Ron Baker reveals accounting strategy in his Art of Accounting.

TLDR:

• Ron Baker is a leader in accounting practice management, advocating for trashing the time sheet
• Strategy is crucial for success, focusing on choosing what not to do

Ronald J. Baker, a leader in accounting practice management, emphasizes the importance of strategy for success in the accounting industry. Baker’s approach to practice management, highlighted in his book “The Professional’s Guide to Value Pricing,” challenges traditional methods such as time tracking and instead focuses on creating detailed plans for achieving success.

According to Baker, a strategy is a detailed plan that cannot exist without planning. It is not a choice from alternatives but rather a theory that must be tested in the marketplace. The essence of strategy lies in choosing what not to do, as Michael Porter famously stated. By focusing on what not to do, firms can achieve a clearer direction for how to spend their resources and attention.

One key aspect of Baker’s strategy is the importance of focus. By being customer-focused rather than competitor-focused, firms can better identify the types of clients who want their services. This focus leads to a stronger win ratio in new business solicitations and allows for tailored services with better outcomes. Overall, focus provides a clearer direction for how a firm should allocate its resources and leads to increased profitability.

Baker’s insights on strategy and positioning for profitability offer valuable guidance for accounting professionals looking to enhance their practice management skills. By understanding the importance of strategy, planning, and focus, professionals can elevate their practice and achieve greater success in the competitive accounting industry.