In this insightful interview with Matt Lescault of Lescault and Walderman, he reflects on the company’s achievements over the past year, including the strategic acquisitions in South Africa and the states, emphasizing the partnership with Sage.
Matt discusses the challenges faced during these acquisitions, the lessons learned, and the company’s proactive approach to the retirement revolution.
Looking ahead to 2024, he shares business objectives focused on refining existing operations and investing in technological advancements.
What would you consider as the company’s major achievements or high points?
The past year has been a whirlwind of accomplishments, opportunities, and challenges. We began the year by acquiring two companies in South Africa, following a significant investment in acquisitions in the US. Amidst these achievements, the focal point has been the deep partnership we have developed with Sage. This collaboration spans our role as systems implementers and integrators in the US and positions us as a leading Sage in tech partner in South Africa.
Our strategic alliance with Sage, particularly with the Sage Intacct offering, is a key emphasis for our organization as we look ahead. This partnership is pivotal in propelling us into the future, concentrating on the midmarket, whether through outsourcing or implementation. The drive to integrate software and technology into our organizational practices is very evident in these accomplishments. As we reflect on the year, it’s clear that our focus on deepening partnerships and incorporating innovative solutions will continue to drive our success.
Are there specific strategies or initiatives that played a key role in the company’s success this year?
I believe our company’s success is significantly tied to seizing key opportunities. While we do strategize around these opportunities, I am a strong advocate for businesses thriving by recognizing and embracing presented opportunities, rather than constantly manufacturing them. Sometimes, it’s more effective to let opportunities come naturally rather than forcing them. Fortunately, over the past year, we’ve been privileged to encounter numerous opportunities. Our team members have enthusiastically embraced these opportunities, contributing to our success. It’s not solely one strategy or vision that has propelled us to achieve our goals and reach high points; rather, it’s our willingness to venture into the unknown and seize those opportunities that have been instrumental in our success.
Can you share some challenges the company faced over the past year?
One significant event that stands out is our acquisition in the US in the previous year, not the most recent one. Acquiring assets and integrating a new team into established processes typically involves a period of maintaining the status quo before gradually incorporating the new team. It wasn’t until this calendar year that we witnessed a substantial increase in work and integration.
Addressing challenges, particularly in merging cultures and reconciling differences in processes, was notable in the US acquisition. The process disparities, beyond cultural aspects, presented hurdles in aligning services with our established practices. A similar scenario unfolded with the South African acquisition, finalized in September of the prior year. From September to January of this year, we adopted a similar approach—observing, analyzing, and adapting to the distinctions.
Both acquisitions posed ongoing challenges in navigating the complexities of becoming a global company. Unlike acquiring a company offering identical services, we gained entities with unique knowledge and skill sets, introducing a distinct set of challenges. While the challenges differ, the overarching theme involves the intricacies of integrating teams with diverse expertise, a journey we continue to navigate.
How did the team overcome the challenges and what lessons will learn from those experiences?
Reflecting on our 2021 acquisition in the US, credit must be given to the team for seamlessly incorporating 50 to 60 clients into our processes. Managing this change and acting as stewards for both clients and new staff was a collective effort that contributed to its success. Our ability to service these clients and integrate them into our approach stands out as a significant achievement. The experience has taught us valuable lessons for future acquisitions, providing insights on what to assess and the necessary steps to take, especially in the realm of outsourced accounting.
Transitioning to our acquisition in South Africa, a persistent challenge is cultural nuances. Despite the common language, differences in heritage, experience, and daily life pose ongoing considerations. As a leader, I’ve observed these subtleties in staff interactions and day-to-day experiences, even during visits to South Africa. The team has shown considerable effort in bridging these cultural gaps and fostering inclusivity through creative means.
On a broader scale, a global and firm-wide challenge we grapple with is unifying into one organization with a shared vision and goals. Achieving this unity is an ongoing, complex process that requires continuous investment of time and effort. While it may never be fully complete, it remains an important and ongoing effort that we must prioritize moving forward.
What market trends or external factors influence the company’s highs and lows this year?
I do hold strong sentiments about the trajectory of our industry and our organization’s role in staying relevant amidst fierce competition. Notably, the accounting sector is witnessing significant consolidation, with larger entities growing even larger while smaller ones fade away. This trend is influenced by factors such as industry-wide acquisitions, the retirement of accountants, and the imperative to integrate cloud accounting technology and artificial intelligence.
These industry dynamics guided our decision to transform into a global organization, forging a strategic partnership with Sage, and investing in a progressive direction. Committing to this path has fundamentally altered our identity and the landscape of our company, contributing to both highs and lows. It’s good to acknowledge that decisions made at the leadership level may not always be effectively communicated throughout the organization. The “why” behind decisions is important, and at times, we may fall short in articulating it well. Embracing change is integral, even if it carries an inherent sense of apprehension. The transformative journey we’ve embarked upon is both necessary and impactful.
How has the retirement revolution impacted your business?
I believe the impact of recent changes has been less pronounced for us compared to some of our peers, which I consider a positive outcome. Our ability to comprehend and take ownership of these changes, adapting our organizational identity accordingly, has been instrumental in our success. Our aim is to attract highly qualified and proficient accountants, encompassing individuals at various stages of their career paths. Rather than limiting ourselves to a specific age bracket, we value diversity across multiple age groups, recognizing the unique knowledge each bracket brings.
By maintaining a mix of individuals at different career stages, including those early in their careers, in mid-career, and closer to retirement, we’ve established a pathway for continuous promotion and growth within our organization. In response to the evolving landscape, especially considering the retirement revolution, we’ve adopted a different approach. A notable example is our commitment to 100% remote job postings, which has yielded a substantial number of resumes, particularly from mid-career professionals seeking flexibility due to family commitments or personal goals. This strategy enables us to combat the challenges associated with the aging out of accountants. In essence, these changes have significantly influenced our decision-making processes regarding talent acquisition and retention
Were there key partnerships or collaborations that played a role in the company’s success or helped mitigate challenges?
In our partnership with Sage, we benefit significantly from the wealth of information, data, and support they offer regarding market dynamics. Specifically, our interactions with the people at Sage, including partner representatives, account executives, executive managers, and marketing managers, have allowed us to cultivate deep relationships. These connections within the partner ecosystem provide valuable feedback that contributes to our overall team success and helps address challenges effectively.
It’s important to acknowledge that there have been instances where I may not have promptly embraced their suggestions, a point I want to be transparent about. Nevertheless, I firmly believe that an organization’s investment in its partner ecosystem, as demonstrated by Sage, creates ample opportunities for collaboration. This collaborative approach proves instrumental in successfully navigating and mitigating challenges.
Looking ahead to 2024. What are your primary business objectives and how do they align with the company’s vision, mission, and vision?
It’s an interesting question, one that’s gaining more prominence in our current discussions. Personally, I’m inclined towards enhancing our proficiency in our existing operations. While growth remains a priority, the emphasis is on expanding in areas where we’re already deeply rooted. I’m cautious about venturing into entirely new territories.
As an individual, it’s challenging for me, given my inherent drive for novelty. However, I believe that the focus in 2024 should be on substantial investments in refining the systems, processes, and overall approach that we initially invested in. This pertains to our acquisitions in South Africa and the U.S., where the aim was to elevate our outsourcing department. Such endeavors inherently bring about change, and with change comes disruption and challenges. This year presents a strategic opportunity for us to invest significantly in smoothing out these transitional aspects.
Are there specific areas of innovation or technological advancements the company plans to leverage for future growth?
While I won’t delve too deeply into the specifics of our current initiatives, we have distinct plans for software and technology deployments in 2024. Our focus remains on enhancing our technical expertise in software and becoming a go-to provider of integrated platforms. Without revealing our entire roadmap, I can emphasize that technology, software integration, and innovation are pivotal to our goals in 2024.
How do you see industry regulations impacting the company’s operations, and what strategies are in place to navigate potential changes?
We find ourselves in a fortunate position, not being a CPA firm or a chartered accountant, which means we’re not bound by the regulations of the CPA board or the ABA. The regulations that do affect us are more general and apply to businesses overall, rather than being specific to our industry or us individually. Our challenge lies in navigating the economic and political landscape, both within the U.S. and globally. These factors significantly influence our business operations and organizational decisions. While there isn’t a specific issue I can address today that poses a direct impact on us, we remain vigilant in our approach to adapt to any potential challenges that may arise
Looking beyond 2024, are there long-term milestones that the company is working towards, and how do the current goals contribute to this goal?
When considering the long-term positioning of our organization, it’s important to approach this as a collective decision, defined by the entire organization rather than an individual perspective. To effectively address the challenges presented by evolving technology and industry movements, I believe we must focus on and invest in global services.
In the realm of technology, complexity often demands a human element. While basic services are at risk of automation, the more intricate tasks will involve partial automation, necessitating human intervention for validation and maintenance. My overarching goal has consistently revolved around strategizing how we can proactively counteract future trends. Despite the day-to-day focus on our current tasks, it’s imperative to recognize the accelerating pace of change. Having been involved in outsourced accounting since 2006, I vividly recall the moment we realized we were lagging in technology. The need to catch up became apparent, and the rapid evolution caught us by surprise. It serves as a reminder that in this dynamic landscape, vigilance is key. My focus is on guiding our organization in making decisions that will safeguard us against the inevitable shifts that lie ahead.
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