J.R. Faris, President & CEO, Accountalent

In an interview with Invest:, J.R. Faris, president and CEO of Accountalent, shared how developing native software and streamline operations significantly impacted their growth, why they focus on maintaining a personalized approach and offering startup-friendly pricing models, and how remote work has allowed them to grow.

Can you share more about your background and why Accountalent focuses on startups?

I am the president and CEO of Accountalent, but the firm was actually founded by my father, Joe Faris, about 25 years ago. He pioneered the fractional CFO model at a time when it was not even a recognized concept. He found his niche working with startups in the Boston area, particularly those emerging from institutions such as, but not limited to, Harvard, MIT, Northeastern University, and Suffolk University. I joined the company about 10 years ago after running a few of my own businesses. At that time, Accountalent had only a few hundred clients, mostly in the Boston area, and the firm was synonymous with Joe. Over the years, we expanded beyond Boston into larger markets such as San Francisco, California, Chicago, and Texas. This expansion was made possible due to our early adoption of a remote work model. Our focus on startups stems from Joe’s passion for working with young entrepreneurs and helping them grow. Working with startups is exciting because we are given a front-row seat to emerging technology.

Looking back at the past year, what are some of the most significant achievements for Accountalent? 

Over the past year, our most significant achievement has been our sustained growth as a firm. We have helped over 5,000 startups in our 20-year history, and we have been developing our own technology, transitioning from being just an accounting practice to a tech-enabled one-stop shop for Startups. This transformation has enhanced our ability to provide a better experience for our customers, making communication and tasks such as tax filing and bookkeeping easier for both parties. We have also launched new revenue streams and built new software, including solutions for BOI (Beneficial Ownership Information) reports, which are particularly relevant for startups that fall under specific filing thresholds. Additionally, we have significantly expanded our bookkeeping division as we transition into a fully comprehensive firm to meet all startup needs.

What sets Accountalent apart from other firms when it comes to working with startups?

Our reputation has been built on the personalized touch that Joe started with and that we continue to maintain. We have always believed in maintaining a human connection with our clients, which is especially important in the remote work environment. 

Additionally, our key values include upfront flat-rate pricing, cancel-anytime engagements, and exceptional customer service, all designed to be startup-friendly. In addition to Accountalent, I had another firm, eTaxConnect, that focused on R&D studies for startups. Accountalent acted as a natural feeder for eTax Connect, which I eventually sold to focus fully on Accountalent. Since 2020, we have grown by 300+%, driven largely by building native software and maintaining our personalized, tailored approach.

What makes Boston an ideal location for Accountalent, and how are you planning to continue growing in this region?

Boston has always been a great place for startups, largely because of its incredible educational institutions like MIT, Harvard, and Northeastern University, which attract talent from around the world. Beyond education, Boston’s world-class hospitals also drive medical advancements, making it an ideal location for medtech and biotech startups. We are well-positioned to continue serving this community, particularly as there is a strong push from the local government to foster innovation in fields like biotech and climate tech.

What are some technological tools or methodologies that you use to stay ahead, create efficiencies for your team, and better serve your clients?

On the client-facing side, we have invested in native software, and there are some exciting projects that we are working on that will greatly improve the customer experience. These projects will make our services more efficient and streamlined, creating an all-encompassing ecosystem for tax compliance, bookkeeping, accounting, credits, and more.

Internally, while it is important to leverage the latest software, what I find even more critical is focusing on our people. We rely heavily on our managers, tax managers, and Chief Operating Officer to motivate the team and treat our people well so they feel personally invested in the success of Accountalent. After all, our customers are our bosses, and if they are not happy, we are not happy. We emphasize doing the right thing, responding quickly, and being honest about researching and getting back to the client with answers when needed.

We use common tools like Slack and Google Meet for weekly calls, but nothing novel. It all comes down to having good people and making good hires. I might be biased, but I think we have a high-performing, outstanding team.

What are some key strategies for attracting and retaining top talent? 

To retain people, you have to make them feel they are part of something bigger than themselves. The right compensation is important, but even more critical is ensuring our team enjoys the work. We are fortunate to run on a streamlined team because we have perfected the production line process of onboarding customers, communicating with them, and understanding their needs, especially startups. This has allowed us to operate efficiently, while also not over-hiring during a significant growth phase of the Company. 

When it comes to new revenue streams, such as bookkeeping, some of our operations are in the Philippines. I have family there—my brother-in-law is a CPA and heads up our team. This team provides bookkeeping services, and they are highly invested in delivering excellent work. While some clients prefer U.S.-based services, our team in the Philippines is equally effective, and in many cases, exceeds expectations.

The challenge of hiring in the U.S. over the past few years is notable. Candidates often expect senior-level pay without having the experience or drive. There are motivated individuals out there, and we have been fortunate to hire selectively, maintain strong margins, and grow by understanding the science and numbers behind our operations.

What are some of the challenges facing the wider accounting sector, and how do you plan to tackle them?

A common concern in accounting today is AI (artificial intelligence). While AI poses challenges, it is not necessarily a bad thing for accounting. In many ways, we see it as an advantage. AI will not replace accountants as people still want personal interactions when communicating with their accountants. If we can maintain a sincere personal touch while leveraging AI, it can be mutually beneficial for the firm and our customers. We are on the forefront of using best-of-breed technology, which includesAI integration, our own native AI software, and we also partner with firms such as Rillet and Puzzle that are leading in this space.

Another challenge is that fewer people are studying accounting and tax. There is less interest amongst young people in becoming CPAs, which has created a supply issue despite high demand. Finding people with the right skills and experience is increasingly difficult, especially for niche markets like ours, where we deal with complex scenarios such as foreign ownership.

Regulatory and compliance challenges also persist, particularly around foreign ownership and beneficial ownership reporting. Changes like those seen in Section 174 have presented significant hurdles in recent years, and these issues will continue to impact the industry.

We will continue to face these challenges by investing back into our software processes and in staff education and tax research.

What are your outlook and priorities for Accountalent for the next two to three years?

Our top priority is remaining customer-focused, providing a tailored experience, and maintaining ethical, startup-friendly pricing despite market challenges. We aim to maintain our technological edge, ensuring that we stay at the frontline of advancements. We work with tech-savvy clients, and it is crucial that we match their pace and deliver the streamlined, cutting-edge experience they so often seek.

The outlook for Accountalent looks promising due to the  diversification of funding sources, supportive government policies, and expanding market opportunities which are driving innovation and investment in our target audience.. We are optimistic about our future and the overall market.