How Baker Tilly Transformed Their Audit Practice with a Bold Tech Migration

In the accounting and audit sector, digital transformation is more than a buzzword—it is a critical strategy for staying competitive and efficient. For Baker Tilly, one of the largest accounting and advisory firms in the U.S., the move to a cloud-based platform for their employee benefit plan (EBP) audits was a bold step toward modernisation. During a recent Caseware Thought Leadership webinar, “Putting Plans into Motion: A Tech Migration Story,” two principals from Baker Tilly, Karen Larsen and Marsha Ackerman, provided an in-depth look at their firm’s tech migration journey. This article unpacks the insights and key strategies that helped Baker Tilly achieve a seamless and successful transition, offering valuable lessons for firms looking to undertake a similar challenge.

Setting the stage for change

Baker Tilly ranked the 10th largest accounting firm in the U.S. with 600 partners and $1.5 billion in revenue, realised the need to consolidate its methodologies and leverage technology for consistency and efficiency. Its assurance practice alone generates $400 million in revenue, with 1,600 team members working on over 10,000 assurance engagements. A significant portion of this comes from its EBP audits—around 2,500 audits annually. Given the complexity and volume, standardising the approach and utilising a cloud-based environment was critical to maintaining high-quality outcomes.

The shift wasn’t only about adopting new technology; it was about ensuring a successful implementation and adoption by their teams. “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,” said Karen Larsen. “That helps us prioritise certain aspects of the implementation to ensure a successful outcome for all our team members.”

Preparing for the leap: Strategic planning and vendor partnerships

The preparation for a migration of this magnitude was not taken lightly. Baker Tilly’s approach was methodical, beginning nearly seven months before the go-live date. The firm emphasised the importance of having an engaged leadership team and securing their commitment early on. According to Larsen, engaging the leadership within their EBP practice was crucial: “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. Their involvement was critical in supporting the implementation.”

Additionally, forming strategic partnerships with vendors like Caseware and CPA.com was fundamental. As Marsha Ackerman pointed out, “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.” These partnerships enabled Baker Tilly to navigate the complexities of the migration, such as understanding cloud-specific functionalities, addressing data security concerns, and negotiating contract terms.

Mobilising 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. Customising the new platform to fit the firm’s specific needs was more difficult than anticipated. “There were a lot of things about these firm customisations 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 customisation capabilities and limitations 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. 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.

Realising 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 the Caseware Cloud,” Larsen said. “These cloud environments and some of these new applications are great. They help people do their jobs better rather than hinder them.”

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 their ERP system to the cloud, 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 are bought 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 modernise 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.