CPA VS RON SMITH CONVERSATION SERIES - EPISODE 5

20 Feb 2020  |  1095
CPA VS RON SMITH CONVERSATION SERIES - EPISODE 5

CPA VS RON SMITH CONVERSATION SERIES - EPISODE 5

2  Minute Read - The 80:20 Golden Rule of Delegation

To Read Episode 4 - Click Here

To Read Episode 3 - Click Here

To Read Episode 2 - Click Here

To Read Episode 1 - Click Here

 

CPA: “ Ron, you work with 500+ CPAs and small accounting firms, right? Am I the only one who faces challenges in finding the sweet spot between delegating and doing things myself?”

Ron Smith“Absolutely not. For every CPA or owner/partner of a small accounting firm, it’s a challenge. But if you want to grow and become a scalable business, delegation is critical. One of our clients, Jeff Badu, CPA mentioned in his podcast the golden rule of delegation is, “if a person can do 80% of what you were doing, delegate!”

CPA: “Right. The 80:20 rule of delegation. However, the staff that we have are paid reasonably well and have benefits like insurance, paid vacations, bonus, etc. So, my staffing cost goes quite high and so does my expectation of them.”

Ron Smith: “But, isn’t it hurting your firm’s overall profitability?”

CPA: “Yeah, it is and I don’t know the way out. I have capacity constraints as I just can’t hire another mid-level staff at $65 k - $75k.”

Ron Smith“What if you can hire equally qualified and experienced accounting professionals starting at $9/hour? On top of that, you don’t need to take care of payroll taxes, compliance, or any other benefits.”

CPA“Are you kidding me? That’s below the minimum wage and even if it’s legal, who would agree to work at such a low salary? Even McDonalds pays $10 an hour.”

Ron Smith: “Hold on! Before I answer this question, Big 4 and large accounting firms not only have a multinational presence and also have multinational teams that work for them...”

CPA: “But, they are huge, they have large multinational clients and transnational presence. So, what about it?”

Ron Smith“Let me share with you some data of Big 4’s workforce in a developing nation like India (Only Accounting & Tax workforce excluding IT and others):

  • Deloitte 100,000+ 

  • E&Y - 60,000+

  • KPMG 50,000+

  • PwC - 45,000+

CPA: “But, I’m the owner of a small accounting firm, Ron. I can’t open an overseas office.”

Ron Smith: “Entigrity exclusively works with small, mid-size, and regional accounting firms. We have secured offices in India and we take care of finding the candidates, scheduling interviews, tests, onboarding them, and then they work as your dedicated staff from our secured facilities.”

CPA: “Interesting, I have many more questions about this, how would I communicate, collaborate, and what about the time-zone differences?”

Ron Smith: “You can go to our YouTube Channel and watch videos on all these points."


Source -

 //www.statista.com/statistics/189247/number-of-employees-of-ernst-young-by-area/

//www.businesstoday.in/sectors/jobs/ey-to-hire-14000-employees-in-india-deloitte-kpmg-recruiting-too/story/382060.html
//tech.economictimes.indiatimes.com/news/corporate/deloitte-to-add-nearly-40000-employees-in-hyderabad-increase-overall-india-hiring/67956004
//www.statista.com/statistics/189763/number-of-employees-of-pwc-by-region-2010/

Entigrity™ is a trusted offshore staffing partner to over 500+ accountants, CPAs, and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still, you are left with least to worry about compliance, payroll taxes, overheads or any other benefits.

About The Author
Vice President, Marketing

Ted Rosedale is the Vice President, Marketing for Entigrity. Ted is a consultant, an author, a speaker who specializes in accounting technology issues. He helps navigate the minefield of professional liability issues that accounting professionals face on a daily basis. He understands practical risk management for CPAs and risks faced in the profession. With his consultation, small business owners have been able boost their revenues and achieve higher profitability due to staffing strategies. He often writes insightful articles for accounting professionals. In his free time, Ted loves to compose music.

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