140 Does A Big Twitter Following Help Your Accounting Firm?
9 Nov 2023 · 38 min
Mitchell Baldrige built 80k Twitter followers while running an accounting firm, then used that audience to launch adjacent businesses like cost-seg services and a scalable bookkeeping product. He explains why accountants should publish, what content actually works, and the risks of giving tax advice online.
Chapters
Okay.
You know those, like, Internet think people who are going out, like, I don't.
Know, pretending to be normal people when.
They'Re actual CPAs and they know the reality of, like, how tax stuff works behind the scenes, but they like to.
Guess it up in a real exciting way. You know those people. Well, we got one today. It's Mitchell Balder.
Say hello.
Howdy. TikTok accountant right here.
Gosh.
So we're going to talk about. Mitchell's probably the biggest, like, Normie facing.
Accounting or tax personality right now. So we're going to talk about, like, why.
What's in it for him? Why is he investing in this? Let's learn from an Internet think boy. Come on in this Jason Daly.
All right.
Okay. Mitchell, how did we first meet? Did we first meet on Twitter?
Yeah, definitely through Twitter. And I, I don't. I. I followed your content and I liked what you had to say and I. I think you're thoughtful, but this was before I got to know you. But yeah, I mean, we've been. We've been buddies ever since, I'd say.
Okay, so for. For people who aren't familiar with the king of loopholes, give it. Give them the. The 30 second quick intro to Mitchell Baldrige.
See, I'm all. I'm all the way back in. Jason, love your stuff and the info you put out. Thank you. Look, I'm just buttering your bread. So, yeah, I'm a cpa. I'm a financial planner. I'm a real cpa. I have a real CPA practice in Houston, Texas, and somewhere during COVID I started posting on Twitter everything I had ever learned and then some, and have grown a audience on Twitter of mostly small business folks talking about tax planning and tax. Tax efficiency for business owners.
Are you mainly just on Twitter?
Yeah, yeah, definitely. I have a podcast with my friend Scott Hambrick called the Stupid Tax that I've launched probably in the past few months. And also the past few months. Thank you. And then the General Ledger is my email newsletter and that.
Let's workshop that one.
We'll work on that. But, you know, mostly send out a weekly newsletter, have a weekly podcast, and then post on Twitter whenever I feel like it.
And how many Twitter followers do you have now?
Close to 80079.3 today.
Goodness sakes. Geez.
Yeah.
Okay, so I think you are the largest normie facing accountant. And like, we all post on social media for different reasons, but I think your audience is non accountants. Right.
I have taken the moniker America's cpa.
America's cpa. Cool.
America's cpa. My. My co host, Scott Hambrick, calls me the world's most famous accountant because he's. He's from Oklahoma, but sure, famous name. Name another. Name another.
That's fair.
So that. That's my first question.
It's a weird.
You're American CPA now. Like, how did you get started down that path? Most people still aren't posting anything on social media. Like, what was the. The very beginnings of that?
So, yeah, I. I mean, I went to college. I graduated from U of H. And worked for a boutique practice in Houston and worked for this guy, Sam Gaynor, who was like. There was like a picture of Sam in the lobby where he's like, on a unicycle with juggling pins. He was like, P.T. barnum turned tax accountant. And so I'm sure that, like, imprinted on my young intern accountant brain where he was just like, we work for the client and we, you know, have a bit of showmanship in what we do here. And so, like, I. But then I went to go work for bdo. I was doing corporate tax. Spent a while there, went off on my own about 10 years ago and have had my own accounting practice ever since. And just, you know, one day, the nemesis of tax Twitter, our friend Nick Huber. Sweaty startup. I've been friends with Nick and worked with Nick for about five years now. And when he was getting on Twitter, like he had 6,000 followers, he told me to get on Twitter just because he said it was a. Interesting place with interesting people doing interesting stuff.
And so you knew each other way back. Way back then, yeah.
And met on Reddit, which.
Where all good relationships start for sure.
Where every casual encounter on Reddit. And so. Okay, cut that. But, you know, so then, you know, he was writing on Reddit and I. The same way I reached out to you and said, hey, Jason, love what you're writing. Did the same with Nick. Nick and went back and forth, paid him for some consulting, and he realized I was better than his accountant, and I became his accountant and then took that show on the road. And so he's done a ton for me in the sense that he's just grown and grown and grown. He has 350,000 Twitter followers, and he's sent me a ton of attribution and people and have just really been oriented towards the business owner and just trying to explain in a good way, like, how this stuff works and what you can do, what's on the menu, what you can't do. And, and it obviously connects with people in some way because it's, you know, grown a following and, and really helped build my practice. So it's been, it's been cool.
What's I'm interested in, like. Cause obviously there's cool stuff you're doing now that we're going to talk about. And like now it's like, oh, here's where the ROI was. But it wasn't there in the beginning. So like was the rationale for starting originally.
So look like nick had again 6,000 followers. But he's, he's a maniac. So he just was at it and he said, he. I called him in like August of 2020. We were talking a lot in 2020 because of PPP loans and the whole world ending. And then I called him in August, we hadn't talked in a while and said, hey man, there's not enough. He was running a pickup delivery student storage business. And I said, there are not enough moving vans to pick people's stuff up and leave New York. So you need to mobilize your force and get to New York and get people's stuff down and charge people crazy money to do this. Like, this is an opportunity for you. I just was thinking about that one day, I remember where I was and he said, no, man, I'm on Twitter now. We're going to sell the storage business. We're going to sell the pickup delivery business. Going all in on storage syndication acquisition. My entire LP base is on Twitter. There's this whole world called ReachWit. It's full of, you know, high, high quality people you have to get on right now. And I was kind of like, well, I'll call you back in October after the deadline. And, and literally I, I did. After the deadline, I started kind of looking at what he was doing. I posted one comment that just said, which has become my entire thesis of, especially on the real estate side of, you know, buy these kind of sweaty businesses and buy the real estate to go along with it and depreciate the crap out of it and keep all the cash the business generates and pay no tax. He retweeted that and like a thousand people followed me immediately. So I never had the like, I'm going to shout into the void moment. I didn't have the three years of saying things, you know, hey, going to the gym and getting a sandwich. Like, you know, I just immediately put my thesis out there and, and people responded to it. And people started DMing me and were like, holy smokes, what are you Talking about. And so then I wrote a thread about it, and then we had my. My thread phase, which I think still exists. But, yeah, you know, just of me writing kind of everything I could think of. And it was fortunate, in a sense, because I just got to write it all and no one else was doing it. And so it became my corner of the world after a minute.
So, more explicitly, ultimately, what is in it for you to do this? Because obviously, followers and all of that, that's not money in the bank. There's people, massive followings that struggle to build a business around it beyond just the. The ego and being able to call yourself America's CPA now, like, very explicitly, like, what's in it for you to keep investing in this thing?
Like, frankly, I invest less than I ever have in this. Or I'm not as active as I have been in the past, which is dumb to not triple down on what works. But what was in it for me immediately is I started talking to people or, like, look what it did. It becomes this big personal resume, and people want to talk to me because I have something of value to offer them. So then I get to talk to people who have valuable things to offer me. I like people. I like relationships. I like to get to know people. And kind of, like, I'm really a lifelong learner. And so the other thing that writing all those threads gave me was the ability to focus and linearly lay out a tax concept that I didn't completely understand in plain English, which I learned more in the last three years than I learned in the first 15 years of my career, just because I had to learn stuff well enough to explain it to business owners while being scrutinized by everybody in the world. Like, if I write something that's wrong, I don't. You know, so then the payoff was, in part just the ability to do it and to kind of draw the line in the sand. And then, yeah, get client flow. Like, no one's ever, like, just immediately have clients that are beating down my door where very quickly I, like, reached capacity in my tax practice. We can talk more about that. But, like, you know, they're just. Why would you not have the biggest megaphone of, like, business development that there's ever been if you could? Unless you don't want business, which not everyone wants.
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Yeah, a lot of people right now, they say, I don't need the business. Why would I do that? Right? So they're at capacity. What's in that for them?
Well, I mean, look at like, before I had ever done this, I knew I'd read Ron Baker's stuff and I'd read like Brandon Poe's book and I'd read a lot of what was written by accountants and understanding like, there's riches in the niches. There's something to like having a avatar client. And then the idea of like, well, if I have the most demand or if I had the most kind of like client flow, then I can go to the pinnacle client and just say, this is my client and this is what we do. And I can kind of name my process, name my client and name my expertise. And it just could be the best one the CPA could have. And so that's what we did, you know, and before that, I mean, I was doing real estate syndicators tax returns. It just after real estate syndicators understood that I write tax information for real estate syndicators. And then like along the way I partnered with Roger Ledbetter who's like, smarter than me at this, and like, that became like, oh, we can just build a great real estate syndicators tax firm and work with really, really high value clients that frankly are big clients for big CPA firms. And we get to. It just launched my career 15 years ahead of where it ever would have been. So like, if you don't want to do that, you don't have to. But I'm, I'm ambitious.
So before we lose it, you said something a bit ago that I think is interesting. The notion that like publishing is almost a forcing function for you have to. You having to very explicitly like refine that like, mental framework of exactly how, how this stuff works. But then you combine that with the fact that like the accounting and the tax community are going to be all over that if there's like a step anywhere you shouldn't.
But isn't that all upside for you.
Like, in the end, like, you doing that work and even other people being.
Like, hey, you're missing that, or missing this or missing that, doesn't that all.
Still ultimately benefit you more than anyone else?
Yeah. Or you just get to go, hey, yeah, thanks, thanks for your contribution. You're right. Or yeah, I should clarify. Or, you know, and there have been a couple of times where people like, take a. Take something I wrote and just drag it back out all the time for some kind of like, tiny semantic issue or something that they thought I should have expounded. A lot of it is like, well, you should have expounded on this, or you should say more about this. And you're like, okay, well, here's a thread where I say a lot more about it or, great, I'll write more about that later. But, you know, so, yes, having people, look, I can imagine if I were a CPA and one of my clients texted me a thread with like my avatar on it that said and was like, hey, bro, are we doing this? I'd be like, okay, yeah, no, that would be annoying. So I get the annoying thing of dealing with that and the want to dissect the thread and take Mitchell Baldrige down a peg and like, yeah, it's helpful because it just like, steel, steel sharpens steel, iron sharpens iron, or whatever is good because it's just made me a better and better accountant. And there's. Yeah, there's just things you talk about and there's things you don't talk about publicly anyway of just like, you just operate very much in the black and white in public. And like, look, if you're going to tax Twitter to get. Or not tax Twitter, but if you're going to Twitter to get, like, tax advice, you deserve to go bankrupt is what I decided.
Yeah.
Well, and like, what is. What's your.
Yeah, I think it's. It's hard for some accounts to see tax framed as anything that could be remotely perceived as clickbait. Right. Like the notion that, that it can be framed in like a get rich quick context or something like that. But it's also what we do when we take new clients in and you're like, your last accountant was an idiot. We're going to amend these returns. It's save you a bunch of money. What is your take on just the huge volume of just tax stuff on social media and like, how People filter through that. Is that ultimately something that maybe professionals need to be more engaged in because they're taking advice from folks who are not certified and have no credentials.
Yeah, you know what? Like, most of the time, getting the big things right is what life's about. So, you know, if you want to eliminate all your tax and pay 4% tax, you can move to Puerto Rico. I don't want to move to Puerto Rico. You don't want to move to Puerto Rico. So that's there. And then, like, if. Or you can become a real estate professional, or your spouse could become a real estate professional. And. And then you can go, take leverage and you can go like, there's all these things you can do. And then it just dials back to like, well, what should I do? And so I don't know. Like, you don't general or we deal with this. We'll talk more about the cost segregation business. And like, Nick writes a lot of that Twitter, and every time he writes something crazy, and Melanie, my wife, is the CEO, and Melanie's like, do not post that. And he's like, what am I supposed to do? Like, we're here. We're trying to create. Like, you can't help anybody if you just lob out milquetoast into the algorithm and no one sees it. If there were no algorithm and this were a meritocracy of ideas in Twitter, that would be fantastic, because I think we have good ideas, but you also have to make people see something. So then you have to. There has to be a hook. There has to be something interesting. That said, and people, it turns out, don't like paying taxes and people, turns out, are not having a great experience with their current tax account is what we've learned. And it's not because tax accountants are bad or stupid or what. There's a disconnect. There's like a breakdown in communication between the business owner and their tax accountants. And so everything I talk about leads with some idea or some impression that I might be able to cut through this, like, you know, like, cross this Rubicon of, like, business owner and accountant, where I get to go. Like, I am an accountant, and I am a business owner, and I think deeply about how business owners can save taxes and compound and, you know, grow their businesses. And so that I might have lost the question. But, I mean, that's how I frame this and think about this and try to write and help people. And so that's who I end up attracting, hopefully, by. By doing all this.
The folks out there who, which is most accountants not engaging in this sort of thing. What's maybe the biggest thing that they're missing when they do try to create content for non accountants, accountants create a.
Lot of content for other accountants that in my judgment, frames the client as the problem in their story when the client is the hero of their own story. So a prospective client, business owner does not care about their accountant at all and should not. Why would they? And so then a lot of accountants build a platform and build an audience to just say, my clients are so stupid and I'm so smart. And can you believe they gave me the form this way when they. I asked them to give it to me that way? And you're just like, what? So frankly, whenever I go post stuff on Twitter, I'm like, is this valuable? Or like, that's another thing about Twitter is like, people I respect a lot follow me on Twitter and so I like think of them in my head and I go, he or she is going to read this. And when he or she reads this, are they going to mute me? Because I just mute people all the time who complain, you know what I mean? And so like that. No one cares about me. Like, nobody. Everyone cares about themselves.
Everyone.
And so when all of my content is geared towards people who care about themselves taking action to make their lives better, then I win. Not because just because, you know, that person who just asks you about yourself the whole meal and then you go, oh my God, they're so smart and thoughtful because they just got out of the way and let me talk about me. Like what you're doing right now, Jason.
Right?
Doing awesome.
Gang.
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Alluded to the cost thing. Well, I think one of the things that's interesting to me is like, you know, I when I started posting to social media I it was not because I hoped that someday I could do a podcast interview with America's cpa. It was like, you know, who knows what the reason even was. But it'll it'll take you in places where it's like I never even would have imagined this. And so that ROI calculation becomes hard. But you've now at least I'm aware of at least one adjacent business that you have built to your firm now courtesy of that Twitter following. Like how do you, how do you make decisions to invest in stuff beyond your accounting firm when you're already plenty busy running a firm?
Yeah, yeah, that's a great question. So like a couple of things so alluded earlier to Roger Ledbetter. I knew to grow the kind of firm like people don't like partnerships and for good reason. But I just knew to grow the businesses that I wanted to grow, especially after getting into the Costa partnership, I was like, oh, I have strong, strong attributes, but I have major, major deficits and how I work and in what I can do and in my capacity to lead people and build systems and execute on systems and market and sell and then deliver. Like, that's a lot for. For one person to do. So I, in my accounting firm, in my, like, core practice, connected with an old friend and a CPA who was a partner at a, you know, top 10 accounting firm who had left. We both got lunch and we just started working together. And then this year, you know, became partners in the core business. And so that freed up at least it created some capacity and it created some leverage of, like, I have somebody as bought in as me, smarter than me, better at leading people than me, helping me grow this firm. So that's a win, you know. And then the same thing of the costech business was something I'd always seen and always thought about and frankly is like the best, like, creator content fit or whatever, you know, or creator product fit or whatever. It's like all there. It was the first tweet. It was the thesis of, like, depreciate the crap out of your real estate, lower your cost of capital, create a deferred tax liability. This is how you do it. And so then when I was able to build the product, and frankly, a lot of the product was because I had been following you and Chad Davis and understood how these new no code systems and these new databases work, and we've built this badass system around Cost seg and hired a couple of great people and hired a bunch of engineers and kind of like strung that whole thing together. But it was just something easy. Nick Huber's my partner in that, and it was something that was an easy adjacent thing to sell. And it's like one line item on a tax return as opposed to somebody's entire life and their grandma and their grandkids and their trust and their business. And it was something that I could sell really, really well and deliver really, really well without ever talking to somebody. Which is. Which is good because that, that scales.
When you look at businesses like that, do you think like, boy, this accounting firm seems astronomically complex compared to something like that?
Yeah, but I think the complexity is also the opportunity. I think an accounting firm is moatier than, you know, to take from Uncle Charlie. Like, I. I just think like an accounting firm is a relationship and a system and an evolution of getting it right and an evolution of Staying on top of things. And, like, I think if you can build a great scaled accounting firm with great clients and great people, you're going to win. I just think it's very, very hard to do. So. Yeah, I was talking with Roger today. I was like, well, we'll just give it five more years. If it doesn't work after five years, we'll shut. And look, there's other things that fit into the flywheel of, like, before I got on Twitter and started writing, I had passed the cfp, I'd set up an ria, and that was, like, the direction I was going. And then I kind of went into this cul de sac of, oh, I'm going to write all this content and I'm going to kind of like, rebuild and rebrand and build this big firm. But I think an excellent CPA firm that does excellent tax planning and has excellent systems is a scaffold that you could hang an RIA on top of and just have, like, the best RIA in the world. It may not be the biggest, but I think if you can do awesome tax planning and awesome tax compliance and start, like, really hitting that service, you can put an RIA on top of it, which has 10x the fees and 10x the equity value of a CPA firm. And that may be where you really make your money, but the foundation of that is a CPA firm. So that's what. There's a lot of reasons why I believe it's still important to work at the CPA firm. And I don't. I'm just not ready to punch out, Jason. Sorry.
Yeah, well, okay. We're not directing that at anybody here.
No, no, no, no, no, no. But, no, it just. But some days I do go, hey, I think also the regulatory overhang of the cost Seg business is bonuses, stepping down. A bunch of things are happening that make that business. It's a good cash flow business, but there's no equity value to it. So it's hard for me to go take my core business and pivot to the cost firm. And then, I mean, the other thing I've been building for business I've been building for two years now is better bookkeeping, which is the, like, I think of these, like, 80,000 almost followers as this, like, top of the funnel. And then, like, the problem is, like, my CPA firm has, like, 150 clients. So then how do you get 80,000 people into 150? Let's say I grow to 1500. I don't want 15. I can't have 1500 clients. So then how do I scale that up? Well, I can't scale my firm up quickly enough. So I've created kind of a online, you know, plaids at the front, a SQL database is at the back, we've built a UI in the middle. We built reporting, we built categorizations done for you. Bookkeeping, tax planning, tax preparation, service. That's, that's kind of like again, built out of the model of the cost delivery system where it's just like, I'm not the bottleneck, I'm not the chief, you know.
Yeah.
Client account guy.
Yeah. Do you think you would have inevitably done a lot of these things had you not started posting online? Or do you think, I don't know, it's the relationships and all of that that kind of took you down these paths?
Like, look, if I'd never heard of. I mean, I took a management information systems class in college and understood what an access database was. But like, if I hadn't followed your stuff and understood what airtable was and what zapier was and the. Is it zapier or zapier? And like the power, like, look, I was a gusto user 10 years ago When I set up my firm. I was like, oh, I can either call the paychecks lady and deal with all that or I can go do self service payroll. I will take self service. And so I've always been like technology forward. I've always understood how computers work and how kind of like programming by its nature works somewhat, but like the audience, the distribution gives you so much power to, or has given me so much power to like understand what works and doesn't work really, really quickly or understand or just meet people who can help me or who I can help or you know, it just, it's just a huge shortcut. So I don't know, I mean, I don't know what would have happened if I, I don't know, the counterfactual. But like I'd have an RIA right now. Maybe I'd be doing better.
Yeah. But you know, okay, so to land the plane here, what's like your, what's your one sort of, I guess social media bit of advice, like the, the cross stitch and put on a wall sort of tidbit of advice you would give to accountants who don't do that.
Stuff right now, again, the client's the hero of the story. Like this is a client business and this is client service. We're here to help the clients. And so like it's Been a long run for me to. You know, I started in 2020. I had about 450 client families in my office, and we've kind of, like, cut down and cut down and sold some books. And just like, I think ultimately you are responsible to build the firm you want and build the life you want. And so to the extent you talk to the people you can help the most and solve their problems for free and for fun, then, like, when they come to you, you will have already solved their problems and they will have already trusted you that you can do what you say you will do. And then they will want to save their own time and their own energy, and they will pay higher fees, and you can hire better people, and then you can get even better at solving their problems. And then it, like, there's this virtual. There's this virtuous cycle of how to do this, but it all just starts with, like, who is the person in front of me, who I. Who God put me on this earth to help, and how do I help them and what do I say right now? You have to understand that the information is free. It's all in the tax code. It's literally, like, published, or it's all on the AICPA or the Journal of Accountancy or whatever. You are a conduit from the technical code to the client. So then if you can jump that gap, people will value that and will reward you handsomely. So how about that?
People want to follow you online. How do they find you?
Twitter. At Balderg? Cpa? The soon to be renamed newsletter, the General Ledger.
Unless we've got, like, AI imagery of, like, you and, like, military. I want something like that.
No, it's like a powdered wig with a big old felt pen. Can you work on that? And then the stupid tax podcast, you can call me, email me, whatever.
Don't do any of that.
Yeah. Hey, man, thank you for having me on. And I'm not kidding you and the realize group and the mastermind. Let's do a little plug for that because, like, just I've met great people doing great stuff out of that group and. And yeah, following what you did and how you've thought about systems has. Has, like, literally changed the way that I've built my firm. So thank you.
Cool.
Appreciate it. Mitchell, thanks for coming and hanging today.
Thank you.
All right, see you on the next one. Sam.
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