest, fostering meaningful connections that extend beyond the conference walls. We also have a tech-tip here: We are big fans of Hi-Hello’s digital business cards. They allow you to text someone a custom message along with your virtual card. After the conference, you will have a text thread of everyone you connected with at the event.

Recoup Your Energy: Prioritize Self-Care

Conferences can be physically and mentally taxing, with long days of networking, learning, and partying 😜 networking. Prioritize self-care to maintain optimal energy levels throughout the event. Take breaks, get out of your seat and move your body, stay hydrated, and nourish yourself with healthy food. Allocate time for rest and reflection to recharge your batteries and process the wealth of information and experiences gained during the conference. Pro-tip: Before you go, block time on your calendar to follow-up with those you met. This could include time on your calendar for email correspondence and/or space for follow-up meetings via Zoom or Teams.

Take Post-Conference Action: Translate Insights into Impact

The true value of a conference lies in what you do with the knowledge and connections acquired. Follow up with individuals you’ve met and make sure those messages are specific so that each party vividly remembers the encounter. Implement actionable steps based on insights acquired during the conference, whether it’s refining your skills, exploring new opportunities, or implementing innovative strategies in your work. By translating inspiration into action, you’ll maximize the impact of your conference experience and propel your personal and professional growth forward.

Conclusion:

Navigating conferences like a boss requires strategic planning, space to rest and digest, and follow-through. By assessing conference fit, identifying your purpose, strategically networking, prioritizing self-care, and taking decisive post-conference action, you position yourself to get the greatest ROI. Embrace each event as an opportunity for growth and connection, and watch as you elevate your professional journey to new heights.

And you can use support transformation insight to action, scroll to the bottom of our homepage to book an Empowered Hour.

In recent years, the accounting profession has experienced a profound transformation that goes well beyond AI and the allure of private equity. Amidst these challenging times, a new era in accounting—one characterized by a profound connection to spiritual development and turning inward to explore what makes up a more fulfilling, meaningful life.

In this article, we’ll explore the two key phases of the spiritual transformative journey: the “dark night of the soul” and subsequent “start of a new life”. Along the way we offer insights from our coach team and provide guidance for CPA firms who desire to differentiate their culture by becoming the best place to grow- personally and professionally.

What is Dark Night of the Soul?

The “dark night of the soul” is a metaphorical journey through a challenging and transformative phase where one begins to question everything. It is common to feel confusion, overwhelm and lost during this period. This phase demands deep introspection, a reevaluation of meaning, and a contemplation of one’s habitual ways of thinking, acting, and feeling. As Dr. Nicole LaPera, renowned as the Holistic Psychologist, aptly puts it, the dark night of the soul occurs when “We stop living out of our autopilot programming….(When) we start to realize we’ve been conditioned to perform, achieve and to seek external things to make us happy or feel worthy of being loved.” The dark night of the soul represents a pivotal moment in the evolution of self, prompting a deeper exploration of purpose and significance in one’s professional and personal journey.

Insights From A Professional Coach on the Awakening of Accountants

At Conscious Public Accountants, we keenly observe the awakening taking place within the accounting community. Through coaching engagements- that span from staff to managing partners and CFOs- we witness accountants navigating the challenges of their personal “dark night”.

Prior to COVID, our coaching clients sought support for external goals outside of themselves. Outcomes such as pay raises, job promotions, and growing a book of business were commonplace. COVID changed everything. A notable New York Times article in 2021 highlighted individuals leaving prestigious jobs to pursue their passions. This signaled a collective realization that the status quo was no longer sustainable. The article noted a theme had emerged:

“The pandemic changed my priorities, and I realized I didn’t have to live like this.”

Real talk: No one wants to be working like we have been working. Mandatory Saturdays, 55+ billable hour work weeks, and responding to client emails within 24 hours are nothing more than programmed beliefs about how work should be done. The pandemic exposed the flaws in our beliefs about what a “good” work ethic looks and sounds like. It revealed our profession needs to work smarter, not harder.

Spiritual awakenings are challenging and imperative; they force us to recognize the ineffectiveness of our behaviors. Consciousness precedes choice, and choice precedes change. When accountants awaken to what is no longer working, the opportunity for becoming greater has emerged.

Start of a New Life

The emergence from the dark night of the soul heralds the beginning of a new life. Since the onset of COVID, the focus of our coaching engagements has turned inward. We are there to guide clients towards a more meaningful and fulfilling life.

Coaching sessions have become deeply introspective spaces where clients explore bigger questions, such as:

What work is most meaningful to me?

How can I grow my career without sacrificing my soul?

What beliefs do I hold that no longer serve my life and our organization?

What is trying to emerge in my organization?

Who is the leader I want to consciously become?

It takes deep courage and internal strength to navigate this transformative journey. These new-world leaders face the challenge of forging entirely new paths. They aspire to deliver services that have never existed and yearn to manage their practices very differently. But their novel ideas are often met with confusion or resistance. These new-world leaders want to live a more balanced lifestyle but don’t know how. The necessary behavioral changes are hard to put into practice when one has never witnessed them. With great challenges, comes great growth.

Heightened Awareness and How CPA Firms are Holding Space for This Transformation

As accountants embark on this new era, they bring with them a heightened awareness that transcends the traditional confines of their profession. These fresh perspectives position accountants to contribute to a more ethical, responsible, and interconnected world.

CPA firms can play a crucial role in this transformation by creating environments that foster personal development, encourage purpose-driven approaches, and cultivate a culture where individuals feel safe expressing their deepest truths.

At Conscious Public Accountants, we believe that personal development significantly enhances business results. One example of personal development to optimize business performance is our leadership development experience, Ascension. To effectively lead another, one must start with effective leadership of their own self. Our program teaches leadership competencies that have been left out of traditional accounting curriculum. We also integrate introspective individual coaching experiences where one explores the greater meaning of their life. The program also has a group component, where participants connect on a much deeper level with their colleagues. This unleashes the leadership potential and productivity of the group, as well as fosters a deeper commitment to one another.

In the distributed work environment, our observation is that personal connections often take a back seat in virtual meetings. Today’s virtual meetings tend to overly focus on what people are doing and miss out on really getting to know one another on a personal level. Do you remember what it was like to sit next to someone and hear or observe what was really going on in their life? The in-person experience of your colleague provided context as to why their work was or was not being completed. Colleagues who connect with one another on a deeper level of life are more committed to their roles. And this commitment leads to higher productivity and overall better business outcomes.

Creating the Container for Personal Development

CPA firms that create containers for personal development empower their employees to explore what they really want to do with their life, and create risk-free spaces for employees to share these dreams. What we have witnessed in this work is that, while initially perceived as risky, this approach benefits everyone involved. Your future leaders awaken to their highest level of contribution. They see possibilities for creating something the firm needs but does not yet have or see. These shared conversations about what is possible evolve the consciousness of the self, the teams, the entire system and those they serve.

Conclusion

As the accounting profession undergoes this multifaceted transformation, each phase—from the dark night of the soul to the inception of a new life—unveils deeper understanding of purpose and interconnectedness. This journey not only enhances the professional lives of accountants but also contributes to a positive and conscious evolution of the industry. By recognizing and embracing these transformative elements, the accounting profession is poised for a future that surpases conventional norms, unlocks untapped potential and creates a more meaningful and fulfilling working environment for all involved.

Thank you to the CalCPA who published this article in the March/April edition of California CPA. It brings me so much joy to see the real talk in print!