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Michael Ly reveals how he built Reconciled from the ground up and then acquired 3 more accounting firms. Discover his secrets to scaling with outsourced accounting, cold email outreach, and using tech to streamline the workload. He uncovers the biggest challenges in the accounting industry today—AI, fewer grads, and more. Michael shares insights on finding capital partners, integrating firms, keeping clients and staff happy, and how to grow even bigger by adding services and moving upstream.

Takeaways

The accounting industry is facing challenges from macro forces such as a drop in the number of accountants graduating and the rise of AI applications.
Reconciled focuses on outsourced accounting and online bookkeeping for lifestyle small businesses.
Cold email outreach has been an effective strategy for attracting clients.
Technology plays a crucial role in managing the workload and improving productivity in the accounting industry. Finding a capital partner is crucial when acquiring accounting firms.
Retaining employees and clients during the transition is a challenge, and a longer transition period can help with retention.
The accounting market is still reliant on local services, and AI tools are more likely to serve solopreneurs and smaller businesses.
Moving upstream and adding services like CFO advisory and tax planning can increase the value and margin of an accounting firm.
The predictability and stability of accounting firms make them attractive for financing.
The need for local accounting services and the complexity of the tax code ensure the continued demand for accounting professionals.

Keywords

accounting firms, acquisitions, industry challenges, Reconciled, outsourced accounting, online bookkeeping, lifestyle small businesses, cold email outreach, technology, acquiring accounting firms, capital partners, integrating firms, evaluating buyers, retaining employees, retaining clients, state of the accounting market, AI in accounting, opportunities for growth

Chapters

00:00 Introduction and Industry Challenges
03:06 Focus on Outsourced Accounting for Lifestyle Small Businesses
06:34 Effective Strategies for Attracting Clients
10:28 The Role of Technology in the Accounting Industry
17:28 The Challenges of Implementing AI in Accounting
19:15 The Process of Acquiring Accounting Firms
24:56 Integration and Future Plans
27:30 Retaining Employees and Clients During the Transition Period
32:21 Challenges and Surprises in Acquiring Accounting Firms
34:26 The State of the Accounting Market and the Impact of AI
42:16 Opportunities for Growth: Moving Upstream and Adding Services

Untitled Episode

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