Provide quality bookkeeping, tax, and QOE nationwide. Inspired Or Acquired Podcast host. Acquired 3 firms. Fly fisherman and small business geek. NH and CO📍

Joined April 2014
Updating my bio for new followers - I’ve acquired 3 accounting firms. Appletree provides bookkeeping, tax and consulting to small businesses nationwide. Previous background was sales and advisory. Dad of 3 boys.
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We crossed over 300 monthly accounting clients this week. Time to celebrate with some bluegrass and BBQ. Thank you to our clients and team!
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I hired someone this week because they reached out to us and they looked too good to pass up. We weren’t hiring but sometimes you see an A player and just gotta get them on the bus and figure it out later.
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If you’re buying a business this is spot on. You have to look at tons of crappy deals and then you can spot a good one and pounce.
1. Pick an asset class & a market or 2 2. Review every asset listed & sold over, say, 12 months (list price, sale price, size, condition, age, rents, etc.) Eventually, mis-priced deals, the ones you want to buy, will leap off the screen at you. We call this seeing the Matrix.
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I heard from an accounting firm bought by Alpine that accounting was the top performing industry of all their PE platforms. Accurate? Or they say that to every category to make them blush and feel special?
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“Next year I’m definitely going to file taxes on time and not wait until October 15th” - the 10% of the population who files on the last day every year. It is what it is.
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Go see Strugill Simpson. You’ll see a legend playing at the peak of their powers.
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I’m torn on our office as our lease renewal approaches. Our accounting team is more and more remote but financial planning clients often want to meet in person. And it’s nice to have the office when we do meetings or retreats. Of our 45 people, about 18 are local and come in 1-2 days/week. Options: 1. Keep current lease that’s cheap and a B- aesthetically 2. New lease that’s $2500/mo more and A+ 3. Buy office building and sublease part of it. Probably B+ aesthetically
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Our highest client churn is with the smallest clients we accept. We recently raised our minimum where clients must have revenue of $10k/mo in professional services or $30k/mo in home services. It’s still a gamble and we put so much work into the first year with a client but every time we look at the data we’d have small clients that weren’t stable and would churn out saying they were happy with the service but had to cut costs.
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It’s a tough decision for me. If we don’t pick up that small client then and they grow with us, it could be 3 years before they circle back. Or never come back. And those are critical years for clients where we can have a great impact as they grow from 10k to 30k to 50k revenue. So you risk high churn and team frustration, or just hold the line on clients being bigger before we’ll work with them.
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If you’re watching Monday night football and seeing all the Steve Gleason stories, I highly recommend his book.
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If you don’t know his story…here’s one small piece
Twenty years ago he blocked a punt in the first game back after Hurricane Katrina. He has had ALS for fifteen years. Today the city gave him its key, and he led the parade himself. His name is Steve Gleason and he played for the New Orleans Saints. This afternoon he led a second line from Lafayette Square to Champions Square. Mayor Helena Moreno handed him the key to New Orleans. Then he performed his new album with Marc Broussard in front of the crowd. The album is called Rebirth. It is his poetry set to music by New Orleans musicians. Tonight he was on the floor of the Superdome with his family, twenty years to the season since the building reopened. The opponent tonight is Atlanta. Same team, same Monday night, same building. You know what he did in that building. Everybody does. Here is what you probably do not know, because he only said it this week. He thinks that punt is why he is alive. "If I do not block that punt, I am another former special teams player, a has-been football guy. When ALS came, I probably fade away quietly and die anonymously." And then this. "The truth I have to live with is this: The same play that helped New Orleans breathe again is a big reason I'm still breathing now." Sit with that for a second. A backup safety made one play on a Monday night in 2006. The city needed it. Five years later he got a diagnosis that takes most people in three to five years, and the only reason anybody was listening when he started talking about it was that play. He is in the ten to twenty percent of people with ALS who make it past a decade. He is nearly sixteen years in. He said something else about walking back into that stadium. "When I roll back into that stadium, I will not only be revisiting a monument of 2006, but I will be walking into a mirror. A place that had to learn how to rise. I had to learn the same thing." And this one is the whole thing in nine words. "I'm still here. That still surprises some people." Be honest about what today does and does not change. There is no cure. He needs help to move and help to breathe, and a key to a city does not alter any of that. But a man who cannot speak with his own voice spent this afternoon leading a parade through New Orleans, and tonight he sat on the floor of the Superdome with his wife and his kids, in the building he helped bring back to life. Twenty years ago he gave that city one play. He says the city gave him the rest of his life.
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New clients we had in Sept for acquisition due diligence: - Metal machine shop - Pool service - IT services - Home care - Warehouse Services / 3PL - House painting New accounting and tax clients: - Wedding venue - Marketing agency - Short term rentals - Author/Speaker - Property management - Marketing agency - Window cleaning - Cafe - Real estate brokerage - HVAC Solid finish to Q3. Our annual goals are within reach but it’s going to hard to hit them.
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About 10-15% of folks selling their business should just say “yeah I committed tax fraud every year previously, but now that we’re selling the business I did it properly for one year. Hope that explains the numbers.” And that would in fact explain the numbers.
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The top 5 causes of bookkeeping train wrecks: 1. CRM integration botched 2. Transferring money between companies 3. Personal expenses in the business 4. Too many credit cards and accounts 5. Inventory not tracked properly
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On the surface these seem simple or a one off. But they usually happen repeatedly without being tracked and untangling them after 1-2 years is a big undertaking.
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Production pay feels like a magical unlock as a business owner - solves incentives, alignment, results based culture. But I think there’s some industries where it’s very very hard to track and implement - like residential landscaping
We killed our employee incentive program Spent over a year trying to make it work. Felt like we had traction sometimes... hard to tell. Ultimately pulled the plug. The program: Revenue share over a certain percentage. Every day gets a baseline labor rate. Beat it, and you split the savings with us. In theory it incentivizes guys to drop below a target labor rate. (guys to get faster underneath it) Some guys got it. Some didn't. Here's the thing: we could never explain it cleanly or get them feedback fast enough. Lessons: - It has to be simple. Easy to explain, easy to adopt. Too many penalties. Math problem was confusing. - Feedback has to be FAST. Phone pings the second you make more money, you do that again. Next day is okay. Two weeks later is useless. - They have to know why. Which actions actually made them money. We were a few days to a week behind. By the time they saw the number, they couldn't remember what they did to earn it. So it felt like funny money. "Cool, I made more." Or "cool, I didn't." My dad has always said he doesn't believe in incentives below the foreman level. I get it now. Not sure I agree. I still think the ideal is to push it as low in the org as you can, with feedback as fast as you can. We just haven't found the tool yet. Anybody actually made crew-level incentives work? What did you use?
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Billy Strings concert in Boston….I hope the ticket prices aren’t too high. The ticket prices:
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$631 face value for the cheapest ticket, not even resale. Wowzers
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"Clear insights, proactive advice and practical solutions." Love seeing reviews like this.
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Once you’re under LOI to buy a business there’s a sliding scale of due diligence: Naive Nelly - trusts the seller on everything and doesn’t check anything, just wants to close. Interrogator Ian - turns over every stone, finds new stones to turn over, drives the seller insane, loves spreadsheets.
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The right balance is somewhere in between. Nelly might file for bankruptcy because they overpaid or got fleeced. Ian might never close because he finds every reason not to a deal, and if he does close the seller hates him and won’t help with a transition after a nightmare diligence period. I meet more searchers who are the latter and we try to get them to see the big picture but they’re sometimes impossible to reign in. Try to strike the balance in between.
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