Starting any new business, let alone an accounting firm, in the current economy is a challenge. But less than three years ago, following a stint at Denver-based CPA and business advisory firm Hein & Associates, that's just what W. Michael Hsu did - though he'd rather you didn't call DeepSky an accounting "firm."

Instead, Hsu views DeepSky as a virtual accounting department, providing outsourced client services such as invoicing, bookkeeping and business consulting.

"For me, I never saw myself as an accountant - I always wanted to be an entrepreneur and a businessman," revealed Hsu, who is a CPA. "You can't learn about being an entrepreneur in school, so at Hein I learned going into audits I wanted to explore different businesses and pick the model I liked. When I left to start this firm, I began with the consulting model, and slowly we developed a real message of being a single accounting department that businesses can leverage."

From left: DeepSky's W. Michael Hsu,
Rachel Clark and Mark Bayya

With the advent of mobile and cloud accounting products, more CPA firms are engaging in business process outsourcing functions, a trend on which DeepSky has patterned its operating strategy.

Hsu wants to show how new technologies - particularly cloud applications - meld with basic accounting services to create a new firm paradigm.

There are currently five members that make up DeepSky; three in Irvine, Calif., and two back-office personnel in Detroit. The average age of its staff is 28, and all carry non-traditional CPA firm titles, such as Accounting Ninja, Chief Number Cruncher, and Customer Experience Advocate.

In fact, two of the five DeepSky staff are still in school, one of whom - accounting ninja Mark Bayya - is taking the CPA Exam.

All of them adhere to DeepSky's virtual services model for serving growing companies, a void that Hsu feels has not been filled by traditional firms.

"The current state of accounting is a bit broken. I think [accountants] lost sight of what accounting is really for. We forget we can communicate value and knowledge, and get stuck in the idea of selling a commodity," said Hsu. "Accounting isn't just a cost center; accountants can get caught up in providing better financial statements or compete on price. The DeepSky vision is that accounting was created to serve entrepreneurs. We sell knowledge and use technology to help deliver service."

WALKING THE WALK

In terms of technology, the vast majority of the firm's functions are cloud-based, mobile and paperless. Though the firm itself is headquartered in Irvine, Calif., with other associates in Detroit - where there is no physical office - they can conduct their work from wherever they or their clients happen to be at any given time.

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