The Firm
Badger CPA
Headquartered in San Antonio, Texas, Badger CPA is an independent CPA firm that offers everything from outsourced accounting, payroll and tax planning to tax strategy, financial advisory and fractional CFO services.
The Challenge
Tech Sprawl and Fragmented Processes
Like many growing firms, Badger CPA struggled with what has come to be known as “tech sprawl,” or uncontrolled expansion of technology leading to fragmented processes and platforms.
Determined to find a solution, the Badger CPA team interviewed their team to uncover and compile a list of the specific pain points they were experiencing from the tech sprawl.
Badger CPA then partnered with Paro’s technology and AI consultants, who bring decades of experience making business operations more efficient through the judicious use of technology and AI.
“We knew our tech stack was holding us back. Partnering with Paro gave us a chance to turn that challenge into a growth opportunity,” says Shannon Badger, managing partner at Badger CPA.
The Solution
Experienced Technology & AI Consulting
Paro’s consultants started by facilitating a workshop to understand Badger CPA’s short- and long-term objectives. Shannon Badger described the objectives succinctly: “efficiency and accuracy.”
The consultants got to work to better understand Badger CPA’s business processes and technology landscape. They requested a complete list of the firm’s technologies and, from there, mapped out how the different tools supported the firm’s capabilities. They identified processes where the use of redundant systems led to operational inefficiency, and found gaps in business processes that could be bridged by implementing modern technology.
The Paro team then facilitated an “Art of the Possible” workshop to showcase how modern systems and AI can help Badger achieve its goals in the short and long term. The team encouraged out-of-the-box thinking, which led to some breakthrough ideas on how Badger CPA could differentiate itself in the highly competitive industry.
“Those early workshops with Paro gave us the clarity we needed. We weren’t just picking new tools, we were defining how we wanted our firm to operate and grow in the years ahead.”
Shannon Badger, Managing Partner
Armed with deep knowledge of finance and accounting industry processes and technology, Paro’s consultants facilitated a workshop with Badger CPA leadership to evaluate a number of technology alternatives. They brought in multiple systems vendors for product demonstrations.
Using a structured approach to technology selection—including customer reviews, verifying the financial health of the vendors, assessing technical architecture, and reviewing product roadmaps—Badger CPA was able to make strategic decisions about its future process and technology architecture. The first step was to replace the firm’s practice management system. Paro’s consultants negotiated with the practice management system vendors to secure an attractive deal for Badger CPA.
Once key technology decisions were made, the consultants created an end-to-end systems architecture that would continue to work even as Badger CPA scaled its business. The future-forward architecture incorporated emerging trends in AI.
“One of the best ways the Paro team helped us was by getting us to not just evaluate the current capabilities of the platform we were reviewing, but also looking ahead and making sure it can help us in the future,” says Badger. “They made sure there was no data lock-in with our final choice, so we could still leverage our data in future years when AI and data requirements inevitably change.”
The consultants also suggested new AI-enabled, high-margin revenue streams that Badger CPA could create in the near future.
“This is where the Paro team really went above and beyond. They didn’t just give us an implementation roadmap. They proposed new ways to use and even monetize our data by suggesting data-oriented services we could offer our clients.”
Shannon Badger, Managing Partner
Once the implementation plan was in place, the Badger CPA team asked the Paro consultants to manage the overall implementation, a task the Paro team was happy to do.
“They were incredibly helpful with coordinating the overall implementation. They made sure everything was done right, at the right time. They even recommended we implement the new platform before tax season so we had a chance to work through any hiccups before it got really busy, which was great advice,” says Badger.
The Impact
Record Quarterly Revenue
The results exceeded expectations. Not only did the new practice management software help Badger CPA reduce their tech sprawl, they also saw a boost in revenues.
“We had our best quarter ever, with both January and March setting all-time billing records. Several factors contributed to the success, but I believe the implementation of the new practice management software and the incredible efforts of our team were a huge part of it.”
Shannon Badger, Managing Partner
Badger listed a number of ways their firm has seen an impact, including reductions in overall admin time, past due projects, nonbillable client time, timesheet errors and manual entry for new client projects. The team also saw an increase in team member utilization and improved interdepartmental communication and client status tracking.
“Overall, we’re thrilled with the impact this has had on our operations so far, and we’re even more thrilled about the impact it has had on our bottom line,” says Badger. “Our revenue per full-time employee increased in Q1 and we expect it to keep growing. We also have seen a 10-15% increase in revenue this year that has come purely from the fact that the new system allows us to bill every minute of work, something we couldn’t previously do.”
