How Baker Tilly Transformed Their EBP Audit Practice  

Adopting new technology can seem intimidating. It requires careful planning, clear communication and strong vendor relationships. For Baker Tilly, one of the largest accounting firms in the U.S. with around 600 partners and $1.5 billion in revenue, the shift from a proprietary desktop Employee Benefit Plan (EBP) audit methodology to a cloud-based solution came with some challenges but delivered significant benefits. Baker Tilly principals Karen Larsen and Marsha Ackerman recently offered valuable insights on the firm’s migration to the cloud during a Caseware webinar.

Setting the stage for change

Baker Tilly needed a new EBP audit engagement methodology because it had developed different methodologies over the years as it grew and merged with other firms. Since each merger introduced new processes and systems, Baker Tilly wanted to introduce one standardized EBP methodology across the entire firm to ensure consistency and boost efficiency.

As part of its standardization, the firm also wanted to shift to the cloud, allowing its audit and assurance team members to leverage advanced technology and tools, reducing the time spent on engagements and improving audit quality.  

“It’s frustrating for auditors to work through checklist after checklist, or to watch that blue circle spin when they go to sign off, or to have to enter the same data over and over again because the old technology isn’t sophisticated enough to take a data point and repurpose it on a different form,” Ackerman said. “These cloud environments and some of the new applications coming out are great. If you’re somebody who’s worked in a lot of desktop environments, it’s great to see something that looks better and feels better and is faster.”

Choosing a solution

Baker Tilly adopted OnPoint EBP, an end-to-end solution for EBP audits and part of the OnPoint Audit and Assurance Suite from Caseware, the AICPA and CPA.com. OnPoint EBP streamlines the engagement process, beginning at the planning stage all the way through to the delivery of the auditor’s report. It automates much of the manual data entry work auditors have traditionally had to perform. It also features an AICPA-guided methodology that only shows questions, procedures and additional workpapers relevant to each engagement, eliminating the need for auditors to pare down checklists manually.

Preparing for the transition: Strategic planning and vendor partnerships

The shift to the cloud wasn’t just about adopting new technology but also about ensuring a successful implementation and adoption by Baker Tilly’s EBP team. “One of the things we spend a lot of time thinking about at the very beginning of these implementations is trying to define what success looks like,” Larsen explained. “That helps us prioritize certain aspects of the implementation to ensure a successful outcome for all our team members.”

Baker Tilly’s approach to the migration was methodical, beginning nearly seven months before the go-live date. The firm emphasized the importance of having an engaged leadership team and securing their commitment early on. “We spent a lot of time with key people—our EBP practice leader and technical partner—to ensure they were familiar with the methodology and technology,” Larsen said. “Their involvement was critical in supporting the implementation.”

Strategic partnerships with vendors like Caseware and CPA.com were also crucial to the migration’s success. “Having that vendor support is key to really making sure you’re thinking of all the things you need to be thinking of because you don’t know what you don’t know going into it,” Ackerman explained. These close partnerships allowed Baker Tilly to address questions about the migration, such as understanding cloud-specific functionalities and data security.

Mobilizing the workforce: Driving change through communication and training

One of the standout elements of Baker Tilly’s migration strategy was its focus on change management and training. The firm adopted a “train-the-trainer” model, selecting a core group of leaders—champions for change—to lead the transition and train others. This approach created a ripple effect throughout the firm, fostering a culture of learning and support.

Communication was also key. “Over-communicating what’s coming is important because not everyone reads every email or pays attention to every internal webinar,” Ackerman said. “Having a multi-faceted communication plan helps get people’s attention and ensures they understand that something important is on the horizon.” This strategy effectively built excitement and anticipation among team members, leading to a smoother transition.

The firm also implemented office hours, where trainers were available weekly to answer questions and provide additional support. This helped mitigate the “I don’t remember how they got started” issue that often follows training sessions. Baker Tilly kept their teams engaged and confident throughout the transition by ensuring continuous support.

Overcoming challenges: Lessons learned on the road to the cloud

Despite meticulous planning, Baker Tilly encountered several challenges along the way. Customizing the new platform to fit the firm’s needs was more difficult than anticipated. “There were a lot of things about these firm customizations that we just didn’t flat out know,” Larsen noted. “We started spinning our wheels and incurred much time and effort just trying to better understand what we didn’t know.” The experience underscored the importance of detailed communication with vendors to clarify customization capabilities upfront.

Training was another challenge, particularly transitioning from a proprietary desktop methodology to a cloud-based system with a different methodology. “Our methodology at Baker Tilly has an RMM model that drives your sample size. With the cloud solution, you can’t pick and choose from one methodology to another because you’re used to something here and not used to something there,” Larsen explained. The firm learned that managing such a significant change required clear, consistent communication and setting firm expectations about what was—and wasn’t—part of the new system.

Realizing the benefits: Automation, integration and improved efficiency

One of the major advantages of moving to a cloud platform was the ability to automate processes and integrate systems seamlessly. Baker Tilly took full advantage of this by automating functions like user provisioning and the roll-forward of audit files. “We’ve been able to integrate and automate several aspects of Caseware,” Larsen said. “These cloud environments and some of these new applications are great. They help people do their jobs better.”

By leveraging APIs, the firm improved data accuracy and reduced manual effort, creating a more efficient and productive environment for their teams. For instance, new clients and entities are automatically synced from Baker Tilly’s ERP system to OnPoint EBP, reducing errors and saving time. 

Key takeaways: A blueprint for future tech migrations

Baker Tilly’s successful migration offers several lessons for other firms contemplating a similar move:

• Start early and plan thoroughly: Allow ample time for preparation and engage all relevant stakeholders from the outset.

• Engage leadership and build consensus: Ensure leaders at all levels buy into the change and can advocate for it within their teams.

• Communicate continuously and creatively: Use a multi-channel communication strategy to keep everyone informed, involved and excited.

• Leverage vendor partnerships: Develop strong relationships with vendors to anticipate challenges and leverage their expertise.

• Focus on training and support: Provide comprehensive training and continuous support to help teams adapt to new technologies and methodologies.

• Automate and integrate: Use cloud capabilities to automate processes and integrate systems, enhancing efficiency and reducing manual workloads.

A new chapter for Baker Tilly

The journey to the cloud has positioned Baker Tilly for greater agility, efficiency and growth. As they continue to modernize their audit practice, the lessons learned from this migration will serve as a foundation for future tech initiatives. For firms looking to undertake similar transformations, Baker Tilly’s experience provides a valuable roadmap to navigate the complexities of tech migration and emerge stronger on the other side. 

With a focus on strategic planning, robust communication and continuous improvement, any firm can achieve a successful migration and unlock the full potential of digital transformation in the world of accounting and auditing.

If you are considering a tech migration or are in the midst of one, there is no better way to learn than from those who have successfully navigated this path. Watch the full Caseware Thought Leadership webinar, “Putting Plans into Motion: A Tech Migration Story.”