COMMUNITY
Dr. Jerry Goodwin
Cindy McGhee, founder and managing director for NextGen Tax Services PLLC, is leading one of the fastest growing companies in the nation, and the firm is one of the top 15 fastest growing firms in the state. She has been featured in major publications across the country, including Forbes, Fortune, and Inc. magazines. Photo Provided
One Of Fastest Growing Companies In The Country: Building The Next Generation Of Entrepreneurs (and Homeowners)
Cindy McGhee: How One Woman Built A Business From Scratch
In 2017, Cindy McGhee formed NextGen Tax Services. The start-up had only a used laptop and a kitchen table for a desk.
But, McGhee recalls, she harbored one more invaluable resource in her entrepreneur’s tool kit. I had a “relentless work ethic to find a way to make it work (and to get my idea and company off the ground),” McGhee recalled in an interview with The Oklahoma Eagle.
In 2024, NextGen has grown from one to 24 staff members. That’s a 2,300% increase in employee headcount. The company’s clientele base has grown impressively from 1 to nearly 1,100 in seven years.
This is the story of how a scrappy entrepreneur created a thriving business in accounting, an industry, a field that has long been dominated by major national brands such as the former Arthur Andersen and Pricewaterhouse Coopers (PwC) – companies that fall into the “Big 8,” “Big 5,” or “Big 4” classifications.
McGhee knew her entrepreneurship goals would be an uphill battle. She knew that only 2% of businesses opened make it past the first five years. She was also aware that building a women-owned business posed its own set of challenges. Understanding the average start-up business needs half a decade to establish itself and its foundation, McGhee was not going to be deterred.
What others might have viewed as obstacles, McGhee saw opportunities. She began to chart a path that has led from the opening of a Tulsa office in 2017 to additional locations in Texas (Dallas, 2022) and Tennessee (Memphis, 2023). She plans to open another office in Kansas (Kansas City) by the end of the year.
McGhee played to her strengths. She was already an experienced professional when she launched the business. McGhee is a graduate of Rhodes College with a master’s degree in accounting and a bachelor’s degree in international business.
She had been on the staff of Ernest and Young, one of the “Big 4” accounting firms. There, she worked on the accounts of Fortune 400 companies.
Besides her solid background, another advantage was that she launched her company when business formations were on the rise.
According to Forbes magazine, the number of applications for new business creation has increased for the past two decades.
Between 2005 and 2017, millions of business applications were submitted to the government. On average, the Internal Revenue Service accounted for 2.6 million applicants requesting an EIN (Employer Identification Number).
“I could not envision what NextGen would become and is becoming… We’ve evolved from a ‘solopreneur’… to a multi-state firm serving… business owners and with a very diverse team of women who get the privilege to help small organizations retransform themselves into larger organizations,” said McGhee.
Response To the Pandemic
McGhee took steps to increase the chance that she would be one of the 2% to succeed in business.
For example, during the COVID-19 pandemic, seeing and engaging with clients was limited. She saw this as an opportunity. She leaned into providing education in business matters for current and potential clients.
“We transitioned to a virtual office, which ironically served us better than the traditional model anyway. …It was a win,” said McGhee.
Like other businesses across the country, her office became a virtual environment. Her staff worked remotely, communicating with clients through Zoom and other platforms.
McGhee also produced a series of videos on social media on the topics of PPP (Paycheck Protection Program), which were Small Business Administration-backed loans to help and support businesses in keeping their workforces employed during the COVID-19 crisis.
“The content of the videos included what (PPP) is, how it works (and) how to make sure that you’re maximizing the support you can get to keep your business afloat through these (difficult) times,” said McGhee. Also, the firm shared why it is good to outsource accounting services to a firm.
“By providing the education, it ended up attracting people that wanted to do business with us through PPP…because they had a better understanding,” McGhee told The Oklahoma Eagle.
“We built on that (producing) more videos and educational concepts.”
Client Success Story Number One
McGhee took to heart the approach of building her business one client at a time. One of NextGen’s clients had the desire to buy a home. His self-employment status hindered him from getting the financing he needed to buy his dream residence.
The client’s business had a small employee base. Even though he was running a business, he “had no way to get there financially (to buy a home) and get the bank comfortable with him being a sole proprietor.”
“We worked with him over 18 months of helping him be disciplined, manage his company by a budget… (to) do the things that large organizations do to help them grow and be successful on paper,” said McGhee.
“He closed on his house earlier this year.”
Business Success Story Number Two
McGhee helped another client expand from a “solopreneur” housekeeper to a thriving business. As a stay-at-home mom with a house cleaning service, the client came to McGhee and asked, “How can I turn this into a business?”
“She had too much work (from clients) to do on her own…so, she started building a team,” said McGhee.
The client started with NextGen five years ago. The accounting firm helped her create the right business and legal structure to get people on the payroll and take other necessary steps to formalize the business. The formula that McGhee provided to the client was to know how many houses/homeowners as customers to have before she could hire the next employee, according to McGhee.
“We mapped out almost a strategic plan,” she said. “We’re considering (with her) when to make the next move so that you’re not (making decisions) by your gut, but that you are making data-informed decisions.”
As McGhee said, the client was “intentional at following the (strategic plan and) map we laid out for her.”
Today, the client “boasts over 20 employees and locations in three states… (coming from) a side hustle (to forming a company).”
At NextGen, “we know the right moves to make, (how to put) the puzzle together, and work collectively with our clients,” said McGhee. “We help them achieve… great success.”
Business Success Story Number Three
McGhee also shared the story of a third client who could not find work. “He was highly skilled, competent, great work ethic, (but) unable to find work because his background didn’t support someone hiring him…He could not get a job.” He is a convicted felon and was formerly incarcerated.
“So, he was like, the only option I have is to work for myself,” said McGhee.
He created an opportunity to provide IT services to small businesses that do not have a full-time IT individual on staff.
NextGen again asked the same questions and advised this client, as her company had provided to the former solopreneur housekeeper.
“How do I formalize this (business idea), how do I make a business, how do I make sure that I’m doing things in a way that’s going to allow it to be sustainable and grow and ultimately fully support me,” said McGhee.
She said, “he went from an entrepreneur out of necessity to now he is so good at what he does, and it’s so successful that he coaches other entrepreneurs.”
An added benefit is that the IT client refers the customers he is working with to NextGen for its accounting services.
The client has become so successful that the accounting firms that turned him down earlier to work with him are now “firms knocking on his door trying to get his business and (his) clients’ business.”
“We were the only firm that said yes (to work with him) … he is locked and loaded with us,” said McGhee.
“I want to say the difference we’re making in the clients we serve is really impressive, and also, their before and after stories are just…I can talk about that forever,” said McGhee. Fifth Anniversary Recognized
In 2022, McGhee held a five-year party marking her achievement of beating the odds. “…We did a big celebration for that (milestone),” said McGhee. “I am proud… I would say surviving and thriving in the journey.”
Her company has grown to offer a broad range of financial services, including tax services (tax preparation, tax planning, and tax resolution), accounting (bookkeeping, fractional CFO services, and financial planning and analysis), and a legal division (business law and intellectual property services).
McGhee and her company continue to enjoy the growth she is experiencing, as do other women-owned companies from around the country. She is riding a wave that is ushering in a new generation of women-owned business owners.
McGhee is not one to rest on her laurels. She plans to open another office in Kansas (Kansas City) by the end of 2024. That move will solidify her ranking as a regional accounting firm. She is exploring offering additional financial services at the firm in the future.
When asked what excites her about NextGen Tax Services, she told The Oklahoma Eagle “((I am) humbled daily by the stories of our clients… (We are) making a difference in our clients’ businesses (who are classified as) … underestimated (performers).”
She is married to Jonathan McGhee, M.D. Together, they have two children – Jonathan “L. J.” and Jaden.
For more information, see www.nextgenempires.com for accounting services or inquiries@cindymcgeecpa.com for speaking engagements.
