S02 E04: How this firm owner used workflow checklists to scale her firm

Roman Villard
What’s up, everyone? Welcome to the Accounting Flow podcast, brought to you by Financial Cents. This podcast is dedicated to taking a deep dive into accounting firm workflow and processes. In each episode, we will spend 20 minutes interviewing actual accounting firm owners just like you, uncovering specific processes that firm owners and operators encounter daily and discussing ways to improve them. Let’s go!

Welcome to another episode of Accounting Flow. I’m your host, Roman Villard. Today, we’ve got the wonderful, amazing, and wearing many hats, Mrs. Kellie Parks. How are you?

Kellie Parks
I’m great. How are you? And I just learned something new about you, Roman.

Roman Villard
What’s that?

Kellie Parks
I should know because Canadians understand French it is not ‘Vill-ard’. It’s ‘Villard’.

Roman Villard
C’est Villard en français.

Kellie Parks
Right. And so that’s the French part of it. And I’ve been going ‘Vill-ard.’ I’ve been doing the US version of it.

Roman Villard
I get it every which way. But yes, you’re correct. And I’m so glad to have you here today. Today, we’re going to talk about how to utilize workflows and checklists to enable scalability within your firm. To give the audience an overview of why you have domain authority on this expertise. Can you tell us who you are and what you’re involved in?

Kellie Parks
Sure. So, I am a certified professional bookkeeper. That is a thing in Canada; we have a solid certifying body in Canada, and we have to hold insurance, take exams, and have our CPA ease. And it is not the wild west of bookkeepers. Of course, some are part of it. But it is not the Wild West of bookkeeping up in Canada; it is a very strong organization. I’ve been a part of that organization since 2014. I joined it; I was on the board of directors there for a while and am still on their conference committee. It is just a great, great organization. This is not a plug for a CPB candidate, but it was turned into one—and so Certified Professional bookkeeper. However, I come from a technology background. So, this is where my bookkeeping meets my technology and my workflow. And that is, I came from the marketing and branding industry. Now, going on 30 years ago, we have experienced a technological upheaval. Right? When this seems like nothing, probably even you. But Adobe PDF changed our world. We went from running proofs around on giant pieces of paper to getting our files approved by emailing them. And that was a game changer. And there are lots of failures, like a tonne of failures in the beginning, right? And then we are me. And some of my clients, who were more forward-thinking, moved to FTP sites to transfer data. At the same time, I did insurance and bank work. So it was all in the downtown part of Toronto. Before that, we were using bicycle couriers to send everything around. So, I know this is going to sound ancient to you. But it was a very big deal to go to FTP sites, which then would fail at the worst moment; I had a big technology failure last week while I was away, and I want to say that my favorite app, Typeform, stopped sending responses to me to zaps broke that was part of my new process. Yeah, and something else happened. I can’t remember; it doesn’t matter. But anyway, we had the worst technology failures in the most needed moments. But at any rate, I think the technology piece you’re getting to is why I think it can talk about this. I have been using cloud technology since forever when it was a disruptor in another industry. So when I moved into the bookkeeping industry right away, I started using Fresh Books in 2009, rather than Word documents, to invoice my clients because I was on Mac. So, the compelling reason was that I was on a Mac. And I just tried to run parallels, and it was like a space hog. Right. It just killed your system. And so there wasn’t a Canadian program other than Fresh Books, and it was like, wow, this is fantastic. So, I brought all of those worlds together. And I think I already told you I’ve been working remotely since 2009 by adopting all of these technology pieces.

Roman Villard
Yeah, and there is a big debate among accountants about Apple Mac and PC users. We won’t get into that right now, but I’m also a Mac user, so I’m with you.

Kellie Parks
Basically, that was one of the compelling reasons—I use the word compelling again—to go to an online program—QuickBooks Desktop. I was hosting it for a while on Dropbox before Cubox became a stable product. But when Xero and QuickBooks came around into the 1012, I believe it was right. That was like it was ugly. But you know.

Roman Villard
Since then, you’ve been building various iterations of workflows and checklists to add to these online cloud-based tools. This has now evolved into a full business for you: selling these templates, workflows, and checklists that add to various tools. And that’s a big part of your current business, correct?

Kellie Parks
Yeah. I create and sell templates in spreadsheets; I don’t take that lightly. Spreadsheets have a lot of power for building stuff, and they can be important, but I built them proprietary in some of the apps like Financial Cents; for example, I have templates that you open up in Financial Cents, and you’re ready to go.

Roman Villard
And, yeah, that’s good. And so we’ve got a lot of experience in cloud tools, building checklists, ensuring that they work together amongst the tools you may or may not have integrated. There, I want to lead by explaining why it is important to establish a foundation of process, but before I jump into that, I want to understand the difference between a checklist and a workflow. Because I think of those very differently, and I want to hear your take on that.

Kellie Parks
No, I want to hear yours first.

Roman Villard
For me, checklists are stressful. It’s like a to-do list; check it off. And then it’s done disappears, it goes away. A workflow is constant, moving, interconnected, and updated based on other things happening within an organization. So it’s, Hey, it’s part of a checklist, but also, it’s always connected to something else that’s happening. Matthew may have also done a good job characterizing his thoughts on this in his episode, but I feel like checklists are stressful. Workflows are exciting.

Kellie Parks
Oh, okay. Well, workflows are exciting. Oh, and of course, Matthew May said something great. Should I listen to that first and then try to do it? I’m not that competitive, especially with math. Right? I do. I’m not that competitive, especially with magical kanji.

Roman Villard
I don’t know. I think it probably varies.

Kellie Parks
Yeah, so interesting you should say that, because sometimes when I am working with people or doing presentations, I try to get people to stop thinking of things they need to get done as workflows because some people are overwhelmed by the concept of a workflow. So, very often, I’ll bring them back and say stop being stressed about it being a workflow. It is a checklist with extra elements. So everybody comes at it from a different place.

Roman Villard
Okay, the checklist is alive.

Kellie Parks
Yes. And so many people struggle more with it. I have to have a workflow because then it has to be perfect. There is a queue; think of it as starting with a checklist, which is the basis of all workflow.

Kellie Parks

I like to start by thinking about milestones. Your checklist should represent these milestones, each task setting off the next. This approach helps create effective workflows.

It’s also crucial to consider the desired outcome of the checklist. What problem is it solving? This concept comes from my marketing background, where we used “workbacks.” In workbooks, you start with the end goal and work backward. For example, in onboarding, the goal is to seamlessly transition a client from prospect to active.

In my corporate marketing work, driven by compliance deadlines, we worked backwards from the final mailing date. We identified each step: the fulfillment house, bindery, printer, and paper order timelines. This approach transformed a simple checklist into a detailed workflow by assigning responsibilities and deadlines, making the process efficient and manageable.

Roman Villard
So, taking that work-back philosophy, we understand that multiple checkpoints and milestones occur in any accounting firm’s workflow or process. Several contributors and dependencies need to be addressed throughout the process. Why is it crucial for someone setting up their initial infrastructure to consider this in the context of scaling and growth?

Kellie Parks

The day I decided to hire Marissa to handle the day-to-day bookkeeping for my clients was the day she could start working immediately. This was possible because I had already established detailed checklists. It had been just me for a long time, and I had built these checklists because that’s my nature—I create a “how-to” guide the minute I do something twice. You can think of these checklists as “how-to” guides because even I, who created them, might forget the steps. For instance, one critical milestone is closing the books with a password. Without a checklist reminding me to close the books with a password, I could easily forget, which is a significant oversight since clients and accountants might access the books and undo my work.

These checklists allow us to scale without frustrating clients with unfinished work. You can’t scale if you’re not consistently delivering quality work, and quality work requires a well-defined process. You must also be efficient, which is impossible if tasks are out of order.

For example, my onboarding process consists of seven milestones, each with specific tasks: discovery, file review, quoting, information gathering, and engagement. Engagement only happens after gathering all necessary information because if clients can’t provide what’s needed initially, they’ll likely struggle later, causing ongoing issues. I never quote without reviewing the books, even for accounting firms, as unreconciled accounts can present significant issues.

During the discovery phase, clients fill out a Typeform on my website, including dependencies like QuickBooks Online. The tasks, technology, automation, and assignments are all outlined, transforming a simple checklist into a comprehensive workflow.

Roman Villard
One thing you mentioned about scalability is having detailed documentation before hiring someone to take over monthly bookkeeping tasks. Without well-defined checklists and workflows, it’s impossible to delegate effectively. When you hired an accountant, how did you determine what documentation and processes needed to be in place before hiring? How can firm owners replicate this process as they scale, hiring multiple employees to grow their firm?

Kellie Parks

First, I want to clarify that I hired a bookkeeper, not an accountant, for those wondering. You can’t scale successfully unless you’re delivering good client work. This is essential even if your firm only has one or two people.

Good client work starts with good policies. For instance, don’t just note “clear the bank feed” as a milestone when clearing the bank feed. Instead, specify the steps: open all bank accounts in one window and have tabs open for all bank feeds, accounts payable, accounts receivable, and undeposited funds. This way, everything is visible and can be handled efficiently. Accounts payable, accounts receivable, and inter-account transfers shouldn’t be afterthoughts—they should be addressed in real time as you clear the feeds.

Efficiency is crucial for scaling, and it starts with detailed, actionable steps in your workflows. For example, I created bookmarks for all necessary reports and bank feeds in my process. These are organized in a folder so that all relevant tabs open simultaneously with one right-click. This ensures consistency and saves time.

For reconciliations, you must clear the bank feeds first. You can also bookmark each Bank Account Reconciliation screen with a client-specific folder. This folder includes accounts payable, accounts receivable, and undeposited funds. Again, one right-click opens everything simultaneously, making the process seamless and efficient.

Setting up these detailed workflows and using tools like bookmarks creates a scalable and efficient system that ensures good client work.

Roman Villard
Oh, that’s a hot tip. I did not know that.

Kellie Parks

It’s amazing. Someone once told me, “You can’t scale that; you can’t possibly save all those bookmarks for each client.” But you can. You only need to set them up once. Make it a policy to bookmark the necessary pages the first time you do it. Organize them into a folder with the client’s name, then right-click to open them all simultaneously. Include this policy in your workflow to ensure it’s bulletproof.

In the workflow, still list the specific items you need to open: checking account, savings account, emergency loan account, credit cards, and any clearing accounts. Also, include accounts payable and accounts receivable. By detailing each step and incorporating efficient practices, you make the process seamless and scalable.

Roman Villard

I think it’s interesting because, as you pointed out, those discoveries can be easily integrated into new or updated processes. When you find something that creates efficiencies, you should incorporate it into your onboarding policy for every new client.

I like that you mentioned wanting your workflows and policies to be bulletproof. However, I believe in having an ironclad process that can still adapt and evolve as we scale and grow. Clients may have unique needs, and team members might suggest improvements. Therefore, I want a set of rules that dictate when we should consider changing a process.

So, what internal or written checklist do we need to have to determine when to modify a process? If certain conditions arise or specific events occur, we need to recognize the need for change. Does that make sense?

Kellie Parks

I might not have explained myself enough. I want our processes to be rock solid but also constantly iterating. That’s the beauty of cloud technology—we can easily update and share changes across our team. Anytime I change Financial Cents, whether a checklist or a process, it’s life, and Marissa can see it immediately. We also add videos to the resources to provide visual guidance.

Videos are especially helpful because they allow us to catch things we might miss in written checklists. For instance, I noticed a step in my process that seemed efficient on paper but looked cumbersome on video. Marissa, watching the video, pointed out a better way to do it. This visual feedback is invaluable for refining our workflows.

Roman Villard
This came up yesterday with me. I was training somebody on a process that I use for a client. As I was going through the process of training him, I was like, Why am I doing it this way? I challenged myself and tried to explain it to him. And I know that he was like, Why is he doing it this way? So those types of internal feedback mechanisms are so important for continually improving workflows.

Kellie Parks

When I hired Marissa, I already had detailed checklists because I’m meticulous about workflows. I had descriptions for everything since I’ve always prepared for the possibility of being unable to work—whether by winning the lottery or any other reason. As a single parent for many years, I always ensured that everything would be in place for someone else to take over seamlessly if something happened to me.

Living in a rural area with my kids, I often took risks, like skiing on challenging runs, reinforcing the need for contingency planning. My clients and kids needed someone to take over my responsibilities without hiccups.

I had a contingency partner, Mike from Upside Accounting, who had access to all my processes and passwords. This level of preparedness meant that if I suddenly couldn’t work, everything would continue smoothly.

When Marissa joined, I already had lists, descriptions, sub-tasks, and links. We also recorded videos of me doing the work and then videos of us together as I handed over tasks to her. These training videos were incredibly useful and could replace older ones as needed.

Including these videos in your workflow is a great practice. They don’t just need to be videos of you working; the initial training sessions are invaluable and can be updated over time.

Roman Villard
We also use Loom internally to record those videos. Is that what you use as well?

Kellie Parks

A quick word about how I work with my clients: I use video extensively. Some of my clients even send videos back to me. It’s a game-changer. You can convey so much more in a short video instead of going back and forth via email countless times.

One time during COVID, I lost my voice and looked awful, but I needed to communicate an urgent process change to a client. I made a quick video without sound so she could see what was needed. It was much more effective than trying to write everything out.

Don’t overthink these videos—just make them. However, always password-protect them. Many people send videos without any protection, which is risky. You can share videos securely by requiring the correct email to access them and setting a password. Platforms like Loom may make it hard to find the password option, but a quick Google search will help.

Please always password-protect client videos to ensure their security.

Roman Villard

Two thoughts on that. First, always password-protect your videos. That wasn’t my main point, but it’s crucial.

If you’re off-camera, have lost your voice, or face any other issue, you can use tools like 11 Labs to clone your voice. My ultimate vision is that these workflows will incorporate AI to analyze financials and generate scripts for monthly reports. These scripts could then be sent to 11 Labs to clone my voice, creating a video presenting the client’s financials.

While this approach might reduce personal interaction, it ensures consistency and efficiency. Tools like 11 Labs can replicate your voice to deliver the message exactly as you would, maintaining a personal touch even when you can’t be directly involved.

Kellie Parks
Sure, you could, and you just blew so many people’s minds. But you also had a whole crowd of listeners that went, I can’t even make a checklist.

Roman Villard
You’re not wrong. The checklist is really what enables you to scale into those new areas of automation and AI and things like that.

Kellie Parks

Can we simplify this a bit? Training transcripts are straightforward. You can use the transcript as a description to integrate directly into your workflow or checklist. Let’s not scare people with voice cloning.

Speaking of which, do you know Ryan Lazanis from Future Firm? I believe he’s now using voice cloning for his podcasts.

Roman Villard
I believe so, yes. He’s also using 11 Labs for that. One of the things we can take from this AI detour is the practical use of widely known tools like ChatGPT and transcription services. Most people have heard of these tools, which can transcribe videos and meetings. For example, Google Meet and Zoom can automatically transcribe meetings, and tools like Fathom, Supernormal, and Fireflies can provide detailed transcripts.

Kellie Parks
I believe my notes come from you to me.

Roman Villard

I believe you have to, and I think I’ve turned that off for external parties by now. To get started with any checklist or process, record a video where you verbally explain your process. Use a transcription tool to capture what you said, and then utilize a tool like ChatGPT to summarize and distill the notes into a structured format.

You’ll be amazed at the clarity and detail this approach provides. This can be an excellent base-level document for tools like Financial Cents, Asana, Monday, or any similar platform. It’s a simple and cost-effective way to get started, especially if you don’t want to spend money on templates.

Kellie Parks:
Right. To clarify, my templates are more than $50 because they cover every nuance. However, if you don’t want to purchase templates, Financial Cents has built-in AI to help you get unstuck. It’s not the most robust workflow, but a good starting point. One of my favorite sayings is that the hardest part of going for a run is putting on your shoes. Getting started is tough. Just input QuickBooks, DEXT, Pluto, or a monthly workflow and see what emerges. It can’t hurt to try.

Roman Villard:
That’s so true, and there are two types of people. Some, like me, enjoy tinkering with things like ChatGPT, even though it can lead to inefficiencies in developing and maintaining checklists and workflows. If I were smart, I would probably spend the $300 on a template, customize it slightly, and be off to the races. Spending money to save time can lead to greater efficiencies, provided you have the time and resources. Ultimately, it’s much more efficient to invest in a well-developed template.

Kellie Parks:
Yeah, I wondered if AI would be a competitor for me. I need to strengthen my value statement, but my sales haven’t slowed. Back to your tinkering—one key aspect to consider if you want to scale is addressing various learning styles. When delegating tasks through checklists, it’s crucial that good work is still being done. Loose checklists and workflows won’t satisfy clients.

It would be best if you accommodated different learning styles within your team and clients. For example, you’re likely a kinesthetic learner—you like to hear and play and don’t mind making mistakes. Then, some visual learners and those who prefer to read and write need detailed checklists with sub-tasks and descriptions. This is where videos come in. A good checklist includes videos so people can see and hear the process, catering to all learning styles.

Roman Villard:
That’s a great point to conclude this conversation about processes and workflows. Not everyone thinks about it the same way. My tactical, experimental approach can drive my team crazy, but it’s how I figure things out. Ensuring you have various means of understanding and learning and effectively transitioning work to the next person is crucial for scalability. That was a phenomenal point, Kellie. Thank you for that.

Kellie Parks:
That also raises an important point when deciding on a workflow—what’s the flexibility? Does it offer a board view, list view, and calendar view? I prefer a list view, but many people like to see things differently. This ties back to addressing various learning styles.

Roman Villard:
Absolutely. We could do an entire episode on evaluating workflow management tools. Kellie, you’re a great resource for this. If people want to find you, do you want them to, and where can they find you?

Kellie Parks:
Yes, I’d love for them to reach out. The easiest starting point is my landing page, which has clear buttons that guide you where you need to go. The website is calmwaters.ca. Not to sound full of myself, but if you search for “Kellie Parks” with an IE, along with terms like accounting, Intuit, or Financial Cents, you’ll likely find me.

Roman Villard:
We’ll let the audience give you feedback on that. If your SEO is as good as you think, I’m sure they’ll find you, whether it’s on LinkedIn or your website. Either way, people will be able to find you. They can also contact me, and I can direct them to you. I’m so glad we had the chance to chat today. Thank you for coming on, and I look forward to more conversations.

Kellie Parks:
Thank you for having me. And just because I’m a bit of a brat, we should have recorded the part about whether accounting firms should consider the cost of services sold in their chart of accounts.

Roman Villard:
I believe firms should include a cost of sales or cost of goods sold in their accounts. That’s another discussion for another time, but it might stir up some dialogue. All right, Kellie. Have a good one. Thank you for coming on.

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