by Chris Williams | Apr 22, 2025 | Blog
That feeling is when you see the IRS logo in the envelope in your mailbox. Your heart skips a beat. Your mouth goes dry. Before you even open it, your mind cycles through every tax decision you’ve made in the past year. Is it a routine notice? An audit request? A penalty assessment?
This pie-in-the-sky scenario is all too familiar for consulting firm owners. Yet, despite all the heavy lifting, tax compliance is a constant source of stress. And that worry is justifiable — the consequences of failing to comply can have serious consequences on your firm’s bottom line and reputation.
As one System Six client said, “I was great at servicing my consulting clients, but I was completely out of my depth with tax requirements. That disconnect cost me over $8,000 in penalties before I got appropriate help.”
Join us as we explore the most typical tax compliance missteps for consulting firms, what non-compliance is really costing, and actionable solutions your firm can implement.
Tax Compliance Mistakes Common to Consulting Businesses
10-50 Employees Small Consulting Firms How small consulting firms with 10-50 employees face unique tax challenges that corporations or other types of small businesses do not. These are the most common compliance issues:
Worker misclassification: This demarcation line between employees and contractors is especially blurry in consulting. Your project-based associate may act like a contractor to you, but the IRS might have a different view based on elements such as where a worker provides their services, which equipment they use/own, and which party controls the scheduling. As one environmental consulting firm learned the hard way, mischaracterizing a mere three team members led to back taxes, penalties, and interest over $42,000.
Mistakes on quarterly estimated tax: Consulting income commonly varies widely from one year to the next and even from quarter to quarter, complicating quarterly tax estimates. Overpaying locks up working capital that could be better used growing the business, and even a 10% underpayment can result in penalties.
State tax nexus confusion: And with remote work now the norm, your workers could be generating tax obligations in states where you’ve never even set foot. An unnamed management consultant whose team is spread across seven states learned she had five filing requirements — after receiving notices from three state tax agencies.
Documentation of expenses not done correctly: Client dinners, travel costs, and home office deductions demand rigorous documentation. “I had valid business expenses,” one System Six customer reported, “but without proper receipts or documentation, my deductions were disallowed in an audit.”
Ignoring self-employment tax: So, even if you make an LLC or S-Corporation for your consulting firm, you still have to pay self-employment taxes. This 15.3% tax liability surprises many.
The Genuine Price of Non-Complying
The actual price of tax non-compliance goes well beyond the direct penalties:
Fees make the penalties stack up quickly: For each month that a taxpayer fails to pay, the IRS typically assesses 0.5% of unpaid taxes, plus interest. Failure to file penalty fees can be as high as 25% of unpaid taxes. For a consulting firm with $2 million in annual revenue, even a relatively small compliance issue can lead to a penalty greater than $10,000.
Audit costs sap resources: Beyond penalties, the effort and expense of responding to an audit brings substantial opportunity costs. One firm owner told me it took over 60 billable hours to deal with an IRS audit, which cost them $18,000 of revenue.
The reputational damage lasts: In the consulting world, where no one will hire you if they don’t really trust you, tax woes can hurt your professional reputation. If they become known, tax problems can raise questions about your attention to detail or your financial stability among clients and partners.
“Post compliance, I spent more energy worrying about taxes, rather than actually how to serve client strategy better,” said a strategy consultant. “The mental toll was a cost of creative energy that I could invest into my clients.”
Guide to Tax Compliance for Consultants
These practical strategies will significantly minimize your tax compliance risks:
Move your accounting systems to the cloud:Today’s financial management systems auto-populate your transactions with predefined categories, track your project-level profitability over time, and alert you to potential compliance issues before they become costly mistakes. “System Six changed our entire accounting system to accurate and on-time processing,” says one client. “I used to look up data before it was time between my client meetings.
Establish a tax calendar with some buffer time: The majority of penalties arise from missed deadlines. The full calendar must contain the filing date and the milestones to track you as you prepare for every deadline (2–3 weeks ahead of it). Including this buffer is essential to avoid last-minute scrambles that result in mistakes.
Record business expenses in real-time for those who work on a need-to-know basis. Capture receipts as they come using receipt-capturing apps that mix with your accounting system. This practice avoids the end-of-quarter rush of finding supporting documentation and ensures you can prove a deduction if questioned.
Create a strategy for state tax compliance: If your team is dispersed in multiple states, develop a proactive compliance strategy alongside a tax professional. Identify where you have nexus (tax presence) and set up systems to monitor and meet multi-state obligations.
Set quarterly tax planning meetings: Instead of just remitting estimated taxes, make each quarter a time to assess your firm’s overall tax position. This regular checkpoint enables you to reform your strategies in real-time as the business evolves.
When and How to Seek Professional Help
Although it may seem cost-effective to manage your taxes, most successful consulting firms understand that with great responsibility comes an ever-greater need for experts when necessary:
When you may want professional support:
– More than 5 hours a month spent on tax tasks
– Get any notices from tax authorities
– (Branching out into new states or service lines)
– Growing beyond 10 employees
– Uncertainty around tax decisions
When choosing financial support, seek a partner who:
– Has experience specific to consulting businesses your size
– Test – Provides cloud-based, real-time financial visibility
– Advises you proactively rather than waiting for you to ask just to be compliant
– Nestable with your current systems
“A System Six has done wonders for my stress level,” says an owner of a consulting firm. “They’ve built automated systems that monitor every deadline and requirement. I leave compliance to the cloud; I never need to worry about it; it’s all done automatically.
Making Tax Compliance a Strategic Advantage Instead of a Burden
Tax compliance doesn’t have to terrorize consulting firm owners. Proper systems, expertise, and a mindset can make it all but invisible—ticking over in the background as you devote your energy to growing your business and serving clients.
Imagine opening mail from the IRS with confidence, not dread. Imagine seeing your tax position live and in real-time at any one point. Imagine all the mental energy spent worrying about compliance migrating to strategic growth instead.
This isn’t merely about dodging penalties – it’s about changing how you think about your firm’s finances. Leverage the Power of Tax Compliance: With clarity and confidence in your tax compliance, you can focus on Delivering Value to your Clients.
Does it need to be time to reassess your path to tax compliance? A professional review of your current systems may also help you identify risks and opportunities you haven’t considered yet.
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About System Six
Founded in 2009, System Six is a Seattle-based bookkeeping and accounting services provider. We are a cloud accounting firm serving 175+ clients coast to coast in the U.S., with a niche focus on the small to mid-sized business and nonprofit sectors. We are a team of 35+ expert specialists providing services in bookkeeping, payroll processing, accounts payable, tax compliance support, technology implementation, and more. We’re on a fixed-fee basis, charging against weekly recurring work ranging from around $400 to $800, depending on the work complexity. Our clients describe us as having “revolutionized their accounting systems to become correct and reliable means,” enabling them to spend time growing their business rather than worrying about cash flow, payroll, or compliance nightmares. For further details, click on www.systemsix.com.
by Chris Williams | Mar 13, 2025 | Blog, Bookkeeping Tech, Resources & Downloads, Small Business Stories
Picture Alex, founder of a growing environmental consulting firm, comparing bookkeeping software options on her laptop. “I know I need something better than spreadsheets,” she mutters, “but how do I choose between all these options?” Choosing the right bookkeeping & accounting software for consultants can feel overwhelming if you’re like Alex. Let’s cut through the confusion.
Understanding What Matters
Consulting firms have unique financial needs. Through their work with over 175 professional service firms, System Six has found that consulting businesses need particular capabilities in their bookkeeping software. You’ll want to track project profitability, allocate time and expenses efficiently, create professional invoices, and see your real-time cash flow. Most importantly, your software should play well with other business tools you use daily.
The Top Contenders
1. QuickBooks
QuickBooks Online is System Six’s top recommendation for most consulting firms. “QuickBooks Online forms the backbone of our client’s financial systems,” explains Tim from System Six. Its robust feature set and extensive integration capabilities make it ideal for consulting firms.” The software excels at project and class tracking, offers strong reporting capabilities, and grows alongside your firm. While its interface can initially feel overwhelming, proper setup and guidance can transform it into a powerful ally for your business.
2. Xero
For firms with international operations, Xero offers a compelling alternative. Its multi-currency handling and intuitive interface make it particularly attractive for firms across borders. One System Six client who switched to Xero praises its clean interface and excellent bank reconciliation features. However, compared to QuickBooks Online, Xero offers fewer US-specific features and a more limited selection of third-party integrations.
3. FreshBooks
Smaller consulting practices (<$400K in revenue) might find FreshBooks hits their sweet spot. It shines in time tracking and professional invoicing, with an interface that won’t send you reaching for the aspirin. Yet, as your firm grows, you might find its reporting capabilities and basic accounting features somewhat constraining.
4. Sage Intacct
Sage Intacct enters the conversation for consulting businesses scaling beyond $20 million in revenue. It offers sophisticated financial management features that larger firms need, though its significant investment requirement and steep learning curve make it overkill for smaller operations.
Making It Work
Having the right software is just the beginning – the implementation transforms it from a tool into a game-changer. As one System Six client shares,
“They revamped our whole accounting system into accurate and dependable practices. They take on the entire setup and effectively act as consultants until your accounting operations run smoothly.”
The setup phase proves critical. Many firms stumble by trying to configure these tools without proper expertise. Working with experienced partners like System Six ensures your chart of accounts reflects consulting industry best practices, your project tracking captures the right metrics, and your automation saves time rather than creating headaches.
Your accounting software needs will evolve as your firm grows. Quarterly reviews of your financial systems help ensure they continue supporting your business effectively. “I don’t have to think about my accounting anymore,” one System Six client notes. “It’s just taken care of seamlessly.” This peace of mind comes from combining the correct software with expert implementation.
Making Your Choice
When selecting your software, consider your firm’s current size and growth trajectory. A solo consultant’s needs differ vastly from those of a 50-person firm. Think about which features you genuinely need today and which you might need tomorrow. Consider your budget not just for the software but also for proper implementation and support.
Remember Alex from our opening? She ultimately chose QuickBooks Online, which she implemented with System Six’s guidance. “Now I actually understand our numbers,” she says. Instead of wrestling with basic bookkeeping, I’m using financial insights to drive decisions.” Her story could be yours, too.
The right combination of software and expertise can transform your financial operations from a burden into a strategic advantage. Consider partnering with experts who can help you not just choose the right software but implement it in a way that gives you back your evenings and weekends. After all, you became a consultant to solve complex problems for clients, not to become an amateur accountant.
by Chris Williams | Mar 13, 2025 | Blog
The desk lamp casts a lonely glow across scattered receipts, expense reports and an inbox that’s even more cluttered. It’s 9 PM, and instead of preparing tomorrow’s client presentation, you’re wrestling with reconciliations and other accounting items way beyond your expertise. For many consulting firm owners, this scene feels painfully familiar.
The True Cost of Manual Financial Management
Consider this: most consulting firm owners spend 15-20 hours monthly on financial administration. That’s not just time lost – it’s revenue sacrificed. Those hours could generate $3,000-5,000 in billable work at typical consulting rates. Instead, they’re consumed by tasks that modern technology and the right experts could handle automatically.
“I’d spread papers across my dining room table every Sunday night and sort through a messy inbox, trying to make sense of the week’s transactions while my family watched movies in the next room,” shares one consulting firm owner who later partnered with System Six. “I knew I was losing thousands in billable hours, but I didn’t see another way.”
Let’s examine the five most time-consuming financial tasks and how modern solutions can transform them:
1. Transaction Categorization and Reconciliation
The traditional approach of manually categorizing expenses and reconciling accounts consumes hours weekly. One System Six client admitted spending every Monday morning sorting through the previous week’s transactions—time that should have been spent with clients.
Properly configured, today’s cloud-based systems can categorize transactions automatically with remarkable accuracy. “System Six revamped our whole accounting system into accurate and dependable practices,” shares a client. Now, I can pull up real-time insights from my phone between client meetings.”
2. Invoice Creation and Collection
Creating custom invoices, tracking payments, and following up on overdue accounts traditionally require meticulous attention. Many consultants spend hours each month crafting invoices and chasing payments.
Modern automation transforms this process entirely. As one System Six client notes, “They’ve automated our invoicing workflow completely. Now I can generate professional invoices with one click, and the system tracks payment status automatically.”
3. Expense Report Processing
The old way is collecting receipts, manually entering data, checking compliance, and reimbursing employees. The new way is mobile apps that capture receipts instantly, automated approval workflows, and direct integration with accounting systems.
“Since implementing automated expense tracking through System Six, we’ve cut our processing time by 80%,” reports a consulting firm owner. “No more lost receipts or delayed reimbursements.”
4. Compliance and Tax Management
Tax deadlines and compliance requirements keep many consultants awake at night. Missing key dates can result in penalties, while incorrect filings can trigger costly audits.
“System Six has done wonders for my stress level,” shares another client. “They’ve created automated systems that track every deadline and requirement. I no longer worry about compliance – it’s all handled automatically.”
5. Financial Reporting and Analysis
Generating accurate financial reports traditionally meant hours of spreadsheet work and manual calculations. Many consultants simply couldn’t spare the time, operating with limited visibility into their financial health.
Modern systems generate real-time reports automatically. “Now I understand our numbers,” says a System Six client. “Instead of wrestling with basic bookkeeping, I’m using financial insights to drive decisions.”
The Power of Professional Partnership
While technology enables automation, implementing it effectively requires expertise. System Six has helped hundreds of consulting firms transform their financial operations. They’re not just vendors – they’ve become part of our team, helping us develop better financial processes. With System Six, you get a dedicated team of financial experts who will guide you through the entire process, from setup to ongoing support.
The results speak volumes: “We’ve grown 40% this year because I can focus on clients instead of paperwork,” reports a consulting firm owner who made the switch. “They take on the entire setup and effectively act as consultants until your accounting operations run smoothly.”
Imagine Tomorrow
Picture walking into your office tomorrow knowing your finances practically manage themselves. Your books are always current, your tax deadlines are tracked automatically, and you can instantly access any financial insight you need. What would you do with those extra 15-20 hours each month?
One System Six client answered that question definitively: “Since automating our finances, I’ve landed three new major clients. Those deals happened because I could focus on relationships instead of reconciliations.”
Your time is too valuable to waste on manual financial tasks. Modern solutions exist to automate these processes; experienced partners like System Six can implement them effectively. The question isn’t whether to automate – it’s how much longer you can afford not to. With automated financial management, you’ll not only save time but also reduce errors, improve compliance, and lower your stress levels. The benefits are clear, and the time to make the switch is now.
Ready to reclaim your evenings and weekends? The transformation starts with a single step. Consider how many billable hours you’ll reclaim when your financial processes run themselves. The future of consulting isn’t about working harder – it’s about working smarter. If you’re ready to take that step, contact System Six today and start your journey towards financial efficiency.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
by Chris Williams | Mar 13, 2025 | Blog
Marcus checks his phone during a client meeting break, and his stomach tightens. There are three overdue invoice reminders from his contractors, two urgent messages from his office manager about upcoming payroll, and an email from his biggest client requesting a project timeline extension – with payment terms to match. Despite his firm’s growing client roster and stellar reputation in environmental consulting, these moments of financial anxiety have become all too familiar.
The cash flow challenge in consulting isn’t just about having enough money in the bank. It’s a complex web of timing, tracking, and tough decisions that can make or break even the most promising firms. Let’s uncover the hidden costs that poor cash flow management inflicts on consulting businesses – far beyond the balance sheet.
The Perfect Storm: Why Consulting Firms Struggle
Consulting firms face a unique set of cash flow challenges. Large corporate clients often demand extended payment terms – Net-30, Net-60, or Net-90. Meanwhile, your team members expect paychecks every two weeks, and contractors need timely payments to maintain good relationships. This misalignment creates constant pressure on your working capital and ultimately your bank account.
But a more profound issue lurks beneath the surface: the fixed-fee project trap. “We thought we were making money on every project until we dug into the numbers,” admits Tom, a strategy consultant who partnered with System Six. “We had no reliable way to track time against projects, so we couldn’t see which engagements were profitable.”
This widespread problem stems from consulting firms’ resistance to implementing rigorous time-tracking systems. Teams focus on delivering value to clients, often viewing detailed time tracking as administrative overhead. Yet without this data, firms can’t accurately measure project profitability or resource utilization – critical components of healthy cash flow.
The Invisible Drain on Your Business
Poor cash flow management costs extend far beyond late payment fees or emergency loans. Here’s what’s really at stake:
Professional Reputation
Word spreads quickly in professional networks when you can’t pay contractors on time. One System Six client shared, “Before controlling our cash flow, we lost several excellent contractors because of payment delays. It took months to rebuild those relationships.”
Growth Opportunities
You can’t seize new opportunities without reliable cash flow. Imagine turning down a dream project because you can’t afford to staff up quickly enough. “We had to pass on a major contract last year because we didn’t have the cash buffer to bring on the necessary specialists,” reports another consulting firm owner.
Team Morale
Constant cash flow stress trickles down to your team. Quality suffers when project managers worry about budgets instead of focusing on client outcomes. One firm reported spending 15-20 hours monthly just managing cash flow – time that should have been spent serving clients.
Breaking the Cycle
Forward-thinking consulting firms are tackling these challenges head-on. Here’s how:
Implement Robust Project Economics
Modern cloud-based systems make tracking time, resources, and project profitability easier than ever. “System Six revamped our whole accounting system into accurate and dependable practices,” shares a client. “Now I can pull up real-time insights about project profitability from my phone between client meetings.”
Automate Cash Flow Management
Stop relying on spreadsheets and manual tracking. Today’s tools can automatically categorize transactions, forecast cash positions, and alert you to potential shortfalls before they become crises. As one System Six client notes, “They’ve automated our invoicing workflow completely. Now I can generate professional invoices with one click, and the system tracks payment status automatically.”
Build a Culture of Financial Awareness
Help your team understand the connection between accurate time tracking and firm health. When everyone sees how their efforts contribute to project profitability, they’re more likely to embrace necessary processes.
Taking Control of Your Financial Future
Imagine walking into your office tomorrow knowing exactly where your cash flow stands, which projects are profitable, and when you can expect every payment. This isn’t just a dream – it’s the reality for consulting firms that have tackled their cash flow challenges head-on.
One System Six client said, “Since controlling our cash flow, I’ve landed three new major clients. Those deals happened because I could focus on relationships instead of reconciliations.”
Your firm’s financial health doesn’t have to be a source of constant anxiety. With the right systems, support, and mindset, you can transform cash flow management from a continuous worry into a strategic advantage. The first step? Acknowledging that the actual cost of poor cash flow management isn’t just financial – it’s the opportunity cost of what your firm could become.
Take action today. Your future self will thank you for it.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
by Chris Williams | Mar 13, 2025 | Blog
Your desk lamp casts a lonely glow as your inbox is scattered with receipts and expense reports. It’s 9 PM, and instead of preparing tomorrow’s client presentation, you’re wrestling with reconciliations. Sound familiar?
I spoke with Sarah, a management consultant who has lived this reality for years. “Every Sunday night, I’d hunch over my laptop trying to make sense of the week’s transactions and remember what was what while my family watched movies in the next room,” she says. “I knew I was losing thousands in billable hours, but I didn’t see another way.”
Think about your typical month. How many hours do you spend categorizing expenses, processing payroll, or hunting down missing receipts? For most consulting firm owners, it’s about 15-20 hours – time you could spend landing new clients or delivering breakthrough insights.
But the cost runs deeper than lost billable hours. When you’re stretched thin managing finances, mistakes creep in. A missed tax deadline here, a delayed invoice there. Small errors that chip away at your firm’s reputation and keep you up at night. Consider this: a misclassified expense can trigger an audit, costing you more time and resources.
Breaking Free with Automation
Remember life before the GPS transformed navigation? No more wrestling with paper maps, printing MapQuest directions, or getting printed maps from AAA. Financial automation creates the same transformation for your firm’s finances. Here’s what changes:
When you open your laptop, your morning coffee is still hot. Instead of spending the first hour categorizing yesterday’s transactions, your automated system has already done it. Real-time dashboards show your cash position and upcoming expenses at a glance. One-click generates client invoices, and another runs payroll. Maybe your system all runs in Quickbooks. Or maybe it’s a combination of Ramp, Gusto and QBO. There are so many good tools out there now – the right combination for YOU exists.
“I can finally see our financial picture clearly,” says Tom, a strategy consultant who automated his firm’s finances last year. “The system flags unusual expenses, reminds me of upcoming tax deadlines, and lets me check our books from anywhere. I’ve reclaimed my evenings and weekends.”
A Real-World Transformation
Take Mark’s environmental consulting firm. Before automation, his team struggled with questions like “How profitable was that project?” or “Can we hire another consultant?” Financial data lived in various spreadsheets, and no one trusted the numbers.
Working with System Six to automate their finances changed everything. “They revamped our accounting system into accurate and dependable practices,” Mark shares. “Now I can pull up real-time insights from my phone between client meetings. We’ve grown 40% this year because I can focus on clients instead of paperwork.”
Another consulting firm owner adds, “System Six has done wonders for my stress level. They’re not just vendors – they’ve become part of our team, helping us develop better financial processes.”
Starting Your Automation Journey
Ready to reclaim your time? Start small. Pick your biggest pain point – maybe it’s expense tracking or invoicing. Look for tools that plug into your existing software, like QuickBooks Online. Ask yourself:
- Which financial tasks eat up most of your time?
- What numbers do you wish you could see instantly?
- Where do mistakes typically happen?
The path to automation doesn’t have to be overwhelming. Most firms can automate their basic finances within a month and add more sophisticated features as they grow comfortable with the system. Think of it like learning to drive – you start in an empty parking lot before hitting the highway.
The Power of Time Regained
Imagine walking into your office tomorrow knowing your finances practically manage themselves. Your books are always current, your tax deadlines are tracked automatically, and you can instantly access any financial insight you need. What would you do with those extra 15-20 hours each month?
One consulting firm owner told me, “Since automating our finances, I’ve landed three new major clients. Those deals happened because I could focus on relationships instead of reconciliations.”
Take Action Today
Your financial freedom starts with a single step. Take five minutes right now to list your most time-consuming financial tasks. That list is your roadmap to automation. Remember, every minute spent on manual financial work is not spent growing your business or serving your clients.
The tools exist. The success stories are real. The only question is: What will you achieve when your finances run themselves? Take the first step towards financial freedom today. Start your automation journey and see the difference it can make for your consulting firm.
About System Six
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work.
Contact us at hello@systemsix.com.
by Chris Williams | Sep 15, 2022 | Blog
Over Labor Day weekend, as a busy summer came to a close for System Six and for Blair and me personally, I was lucky to have some quiet time to sit back and reflect on my first year at System Six. I realized what an exciting, challenging at times, and certainly motivating year it’s been, and I thought I’d take some time to share some reflections on the year behind and all that’s ahead.
First and foremost, I’m thankful. Thankful to Jeremy, Joe, Kelly, Brooks, Lia, and the many people who built System Six over the past 13 years. They built a great business – one focused on bespoke, high-quality services using the right modern technology and processes. But more importantly, they focused its core, its ethos, on what matters most in our industry: People. They built a fantastic culture focused on joy and flexibility where the team delivers excellence, but also has fun along the way. So thank you for what you’ve built and for giving me the chance to usher System Six forward to the next level – one where we’ll continue to focus critically on making System Six the best place to work in cloud accounting.
I’m also thankful to our current team for welcoming me with an open attitude – especially to Brooks and Kelly, whom I worked with most closely out of the gate. They let me ask lots of questions and patiently listened to some not so great ideas. They let me accelerate our pace of growth, ran towards new tasks I asked of them, and allowed me to make changes to many well-established processes (meeting cadences, pay periods, hiring processes, etc.)
And to the broader team at System Six. Thank you. You, too, welcomed me with open arms, gave me a chance, and were quick to share ideas you had for improvement. Importantly, you continued to serve our clients with excellence and carried forward the most important part of System Six – our culture. I’m so thankful to work with and serve such a fantastic team. Keep it up!
And finally, I’d like to thank the broader Cloud Accounting community. Through conferences, early days coffee chats, leadership retreats, etc., many other leaders and vendors have welcomed me into the space. I’m thankful for the friendships built and the knowledge you’ve shared as we all scale our businesses alongside each other.
Next, I’m excited. Our near-term goals coming into System Six were first to honor the current business, team and core values, but next to start the journey to improve and scale our organization from one of ~20 people to one much larger, serving dozens and dozens more team members and hundreds and hundreds more clients. Thirteen months in, we’re well on our way. Of course, making fast progress towards our goals fires me up!
In a year of change, we’ve added 12 new team members and grown revenue by nearly 30%, serving over 40 new organizations from startups to scaled organizations to non-profits. There are lots of metrics we look at to monitor our business, but the one we’re most proud of is that over 90% of our job offers have been accepted. Candidates experience our culture during our extended interview process, and by the end of it, they want to come on board! This is our special sauce – our awesome team, and the fantastic culture they nurture.
Certainly, to accomplish all this, we’ve invested more across many aspects of our business, especially in hiring and new systems and processes internally, but we’re happy to remain healthily profitable. And of course, we’ve made mistakes along the way – internally and with clients – we are human. But all in, the last 13 months have been a great start to our vision for scaling System Six. And all of it is thanks to our great team.
Second, I’m excited for that very team! With growth comes opportunity – we’ve promoted several awesome individuals, given others expanded work or responsibility in their current seats, and bolstered our leadership capacity. We’re thrilled to have elevated Jaime to a Process Improvement Lead and Kelly to Head of People, a role she was already leading in many ways. As we continue to grow, I know our team will have more compelling opportunities, and I am excited to see who will step up and continue to advance their careers!
Finally, I’m motivated. Motivated to do better, both as a business, but also personally as a leader. A lot has gone right in the last 13 months. And I’m super thankful for that – we’ve worked hard, and our team has excelled. But, as we talk about internally, There’s Always Better! I’ve made some real mistakes this year – hiring too quickly, taking on complicated client projects without properly quoting costs, etc. And there are certain strategic goals we just won’t get to this year. We’ve learned a ton from these lessons, and already made improvements, but I know There’s Always Better – I can do more to deliver better outcomes for our clients and, most importantly, our team. And that’s motivating.
As I mentioned above, there’s so much demand for the services we provide. And that means there’s a clear chance to grow our team and deliver our workplace experience to more and more happy accountants. That dual-sided mission – to serve both clients and team – at an ever-increasing scale, inspires me to do better, even if just 1% better every day (shoutout to James Clear!) Over many years, if not decades, that can amount to something pretty impressive!
What an awesome year. It started with a smooth transition, largely thanks to the team that came before me and the current System Six team, who so graciously welcomed me and gave me a chance to learn. From there, both customers and team grew, validating our assumptions about the opportunities ahead of us. And we learned a ton, including from mistakes, and we can’t wait to bring those lessons to year two!
In the coming year, we’ll continue to hire and bring on new customers. But we’ll also implement new technology, add to our leadership team, and further systematize operations to support our growth – so that we can best serve our customers and our team. And we’ll never lose sight of our Northstar – building the best place to work in cloud accounting.
Onwards!
System Six is a modern, fully remote, cloud-based finance and accounting firm dedicated to providing exceptional services to service and software businesses. We specialize in bookkeeping, payroll, bill payment, invoicing, and sales tax filing, ensuring your financial operations are seamless and efficient. Our unique team-based approach brings decades of experience and expertise, managing day-to-day bookkeeping processes, finances, and technology stacks with a focus on sustainability and long-term, win-win relationships. At System Six, we believe that our clients’ success is our success, and we are committed to delivering excellence in every aspect of our work. Contact us at
hello@systemsix.com.
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