Archive for the ‘Partner topics’ Category

Tuesday, August 15th, 2017

The Importance of Your Ownership Structure

Just when I think I have learned the way to live, life changes.” – Hugh Prather

Firm governance is a very important issue and many CPA partner groups have not taken the time and made the effort to clearly define what firm governance means to their firm. Is is not a simple task. There are many topics that need to be addressed when documenting governance.

Brannon-PoeBrannon Poe of Poe Group Advisors, in a recent blog post, addresses the issue of veto power within an ownership group. Veto power in the wrong hands can literally make change, and therefore growth, impossible

If anyone can Veto anything, at any time, it an paralyze a firm.

Make sure your governance and ownership structure will help facilitate change.

Read more via Poe’s post here.

  • They always say time changes things, but you actually have to change them yourself.
  • Andy Warhol

Thursday, August 10th, 2017

The 10 Most Profitable Industries

“Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn

It’s no surprise to CPA firm owners, but accounting and bookkeeping firms (along with real estate leasing companies and legal services) top the list of the most profitable industries over the last 12 months.

It’s nothing new, accounting has been at the top for several years, but I think sometimes CPA firm owners don’t think much about it, probably because they are used to the profit margins.

The information comes from Sageworks in its annual ranking of the most profitable industries in the U.S.

Most CPAs truly love the work they do. Sure, it involves some long hours, commitment and dedication to client service but being extremely profitable sure is a nice reward.

Share this information inside your firm. Perhaps it will inspire talented, young CPAs to go down the future partner track. Some partners don’t want to share this information because the staff will want bigger salaries. Maybe it is time to have that conversation inside your firm.

most-profitable-2017

 

  • Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
  • Warren Buffett

Monday, August 7th, 2017

Observations on Change

“Excellence is not a singular act, but a habit. You are what you repeatedly do.” – Shaquille O’Neal

I have been urging CPAs to change for years. You might think I would get discouraged. Well, I sometimes do. That doesn’t mean I will quit reminding, urging and even nagging you about this important topic.

KoltinI recently looked back to see what I have written about change. Here’s something I featured in August 2008 – 9 years ago!  It was Allan Koltin’s “Dozen Observations on Change.” The sad part is they all still apply.

  1. Sometimes partners don’t want to change, but will say they do.
  2. Sometimes partners don’t want to change, and won’t change!
  3. Sometimes partners want to change, but can’t.
  4. Sometimes partners want to change and can (this is where electric shock may need to be applied).
  5. Sometimes partners want to change, but don’t know how to change.
  6. Sometimes partners can’t change due to conflicting goals/demands.
  7. Sometimes partners will change just enough to get you off their back!
  8. Sometimes partners will change, but only if another partner also changes.
  9. Sometimes partners will initially change, but are only doing it to ultimately prove you wrong.
  10. Sometimes partners won’t change, so don’t waste your time trying to change them.
  11. Sometimes partners will support the change, as long as they don’t actually have to change.
  12. Don’t forget that the value of information is not in what you know. It is in what you know that sometimes the other person doesn’t know that you know.
While some of these bring a smile to our faces, I know that we have all seen these behaviors first-hand.
  • If your actions inspire others to dream more, learn more, do more and become more, you are a leader.
  • John Quincy Adams

Wednesday, August 2nd, 2017

Don’t Waste So Much Time

“If you love life, don’t waste time, for time is what life is made up of.” – Bruce Lee

I often talk about how much time is wasted inside growing CPA firms. Sure, most people work hard and often work long hours. But, I have observed that there is a lot of time not wisely used by CPA firm citizens.

Have you ever considered how much time you spend on someone who is already well known as a poor performer? Often, it is someone who has been with the firm for several years and has simply not met expectations.

You spend time talking about this person with others, you spend time counseling them, setting development plans, following up periodically and still haven’t seen much improvement. You notice that other team members spend time complaining to each other about a certain poor performer. If you are fortunate, someone finally makes the decision (after the partners talk about it over and over again) to out-place this particular low performer. Team members think, “Thank goodness, it’s about time!”

What if…. a huge portion of that time was spent on nurturing, coaching, mentoring and encouraging the top performers. Wouldn’t that be more pleasant? Wouldn’t that be a better investment of your time?

  • If time be of all the most precious, wasting time must be the greatest prodigality.
  • Benjamin Franklin

Wednesday, July 26th, 2017

Employment Agreements

“Too much agreement kills a chat.” – Eldridge Cleaver

Oh, yes – that touchy topic – employment agreements and partner agreements. CPA firms are famous for having them. Usually, they are part of becoming a manager and for sure when you become a partner. Many firms even have staff accountants sign them.

To be quite honest, after working in public accounting for decades and having signed one myself years ago when I worked in a firm, I have always thought they were not very logical.

My view: If you are a “firm” the clients are clients of the firm and partners are just caretakers of the relationships. Clients really don’t “belong” to anyone – how can you control what a client chooses to do?

If a caretaker leaves the firm and clients also decide to leave the firm, that’s the “firm’s” fault for not strengthening the relationship beyond one particular person.

All of this came to mind because of a recent post by Seth Godin – All deals are handshake deals. I love the final line: “Start with a good agreement. But your future depends on doing agreements with good people.”

  • My people and I have come to an agreement which satisfied us both. They are to say what they please, and I am to do what I please.
  • Frederick the Great

Monday, July 24th, 2017

Providing Leadership Training Is A Must

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – John Quincy Adams

There are a lot of good leadership training programs out there for managers and new partners in the CPA profession. Today, I want to make you aware of a great one from ConvergenceCoaching, LLC.

It is a future leaders development program called theTransformational Leadership ProgramTM.  The typical participant is a manager, senior manager or newer partner and the one-year program focuses on leadership behavior and mindset first, then management skills and knowledge of the profession, too.  Convergence runs “public” programs where any firm can send their up-and-comers and they also offer private versions of the program for specific firms and/or associations.

The program is unique from others in that they help participants understand the power of their mindset and the “internal dialogue” we all have that holds us back, or causes us to say or do things we shouldn’t.  It is only after participants understand themselves better that they can then help them develop new leadership, management and practice development skills.  And, participants are personally coached by a ConvergenceCoaching, LLC coach and their accountability to the program, their commitment to change and grow and their leaps forward are greater than in an education-only program.

There is a program beginning in mid-September and information about that program can be found at:

http://www.convergencecoaching.com/what-we-do/transformational-leadership-program/

Testimonials on the program can be found at:  http://www.convergencecoaching.com/who-we-serve/testimonials/

  • An army of a thousand is easy to find but ah how difficult to find a general.
  • Chinese Proverb

Monday, July 17th, 2017

Those Workaholics!

“If there is such a thing as a workaholic, I’m it and that’s what passes for leisure.” – Steve Earle

I hear it from so many CPA firm owners…. “We are trying to get Ginny to work less.”

I am talking about that staff person who seems determined to work more hours than anyone else at the firm. They work late into the evening, especially during the first quarter of the year. They work almost every Saturday, except maybe during June, July and August.

They have more total hours and more chargeable hours than any other employee at the firm.

I also find that this team member is usually a long-time employee, a manager and often female. But, when I encounter a male working unrealistic hours, it is almost always a partner.

As firm leaders, you love this team member – they have lots of billable hours, they provide amazing client service, they pitch-in and help others when needed.

On the other hand, you worry. Is all of that total time necessary? You actually become concerned about their well-being. You observe them showing more stress and often more negativity than other team members.

As for workaholic partners, who would want to be a partner in a firm where the partners work 2800-3000 hours per year? I actually know some partners that get almost 3000 billable!  Oh, my.

Counsel these workaholics, help them cut back, there is so much more to a career, and to life, than the number of hours you work.

  • I'm not driven by killer ambition, I'm not a workaholic. I'm a good team player. I don't have to be captain, but I do want to play on a winning team.
  • Jane Pauley

Wednesday, July 12th, 2017

Be Active and Involved In Your State CPA Society

“The difference between involvement and commitment is like ham and eggs. The chicken is involved; the pig is committed.” – Martina Navratilova

I have met some of the most wonderful people by working with, and being involved in, The Ohio Society of CPAs.

I have also been very fortunate to have worked with and visited many of the other state societies around the country via my speaking and consulting activities.

I hope you are active in your state society and I also hope that you are encouraging the next generation of leaders in your firm to be involved.

I am especially pleased to offer my congratulations to my friend, Edward I. Guttenplan, CPA, CGMA of Wilkin & Guttenplan, the incoming President of the New Jersey Society of CPAs. Listen to Ed’s inspiring story, below. Not involved? Make a commitment to your state society today!

  • Focus on the journey, not the destination. Joy is found not in finishing an activity but in doing it.
  • Greg Anderson

Monday, July 10th, 2017

Big 4 and Blockchain & Bitcoin

“I had nothing to offer anybody except my own confusion.” – Jack Kerouac

Last week I read an interesting article via Nasdaq titled, Big 4 Accounting Firms Are Experimenting with Blockchain And Bitcoin.

My mission is to always keep you informed, as best I can, about happenings that have an impact on CPA firm management.

So today, I simply provide you a link to the article in hopes you will take the time to read it.

The more I read, the more it all seems to be sinking in. Hope the same applies to you.

Here’s more help on Bitcoin.

(Follow me on Twitter!)

  • Truth is ever to be found in simplicity, and not in the multiplicity and confusion of things.
  • Isaac Newton

Monday, June 19th, 2017

Keeping You Informed About Blockchain

“I’ve spent a ton of time studying blockchain the last three years, and it’s about getting connected to the right resources.” – – Gary Boomer

As I talk with practitioners this summer, I am finding that many are still not educating themselves about blockchain.

I have blogged about it before and today I am reminding you once again to learn all you can about blockchain.

There is a very helpful article via The Journal of Accountancy, posted recently – Why CPAs need to get a grip on blockchain.

The article covers a presentation by Gary Boomer, CPA/CITP, CGMA, of Boomer Consulting, at the recent AICPA ENGAGE conference in Las Vegas.

Boomer highlighted a number of crucial concepts that helps explain blockchain and gives insight into its value propositions for the accounting profession:

  1. Blockchain is secure and immutable
  2. Think of blockchain as the internet of value
  3. Blockchain data will create new business opportunities
  4. Studying up on blockchain will pay off

Read the entire article and more about each crucial concept here.

  • Accountants who get a grip on blockchain today will be the ones who successfully pivot their services tomorrow.
  • Gary Boomer