Steven
Walker, Chartered Accountant
Up
close and personal
Smith: How are you, Steven?
Walker: Great, just getting ready to head out to my son's hockey game.
Smith: I hope I didn't interrupt.
Walker: You didn't. I was just finishing up my weekly planning session. It's something I do every Sunday to keep organized and plan exactly what I want to accomplish in the coming week. I've found I'm much more productive when I'm prepared.
Smith: Makes sense. I'm a big believer in planning, both in business and personally. Steven, I've heard that your Chartered Accountant practice is a bit unconventional.
Walker: Maybe it's unconventional for a Chartered Accountant but it's not unconventional for consulting services, which is my focus. The only reason people think it's unconventional is because they believe Chartered Accountants do nothing more than prepare financial statements and income tax returns.
Smith: So what exactly does BusinessWorks do?
Walker: Very simply, BusinessWorks helps business owners improve the profitability of their businesses. I prefer to view BusinessWorks as business consultants who have the added financial experience, knowledge and skills of a Chartered Accountant.
Smith: How did you get into this type of work?
Walker: Frankly, it came out of frustration. I felt that typical accounting services offered my clients little value. I wasn't doing anything to really help them even though I had the knowledge and experience that a Chartered Accountant has.
Smith: Can you explain why you believe typical accounting services offer little value?
Walker: Sure, it's easy. Most business owners visit with their Chartered Accountant once a year to review their financial statements and tax returns. But there's really nothing anyone can do about profitability at this stage. It's all in the past, it's done, and it's not going to change. All I was doing was telling my clients what had already happened. Where's the value in that?
Smith: I see your point. What did you do then?
Walker: I started working with my existing clients a little differently. I started listening more closely to their needs. Instead of telling them what had already happened in their businesses, I began asking them what they wanted to achieve financially and how they intended to accomplish this. We then implemented strategies and action steps to help them accomplish their objectives and monitor their progress along the way. And doing this on an ongoing basis ensured that they would stay focused on what we were trying to accomplish.
Smith: What were the results of this new approach?
Walker: These clients began to 'get it'. They started to see wonderful results in their businesses and this gave me the feedback I needed to know I was on the right track. This work paved the way for the "Profit Improvement Program" which has become the cornerstone of BusinessWorks' consulting practice.
Smith: Can you elaborate on this program?
Walker: I could go on and on about this service but I'll try to keep it to just the basics. It all starts with business planning. We work with clients to take a 30,000 foot view at the business: its strengths, weaknesses, opportunities and threats. Then we work with them to develop a plan which gives them the clarity to make faster and better decisions.
Smith: What happens next?
Walker: An effective strategic planning session will reveal the problems and challenges facing the owners. Then a series of action steps will be developed along with an assessment of their impact on profitability.
Smith: It sounds so basic and what people should expect from a Chartered Accountant.
Walker: It's not rocket science, it's simply applying sound, basic business and financial knowledge within a system. But the results are nothing short of amazing. Our clients are shocked at what this process does for their businesses.
Smith: Aren't your clients reluctant to make the significant changes this surely involves?
Walker: This comes as a surprise to most of our clients but, in most cases, the changes are subtle. It's amazing what small percentage changes in key areas can really do for the bottom line. There's a saying, "It's easier to change 100 things 1% than one thing 100%." And it's so true.
Smith: So your clients don't resist these changes?
Walker: Even though the changes aren't earth shattering, most people do resist and fear any change at all. Most business owners seem to believe that they will 'luck' into getting better results despite the absence of any change. It's insane but very true. Without the client buying-in to our approach, improvement is virtually impossible.
Smith: How do you get your clients to buy in?
Walker: We simply make them accountable to do their part. I guess we're kind of like coaches. We get them to take action, bit by bit, until it becomes habit.
Smith: What happens when the client buys in?
Walker: That client commits to a specific profit-improvement plan. We set targets and put a system in place to measure and manage all the key activities, not just financial results, that make up the business. You can't manage what you can't measure.
Smith: What are these key activities?
Walker: Management, finance, operations, sales and marketing. The system must be able to quantify each of these activities. That's where traditional financial statements fall short. They simply measure the results, such as sales and expenses, but not the activities themselves.
Smith: It all sounds so logical and fundamental. Are you telling me that most businesses do not do this?
Walker: Exactly. Owners almost always try to manage and grow their businesses using only the year-end financial statements prepared by their Chartered Accountant. I maintain I do not know how this is possible!
Smith: The process sounds great, but does it work for all businesses?
Walker: Absolutely. The profit improvement principles can be applied to any business, whether you sell shoes, coffee or accounting services. You just need to understand how to apply the principles to your business.
Smith: It sounds like a great program but can most businesses afford these services?
Walker: That's a great question and one that I'm sure most clients would want to ask up front. The program is different for each business, depending on their size and specific needs, and it's designed to suit the client's budget. Once the program has been determined, though, the fee is fixed. We want our client to know up front what their investment will be. That's part of what makes us a different kind of Chartered Accountant.
Smith: I guess it is more appropriate to call it an investment since the client will get a substantial return.
Walker: That's right. I firmly believe that the financial rewards of this program will far outweigh the client's expenditure.
Smith: It sounds like they can't afford not to do it.
Walker: Providing great value is the sole reason I began doing this work. If my clients don’t get more than they give, I’m not doing my job as a Chartered Accountant.
Smith: Thanks for the chat.
Walker: My pleasure. And good timing, I'm off to the hockey game now.