In an interview with Invest: Cristina Hale, Central Florida tax practice leader at BDO USA, talked about how restructuring its tax practices in Orlando and Tampa as a single market has enabled the firm to go after clients more effectively and leverage its expertise regionally to support clients’ needs.
What have been BDO’s overall contributions and impact in the Greater Orlando region in the past year?
2023 was a big year for BDO with many internal changes to strengthen our reach and better serve our clients. Our tax department restructured, making Florida a single market, which enabled us to change our go-to-market strategy. Additionally, we are now part of BDO’s East geography, which expands the network of resources we have access to, including all offices from Boston to Miami.
Our BDO Orlando office continues to grow. In 2023, BDO grew just over 20%, and we are looking at similar numbers as we move into the calendar year 2024. To support this level of growth, we’ve expanded our team. We are attracting both local talent and professionals who are relocating to Orlando from abroad. We also continue to bring on interns from local schools to convert them into full-time hires.
To aid in our recruitment and retention efforts, as well as continue building a financially resilient organization, last year, BDO established an employee stock ownership plan (ESOP), a qualified retirement plan established as a trust, where current and future employees receive beneficial ownership in the company over time. We are already seeing the positive impact this is having in attracting talent.
We have also given back to the community in the past year through various volunteer efforts. We worked with Habitat for Humanity on constructing two homes in the area; over the summer, we did a week of service that focused on preparing backpacks for the Early Learning Coalition of Orange County’s Back to School program, which supports kindergarten-age children who lack means. We also put together care packs for the folks at Ronald McDonald House. Giving back to the communities where we live and work is a core part of BDO as an organization, and it is always rewarding to bring the team together to do good in the community.
What does BDO’s new ESOP mean for current and future employees of the firm?
In establishing our ESOP, we became the first major accounting firm to challenge the traditional partnership model and embrace the concept of beneficial employee ownership. Through the ESOP, more than 10,000 eligible employees receive shares in their ESOP accounts annually, and as the value of BDO grows, so does the value of the shares that employees own. The ESOP complements our existing retirement plan, and our employees will still receive raises and bonuses, creating an even more robust compensation package.
The ESOP allows our employees to feel like they are contributing to the company’s direction, helping them thrive and encouraging them to go above and beyond for our clients. At the same time, it helps our employees plan for their future financial well-being. We believe involving everyone in the firm’s value creation will result in long-term financial and organizational benefits.
As the Central Florida tax practice leader for BDO USA, how would you describe the accounting landscape in the Tampa and Orlando regions?
There are plenty of opportunities in Tampa and Orlando. Many talented people are moving here, as well as businesses looking at re-headquartering in Central Florida along the I-4 corridor. We see a lot of opportunity for growth due to prospects who were based in New England, New York, or elsewhere and are now relocating here.
BDO is well-positioned to help companies in the Greater Orlando space, especially those growing. We love supporting companies that started small and have expanded to the point that they have outgrown their service providers. Those companies come to BDO looking for a more holistic approach to their tax and other business needs.
We continue to help companies looking to expand by acquisition or to be acquired. At BDO, we work with many companies selling to private equity and have also helped companies create their ESOPs as an exit strategy. We can help those companies interested in being acquired prepare for it. By performing due diligence so that our clients are up to speed on all tax issues, we empower those clients to get the best value for their company.
How does BDO leverage digital tools such as data analytics to enhance tax efficiency for clients?
Technology is a major area of focus for us, so we have invested heavily in technology from various angles. For example, we recently implemented a new Microsoft-based system in our tax practice that brings together a lot of information that used to be across multiple systems in one place and offers better reporting regarding what is upcoming and what is due. It will also help us with scheduling, which helps us better understand how long it takes to do a project and identify areas where we need to hire.
Another BDO partnership with Microsoft has enabled us to give clients more of a complete picture, or what we refer to as a Total Tax Liability. Our clients truly appreciate our commitment to providing a comprehensive understanding of matters. Total Tax Liability means considering how property taxes, sales taxes, and import duties are as relevant to their business as income taxes. Our Tax Automation & Innovation team collaborates with clients to analyze their Total Tax Liability and produce practical solutions that optimize processes, extract, transform, and load source data, automate tax calculations, and implement or enhance technology to streamline tax reporting.
How do you expect artificial intelligence to impact the tax sector workforce?
We are using AI in a few areas. We have ChatBDO, a closed system similar to ChatGPT specifically for BDO. It helps our employees automate some of their daily writing, easily reference firm policies and procedures, and quickly access support center information. We also help clients implement similar tools in their own companies. BDO has already assisted several clients in building their version of that chat, which keeps sensitive internal information safe while allowing companies to harness the power of AI.
I do not think that AI replaces the need for our employees; however, humans need to analyze fact patterns, understand complicated structures, liaise with various experts, both domestic and international, and use judgment to find solutions for our clients. Human oversight is necessary. Nevertheless, AI can add much value and save time in areas such as compiling and summarizing information, as well as drafting emails or memos.
What is your outlook for BDO USA over the next three to five years, and how do you expect the tax practice to evolve to meet client’s needs?
We aim to continue to grow both our Orlando and Tampa practices at a rapid pace. BDO is still relatively new to these markets, so there is much potential in specialized talent and untapped clients in the Greater Orlando area. The more we grow, the more jobs we can add, the more people we can bring on, and the more we can give back to the community.
Expanding Brightline service to Tampa would help support our recruitment efforts significantly, as we are finding more talent in that market. While we aim to align client services teams based on location whenever possible, we also want to have the right expertise serving these clients, and given we have teams and clients in both locations, the train service will allow us to get the right people in the right place much more efficiently. As the practice leader for both tax practices in Tampa, I’m very much looking forward to getting to Orlando more regularly without having to manage I-4 traffic.
On the other hand, from a tax landscape perspective, the upcoming change in Congress and the potential for a new president in 2024 may drive tax policy changes. Hence, the trend of uncertainty surrounding tax law and policy will likely continue. The ever-changing nature of tax regulations presents an advantage for us, as our clients rely on our expertise to navigate the landscapes.
