Archive for the ‘Stats’ Category
Friday, September 23rd, 2016
It’s September and I just received my copy of the 2016 issue of The Rosenberg Survey. It is the 18th Annual Edition. The Rosenberg Survey is one of the most popular and widely respected national MAP surveys for the CPA profession.
Comments and insights from many well-known CPA management consultants are included. Look for my comments on Page 21.
The survey includes numbers from:
- Firms with over $20M in fees
- Firms with fees of $10-$20M
- Firms with fees of $2-$10M
- Firms with fees under $2M
- Sole practitioner firms
Order yours here.
Everybody gets so much information all day long that they lose their common sense.
Tuesday, September 29th, 2015
Just received my copy of the 17th Annual Edition of the Rosenberg Survey. It is one of the most popular and widely respected national surveys of CPA Firm Statistics.
Read more about it and order your copy here.
Be careful of reading health books. You may die of a misprint.
Monday, June 9th, 2014
A year has rolled around again and it is time for you to take part in the Rosenberg Survey – The National MAP Survey of CPA Firm Statistics. Information about the survey is below. Here’s the link to take the 2014 Survey.
The statistics on sanity are that one out of every four Americans is suffering from some form of mental illness. Think of your three best friends. If they're okay, then it's you.
Rita Mae Brown
Wednesday, March 12th, 2014
Last week Pew Research released the results of a new study focused on the Millennial generation.
One of the findings could mean a lot inside your CPA firm. The issue of trust:
Millennials have emerged into adulthood with low levels of social trust. In response to a long-standing social science survey question, “Generally speaking, would you say that most people can be trusted or that you can’t be too careful in dealing with people,” just 19% of Millennials say most people can be trusted, compared with 31% of Gen Xers, 37% of Silents and 40% of Boomers.
When I see a group of partners who truly seem to trust each other, their firm excels. If I encounter an administrative team inside a firm that trust each other, they provide amazing service to their internal and external clients.
In the majority of firms I encounter, I do not see an outstanding culture of trust.
In Patrick Lencioni’s book, The Five Dysfunctions of a Team, he identifies Absence of Trust as the foundational dysfunction. Trust is the foundation of real teamwork.
One major factor in the lack of trust culture inside CPA firms is the issue of inclusion. Young people are excluded from many management activities and conversations. Partner meet, managers meet and the rest of the accounting team just wonders what they are meeting about.
Include your Millennials. They are the ones 33 and under. They have great ideas and a unique perspective.
I'm not upset that you lied to me, I'm upset that from now on I can't believe you.
Friday, January 10th, 2014
I try to provide CPAs and all the people working inside CPA firms with helpful information via my presentations, workshops, newsletter, consulting activities and this blog.
Much of it comes from my many years of actual experience working inside a growing, profitable CPA firm. Some of it also comes from my extensive reading…. of books, articles, newsletters, blogs, tweets, and so on.
There is so much great information out there now via the internet. Just a word of caution, as you probably already know – – not all of it is true. I’m trying to be very careful in what I pass along and I want you to also be very careful when you hear about or read about certain trends, strategies and best practices.
My mission today is to simply share an example.
On the topic of goal-setting, I have read about and heard about a study conducted by Harvard Business School over a 10-year period. The study reported that only 3% of Harvard MBAs actually write down their goals – 97% do not. The study also reported that the 3% ended up being much more successful and, over the 10-year period, were making ten times as much as the other 97% combined.
This study eventually was discovered to be fiction. Here’s the answer to an inquiry made to Harvard “Ask a Librarian” site:
I think you are referring to the “Harvard Goals Study,” reports of which periodically surface in motivational literature. We have been asked repeatedly about this research, but we have never been able to find such a study. It is frequently cited as having transpired at Yale, but librarians there have not found a trace either.
Read the entire Harvard response here.
You can also read more about this goal-setting story here. I found it quite interesting.
The moral of the story? Be careful out there!
Repetition does not transform a lie into a truth.
Franklin D. Roosevelt
Friday, October 18th, 2013
My good friend, Marc Rosenberg, you know the famous Rosenberg Survey guy, has shared some great information on the 10 biggest mistakes partners make in reading and computing MAP statistics.
Here are some bullet points but be sure to follow the link to read much more informative detail about each one.
Over-reliance on partner income percentage as a measure of profitability. – Many partners believe that 33% is the minimum acceptable partner income percentage and they should strive for 40%. If a firm is heavily leveraged, partner income percentages in the 20s and low 30s are perfectly acceptable.
Being content with “average.” – This is one that really bugs me! Don’t celebrate being average.
Average salary data – Salary data is too tied to geographic area for nationwide averages to be very helpful.
Utilization percentage – This metric is total billable hours of a firm divided by the total work hours of the firm, with all personnel included.
Net firm billing rate – This is calculated by taking the total annual net fees of the firm and dividing it by the total firm billable hours.
Average compensation for firm administrators – This is a mis-leading number because of the wide variety of levels of firm administrators. Rosenberg thinks the results were misleading and has discontinued using it.
Treating non-equity partners like “partners.” – Treating non-equity partners the same as equity partners will usually distort the computations. Many non-equity partners perform like managers.
Computing income per partner. – Don’t ignore the distinction between accrual and cash basis methods of accounting.
Average fees per professional – There is a problem here with definition. What is a professional? It varies by firm. Rosenberg likes to use fees per person.
Computing the average charge hours for any category of personnel, such as partners and professional staff. – There are two main issues. Most firms make the mistake of computing the number of FTE’s by adding up their total work hours and dividing by 2080. The only proper way to compute average annual charge hours for a personnel grouping is to only include personnel who were with the firm for a full year and were full time the entire year.
Order your copy of the 2013 Rosenberg Survey here.
Some of the worst mistakes of my life have been haircuts.
Friday, September 27th, 2013
Rita, as she opens the mail: “Hooray, I got my copy of The Rosenberg Survey!”
Rita’s husband: “You’re weird.”
Yes, I admit it, I’ve always been slightly weird. I see joy and humor in things most people don’t notice. I like people who are unique, maybe even quirky. My husband says I attract them. To me, it has certainly enriched my life – for the better.
While getting excited over an accounting practice management survey is rather weird, I know that many of you also look forward to the annual MAP surveys for the CPA profession. The benefits of this year’s Rosenberg Survey follow:
- To make the information useful we have groupings based on firm size, population of market and geographic region
- Executive summary written by Marc Rosenberg
- A 46-page narrative written by Charles Hylan
- Observations and predictions from the top accounting profession consultants
- 80% repeat rate, making year-to-year comparisons highly relevant
- Over 100 benchmarks
- New statistics related to financial service practices
- All information undergoes a thorough review by 3 CPAs
- Benchmarks related to partner compensation, partner buy-in and buy-out and partner retirement plans
- An analysis showing which statistics correlate with firm profitability
- Row-by-row comparisons so the reader can look at each statistic of every participating firm
The Rosenberg Survey, now in its 15th year, reports on the results from 390 accounting firms, most of which range from $2-$20M in annual fees. The survey is well-known and well-respected within the national CPA industry due to is solid reputation for accuracy, thoroughness and high participation rate.
Warning: Please don’t look at the survey and be content if your firm is AVERAGE. Strive to be creative, unique and do things other firms are NOT doing. You have so much creative brain power inside your firm, don’t just do what everyone else is doing. Remember how your Mother warned you against doing that!
To order your copy go to www.rosenbergsurvey.com and fill out an order form.
I think everybody's weird. We should all celebrate our individuality and not be embarrassed or ashamed of it.
Wednesday, August 28th, 2013
There is always all kinds of chatter out their in the CPA world when it comes to salaries. What is the going rate for new hires this year? What’s the salary range for long-time managers? What’s the average salary increase look like this year?
It’s not easy to obtain this kind of information. You can check-out the published surveys but I find the most visible ones do not always reflect what the typical CPA firm is doing. Firm leaders are very hesitant to share this information and MAP surveys do not disclose staff salaries. This is due to anti-trust laws.
However, this infographic from Masters In Accounting shares the advantages of advanced degrees and certifications.
Source: Adding It All Up: Salary and Compensation for Accountants and Auditors
All I've ever wanted is an honest week's pay for an honest day's work.
Sgt. Bilko, TV and movie character
Wednesday, June 5th, 2013
It’s that time of year again. Time for the SocialCPAs annual Social Media Survey. This is the 4th year for the survey.
You will be able to use the survey results to compare your social media efforts to your peers. It should only take you about 10 minutes.
Click here to take the survey.
If you want to see past survey results, you can access them here.
Be sure to visit the SocialCPAs site for interesting and up-to-date information about social media for accounting professionals. Barry MacQuarie does a great job.
I found this hilarious video when I visited recently. This is for those CPAs who are not quite there yet when it comes to paperless!
If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much.
Friday, September 7th, 2012
The 2012 version of The Rosenberg Survey is now available.
The MAP survey, ow in its 14th year, reports on the results of 396 firms, most of which range from $2 to $20 million in annual fees. Nearly 100 CPA firm metrics are measured.
I’m anxiously awaiting my hard copy to arrive in the mail. If you want to order yours, you can do so here.
Rosenberg notes that profits, as measured by income per partner, averaged $366,000 compared to $360,000 in 2010. Firms continued to hold expenses tight last year. Coupled with the improved growth rate, equity partner income improved. These tactics enabled firms to enjoy a modest improvement in profits despite the continuance of the recession.
Marc Rosenberg, is that you with Rita?
Read more highlights via Accounting Today.
When I was young I thought that money was the most important thing in life; now that I am old I know that it is.