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New Intapp release uses “nudges” to guide business development behavior

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Professional services solutions provider Intapp announced the release of Intapp DealCloud Activator, which uses a social media-like interface to give users “nudges” to adopt certain practices and habits that are associated with successful business development. While currently made for law firms, Intapp intends to roll this out for other professions, including accountants, in the future. Intapp made the announcement during its Intapp Amplify event in New York City on Feb. 26. 

The new solution is built around the results of an exhaustive study about the habits of highly effective rainmakers in partner-based businesses, which was eventually published in the Harvard Business Review, which Intapp funded. A series of survey tools and 1-on-1 interviews with professionals across the world coalesced into five business development profiles: Experts, Confidantes, Debaters, Realists and Activators. The final group, Activators, were found by the researchers to be 32% more successful in bringing in new business. In general, their behavior profile emphasizes network building and proactivity, such as reaching out to current or prospective clients when changes occur in the regulatory or economic environment or introducing clients to partners from other practice areas that they think can provide value. 

Rory Channer, founding partner of DCM Insights and one of the lead authors of the HBR study, said during his talk that, since the study was completed, he has been advising firms on how to encourage Activator behavior among their own staff, which he said has led to great improvements in business development. 

Nudge

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Laura Saklad, vice president of Intapp’s legal industry group, said the DealCloud Activator solution is meant to encourage the same kinds of behavioral changes, but with AI-driven software versus a consulting engagement. The product, she said, is meant to address two challenges. One is how do leaders influence their professionals to adopt Activator behaviors when they cannot command or control them? The other is how can we give leaders the tools they need to monitor and adapt to AI in a way that works for their culture? 

The answer to both, said Saklad, is a concept in behavioral science called “Nudges” which encourage or discourage certain behaviors not through coercion or education but, rather, subtle interventions in the choice architecture that, while easy and cheap to avoid, can alter how one makes decisions. Contrast putting fruit at eye level to encourage people to eat healthier, versus outright banning junk food. Saklad said we already see this being applied in other applications. 

“Nudges are embedded in the apps we use everyday, your phone may nudge you about your steps or to drink water or to stand up and get out of your seat and move around, whatever it is you are personally committed to you can use your apps and this technology to keep you true to your commitments. The approach focuses on encouraging small incremental improvements that add up over time, and given the size of the firms you all work in, even modest individual improvements can have a significant cumulative impact and that is what we’re going for. Our implementation is called Signals, it behaves like an assistant thinking of you and your practice 24 hours a day without having to go into a dashboard or tech app,” she said.

The solution interface features what is called an Activator Feed that is tailored specifically to the user. It appears similar to a social media feed, but instead of scrolling through posts about people’s dogs or their trip to Italy, users scroll through AI-produced reminders about current clients who could be proactively contacted to discuss a recent tax law change, or notes about changes in a company that night necessitate a talk. During her talk, her Activator Feed first reminded her of tips she received from a recent training session and the need to take quick action when she has time to spare, followed by a reminder to nurture her professional network by reaching out to a client who recently completed an M&A transaction so she can talk about how post-deal integration is going. 

“Now, of course, this is good client service, but importantly, I know that clients often need compliance advice after closing these types of deals, and so it is certainly worth checking in to see if my firm can be a further assistance. And once I do that, I can schedule a meeting. I can record that that meeting took place, so I have that and I can reference it in the future,” she said. 

The final item was to reminding her to take action to create new value for the firm. Specifically, the AI looked at historical data as well as information about her own work patterns to tell her that a partner at her firm has recently opened an IT engagement with a client she has been trying to figure out how to build a relationship with, which gives her an opportunity to expand the relationship further by offering other services. 

“It’s really exciting, because I would not have known this without this piece. I have not met him yet at his new firm, so now I can quickly send him an email or message and suggest that we collaborate on how we can expand the relationship and add more value for this. So that is a glimpse at how the activator experience for professionals can use nudge theory to provide timely, data driven insights that will help partners commit to consistent business development, connect with their professional networks and then create new opportunities for their firms and new greater value for their clients. That’s pretty cool,” she said. 

The second problem—how can we give leaders the tools they need to monitor and adapt to AI in a way that works for their culture?—is also addressed through nudges, according to Saklad. The software allows firm management to monitor, fine tune and prioritize how Activator behaviors are deployed in their firm. She noted that managing partners often have had difficulty getting clear insight into how my partners spend their business development time, but technology now enables this level of oversight. 

“[In this example] I am very focused on cross-selling, and I am able to see how my partners are engaged with cross-selling behavior and how they are improving over time… I can also see how much time my partners are spending on business development time versus billable work. And again, I can see it over time, and I can save by practice group. And then when I look at the details, I can say, for example, that right now my capital markets partners are not spending as much time on business development as some other groups. And I can make a note that when I next talk to the practice group leader, I can talk to her about how we can best support our partners and others. I can also drill down to see the daily and the weekly cadence of business development time,” she said. 

It also has a heat map of which practice groups have the strongest adoption of the desired behaviors, and offers the ability to drill down and identify how specific individuals are performing. 

“I can see which partners are doing well and reach out and give them a pat on the back. I can see which partners are slower to change and provide them with additional coaching. And lastly, the most exciting thing, is that the data provided in these dashboards allows me to connect Activator behaviors with revenue generation, and so I really can quantify for the first time the impact to the bottom line,” she said. 

Intapp DealCloud Activator is currently only available for law firms, Tom Koehler, Intapp’s global managing principal for accounting and consulting, said in a later interview that there are plans to release versions for other professions, such as those in audit, advisory or tax in the future. He noted that it is not a matter of simply changing labels, as the specific type of nudges the software uses need to be particular to the profession. For instance, in countries that have mandatory audit partner rotation (done to preserve auditor independence), the software could nudge accountants on how to convert turnover into business opportunities. 

“When you leave your client you have a lot of relationships. So how do you leverage that, then into business development, into cross selling, so you turn it into more of an asset,” he said. 

While a specific date or timeframe was not mentioned for accountants, Kohler said that an accounting-focused version is “on our horizon as a next rollout.” 

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Accounting

A great time to cheat on your taxes

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I didn’t want to say this before tax season ended, but my guess is this has to be the best time in all the history of the income tax and the Internal Revenue Service to cheat on your taxes.

(Not that anyone should cheat, of course. They definitely shouldn’t; taxes are the price we pay for living in a civilized society, and all that.)

But think about it: The IRS, already weakened by a decade or more of budget cuts that saw their top talent bleeding away through attrition, has lost a tenth of its workforce in just the past few months, and now that tax season is over, all the fired employees who were held over until April 15 will actually be leaving. Its leadership is in shambles, with five commissioners in as many months, and the confirmation hearings for the man who is supposed to take on the job full-time only happening this week, as well as a number of senior leaders resigning over policy differences with the Trump administration and its Department of Government Efficiency.

(Again, I’m not saying that you should cheat on your taxes — you definitely shouldn’t — but if you wanted to, purely hypothetically speaking, you could hardly pick a better time to do it.)

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Audit rates, which were already ridiculously low, can only drop as experienced staff retire or are driven out, leaving no one to train new employees, which is fine because many of those new employees were themselves driven out right at the start of the current purge. Unless you fill out your return in human blood or ask for your refund to be direct-deposited to a numbered Swiss account, the likelihood of your being audited is almost negligible.

(Still, you totally should not cheat on your taxes.)

Now hypothetically, you might be worried that, even though there aren’t enough human staff to come after you, the IRS might be use technology to catch you, but all those staff cuts are hampering the agency’s IT projects too, and much of the money they were supposed to get from the Inflation Reduction Act to help improve their tech has been clawed back, so I wouldn’t worry too much about it.

(Seriously, though, please don’t cheat on your taxes.)

It’s just that it really does seem like a once-in-a-lifetime opportunity to cheat. The one agency that can stop you — also the one that delivers almost all of the government’s revenue — has been hobbled so comprehensively that if you were actually planning to create an environment for tax evasion, you could hardly do better. It’s OK to talk about this now, of course, because tax season is over and it’s not like any of the people on extension would want to cheat, or like anyone would try to cheat on their quarterly estimates or on the payroll taxes their company is supposed to hand over because they thought the IRS was so weak it wouldn’t catch them.

No one would do that, right?

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Accounting

Tariffs collide with taxes in Trump bill

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The tax reconciliation bill making its way through Congress is expected to add trillions of dollars to the national debt, but the Trump administration hopes to offset the cost through income from tariffs. Accountants are helping worried companies deal with the possible fallout.

“Obviously, tariffs create a lot of uncertainty,” said Tom Alongi, a partner and U.S. national manufacturing practice leader at UHY, a Top 50 Firm based in Farmington Hills, Michigan. “But with uncertainty for U.S. manufacturers, it creates a lot of opportunity. And for those that are contract manufacturers that use a lot of offshoring, it creates a tremendous amount of angst, especially among the auto industry that really over the last three decades has turned into a global supply chain as we’ve been in a race to the bottom to reduce costs.”

UHY has been helping CFOs deal with the changing tariff policies coming out of the White House. “A lot of companies don’t even realize how deep some of their supply chain and where some of their raw material and purchased components ultimately originate,” said Alongi. 

That involves quantifying the impact, understanding the origin of components and raw materials, and where that fits in the Harmonized System that’s administered by the International Trade Administration, making sure everything is classified correctly. 

The Trump administration hopes to convince more companies to relocate their manufacturing operations to the U.S. But companies are also looking at changing their sourcing to other countries if they’ve been relying too heavily on Chinese-made supplies amid the ever-changing tariff pronouncements.

“That uncertainty does create challenges within our clients of allocation of capital,” said Alongi. “Do I make big bets to transition if I have a huge amount of risk that is isolated in a certain country? What do we potentially do to mitigate that risk?”

Auto manufacturers need to look at the proposed changes to tax credits in the tax bill, including reductions in electric vehicle tax credits and other tax incentives for renewable energy.

“I always knew that it is a great alternative source that fits certain consumers, but I never believed that it was going to take over the world,” said Alongi, who has been driving an EV for over seven years. “The tax credits create a behavior, and they incentivize people to drive electric.” 

The shortcomings in the national infrastructure for charging EV batteries disincentivize broader takeup, and the disappearance of the tax credits would make the vehicles even less affordable.

CBIZ, a Top 10 Firm based in Cleveland, launched an Integrated Tariff Solutions program earlier this month for its clients nationwide, offering support across finance, operations, supply chain strategy, tax and compliance. 

“Like so many other middle-market companies, certainly the larger companies, in this environment, there’s more demand for advice on mitigating exposure,” said Mark Baran, managing director of CBIZ’s National Tax Office. “Tariffs have been relatively low for a long time, and now the supply chain, pricing, vendor relationships and locations of where goods are manufactured need a fresh look.”

Different industries are looking for help, including manufacturing, construction and import. “They’re really looking at how to mitigate these costs, which don’t appear to be slowing down,” said Baran. “It could be temporary, but it’s not right now. So we have developed a number of different avenues to assist our clients, whether it’s evaluating inventory and how to properly account for inventory, whether it’s seeking to help them find locations in the U.S. if they want to bring their manufacturing back to the U.S. and do that in a tax efficient manner. We’re looking at intercompany transactions and layering transfer pricing concepts onto customs, seeing if we could help with savings in that regard. Depending upon what a client does and their structure, there’s probably a number of ways you can tackle tariffs and get ahead of it. “

Customs valuations are important. “It’s really ensuring that you have an accurate customs valuation, and oftentimes that wasn’t looked at accurately, and there are savings that can result from that,” said Baran. “These are considered an intercompany framework, oftentimes on the businesses that are most impacted by this. Looking at that structure is another way of doing this, not just not just transfer pricing, but location-based analysis. It’s taking what has been decades of international tax knowledge and layering on customs, and that’s providing a framework that’s been tested and works and is valuable.”

Baran has also been keeping a close eye on developments with the overall tax legislation. House Republicans have come under pressure from President Trump to finalize the bill this week, but that won’t be the end of the story. “What’s waiting for them at the Senate tells me that this bill may not look the same because there’s already opposition from the Senate, and the Senate has a lot of rules that they need to follow,” said Baran. “The Senate has concerns, and the Senate instructions in the budget reconciliation concurrent resolution are very different than the House, so you may have a House and a Senate that’s producing two completely different bills. While it’s nice to report and discuss all of the changes that are coming out of the House, I think people should just keep in mind that the Senate is next, and do not assume that they will follow suit. So the ultimate bill that’s eventually produced is going to look a lot different than it does now.”

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Accounting

Fastest-growing accounting firms spend double on marketing

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The fastest-growing accounting firms spend twice as much on their marketing budget than all other firms, according to a new study.

The Association for Accounting Marketing, in collaboration with the Hinge Research Institute, surveyed over 87 firms — representing 1,037 offices and 66,000 employees — about the drivers behind the marketing performance of the fastest-growing firms. 

High-growth firms invest two-thirds more in employer branding and recruiting, and they budget more for conferences and events, the data found. 

AAM logo

When it comes to marketing budgets, the fastest-growing firms spent 2.1% of their revenue versus low-growth firms, which spent 1%. Some of that money is invested in marketing teams. High-growth firms have a higher ratio of marketing staff to full-time equivalents (1:49) compared to other firms (1:57). However, the average salary of a high-growth firm team member is 27% less than at the slowest-growing firms. 

“When it comes to marketing, the accounting industry tends to be risk averse and invests less than most other professional services industries,” Liz Harr, managing partner at Hinge, said in a statement. “But the data shows that those that spend more on marketing are getting superior results.”

High-growth firms also spend 66% more on recruiting talent and developing their employer brands — the reputation, culture, employee experiences and marketing that entices potential hires to choose their firm over another — than low-growth firms. 

(Read more: “The 2025 Fastest-Growing Firms”)

Finally, the fastest-growing firms spend 21% more of their marketing budget on conferences and other in-person events than their peers, with high-growth firms allocating 30% of their budget versus low-growth firms allocating 25%. 

“Today’s high-performing accounting firms are taking a somewhat more balanced approach to marketing,” AAM president Laura Metz said in a statement. “Digital and content marketing budgets are on the rise, but perhaps more than anything, high-growth firms are focused on nurturing relationships in person, whether at industry conferences or their own client appreciation events. These gatherings aren’t just line items, they’re growth strategies where the strongest connections, best leads and boldest brand moments take shape.”

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