Sam Allred may very well be the last person you would expect to see at the corner of 6^th and Last Chance Gulch in Helena, MT. While this address may sound like something out of Wyatt Earp meets the Lone Ranger, his approach to the CPA profession and computer consulting not only is proactive, but downright revolutionary.

Five Steps to Success
“You can’t sustain healthy profits in a reactionary consulting mode,” says Sam. “My best advice is to institutionalize or standardize your process so you can repeat your successes.”

Following the same set of instructions has led to profits, and Sam strongly believes other CPAs will find the same if they, too, discover what makes something successful and continue to follow that approach. On any given day, Sam consults with companies on developing and improving computer systems and operations, and delivers advisory services that many may view as somewhat routine to the profession.

The difference rests with Sam’s philosophy in viewing the CPA as a consultant rather than a vendor. As an entrée to computer consulting, firms often represent accounting software vendors. However, he believes the software package represented by a CPA should be referred to as a tool to a consulting engagement rather than a one-time sales effort or simple transaction.

“What we have done is bring standards to consulting, just as the CPA profession has standards for accounting,” he says. “We have a method that is very complete and involves everything from meeting the prospect to evaluation.”

This methodology is step one of an extremely rigid five-phase approach to a consulting engagement. Although his bread and butter rests with client relations, he also teaches other CPAs how to develop and follow the approach through a three-day conference co-sponsored by Solomon Software.

“Each time a CPA who practices consulting and represents a ‘package’ goes to a prospect, the firm traditionally is viewed as a vendor, and in that vendor/customer relationship, the premise usually is that the customer is the only one making the decision,” he says. “What we preach is that you are not just vendor, but a consultant, and in order to begin a client relationship, both parties should play a decision-making role. We make the determination whether we want to work for them.”

Sam refers to this process as “due diligence” and step one of his five-phase strategy in which the CPA should first determine if there is a win-win relationship before moving forward. Accompanying due diligence is a list of 10 characteristics organizations have that make them “A”-level clients. A typical engagement is three to five months in which steps two through five include, in order, Implementation Planning, Environment Preparation, Implementation and Training, and Ongoing Support. The training and implementation step takes the longest because Sam begins with an “entrance” meeting similar to an audit conference, then follows detailed, customized procedures for every installed module.

“Customization is the number one thing that helps us to be successful, because the minute we sit down to train, we develop buy-in or loyalty with the staff because we’re able to customize the procedure to include the names and responsibilities of everyone connected with the operation. We leave behind a binder so the company can modify procedures in Word.”

The Grass Was Greener
Sam moved to Helena in 1990 from Northern California and joined his firm, Anderson ZurMuelen and Co., P.C., after meeting with AZ for a week on how to build a consulting practice. He fell in love with the blue skies and clean air, and moved his family to the area — but Sam says a larger draw than the location was the opportunity to grow a multi-million dollar consulting practice in a very remote location.

Based on his experience and knowledge from working for Main Hurdman (a forerunner of KPMG Peat Marwick) and as an entrepreneur in starting his own CPA consulting practice, he is now a firm shareholder/partner and computer consulting practice manager, and has seen 100 percent growth in his practice every year for the last six years.

“I don’t think CPAs are hesitant to look at standards, but anything that is not chargeable and takes time to develop isn’t considered as important as a client activity,” says Sam. “That’s what stands in the way of the challenge.”

Other examples of his impact on both AZ and his clients include the recent opening of a satellite office in Denver, and various tools Sam refers to as “out-of-the-box” products that are unique, nontraditional and generate new streams of revenue. Throughout his work, he is just following a tried and true way to reach an audience that seems to work, time after time.

“As you get down the road and continue to analyze what led to success, you constantly tweak and mold that methodology to continue realizing your potential.”

CPAs who want to discover Sam’s method may view the firm’s Web page (www.azworld.com), or sma@azworld.com.

Ten characteristics of A-Level organizations:

1. Attract and retain quality people
2. Teamwork and commitment
3. Strong upper management team
4. High commitment to technology
5. Believe in a thorough planning process for change
6. Recognize and pay for quality services
7. Reasonable expectations
8. Willing to take advice (teachable)
9. Investment vs. expense approach
10. Profitability and position in industry