Archive for the ‘Firm Administrator’ Category

Tuesday, May 22nd, 2018

To Act is Hard

“To think is easy. To act is hard. But the hardest thing in the world is to act in accordance with your thinking.” ~ Goethe 

Read the above quote again.

Many CPAs working in public accounting will soon be participating in their firm’s annual partner, management or firm retreat.

You will THINK and explore many great ideas.

I urge you – act in accordance with your thinking.

  • You will never plow a field if you only turn it over in your mind.
  • Irish Proverb

Wednesday, May 16th, 2018

Participate In The Rosenberg Survey

“Knowledge is power.” – Francis Bacon
I eagerly look forward to the release of the Rosenberg Survey each year. I use it extensively in my consulting work. Now is the time for your firm to fill out the survey and participate.
Here’s the information to that you can take part:
THE ROSENBERG SURVEY – SURVEY NOW OPEN
For two decades, The Rosenberg Survey has provided accounting firms with key benchmark statistics.
Did you know?
The Elite Firms from our 2017 survey (firms with income per partner > $500k) had the following metrics:
  • Ratio of staff to equity partner – 8.6 (vs. an average of 5.1 for firms with fees between $2-10 million)
  • Net fees per equity partner – $2,180,000 (vs. an average of $1.2 million for firms with fees between $2-10 million)
  • Charge hours for professional staff – 1,510 (vs. an average of 1,492 for firms with fees between $2-10 million)
Why is The Rosenberg Survey Valuable?
  • Customized comparison of like-sized firms in similar markets for participating firms.
  • Accurate and valid results reviewed by three CPAs.
  • Reliable year to year comparison with a return rate of 82% from previous year’s participants.
  • Robust pool of participants of nearly 350 firms makes our data relevant to firms of all sizes.
  • Clear cut data displayed by firm size for comparison.
 
The deadline to participate is July 16th. (Thank you to those firms that have participated thus far.)
  • Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit.
  • William Pollard

Tuesday, May 15th, 2018

Maybe There Are Too Many Reruns

“I do not like to repeat successes, I like to go on to other things.” – Walt Disney

Interesting post by Bill Carlino of Transition Advisors last week about the value of the numerous conferences that are held each year targeted to those work in or with the CPA profession.

Already, and it is just mid-May, I have observed (via Twitter) numerous conferences and meetings focused on educating CPAs on many of the same, recurring topics I have listened to for years and years. In addition to the re-run experience, it is very expensive to attend these conferences. While CPA firm administrators, new to the profession, obtain huge educational value from their national practice management conference, many partners refuse to spend the money to send them.

Take a minute or two to read Carlino’s post. Great post, Bill!

  • Suppose you were an idiot, and suppose you were a member of Congress, but I repeat myself.
  • Mark Twain

Tuesday, May 1st, 2018

May Day & Mayday

“Rough winds do shake the darling buds of May, And summer’s lease hath all too short a date.” – William Shakespeare

May 1 is the 121st day of the year (122nd in leap years) in the Gregorian calendar. There are 244 days remaining until the end of the year. Historically, it originated as a Roman festival honoring the beginning of the summer season (in the northern hemisphere). Many, when they think of May Day, think of people dancing around a Maypole (a pole painted and decorated with flowers, around which people traditionally dance on May Day, holding long ribbons that are attached to the top of the pole.)

Mayday, an international radio distress signal used especially by ships and aircraft, has a more linguistic origin than the pragmatic approach of S.O.S. Although a connection to the month of May might seem likely, it is actually an anglicization of the French m’aidez or m’aider, meaning “help me”.

Where am I going with this as it relates to public accounting?

You have relaxed, taken some time off and recovered from the traditional busy season. May 1st is here and you should celebrate, but you only have 244 days remaining to focus on making improvements to position your firm for success before you are faced with another busy season.

You, as an individual can’t do it alone. Enlist the help of many at your firm. Never hesitate to say, “Help me!”

  • With the coming of spring, I am calm again.
  • Gustav Mahler

Thursday, April 26th, 2018

The Rosenberg Survey Is Now Open

It’s that time of year again! Here’s the scoop:
 The 20th annual Rosenberg Survey is underway and we would like to cordially invite you to participate. For two decades this survey has proven to be the financial benchmarking standard for CPA firms. The Rosenberg Survey provides highly relevant in-depth analyses and serves as a resource for firms to better understand how to drive profitability.

  

Why is The Rosenberg Survey Valuable?
  • Our results are reviewed for accuracy and validity by three top CPAs including acclaimed industry consultants, Marc Rosenberg and Charles Hylan.
  • We deliver clear, valid and unique statistics not available in other industry surveys.
  • We provide a reliable year-to-year comparison with a return rate of over 82% from the previous year’s participants.
  • A robust pool of 350 participants makes our data relevant to firms of all sizes.
  • We display data by firm size for easy comparisons.
Participate in this year’s survey to obtain a great benchmarking tool that can be used in the coming year. The final deadline to complete the survey is Monday, July 16th.

Monday, April 9th, 2018

A Functional, Consolidated Internal Management Team Is A Necessity

“Either you run the day or the day runs you.” – Jim Rohn

My consulting work is mostly with the internal management team at CPA firms. I call this team the IMT for short. Who are they?

  • CEO/Managing Partner
  • COO/Firm Administrator
  • Marketing Director
  • IT Director/Manager
  • HR Director/Manager
  • Training & Development Director/Manager
  • Controller/Finance Manager

Their titles varying depending on the size of the firm. In smaller firms one person may play multiple roles. As my firm was growing, I served in all these roles, except CEO.

I often find that this team suffers from the Five Dysfunctions of a Team (made famous by author, Patrick Lencioni). There is 1) An absence of trust, 2) Fear of conflict, 3) Lack of commitment, 4) Avoidance of Accountability and 5) Inattention to results.

As with most things, in a CPA firm, it is all about communication, or the lack thereof.

Why should firms facilitate, train, encourage and demand teamwork from this group, even if the team is comprised of just two people, the managing partner and the firm administrator? It creates momentum to keep the firm moving forward. Simple as that.

In some firms, if there is not a strong administrative and support leader (COO/FA) working at the proper level, these managers work independently, maybe reporting to the MP or to “the marketing partner” or the “technology partner,” and so on.

In firms where there is a strong MP/FA team, working collaboratively and leading the IMT members, things get done. When this team is dysfunctional and disjointed problems creep in and then pour in.

Some may ask, “What does technology have to do with marketing?” “What does marketing have to do with HR?” If you think for just a moment, it will become clear. The problem is, in many firms, leaders don’t take the time to simply stop and think. The MP is too busy with a huge client load and solving dysfunctions between partners.

Marketing can be a huge benefit to HR (and has been during the last several years when the hunt for good people was high on the to-do list). Finance helps the entire IMT understand and prepare budgets. HR helps marketing, finance and technology educate the entire team about topics in their areas. And, technology is the foundation for most activities and tasks in all of these areas (websites, digital newsletters, processes and procedures, remote connectivity, portals for client service, on and on). Leading, coaching, coordinating and holding all of these people responsible is the firm administrator or COO.

If your IMT people are disconnected, even if it is just two (MP and FA), it’s time to switch to a “connected” model.

Begin having weekly or bi-weekly meetings involving the COO and the IMT team. Once a month or so, the MP should also be involved in the meetings. Develop an IMT Pipeline (things that need to be done and the progress that is being made).

In smaller firms and with new firm administrators, I always urge frequent meetings between the MP and FA (with a shared to-do list). In both models, frequent communication and teamwork will help the entire firm move forward

  • Success is neither magical nor mysterious. Success is the natural consequence of consistently applying basic fundamentals.
  • Jim rohn

Thursday, March 1st, 2018

Decide Who Will Decide

“It is not hard to make decisions when you know what your values are.” – Roy Disney

When your firm was first founded, probably one, two or three partners (owners) made all the decisions. Somehow, as the ranks of partners grew, they all thought that they should be part of every decision. That’s why the role of the firm administrator was created and the joke that resulted was, “How many partners does it take to decide which copier to buy?”

The theory was that administrative and operational aspects of the CPA firm would be under the umbrella of the firm administrator. Still, many partners thought that they should be allowed to have an opinion and weigh-in on the decision to buy anything that cost more than $100!

That decision-making format lasted with 5, 6, 7, 8, 9 or 10 partners. Then an Executive Committee was formed of 3 or 5 partners who still thought they should be involved in daily operations.

Progressive firms decided that the Managing Partner should actually manage the firm with a chief-of-staff type person – the firm administrator or COO. Of course, owners are kept informed but their job is to take care of client relationships, mentor younger staff and bring in business.

Is it time for your firm to actually operate like a business? Is it time for your owners to “decide who will decide”?

  • He that has a choice has trouble.
  • Dutch proverb

Wednesday, February 28th, 2018

In Public Accounting There Are Always Extra Hours

 “I know you’ve heard it a thousand times before. But it’s true–hard work pays off. If you want to be good, you have to practice, practice, practice. If you don’t love something, then don’t do it.” – Ray Bradbury

Soon it will be March. In CPA firms, that usually means even longer hours must be worked now until April 16, to properly serve the clients.

It’s crunch time and if you are working in public accounting you should not be surprised. When you majored in accounting and then joined a CPA firm, you knew there would be a busy season.

In progressive firms, busy season now, unlike the old days, is much more flexible. Team members are able to work those extra hours whenever and wherever. It doesn’t mean sitting in a cubicle for 60 hours per week.

After April 15, it becomes a 40 hour per week job. We used to always be concerned about how to find enough work for team members as the rest of the year unfolded. Most firms have solved that problem and now we seem to have a second busy season during September and October.

Yes, if you work in public accounting there will almost always be extra hours at peak times but you are working most of those extra hours when it is winter. Hopefully, that makes it a little better.

Firm partners, be sure you have an adequate scheduling system so that certain people are not completely overloaded. Firm administrators, be sure you are providing some enjoyable distractions during those dark, dreary, cold, often snowy winter months.

  • Plans are only good intentions unless they immediately degenerate into hard work
  • Peter Drucker

Wednesday, January 24th, 2018

Make Background Checks Part of the Hiring Process

“People are not your most important asset. The right people are.” – Jim Collins

You are working in the CPA profession. You are honest, trustworthy and dependable. You sometimes take it for granted that everyone in the profession or entering the profession is the same.

That’s why so many CPA firms make a background check a routine part of the hiring process. I have observed that CPA firms use a variety of vendors and there are a lot of reputable ones out there.

Here’s a good article about hiring nightmares from Sharlyn Lauby – HR Bartender.

If you need some information about background checking companies to use, contact the CPA Firm Management Association (CPAFMA).

  • Hiring people is an art, not a science, and resumes can't tell you whether someone will fit into a company's culture.
  • Howard Schulz

Monday, November 13th, 2017

Cancel Some Meetings

“Being aware of your fear is smart. Overcoming it is the mark of a successful person.” – Seth Godin

Occasionally, I repost – word for word – something that Seth Godin has posted. He posts everyday and I encourage you to follow him.

Here’s the message I want all my CPA tribe to hear:

All those meetings you have tomorrow–they were just cancelled. The boss wants you to do something productive instead.

What would you do with the time? What would you initiate?

If it’s better than those meetings were going to be, why not cancel them?

  • One reason I encourage people to blog is that the act of doing it stretches your available vocabulary and hones a new voice.
  • Seth Godin