CPA Firms Rarely Get “Do-Overs”

If you frequently go to the movies, or even if you only occasionally attend a must-see new release, you must have wondered at one time or another why they bother to remake films you thought were great the first time around.

Remember “The Longest Yard” with Burt Reynolds? Apparently it was not enough of a classic so the Tinsel town geniuses decided to give it another go-round a few years back, this time with Adam Sandler. Did anyone actually see that?

If so, I’ll bet you had buyer’s remorse about 10 minutes in.

What about the classic comedy “Arthur” starring Dudley Moore? My stomach actually hurt I laughed so hard and frequently.

Nope, wasn’t good enough.  They felt they needed to hire one of the least talented people on the planet in Russell Brand and created a predictably disastrous remake.

And just this week, I learned that in May of 2014, they are releasing yet another movie featuring that gargantuan reptile Godzilla.

For those keeping score at home, it should be noted that since the fire-breathing creature was first introduced to audiences back in 1954, this will be the TENTH (yes 10^th) Godzilla movie.

Talk about a franchise!

I sometimes try to discern just what qualifications one needs to become a Hollywood studio executive?

Maybe they should think about recruiting CPAs in the C-suite – at least they would have tossed out a healthy dose of skepticism over what were plainly idiotic strategies.

But in the real world, CPA firms don’t often get the luxury of a remake, or what we used to refer to in sandlot ball as a “do-over.”

Particularly in the area of client relationships.

Traditionally this space has focused primarily on succession-related issues, but at the crux of any successful transition are client relationships and ultimately, the “R” word - retention.

A CPA firm owner once told me that he would never be able to merge because he claimed his clients would never stay. So I told him point blank that if none of his clients would remain, he was basically confiding to me that his firm was worthless.

It was only when I explained that without clients, his firm was basically a vacant office with file cabinets and that its value, or, more correctly, lack thereof, eventually hit home.

But spreadsheets and cubicles aside, we’re basically in the people business, building and nurturing relationships over the years, through referrals and more often hard work,  ensuring a strong enough bond that will last through an inevitable transition.

Because I’m fairly certain there are few if any remakes with regard to lost clients.