Latest / The Accounting Leads Now Podcast / Leaving the Comfort Zone: Kate McKeever’s Journey to Building a Successful Accounting Firm
Transcript
- 0:01Speaker 1: Welcome to CFO Chronicles the secrets behind success, the go-to podcast for fractional CFOs and accounting firm owners who want to attract more high-paying clients and increase their revenue.
- 0:14Speaker 1: Hosted by James Donovan from Nine Two Media, this podcast dives into marketing strategies specifically designed for lead generation and client acquisition.
- 0:24Speaker 1: In each episode, you'll hear from industry leaders sharing their success stories, and Thank you so much for joining me today, kate.
- 0:31Speaker 2: I'm really looking forward to speaking with you.
- 0:54Speaker 2: I know we connected a couple weeks ago over Instagram.
- 0:58Speaker 2: I've been following a ton of your content for a while.
- 1:00Speaker 2: It's been very impressive, so I wanted to pick your brain a little bit today, hear what it is that goes into your strategy, how you got into starting your firm, and hearing all about your business.
- 1:13Speaker 2: So for those who don't know you, do you mind giving a quick introduction?
- 1:18Speaker 3: Sure, I'm Kate McKeever.
- 1:19Speaker 3: I'm the owner of Lilac Accounting.
- 1:21Speaker 3: I'm a CPA.
- 1:23Speaker 3: I did the big firm and corporate accounting thing for a while and went out on my own last year.
- 1:28Speaker 3: So I've been building my own practice, mainly through bookkeeping and tax services for small businesses and now starting to offer some fractional CFO services as well.
- 1:39Speaker 2: Awesome, awesome.
- 1:41Speaker 2: What made you jump from corporate to going out on your own?
- 1:48Speaker 3: I actually really had a great work environment in my corporate job, which made it almost harder to leave.
- 1:56Speaker 3: It was just the kind of job that was comfortable, but not a place I could really grow.
- 2:00Speaker 3: So I was in-house for a big corporation in the wedding industry and after I'd been there about five years it just felt like you know it was a great job in terms of work-life balance.
- 2:13Speaker 3: I love my boss, but I didn't see myself there for like 30 more years and I'm the type of person who just always had the itch to go out on my own, and at that point I had about 10 or 11 years of experience in tax and accounting.
- 2:24Speaker 3: So I felt like I had enoughch to go out on my own.
- 2:24Speaker 3: And at that point I had about 10 or 11 years of experience in tax and accounting.
- 2:26Speaker 3: So I felt like I had enough knowledge to go out on my own.
- 2:30Speaker 3: And over the years I'd always have people like friends of friends or fellow college alumni come to me if they were starting a business and they wanted tax and accounting help or help with forming the entity.
- 2:41Speaker 3: So I started to think maybe I could string together enough of these small business clients to start my own practice.
- 2:48Speaker 3: So I started doing that in April of 2023.
- 2:55Speaker 3: And by November of 2023, I had a few clients, but it definitely wasn't enough to replace my corporate salary yet.
- 3:02Speaker 3: But I was kind of at a crossroads because if I stayed for another tax season in my job, the business would plateau.
- 3:10Speaker 3: I'd have to put it on the back burner.
- 3:12Speaker 3: So I decided just to go all in, take a risk and hope that the rest of the clients I needed would come, and thankfully they did.
- 3:20Speaker 3: I mean, I also put a lot of work in to make that as likely to happen as possible.
- 3:24Speaker 3: I did a lot of networking, a lot of social media.
- 3:28Speaker 3: But yeah, thankfully the end of last year I was able to get a lot more clients pretty quickly and and now have you know more or less replaced that corporate salary.
- 3:39Speaker 2: That's awesome.
- 3:39Speaker 2: It's always cool to hear hear the jump individuals make from from corporate to going out on their own.
- 3:44Speaker 2: I'd love to hear a little bit about your strategy of how you brought on more clients.
- 3:49Speaker 2: So you went through the low hanging fruit you had your friends, family referrals but how are you going out and finding new businesses who have no idea who you are, to speak with you and then sign a check and work with?
- 4:04Speaker 3: you.
- 4:07Speaker 3: In the beginning stages, in-person networking was huge for me and my strategy.
- 4:11Speaker 3: With that, I specifically found groups that I felt kind of aligned with my personality and the type of clients I was looking for.
- 4:19Speaker 3: I'm based in New York, I'm on Long Island and there's a couple groups here that are either specifically for like women around my age, which is most of who my clients are and there's not a lot of accountants in those groups.
- 4:30Speaker 3: So I think there were a lot of business owners in there looking to work with an accountant who they can relate to.
- 4:37Speaker 3: So that was a way I found a lot of my initial clients and I joined groups that were based more on building relationships and then the business comes second to it.
- 4:47Speaker 3: There's also some networking groups that is probably the more like typical ones you think of that are more transactional, like you're required to show up at these meetings every week, you give out your business card, but you don't really get to know the people.
- 4:59Speaker 3: I think when you do networking where you really get to know the business owners, that helps find clients a lot faster because they like you and they trust you.
- 5:08Speaker 2: Okay, interesting.
- 5:09Speaker 2: Now it's cool.
- 5:11Speaker 2: You're talking about building the relationship first and then the business comes.
- 5:16Speaker 2: Now that takes a lot more patience and it's a longer term play.
- 5:19Speaker 2: So is that something you struggled with when you first got started or you knew from from day one?
- 5:25Speaker 2: This is going to be a longer term play and I just gotta I gotta shake a lot of hands and meet people first, and the business will come.
- 5:32Speaker 2: Did you always trust that process?
- 5:36Speaker 3: yeah, I trusted it and I also put myself in groups where there was a shortage of accountants.
- 5:42Speaker 3: So I think that helped speed up the process a little because I was able to get some clients pretty quickly, even in those groups where it's more about the relationship.
- 5:53Speaker 3: So that helped as well.
- 5:54Speaker 3: And then I think the social media presence also helps people to like and trust you quickly, because I noticed that I would meet people at a networking event.
- 6:04Speaker 3: They'd follow me on Instagram for a couple of weeks and then they'd sign up for the discovery call.
- 6:09Speaker 3: So I think they kind of like to watch and see like is she doing what she says she is?
- 6:14Speaker 3: Do I like her?
- 6:15Speaker 2: and you know, when you're active on social media, I think it shows people that you're like, dedicated and consistent well, and then there's a little bit more of a human element to it, not just hey, I'm your, your standard or typical accountant bookkeeper.
- 6:31Speaker 3: Yeah, exactly, get to know your personality.
- 6:34Speaker 2: Walk me through a little bit of your strategy on on Instagram, because you do post a lot of really engaging content and it's it's not just him sitting behind the computer and crunching numbers and over going over pnls, like there's a lot more of your personal life on there.
- 6:53Speaker 2: Is that something you knew you wanted to do, um, when you first got started, or is it slowly transitioned into that?
- 7:01Speaker 3: I've always known that would be a big part of my strategy.
- 7:04Speaker 3: I think there's nothing like organic social media presence in terms of marketing.
- 7:11Speaker 3: You just can't pay for something like that, and it's something I genuinely enjoy too.
- 7:15Speaker 3: Plus, a lot of my clients are women, ages like 25 to 45.
- 7:20Speaker 3: So Instagram is where they are.
- 7:21Speaker 3: It's what I dedicate a lot of time to, so I try to post a mix of content that's like educational.
- 7:27Speaker 3: It might be some stuff about bookkeeping or taxes or like deadline reminders, but then I also try to put a lot of my personality into it.
- 7:36Speaker 3: It sounds kind of silly, but I tell myself I'm like an accounting influencer, accounting celebrity, and I have less than a thousand followers.
- 7:44Speaker 3: Like, I'm definitely not, but that's kind of the mindset that I bring to it.
- 7:47Speaker 3: And, yeah, I think people like to see that personal side of it too.
- 7:53Speaker 3: And there's so few accountants utilizing social media in an engaging way that if you can show up and be yourself, you're ahead of so much of the competition.
- 8:05Speaker 2: Awesome.
- 8:05Speaker 2: Well, give yourself some credit, though, because you need 1000 before you can get to 10,000.
- 8:10Speaker 2: And if you think about a room of 1000 people looking at you on stage, that's a lot of eyeballs and a lot of people taking in your message.
- 8:19Speaker 2: So having 1000 followers whether you think it's large or not, you're definitely growing in the right direction.
- 8:23Speaker 2: That's really cool.
- 8:28Speaker 3: Yeah, and in our industry you don't need a ton of followers to build a business.
- 8:30Speaker 3: I mean, I have, you know, replaced my corporate salary with a few hundred followers because you only need those you know few loyal fans that become clients.
- 8:38Speaker 3: You don't need hundreds or thousands of them 100%.
- 8:41Speaker 2: I think a lot of people get that wrong and they think you need 10s of 1000s of followers to grow a successful business, when in reality, most businesses could not even come close to taking on that much business.
- 8:56Speaker 2: Like you said, they only need if, depending on what your service offering is, you might be well at your cap, at even 20, maybe 50 or 100 or so.
- 9:07Speaker 2: So yeah, you definitely don't need 100,000 followers in order to have a successful business.
- 9:12Speaker 2: What's the transition been like for you, going from bookkeeping and tax work now to offering more advisory and fractional CFO services?
- 9:21Speaker 3: Yeah, Um, well, I started to notice a pattern because a lot of a couple of my early clients were in the therapy industry, like mental health counseling, and then they referred me to other clients so that kind of became like the main, most popular industry that I have that I work with and I started to notice patterns and like some of the common questions that they had that went beyond the basic bookkeeping and tax stuff, like how do they know how much they should be paying themselves?
- 9:52Speaker 3: How do they figure out how much money they're owed from insurance?
- 9:56Speaker 3: How do they know when they can hire another therapist?
- 9:58Speaker 3: So when you get deeper in one industry, you start to see these patterns and you realize there's so much more you can offer than just the monthly P&L and the annual tax return.
- 10:10Speaker 3: So I came up with a package to help them more with the budgeting, forecasting, really come up with a plan for running the business and also giving them the space to talk about this stuff.
- 10:27Speaker 3: Like I think in the beginning I was underestimating the value of what even like a monthly meeting with an accountant does for a client.
- 10:36Speaker 3: There's so many times when I'll come to those and and I don't think I've shared anything that's like earth shattering in them.
- 10:42Speaker 3: But the client will thank me after and say, like, what a relief it is to have someone to talk to about that kind of stuff.
- 10:47Speaker 3: Um, so I, you know, initially when I started offering the bookkeeping and tax services, I think I was like scared of the word advisory or like intimidated the putting myself out there as a fractional cfo because you might think it's something so much more complicated than it has to be.
- 11:05Speaker 3: Um, but it's really, you know, answering those questions for a client that's anything beyond the basic bookkeeping and tax and, you know, helping guide them a little more and giving them the space to talk that out with someone.
- 11:20Speaker 2: Bit of a financial therapist.
- 11:22Speaker 3: Yeah, exactly.
- 11:24Speaker 2: That's cool.
- 11:26Speaker 2: Can you tell me a little bit about some of the biggest lessons you've learned in the last year or so being in business and working on your own?
- 11:38Speaker 3: Yeah, lately I'm thinking a lot about kind of getting myself out of the day to day.
- 11:44Speaker 3: I'm sorry I'm getting to a point where I'm becoming the bottleneck and my mindset when I first left my corporate job was I only wanted it to ever just be me like.
- 11:56Speaker 3: I just want enough work for myself.
- 11:58Speaker 3: And now I see you know how much more effective and a bigger impact you can have when you build a team and there's so much of what we do that can be automated and delegated so that you know your time can be used for the the high leverage stuff like that advisory and the client meetings.
- 12:16Speaker 3: So I'm working now on on, you know, getting myself kind of out of the weeds and the basic stuff and and bringing on either the right people or the right systems to to streamline that more so.
- 12:29Speaker 3: That's been a huge lesson.
- 12:30Speaker 3: And then the other one has been more so.
- 12:33Speaker 3: That's kind of the more practical.
- 12:35Speaker 3: The other one has been more internal.
- 12:38Speaker 3: Just your self-concept, I think, has a lot to do with your success and when you're an employee that's not really something that you have to think about.
- 12:46Speaker 3: But when you're working for yourself, the way you think about yourself and your business I think impacts the success so much, especially when I started offering the fractional CFO services.
- 12:59Speaker 3: I had some doubt at first.
- 13:02Speaker 3: Like am I worthy of doing this?
- 13:05Speaker 3: Am I worthy of the prices I'm charging?
- 13:07Speaker 3: And and you have to, you know, build this new identity around yourself and your business, because you're you're never going to be able to accomplish what you think you're not worthy of.
- 13:22Speaker 2: Yeah, that's cool.
- 13:23Speaker 2: How, how did you or how did you or how are you working over that hurdle?
- 13:30Speaker 2: Because it sounds like there's a bit of imposter syndrome, which is so normal, especially when going out on your own and starting to offer services.
- 13:38Speaker 2: That, yeah, you may have done before as a W-2, but now you're doing it with your name backed behind it.
- 13:45Speaker 2: So I'd love to know if there was any books or there was any mentors you worked with, or what helped you get to the point where, like, yeah, I'm extremely confident in what I'm doing and this is what I'm going to charge and this is the result we're going to deliver.
- 14:01Speaker 3: Yeah, I've had a couple of mentors.
- 14:03Speaker 3: I have one general business coach who works with female business owners I'm part of her mastermind Jess McKinley-Ueno is her name and that has been great for like learning how your you know thoughts impact your success, and just being in a room with other people who are working on the same goals has been really powerful.
- 14:25Speaker 3: And then on the fractional CFO work specifically, I've worked with Charles Lykoff, who I think you had as a guest before the profit search, so that was also really helpful.
- 14:35Speaker 3: He made me realize you know how much of what I was already doing was advisory and fractional CFO and kind of coming up with the package for it, how to price it, how to sell it, because advisory is so much more nebulous than the bookkeeping and tax services.
- 14:51Speaker 3: Like a lot of us know what those deliverables are, how to price it.
- 14:55Speaker 3: But when you start to get into the gray area of advisory more, it was really helpful to have someone who's done that before say, like you know, this is the industry standard, this is, you know what you might want to include or might not and why.
- 15:08Speaker 3: So it's really helpful to have someone who's who's been there to talk through those things with.
- 15:13Speaker 2: Awesome, that's really cool.
- 15:15Speaker 2: What are you, what are you most proud of over the last year and change?
- 15:20Speaker 2: Of being out on your own and growing your business.
- 15:22Speaker 2: And now to the point where the goalpost is moving from I just wanted to supplement my corporate income to now.
- 15:30Speaker 2: No, there's bigger and greater things to accomplish here.
- 15:33Speaker 2: I want to start bringing on team members.
- 16:24Speaker 3: Yeah, I think the first thing was.
- 16:26Speaker 3: So, when I took that leap in November of last year and I left the corporate job to go out on my own, I thought like I'll give it a try and if it doesn't work out, I can always go work part time for another CPA firm, and I thought it was maybe more likely than not that I'd have to do that at some point to make ends meet.
- 16:49Speaker 3: Um, but I never had to and I'm proud of the fact that.
- 16:50Speaker 3: Uh, you know, I was able to bring in my own business fast enough to, um, you know, kind of survive on my own for this past, uh, like 10 months or so and then, um, another thing I'm really proud of when I look back is, um, building the business has forced me to change some habits around, like people pleasing.
- 17:08Speaker 3: Building the business has forced me to change some habits around, like people pleasing.
- 17:11Speaker 3: Now, when you know questions or issues or things come up with clients that you know, when I first started I would have like panicked and tried to like people please, and probably done too much for not enough money.
- 17:23Speaker 3: Now I look back and think like how I would have handled a situation a year ago versus how I handle it now.
- 17:29Speaker 3: Is is so different and I think a lot of those soft skills you're like forced to work on with building a business.
- 17:40Speaker 2: That's cool.
- 17:41Speaker 2: The reflection is so important and it's crazy to think, yeah, what, what you would have done for your first couple of clients first, how you would act now for whatever that sum of money would be or the amount of time that's involved.
- 17:55Speaker 2: Kate, what would you say to those listening who are doing bookkeeping and tax work?
- 18:02Speaker 2: They want to get into fractional CFO, more advisory stuff, but they might be a little shy or timid to take that leap.
- 18:09Speaker 2: You doing it, you've broken through that barrier.
- 18:12Speaker 2: So I would love to hear what your advice would be.
- 18:18Speaker 3: First I would try it out with a couple of your existing tax and bookkeeping clients.
- 18:22Speaker 3: That's what I did.
- 18:23Speaker 3: It's a really accessible way.
- 18:25Speaker 3: They'll almost never say no to getting more services.
- 18:28Speaker 3: You can do it either for free or at a heavily discounted rate, and you already have that like foundation of rapport with them, so you can kind of test some things out, see what works and what doesn't.
- 18:37Speaker 3: So that's a super easy way to gain a little confidence and then you'll know.
- 18:42Speaker 3: You know kind of, you'll see what the offer should be.
- 18:47Speaker 3: Another thing would be to, you know, put yourself around people who are trying to do similar things.
- 18:54Speaker 3: There's so much work in this field I feel like there's never competition.
- 18:57Speaker 3: We can all learn a lot from each other.
- 19:00Speaker 3: So if you want to find like a coach or a mastermind, that's that's geared toward this, that will help a lot.
- 19:05Speaker 3: And then also reminding myself of my past wins has been helpful, like when I first went out on my own doing the bookkeeping and tax.
- 19:14Speaker 3: I wasn't sure if I could do that, but I figured it out.
- 19:16Speaker 3: Like now with the fractional CFO stuff, you might not be sure you can do that, but think of all the other things you've figured out for the first time along the way.
- 19:27Speaker 2: That's awesome.
- 19:27Speaker 2: What?
- 19:29Speaker 2: What keeps you motivated to to push through each day, cause I'm sure it's not all up into the right and in sunshine and rainbows the first 10 months?
- 19:40Speaker 2: I mean every day is tough running your own business.
- 19:43Speaker 2: So what, what?
- 19:44Speaker 2: What gets you out of bed and you're like, yep, I'm going to keep doing this for another day.
- 19:48Speaker 2: So what gets you out of bed?
- 19:48Speaker 3: and you're like yeah, I'm going to keep doing this for another day.
- 19:49Speaker 3: I love the freedom of working for myself and the control over my day and my time, the ability to prioritize things that are important, like family events, appointments.
- 20:03Speaker 3: I love to golf.
- 20:03Speaker 3: I get to play weekday mornings once or twice a week with friends weekday mornings once or twice a week with friends and that lifestyle is so important to me that I will do whatever it takes to not go back to a situation where someone else tells me you know what my schedule is and where I have to be, when and whether or not I have to be in an office.
- 20:21Speaker 3: So to me, the motivation is that freedom for myself and you know my husband, future family.
- 20:30Speaker 3: I think there's just no amount of money or anything that replaces that.
- 20:37Speaker 2: That's amazing.
- 20:37Speaker 2: I have a tea time this afternoon, actually at 230.
- 20:41Speaker 2: I'm looking forward to and I agree with you, it's so nice to build something where you have that that much freedom and that control and the deliverables are getting met.
- 20:51Speaker 2: But it doesn't need to be a strict nine to five Whenever the work gets done, as long as the clients are happy and the deliverables are being met.
- 21:02Speaker 3: Right, because for a client, you probably have one deliverable a month or something versus a corporate job.
- 21:08Speaker 3: It's all day, every day.
- 21:10Speaker 3: They month or something versus a corporate job.
- 21:12Speaker 2: It's you know all day, every day, they're expecting something from you.
- 21:17Speaker 2: Yeah, let's talk a little bit about pricing and you don't have to reveal your whole playbook, but I know that's a big hurdle, that a lot of prospects.
- 21:23Speaker 2: We speak to a lot of clients.
- 21:25Speaker 2: When they first come on board with us, they're wondering how to price their services, and you even alluded to it a little bit earlier, how it is more of a gray area and you're not initially sure what to charge.
- 21:35Speaker 2: So where did you land on a pricing structure that makes sense for you to be profitable and it makes sense for your clients to be successful?
- 21:44Speaker 3: Yeah, that's where working with the with Charles the coach, on this was really helpful.
- 21:49Speaker 3: He gave some context around like some industry standards and stuff.
- 21:54Speaker 3: And then with my industry, specifically the therapy practices I had to think about you know the size of the client that I'm trying to work with and what, yeah, they can afford versus the impact I'm going to have, what value it's going to deliver.
- 22:10Speaker 3: It's interesting with the advisory, I think you're thinking of it more in terms of what's the value you're delivering and then what you can charge for that, versus in terms of the hourly rate, which might be how you come up with your bookkeeping monthly price.
- 22:25Speaker 3: With the advisory, if you know on average you're going to increase their profit by a certain amount, you can then back that.
- 22:34Speaker 3: Obviously, you don't want to charge that full amount for your fee, but in between that and your hourly rate there's probably something that's more value driven.
- 22:45Speaker 3: And, of course, I think everyone starts out a little bit on the lower end and then you can gradually increase that as you get more experience.
- 22:53Speaker 3: I did that with my bookkeeping pricing too.
- 22:55Speaker 3: I probably started out too low and then every quarter or so I inched it up a little and I was like wow, people are still signing.
- 23:03Speaker 3: I'm not getting any pushback on this, so I'm probably going to end up doing the same thing with the fractional CFO services too.
- 23:11Speaker 2: Yeah, if you're not getting a lot of pushback, it generally means my prices are too low.
- 23:18Speaker 2: I get a kick out of anyone I speak to and they're like, yeah, I closed 90% or I closed 100% of the people I speak to.
- 23:25Speaker 2: Okay, well, you should probably think about increasing your price then, because it sounds like one.
- 23:31Speaker 2: I don't believe you that you're closing 100%.
- 23:34Speaker 2: Maybe referrals, those are very different, but a stranger, you're not closing 100%.
- 23:40Speaker 2: That's a great you know story to tell yourself.
- 23:42Speaker 2: But also, if you believe that to be true, increase your price and see what your closing rate still looks like, because if everyone's saying, yes, you have a really good offer, but it's also definitely lies in the pricing.
- 23:54Speaker 2: So great, great insight there.
- 23:56Speaker 2: What are your thoughts on basing pricing around like 1% to 2% of gross revenue?
- 24:06Speaker 3: Yeah, I think that's a good benchmark revenue.
- 24:11Speaker 3: Yeah, I think that's a good like benchmark I.
- 24:12Speaker 3: I don't come up with it only based on that, but that's a good way to check of like is this generally reasonable?
- 24:16Speaker 3: And and that's going to vary so much by like industry to like if it's a product based business, they have costs of goods sold, like their margins, going to be way lower than a service based one.
- 24:27Speaker 3: So maybe that number is a little higher or lower depending on the industry.
- 24:31Speaker 3: But that's a good way to see.
- 24:34Speaker 3: If you're like way above or below that, maybe there's something you need to adjust.
- 24:38Speaker 2: Okay, perfect, kate.
- 24:41Speaker 2: For those who want to reach out, get in touch with you.
- 24:44Speaker 2: What's the best way someone can do that?
- 24:48Speaker 3: Instagram is where I'm the most active.
- 24:50Speaker 3: That's at lilac underscore accounting.
- 24:53Speaker 3: That's the easiest place to find me, Okay awesome.
- 24:58Speaker 2: Well, I hope everyone listening got a ton of value from you, kate.
- 25:01Speaker 2: This was awesome.
- 25:02Speaker 2: Awesome to hear about the first 10 months of business.
- 25:05Speaker 2: I'm excited to keep following along to see what the next 10 months looks like and I hope everyone who is listening checks out your page, follows you and reaches out if they have any questions for their business or want to learn a little bit more about becoming a fractional CFO.
- 25:21Speaker 3: Thanks so much for having me.
- 25:22Speaker 2: Of course.
- 25:24Speaker 1: Thanks for listening to CFO Chronicles the secrets behind success.
- 25:29Speaker 1: We hope today's episode provided valuable strategies to help you attract more high-paying clients.
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- 25:48Speaker 1: Until next time, keep striving for success and unlocking your business's potential.