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Firms that hire experienced people do not usually get what they expect or are paying for. Here is a template to help you maximize your investment in such people.

Usually, but not always, experienced people leave a job because they are not growing in their experience. Yet many firms hire these people expecting to capitalize on their “experience.” This makes no sense and seems to be illogical. However, it happens all the time. The following is a template to assist you in getting what you need or think you are getting. 

Salary level: The salary you will be paying will be the market rate. Not much higher or much lower, so regardless of what you are getting from your new employee, get over it! You will not be overpaying. You might not be getting what you think you are paying for, but you will be paying the market rate for that person.

Profile of new hire: You hired someone who has been specializing in the area that you hired them for. You also hired someone that probably had three or four jobs previously, with the last one or two (or more) in that specialization. What you do not know is the depth of their experience, how well they managed their workload or the people reporting to them, and what desire they have to grow further. If they had that desire, and they weren’t growing, then they “wasted” time in their growth trajectory trying to decide when they should leave. Further, their impression of their experience will not be the same as your expectations of their experience. Get over it!

Experience: I can almost guarantee that the new hire will not be able to perform at the level you expect them to, and my advice is to get over it. What you need to do is to evaluate their experience and figure out where they stand on the curve line of the scale that you expect. Not where you want them to be, but where they actually are. Once you figure that out, start your training and mentoring and everything else you do to move that staff person forward at the level they are at on your scale.

Getting what you are paying for: You will be not getting what you really need, but what the market has available. And whatever that is, you will likely be better off with that person than without that person, if you do not screw it up.

How to not screw it up: Do not give them work that you know they could not handle without training, supervising and being watched over closely. Start off with pretty easy work at a higher level, not the lower levels, and see how they do. Use that to guide you in where they need to go to help you. Go easy, but do it with steady forward movements. But do it slowly and deliberately. Consider your investment in a long-term relationship with that manager-level person. If they are the right person, it will become evident within a couple of months. If they’re not the right person, get rid of them quickly (see next item). 

Hire carefully, but fire quickly: I know of a very successful practice that used a headhunter for staffing and was provided with a two-month guarantee, so their timetable was seven weeks. I know this because someone who left me for a higher-level position called and asked me if he could have his job back seven weeks after he left. That person was not growing with me (for various reasons that I am not getting into now) and I told him so. We liked him and explained a program that we developed to have him grow sufficiently. He immediately started to look for a job, which he got. His job was filled by us with a three-year level staff person we hired out of school and who was ready to be moved up to that position. We did not miss a beat. That shows you how “valuable” he was to us, and how invaluable he was to his next employer. 

Be nice: It’s probably not all their own fault they haven’t grown. I’m sure the firms they worked at contributed immensely to that lack of growth. Be nice. Do not tell them how you feel about where you think they are on your scale of development or what your current expectations are. Just focus on using them to move you forward by helping them grow. Compliment them frequently and never disparage them. Be nice!

The past, present and future: Their lack of experience is in the past and is the present situation. Fuggeddaboudit! You hired this person so you could move your practice forward into the future. Focus on that future and getting there as easily as you can. You can do it with this person if you do not over-anticipate their ability or over-expect their output and production. 

Natural tendency: A natural tendency is to be upset with them and then to use them as best you can to clean up past due work, move things out and work on slightly higher lower-level engagements. You won’t be anxious to have them train anyone so they will become lone rangers. That is not how you will be able to grow and you will doom yourself to restart with someone very similar when that person leaves “because they are not getting good experience.” And then you will start over with someone who is a mirror image of the person who just left you. Your efforts become dissipated replacing someone who left rather than concentrate on nurturing staff so they will grow and stay. 

Set expectations to a lower level: When they start, do not expect more of them than is realistic. If you get more than you expect, you will be happy. If you get less than you expect, you will be miserable and probably make them, and everyone else around you, miserable. You can’t lose with lower expectations and might lose with the higher expectations. Choose can’t lose instead of might lose. 

The above is not really a template, but if I added three lines to each item and asked you to write what you think or will do and perhaps include a chart (for No. 3 above), it will be a template. Figure it out for yourself, but if you believe I make sense and you are stuck in a can’t win position unless you face reality, then get over it and make the best of it to move forward. And I just showed you how to approach that.

Do not hesitate to contact me at [email protected] with your practice management questions or about engagements you might not be able to perform.

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As much as financial advisors, tax professionals and their clients are racing toward the end of the year, these weeks represent a brief bit of calm before a frenzied stretch for planners.

That’s because President Donald Trump and his Republican party will soon be facing the opportunities — and the risks — that come with the potential expiration of many provisions of the Tax Cuts and Jobs Act of 2017. Politics, investment strategy, practice management and the many other topics covered in the slideshow below of Financial Planning’s top tax stories of 2024 will loom large next year as well.

However, nothing will pose as much complexity and uncertainty for planners and their clients as the possible sunset of many parts of the law. The massive impact to clients’ money in areas like the standard deduction, estate-tax exemptions and qualified business income, combined with a price tag of these provisions starting at $4.6 trillion, will likely leave everyone guessing on the ultimate outcome and exact terms until President Trump signs any bill into law next year.

“The fact that Republicans will control the House, Senate and White House next year positions them to advance budget reconciliation legislation that reflects their key tax priorities,” according to a primer on the tax questions facing the next administration and Congress by the Tax Policy Group in Deloitte Tax’s Washington National Tax Office. 

“Nonetheless, the built-in limitations of the budget reconciliation process plus the difficulties sometimes associated with holding together narrow majorities in both congressional chambers will require House and Senate leaders to tread carefully in putting together a tax package,” the report continued. “With these caveats in mind, it is critical for taxpayers to stay abreast of tax policy developments in Washington and to, as soon as possible, begin evaluating what is being put forward, modeling potential outcomes and planning the appropriate actions to take if and when these proposals go from high-level plans and talking points to fully framed legislation with substance, effective dates and, possibly, carve-outs and anti-abuse rules.”

But without knowing the specifics of any particular legislation and its effects on the provisions expiring a little over a year from now, following those steps may well prove easier said than done. After the bumpy path through the election, the last weeks of 2024 seem like a relaxing Sunday drive down a smooth road into 2025 in comparison.

“All of this sets up the prospect of a massive fiscal cliff for President-elect Trump and the incoming 119th Congress as they grapple with how to address the pending expiration of marquee TCJA provisions such as reduced income tax rates for individuals, increased exemption amounts for the individual alternative minimum tax and the estate and gift tax, the doubled child tax credit, the increased standard deduction and the 20% deduction for permanent passthrough business income,” the Deloitte report said.    

For a roundup of nearly five dozen tax-related stories from the past year on politics, practice management, investment strategies, health savings accounts, individual retirement accounts, estate planning, Social Security and more, scroll down the slideshow. To see last year’s list, click here.

What makes some accounting firms thrive while others struggle to gain clients, develop new services, and attract talent? Often, the difference lies in firm leaders’ ability to think like entrepreneurs.

For decades, firms could rely solely on traditional transactional and compliance services to achieve steady growth. But today, leaders must adopt an entrepreneurial mindset to stay competitive.

An entrepreneurial mindset is a set of skills that allow leaders to identify opportunities, overcome and learn from setbacks, embrace agility and innovation, and take calculated risks.

So, how can you cultivate an entrepreneurial mindset to ignite innovation, drive strategic growth and position your firm to lead change?

Why entrepreneurial thinking is essential

First, let’s dig into why an entrepreneurial mindset is so crucial.

The accounting profession is at a crossroads. Technology advancements and shifting client expectations push firms to rethink traditional business models. Firms that embrace an entrepreneurial approach — prioritizing bold decision-making and proactive leadership — find themselves ahead of the competition.

As the saying goes, “If you think you can or you think you can’t, you’re right.” This mindset is especially crucial for firm leaders navigating today’s unpredictable environment.

Igniting innovation

Innovation doesn’t just happen; firm leaders cultivate it through their actions. Entrepreneurial firms create a culture that encourages experimentation and recognizes failure as a learning opportunity. Here’s how firms can ignite innovation:

1. Encourage cross-functional collaboration. Bringing together diverse teams can spark fresh ideas and uncover new ways to approach old problems.
2. Invest in technology. From analytics powered by artificial intelligence to cloud-based automation tools, technology allows firms to offer non-traditional services that were unimaginable a decade ago.
3. Empower employees. Give your team the freedom to propose and test innovative solutions. A culture of ownership fosters engagement and drives results.

For example, firms that once focused solely on compliance now offer advisory services like wealth management, business consulting, and strategic planning. These non-traditional services are rapidly becoming essential as clients demand more than a historical view of their finances.

Driving strategic growth

An entrepreneurial approach to growth means your firm is in control. Instead of being reactive, you’re seizing opportunities, taking calculated risks, and positioning yourself ahead of the curve. Consider these strategies:

1. Adopt a growth-first mindset. View growth as a series of small wins that become major wins over time.
2. Diversify revenue streams. Expanding into areas like advisory services, outsourced CFO solutions or cybersecurity consulting can create sustainable growth.
3. Measure success differently. Growth isn’t just about revenue but client satisfaction, employee engagement and market positioning.

Entrepreneurial firms often succeed because they’re proactive, not reactive. They leverage data to identify trends, listen to the client’s voice and pivot quickly when opportunities arise.

Transforming leadership

Leadership is the cornerstone of an entrepreneurial firm. Bold leaders inspire their teams to embrace change, attract top talent and foster strong client relationships. Here’s how to lead with an entrepreneurial edge:
1.  Model resilience. Leaders who bounce back from challenges and setbacks set the tone for their teams.
2.  Invest in talent development. Offering mentorship, training and growth opportunities attracts and retains high-performing employees.
3.  Lead with purpose. Today’s employees want to work for firms with a clear mission and values.
Strong leaders get their firms further ahead than the competition. So, embrace an entrepreneurial mindset to create a culture where teams feel empowered to innovate, take risks and grow alongside the firm.

Embracing a bold future

Your firm can thrive in the next decade if you dare to think differently, act boldly and prioritize your client’s evolving needs. Develop new services and empower your team to innovate without guarantees. This will help you adopt an entrepreneurial mindset that’s no longer optional — it’s essential.
Are you ready to take the driver’s seat and propel your firm into the future? It’s time to think bigger, act faster and lead with entrepreneurial confidence.