Mar 02, 2020

A Tool to Boost Business Intelligence

CPAs deal with volumes upon volumes of client information. Data analytics can help make sense of it.

Businesses and their advisors seek creative ways to make sense of enormous amounts of information, or “Big Data”, to solve inefficiencies, detect fraud and enhance profitability.


With many attest clients processing their transactions electronically, CPAs and other technical consultants are now getting involved in Data Analytics — the art and science of processing Big Data to discover and analyze patterns, identify anomalies, and extract other important information embedded in data through analysis, modelling and visualization relative to human behavior and interactions.


Data Analytics can be utilized to enhance many professional services, including audit and review engagements, forensic investigations, consulting engagements, and assisting clients in business decisions. For CPA firms, Data Analytics is a powerful tool because it can help auditors achieve 100% coverage in substantive testing, which decreases engagement risk while increasing efficiency and realization.


At the same time, demand is growing for Data Scientists, or individuals that have strong analytic abilities and are skilled in computer coding. Data Scientists understand how to use Data Analytics to process Big Data efficiently and aesthetically, blending form with function.


When data is received in a format that’s not user-friendly, for example, data analytics can make it easier to use. In one case, a CPA firm that’s a Collemi Consulting client was presented with more than 100 individual journal entries — necessary for substantive purposes — that were not only presented in PDF, but were structured in a variety of different formats. The CPA firm essentially had information but did not have an efficient way to use it, since manually converting the journal entries into a standard, usable format would be extremely time consuming.


Instead of reformatting each entry, we automated the process by devising a computer code that could electronically identify and extract information directly from the General Ledger, which already presented with a uniform format.


This enabled the external auditors to efficiently read and utilize the information; and as a bonus, the Collemi Consulting code also summarized the P&L and balance sheet effects of the 100-plus journal entries.


Integrating Data Analytics into their practice gives audit professionals an opportunity to provide additional value-added services to existing clients while potentially attracting new ones. Audit professionals who want to integrate Data Analytics into their practice generally have three options of doing so: devoting a lot of time to understanding third-party specialized computer aided audit tools (CAATs) software, some of which utilize Artificial Intelligence (A.I.); take on the long-term commitment of hiring a Data Scientist in-house to build custom applications, or outsource the task to a Data Lab.


Regardless of the approach they select, auditors will be able to harness the power of Data Analytics to automate numerous attest procedures, including tests for: non-standard journal entries, accounts receivable, accounts payable, payroll, travel and entertainment expense reimbursements, fixed assets, check registers and cash disbursements, and revenue recognition. Data Analytics can also enhance and digitize such activities as stratification, risk score assignments, multi-dimensional analysis of transactions, data joins, data appends, data aggregations, data visualization, and of course, taking on large data sets that previously could not be analyzed because of constraints like time and staff size.


As businesses continue to face more pressure to process transactions faster — with less staff and other resources — their vulnerability to fraud or errors continues to increase. An effective Data Analytics strategy can address this potential vulnerability, and Engagement Team Leaders — including Partners, Managers, and In-Charges — should consider the benefits of embracing automation while determining the approach that best fits their firm’s practice and budget.

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Hook 'em! How to Deliver More Compelling Presentations

21 Dec, 2023
Prepping to give a presentation? Here’s a quick trick: Make sure your introduction is attention-getting, and you’ll help ensure your audience members are thoroughly engaged until the very end. If you’re giving a slide presentation, that means that your first three slides are critical. A recent survey of businesspeople by Storydoc, a business presentation company, revealed that 80 percent of audience members who are engaged in the first three slides of a presentation will likely stick with you until the end of your presentation. That’s critical, considering another Gallup study that revealed that 60% of businesspeople admit to being “indifferent” to presentations, while another 11% say they’re “actively disengaged.” So, what to include in those first three slides? The best strategy is to start off with a hook: an eye-catching photo, an impressive number, an agonizing problem that members of the audience are likely to face, or a shocking statistic. Adding that hook toward the beginning of your presentation will help reel the audience in. Here are some additional presentation best practices that we at Collemi Consulting recommend: Know your audience. Understanding who comprises your audience is critical so that you can ensure you’re covering the material that matters the most to them. If you’re speaking at a conference or training event, get a list of attendees ahead of time and see who they are and where they’re from so that you can get an idea of their background. If it’s possible to communicate with attendees beforehand, send them a note introducing yourself and ask them if there are specific issues, they’d like you to touch on during your presentation. Ask questions. If you don’t interact with your audience at the beginning of your presentation, people will settle into a passive “TV-watching” mode, and it will be difficult to keep them engaged. And asking questions can also help you zero in on what matters most to the audience. For instance, you might throw out a question like, “What keeps you up at night most, XX or XX?” (reference specific challenges). Or, ask people to raise their hands if they’ve struggled with a specific obstacle. Then, you can be sure to address the challenges that most audience members indicate they’ve faced. Another way to keep people engaged with questions is by throwing out “trivia” questions related to specific new accounting standards or something else that pertains to the content you’re covering. If you make participants feel like they’re part of the presentation, they’ll be much more likely to pay attention — and retain the information. Add visual appeal. While your presentation is likely filled with a lot of important content, it’s critical to remember not to overload your audience with pages and pages of text. Break up slides with text and simple photos or illustrations that support your message. A well-chosen image is a welcome break from text that can grab your audience’s attention and help reinforce your message. You can find professional stock images on sites like Shutterstock. Provide a next step. Don’t just end your presentation abruptly by thanking people for coming. Close by including a slide that mentions what you’d like the audience to do with the information you shared with them. Perhaps you’d like them to make a list of ‘to-dos’ that will help them implement the information you’ve shared with them. Or maybe you’ll invite them to reach out to you should they need your services. A solid closing will build rapport — and help audience members retain what they’ve learned. Collemi Consulting leverages almost three decades of experience in providing trusted technical accounting and auditing expertise when you need it the most. Salvatore A. Collemi, CPA, Managing Member & Founder, is regarded as an industry leader and subject matter expert by various organizations and media outlets. To schedule an appointment to see how we might work together, contact us at (732) 792-6101.

Marketing for Auditors: 4 Savvy Strategies

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Want to know the difference between high-growth and average-growth firms in the public accounting profession? Here’s a hint: It begins with the letter “M.” If you guessed “marketing,” you’re correct. According to the 2023 High Growth Study by Hinge, public accounting and finance firms grew at a median rate of 11%, lagging behind many other professional services categories. But the study also uncovered that public accounting firms that focus on marketing as a top priority see regular, year-over-year growth of 20% or more! Here is the good news: You don’t have to be a Big 4 firm with extensive resources to leverage marketing to your advantage. Small-and mid-sized CPA firms, and even sole practitioners, can take some simple steps to differentiate themselves in their respective field. Many auditors & accountants and their firms are missing out on major opportunities to target clients using tools that are right at their disposal. Here are four strategies to build visibility for your practice and differentiate yourself from your competitors: Strategy #1—Public Speaking. Landing speaking gigs at industry conferences or on an industry podcasts or webinars are one of the best ways to position yourself and your firm as an expert in the field. Speaking gigs offer auditors a platform to showcase their knowledge, provide insights on relevant topics and establish themselves as an authority in the field while increasing their firm’s visibility. You can use speaking engagements to share best practices, identify emerging trends and offer solutions. To get started, do some research on upcoming conferences in your area where you might offer to contribute. Your State Society and local Chambers of Commerce may also have seminars or online events that offer speaking opportunities. Strategy #2—Create a newsletter. Some savvy CPA firms create email newsletters that provide valuable and relevant information to clients and prospects. Sending out periodic newsletters helps drive traffic to your website or blog (when you include links to relevant articles or resources), builds credibility by positioning yourself and your firm as a subject matter expert (SME), and encourages social sharing. If your content is engaging, it may prompt subscribers to share it on social media. Your newsletter doesn’t have to be lengthy: Two to three short articles, plus a call to action at the end, is enough to capture a reader’s attention. Strategy #3—Include lead magnets on your website. Lead magnets are incentives on your website that you offer potential clients in exchange for their contact information. For example, you might offer a white paper you’ve created on an important topic or a PDF that highlights important new information regarding the latest accounting rules. Creating these kinds of lead magnets can help you grow you email list and build a database of potential leads. Strategy #4—Amp up your social media. You may already be leveraging social sites like LinkedIn to promote yourself or your business, but are you gaining followers and increasing engagement? The best way to grow followers and generate more interaction is to share information of real value to those you want to target. It’s also important to post content frequently and interact regularly with followers. Remember that social media is all about dialogue (not sales pitches!). Approach it as a conversation; post content your followers are likely to share or comment upon, which will extend your reach to their connections. Be generous with your time and advice, and potential clients will want to work with you. Short on time? Pick one or two of these strategies to focus intently on in the upcoming year; the investment in time will be worth it. Collemi Consulting leverages nearly three decades of experience to provide trusted technical accounting and auditing expertise when you need it the most. We regularly work with CPA firm leadership to help them reduce risk and maximize efficiencies to grow their attest practices. To schedule an appointment, contact us at (732) 792-6101.
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