The accounting profession is finding the growing demand from businesses to have a deep level of knowledge on a wide range of topics. This is 1 reason firms are finding success by selecting a vertical market, but that can be challenging. This session will cover key decision points to find the right fit for your firm.

1. Selecting Vertical Markets for a
Digital Firm
Thomas R. Gawne, CPA, Director of Professional
Services, CPA.com

2. Thomas Gawne,
CPA, Director, CPA.com
 Director of Professional Services
 28 years in the tax and accounting technology
sector
 Speaker, Facilitator, Consultant

3. Your Title Goes Here
Transforming how firms deliver Client Accounting Services as
they transition their practices to be more efficient and productive
by leveraging innovative new technologies and services.
Empowering CPA’s and businesses for the digital age
AICPA & CPA.com

4. Practice
Workflow
Professional
Services
CPA.com
Services
AICPA Store
LMS
Mobile Apps
Audit
Confirmations
Payroll
General
Ledger
Bill Pay
CPA.com Firm Solutions Portfolio
Training

5. Professional Services
Guiding your journey
to meet the unique
needs of your firm:
• Training
• Consulting
• Change Management
• Firm Tested Processes
• Firm Centric
• Client Centric
• Client Implementations • Webcasts
• Live Workshops
• Onsite Consulting

6. Vertical focus

7. Agenda
Vertical Selection
Right Tools in the Toolbox
Vertical Expansion
Putting it in Action

8. Wikipedia
vertical market (plural vertical markets)
1.(marketing) A market made up of similar businesses
and customers with particular specialized needs.
2.A vertical market is a market in which vendors
(Accounting Professionals) offer goods and services
specific to an industry, trade, profession, or other
group of customers with specialized needs.

9. Geoffrey Moore

10. Whitepaper Released
http://www.cpa.com/conference

11. Why Target Market Focus?
 Clients aggregate into market segments
 Communities with shared interests
 Self-organized around industry, geography, & profession
 Who talk to each other before making buying decisions
 Two lessons from Marketing 101
 Cost-effective growth is impossible without target market focus
 Tipping point dynamics accelerate your success
 Target marketing success factors
 Participate in the segment’s relationship network
 Develop domain expertise relevant to the segment
 Over-deliver to create strong reference accounts
 Encourage word-of-mouth referrals

12. More Specialization = More Value!
 Medical Practices
 Orthopedic clinics
 Pediatricians
 Chiropractors
 Construction
 Electrical Companies
 Plumbing Companies
 Non-Profit
 401(c3)
 401(c6)
 401(c7)

13. Service Opportunities Grow
 HR/Staffing decisions
 Software consultation
 Business expansion decisions
 Business analytics/comparisons
 Insurance decisions
 Deeper more impactful client relationships!

14. Digital CPA
Client Accounting Services
Virtual
Controllership
Collaborative
Advisory Services –
Virtual CFO
Write-Up
Business Process
Outsourcing
Advisory
Transactional
Specialize in Client Industry Verticals
 Healthcare
 Not-For-Profit
 Technology
 Professional Services
 Property Management
 Government Contractors
 Retail
 Franchises

15. Selection

16. It Starts with Why
Golden Circle:
“Start with Why”
Critical to Firm Success
Source: Simon Sinek

17. Vertical Selection – The “Why” Fit
 Passion, Mission – the “why”
 What is your firm most passionate about?
 Tie in to Firm or Personal “Mission”

18. Existing Expertise Fit
 Is there already expertise in this vertical?
 Do you have existing clients in this vertical?
 Untapped expertise within your firm?

19. Market Assessment Fit
 Big enough to matter
 Small enough to lead
 Marketplace penetration
 Room for growth?
 Can we make money at it?
 Need overall market analysis

20. Client Needs Assessment
 What is the key information they need for success?
 Develop “core” then expand down to key KPI’s
 Attain a deep knowledge of client best practices
 Periodicals
 Trade Associations
 Web Chat, Blogs, etc.

21. Vertical Selection – Culture Fit
Does the firm culture
fit the vertical?

22. Getting Vertical through the Cloud
Business
Intelligence
Reporting
Real-Time
Client
Collaboration
Standardized
Workflows
Client
Accounting
Capability
driven
through
cloud
computing
• Professional Services – 90%
• Construction – 76%
• Retail – 75%
• Not-for-Profit – 73%
• Manufacturing – 65%
• Wholesale Distribution – 61%
• Technology Companies – 59%
• Transportation – 48%
• Hospitality – 45%
• Franchises – 40%
• Government – 29%
Most Popular Client Verticals
for Outsourced Accounting Services

23. Tools

24. Tools
 Key Principles
 All Digital, all in the cloud
 Designed for timely “prospective” insight
 Collaborative

25. Tools – Core Elements
 A/P – Bill Pay
 A/R – POS
 Payroll
 Inventory Control
 Accounting – G/L
 Document
Management
 Tax System
 Other Industry Specific
 Bill.com
 Industry Specific
 Paychex
 Industry Specific
 Intacct
 Sharefile, Box, etc.
 CCH, Thomson, Etc.
 As needed
Signature Functions Applications

26. Tools – Workflow Effects
Digital Core
Transaction
Capture
Information &
Insight
Delivered
Prospectively
Intelligent,
Timely
Business
Decisions
Made

27. Tools - Collaboration
 Video Conferencing – Skype, Zoom, etc.
 Web Conferencing – WebEx, GoToMeeting, etc.
 Social Media – LinkedIn groups, Twitter feeds

28. Tools – Management Tracking
 Workflow Management – XCM
 Contact Management – CRM
 Internal KPI Trackers

29. Expansion

30. Expansion – Within Existing
Vertical
On going
services
Additional
need
identified
Services
scope
expanded

31. Expansion - Parallel Verticals
 Review “like” parallel verticals for need & process
 Dentists vs. Optometrists
 Differing types of Restaurants
 Auto Repair vs. Body Shops

32. Expansion – New Startups
 Create new start-ups among different verticals
 Template appropriate process steps

33. Concluding Thoughts
 Selection key concepts
 Tools of the vertical trade
 Expansion past that first vertical
 Make it happen!

34. Resources

35. Reference Material
 “Start with Why” by Simon Sinek
 Ted talk “The Golden Circle” video
 “The Power of Real Time Financial Data & Analytics
to Penetrate the Restaurant Niche Market”
 A case study whitepaper by Dixie McCurley of Trusted
CFO Solutions available at CPA.com
 “Leveraging the Cloud to Start or Grow a Vertical
Niche Practice”
 A Whitepaper by C. Keith Willis CPA.CITP, Cohen &
Company available at CPA.com
Available at www.CPA.com

37. Copyright © 2014 American Institute of CPAs. All rights reserved.
Thank You
Enjoy the Remainder of the
Conference!