Ep. 13 | Buy vs. Build A Successful Tax Practice
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About the Guest:
Matt Kidd, CPA, PFS, is a Michigan-based tax and accounting professional with a diverse background in public accounting. Growing up with a CPA father who was a managing partner, Matt was immersed in the accounting world from a young age. Post-college, he worked at small firms and then made a bold decision to buy a tax practice in 2017. Since then, he has successfully managed and adapted the practice, incorporating modern strategies and tools to evolve with the changing landscape of the tax industry.
About the Guest:
Matt Kidd, CPA, PFS, is a Michigan-based tax and accounting professional with a diverse background in public accounting. Growing up with a CPA father who was a managing partner, Matt was immersed in the accounting world from a young age. Post-college, he worked at small firms and then made a bold decision to buy a tax practice in 2017. Since then, he has successfully managed and adapted the practice, incorporating modern strategies and tools to evolve with the changing landscape of the tax industry.
Episode Summary:
In this engaging episode of the Mr. R Show, John and co-host Chris Picciurro dive deep into the age-old debate of "Buy vs. Build" within the world of tax practices. They are joined by Matt Kidd, a seasoned CPA with firsthand experience in both buying and scaling tax practices. Matt shares insights from his journey of growing up in a CPA family, buying his first practice at 26, and evolving it into a modern, efficient business.
The conversation sheds light on the pros and cons of buying an existing tax practice versus building one from the ground up. Using Matt's experience, they explore the strategic decisions, challenges, and operational changes that come with each path. From retaining clients during transitions to implementing new technologies and services, the episode provides a comprehensive overview for tax professionals aiming to scale their business in today’s competitive market.
Key Takeaways:
- Buy vs. Build Decision: Understand the crucial factors to consider when deciding whether to buy an existing tax practice or build one from scratch.
- Operational Challenges: Insights into the challenges of modernizing an existing practice, such as technology updates and client retention.
- Client Management: Learn strategies for managing legacy clients versus new clients, including pricing adjustments and service offerings.
- Financial Planning Integration: Discover how introducing new services like financial planning can add value and increase client retention.
- Time Management: The importance of time blocking and managing your calendar to maintain efficiency during tax season.
Notable Quotes:
- "One of the best and worst things about buying versus building your own is you're forced to manage a lot of staff with clients." - Matt Kidd
- "The advent of social media and online learning makes building your own practice a more viable option than ever before." - Matt Kidd
- "I would not buy a practice and I would not take one for free unless it came with ten A-plus team members." - Chris Picciurro
- "New clients don't have the option of the old way when they come on, they're doing it the new way." - Matt Kidd
- "As entrepreneurs, we think in our minds that we don't want to block time because we want to be able to be free, but time blocking actually frees you up." - Chris Picciurro
Resources:
- Matt Kidd: LinkedIn
- MRR Institute: MRR Institute Website
- (00:07) - Buy Versus Build: Scaling Your Tax Practice
- (02:42) - Debating Whether to Buy or Build a Tax Practice
- (06:23) - Family Dynamics, Accounting, and Unusual Office Furniture
- (09:42) - Early Business Ventures and Disrupted Models
- (11:22) - Generational Transition and Evolution in a Family CPA Firm
- (14:41) - Buying Versus Building: The Journey of a Young Entrepreneur
- (16:19) - Challenges and Strategies in Transitioning Client Models
- (20:12) - Navigating High-Stress Transitions and Rapid Implementations
- (22:08) - Buying Versus Building a CPA Practice for Real Estate Investors
- (22:42) - Challenges and Successes in Acquiring and Retaining Clients
- (25:16) - The Unsustainable 1040 Tax Return Business Model
- (27:33) - Challenges and Benefits of Buying a CPA Firm
- (30:06) - Incremental Price Increases and New Service Offerings in Accounting
- (32:36) - Challenges and Risks of Buying a Practice
- (34:32) - Boundaries and Managing Client Expectations in Business
- (36:21) - Time Blocking as a Productivity Hack for Tax Professionals
- (38:04) - Advantages and Disadvantages of Building Versus Buying a CPA Firm
- (40:28) - Differences in Client Engagement and Revenue in Accounting Practices
- (42:07) - The Viability of Building Versus Buying a Practice
- (44:43) - Implementing New Services for Legacy and New Clients
- (46:03) - Debating Buy vs Build Strategies in the Tax Industry
- (49:10) - Beer League Pickleball: Fun, Beer, and Friendly Competition
- (50:37) - Scaling and Modernizing Your Tax Practice with Expert Tips
