Technology Talk

From the Oct. 2007 Issue

A conversation between Greg LaFollette and Jerry Topp from Eide Bailly about the use of technology in tax and accounting firms

Gregory L. LaFollette, CPA.CITP

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Jerry Topp

Jerry Topp is a former high school teacher, a 25+ year public accounting practitioner, and, above all, a leader and a motivator. He heads a powerhouse firm headquartered in, of all places, Fargo, N.D. I met up with Jerry as he was in Sioux Falls, S.D. announcing the acquisition of yet another firm there — this one adding over $5 million in revenue, 45 professionals and swelling the Eide Bailly ranks in Sioux Falls to an astonishing nearly 200 people.

Editor’s note: In the spirit of full disclosure, please note that I am one of those 200. I office with Eide Bailly so I can continue to experience the joys of practicing public accounting. I just LOVE the smell of tax returns in the spring! ~ Greg LaFollette

Greg LaFollette: You have a lot of zeros to talk about — $100,000,000 in revenue, 1,000 staff members, and 100 partners. That’s very impressive. Tell me a little more about Eide Bailly and the markets you serve.

Jerry Topp: Eide Bailly LLP is a regional firm that operates primarily in the Great Plains and rocky mountain regions of the United States. This encompasses 13 offices in eight states — Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Arizona and Oklahoma.

Greg LaFollette: You’re quite disciplined geographically. What’s your strategy?
Jerry Topp: Because of the large number of regional accounting firms that operate east of the Mississippi River, our current strategy is to grow the practice west of the Mississippi and concentrate on the larger secondary and metropolitan areas in those regions.

Greg LaFollette: Your affiliate network, PracticeWise, seems quietly popular. Do you spend a lot of time on it?
Jerry Topp: Personally, I will spend a great deal more time with this network in the future. We developed the network to concentrate on the management issues of firms that are outgrowing their current infrastructure and are looking for some assistance and guidance from not only our firm but also from peer firms. PracticeWise presently includes 17 member firms in 13 states. The firms are represented in size from approximately $1
million to $20 million in revenues.

Greg LaFollette: You’ve personally come from 14-column workpaper to paperless engagements and e-mail via smartphones. Are we really better off?
Jerry Topp: I think you could find a few folks around our firm that may wonder, but I am certain that technology has been, is, and will continue to be the major source of advancements and efficiencies in our profession. The speed of communication and the response time expected by our clients has changed dramatically. One might wish for the past, but the reality is that people are connected virtually non-stop. And our clients expect that we have the most up-to-date information available at our fingertips at a moment’s notice.

Greg LaFollette: I’m interested in your opinion of the role of technology in the practice of public accounting. How important is technological competence to today’s practitioner?
Jerry Topp: Simply put, it is a mandatory. Each person may not need to know all the applications we run in the firm, but all of our practitioners need to be competent on systems that impact their functional areas, such as tax and audit, as well as those of their clients, as the transfer of information electronically is the norm and will continue to evolve at a rapid pace.