Tonya Schulte & Dave Kersting’s Workflow For Co-Firming Success

Many firm owners face numerous challenges, but one that’s often overlooked is collaborating with other firm owners to strengthen, grow, or expand influence in their industry, client base, or revenue.

Co-firming requires more than just good intentions; it involves establishing clear communication channels, aligning goals, and defining roles to ensure everyone is on the same page.

But it isn’t always easy. Working with other firm owners can be tough. Miscommunications, differing priorities, and unclear roles can lead to missed opportunities and even lost clients. These challenges can be frustrating, but they don’t have to be a roadblock to success.

There’s a way to overcome these hurdles, and Tonya Schulte and Dave Kersting are prime examples of how to do it.

They’ve faced the challenges of co-firming head-on and came out stronger. They’ve developed a workflow that not only makes onboarding new clients easy but also strengthens their collaboration over time. They excitedly shared all their insights to co-firming on the Accounting Flow podcast.

Let’s dive into how they’ve made co-firming work.

Meet Tonya and Dave

Tonya Schulte is the founder of The Profit Constructors, a firm specializing in construction accounting. With over two decades of experience, Tonya has seen the evolution of the construction industry and the accounting practices that serve it. Her firm is dedicated to helping contractors manage their finances efficiently, ensuring every penny is accounted for and businesses can thrive.

On the other hand, Dave Kersting leads Capovario, a national firm based out of Denver, Colorado. Like Tonya, Dave’s firm also focuses on the construction industry, with a particular emphasis on bookkeeping and consulting. Their firm’s expertise in this niche has allowed them to stand out in a crowded market.

While Tonya and Dave have strong backgrounds in construction accounting, they faced challenges in expanding their client base and working efficiently across firms. Recognizing the potential in collaboration, they decided to join forces, leveraging their combined expertise to offer even better services to their clients.

Building a Strong Foundation

Tonya and Dave’s partnership started out of necessity. Tonya had just signed her firm’s largest client, but at the same time, her Operations Manager left. She needed help—fast. Both Tonya and Dave shared the same business coach, who suggested they might be a good fit to work together. Dave was looking to grow his firm’s capacity, and Tonya needed extra hands to handle her new client. The timing was perfect for the both of them.

Tonya and Dave each brought different strengths to the table. Tonya’s expertise in construction accounting and job costing was unmatched. She knew the ins and outs of the industry and could dive deep into complex tasks like work-in-progress reporting. Dave and his team, on the other hand, excelled at day-to-day bookkeeping, HR tasks, and managing the financial processes. Together, they covered all aspects of accounting for their clients, creating a well-rounded service offering.

What really made Tonya and Dave’s partnership successful was their shared values and goals. Their shared commitment to client success meant that every decision and action was made with the client’s best interest in mind. This focus helps ensure that clients get the best possible service, which strengthens the partnership.

Defining Roles and Responsibilities

From the beginning, Tonya and Dave knew that defining clear roles was essential to the success of their co-firm.

Their shared business coach helped them navigate this process. This helped them avoid confusion and ensured everyone knew their responsibilities.

Tonya and Dave divided their workload based on their strengths. Tonya’s firm, The Profit Constructors, handled the construction-specific accounting tasks and job costing. Dave’s firm, Capovario, took care of bookkeeping, HR, and the daily financial tasks. This division allowed each firm to focus on what they did best.

For decision-making, they agreed on a clear structure. They recognized the importance of having clear agreements and plans for handling potential conflicts when co-firming.

Over the past two years, they’ve faced challenges, such as clients preferring one firm over the other or having issues with specific team members. To address these situations, they’ve established guidelines on decision-making, leadership, and client ownership, ensuring transparency and fairness. Their approach emphasizes integrity and mutual support, aiming to elevate both firms and provide clients with top-tier service.

Clear communication was the backbone of their partnership. It ensured everyone understood their responsibilities. When roles are clearly defined, there’s no guesswork about who does what. This helps prevent overlap or gaps. It also makes it easier to hold each other accountable and ensures that tasks are completed on time and to the required standard.

Dave and Tonya’s Workflow for Co-Firming Success

Get an unbiased third party to help negotiate the deal

It’s really helpful to have someone who is not part of the deal help with the negotiation when considering co-firming. A third party, like a business coach, can look at the deal from a neutral standpoint.

They aren’t emotionally involved, so they can give fair advice. They help you think through difficult questions and scenarios you might not consider, like what happens if someone wants to leave the partnership or if a client is unhappy. With their help, you can create a clear and fair agreement that works well for everyone involved. They ensure all the important points are covered.

Bring in a Quality Assurance Manager to oversee all client relationships

As the business grows, managing client relationships becomes more complex. A  Quality Assurance Manager helps manage this complexity and keeps things organized.

This manager ensures that the service quality remains the same no matter who is working on a client’s account. They check that every client gets the same high standard of work.

There’s a cost associated with hiring this manager, but Tonya and Dave preach that it’s worth it. The increased fee is balanced by the benefits of having consistent, reliable client service.

Agree on a unified technology stack

When working together, all the firms need to use the same set of tools and apps. This is called a unified technology stack.

For example, Tonya’s firm used Financial Cents, while Dave’s firm used something else. To work smoothly together, they needed to agree on one set of tools. This way, everyone is on the same page.

Using the same technology makes it simpler to manage projects and check the quality of work. If everyone uses the same apps, it’s easier to keep everything consistent and make sure nothing gets missed.

Figure out how to work together but stay independent

Making collaboration between firms work well while allowing each firm to stay independent is all about balancing teamwork with autonomy.

Not every client is right for a co-firm setup. For example, some clients might not bring in enough revenue to justify sharing them among multiple firms. Also, some firms, like The Profit Constructors (TPC), only take on specific types of clients (like construction clients). If a client doesn’t fit that focus, they might not be part of the co-firming arrangement.

To balance this, firms will refer clients to each other based on their specializations. For instance, if a new client needs construction accounting, TPC will handle them. If they don’t fit, the client stays with the firm that originally brought them in.

The goal is to figure out how firms can collaborate and support each other without losing their independence. Each firm wants to keep its clients and make its own decisions.

Hold regular open office hours

Schedule regular times when team members can come together to discuss issues, share updates, and collaborate.

Both firm owners and their team members can join. It’s a chance for everyone to discuss any issues or questions they have.

This time is not just about working together on co-firming tasks. It’s also about leading their firms in a joint effort, which feels both new and exciting. For firm owners, having a space to discuss their unique problems and solutions with others in similar roles is a big relief.

Conclusion

Tonya and Dave’s journey with co-firming offers some great lessons for accounting firms considering this growth strategy. By aligning their values and goals, they’ve built a strong partnership that improves client service and strengthens teamwork. Their experience shows how crucial it is for partners to share a common purpose and trust each other, leading to smoother operations and better results for clients.

They also highlight the importance of clear communication and having well-defined roles in a co-firming setup.

If you’re aiming to grow your firm and deliver better client service, co-firming could be a strategy worth exploring. It allows you to collaborate with other firms while still maintaining your independence.

And the best part? You can collaborate just as effectively with your partners in Financial Cents, as Tonya and Dave do.