The Need for Change: Overcoming the “Definition of Insanity”
Many accountants struggle with finding the time to transition to proactive services, often feeling trapped in routine tasks. Paul reminds firms of the famous “definition of insanity”—doing the same thing repeatedly while expecting different results. To truly go proactive, firms must break out of this cycle and commit to change.
Three Proven Strategies to Create Time for Proactivity
Paul outlines three primary strategies that have helped firms transition from backward-looking compliance work to forward-looking advisory roles:
1. Delegate Tasks to the Right Team Members
Many firms find that delegation can make a significant impact. Accountants often hold on to routine tasks that other team members could handle, preventing them from focusing on high-value, forward-looking services.
- Identify Tasks to Delegate – Start by assessing tasks, like tax compliance, that can be handled by junior team members.
- Force Forward-Focused Time – Paul shares an example of his tax planner, who was restricted from handling compliance tasks so he could focus exclusively on advisory work.
By delegating effectively, firms allow partners and senior team members to focus on proactive client relationships.
2. Sell Off Backward-Looking Clients
For some firms, a faster route to proactive work involves selling off segments of their client base that are compliance-heavy and unlikely to adopt forward-looking solutions.
- Focus on A and B Clients – Paul shares an example of an accountant who sold off two-thirds of her compliance clients to focus solely on advisory with her A and B clients.
- Commit to Forward-Focused Growth – This approach provides immediate space for proactive services and often accelerates growth.
This method may be drastic, but it enables firms to quickly transition to a more proactive, growth-oriented client base.
3. Implement a Transition Plan
For firms that can’t afford an immediate shift, a gradual transition plan offers a structured approach.
- Rank Clients by Priority – Start by categorizing clients, with a focus on gradually phasing out C and D clients as new A and B clients come in.
- Celebrate New Clients – Paul’s firm would “ring a bell” each time a new A or B client joined, celebrating the client addition while phasing out lower-priority clients.
Over time, this transition plan reshapes the client base, allowing firms to phase into a proactive service model without immediate financial disruption.
Building a Proactive Team Culture
Paul emphasizes the importance of creating a team-based approach, where each team member has a defined role. Instead of promoting a single partner as the face of the firm, he suggests positioning the firm’s team as a collective asset, capable of managing both forward- and backward-looking tasks. This team structure encourages specialization and allows senior team members to focus on high-impact client interactions.
The Value of Vision, Plan, and Desire
Paul stresses that achieving a proactive practice isn’t about magic steps—it’s about having a clear vision, a practical plan, and the desire to follow through. By committing to small, consistent steps, firms can progress toward a forward-looking service model.
Conclusion: Moving Toward Proactive Accounting One Step at a Time
The journey from reactive to proactive accounting is challenging but achievable. By delegating, transitioning clients, and committing to incremental changes, firms can create the time and space needed to focus on high-value advisory work. Remember, every journey begins with a single step—start today, and build a proactive practice for the future.
