Archive for the ‘Firms’ Category

Monday, November 5th, 2018

2018 Anytime, Anywhere Work™ Survey Results Summary

CoverLast week, ConvergenceCoaching, LLC released their 2018 Anytime, Anywhere Work™ Survey.

Today’s talent wants to integrate work and life. As a result, leaders must continually find ways to innovate workplace flexibility.

The goal of the survey is to collect data on CPA firm adoption of flexible work programs and the experiences firms have had with these initiatives.

Firm leaders need to thoughtfully contemplate how enhancing a more flexible workplace can be a huge benefit to the future of the firm.

Jeff Phillips, CEO of Accountingfly tell us, “On Accountingfly, we see incredible talent response to remote accounting jobs, which receive at least 8 times the number of applicants than in-office positions. The demand for remote careers in accounting is clear, and it’s such an obvious solution to the talent issues facing CPA firms.”

Download the survey summary here.

  • Common sense is genius dressed in its working clothes.
  • Ralph Waldo Emerson

Tuesday, October 9th, 2018

Firm Profitability

“If you would be wealthy, think of saving as well as getting.” – Benjamin Franklin 

I thought you would find this interesting and helpful. Thanks to Charles Hylan for providing it:

Income per Equity Partner (IPP) is one of the top measurements of overall firm profitability. Our analysis of IPP over the past 10 years is below. Take a look at the findings in the 2018 Rosenberg Survey (based on 2017 data) and see what metrics drive profitability.

 

Income Per Partner: 2008 to 2017 (Firms Over $2 Million)

  • 2008 – $354,000
  • 2009 – $365,000
  • 2010 – $360,000
  • 2011 – $366,000
  • 2012 – $386,000
  • 2013 – $382,000
  • 2014 – $392,000
  • 2015 – $406,000
  • 2016 – $430,000
  • 2017 – $441,000

This information comes from The Rosenberg Survey. It provides a lot of good information. You can order yours here.

  • Never spend your money before you have earned it.
  • Thomas Jefferson

Friday, October 5th, 2018

The Best Perks

“We are what we repeatedly do. Excellence then is not an act, but a habit.” – Aristotle

Dan Hood, editor-in-chief of Accounting Today has summarized for us some of the most common perks offered by The Best Firms. He notes, “The Best Firms share a long list of attributes, policies and best practices that have become table stakes for recruiting and retaining top talent.”

Here is his list of perks and extras offered by The Best. Be sure to read his post to learn more about each perk. Follow Dan on Twitter.

  • Dress for your day
  • Giving staff more time
  • Closing the office at slow times
  • Food – and lots of it
  • Including family in firm events
  • Support for individual community service
  • A true commitment to remote work

I have found that several of these are offered by many firms, large and small. The one I wish more firms would address is the last one – a true commitment to remote work.

  • Dispirited, unmotivated, unappreciated workers cannot compete in a highly competitive world.
  • Francis Hesselbein

Thursday, October 4th, 2018

Winter Weather

“It is only in sorrow bad weather masters us; in joy, we face the storm and defy it.” – Amelia Barr

It is only October but for those CPA firms in the winter weather advisory sections of the country, it means that ice and snow are just around the corner.

Many firms have snow days or inclement weather policies. I asked advice from several firms from across the country and, as I expected, most firms now expect people to work from home on those days. Firms provide remote access to all employees.

Some firms have made the leap to unlimited PTO and, of course, everyone gets paid for those days they are unable to get to the office. Other firms have put a cap on snow days, allowing one day’s pay.

I found that the firms in the areas where there is always significant snow, rarely close the office. All firms stress the safety of the employees and using common sense about tackling a rough commute.

Here’s my favorite system:

We are no longer closing our office for winter weather.  We let individuals decide if they can make it in and if they can’t they can work from home.  All members of the team have remote access.

 

  • Sunshine is delicious, rain is refreshing, wind braces us up, snow is exhilarating; there is really no such thing as bad weather, only different kinds of good weather.
  • John Ruskin

Monday, October 1st, 2018

I Love Small Firms

“A big business starts small.” – Richard Branson

I have heard the following numbers mentioned by consultants and AICPA leaders many times. I also use them often. I like to make people working in public accounting aware of the numbers.

There are approximately 46,000 CPA firms in the USA and the 500th largest firm has about 20 people and $3M in revenue. Most recently, I read these numbers via Accounting today in an article by Edward Mendlowitz of Withum. He also notes that small firms outnumber large firms 91 to 1.

In the article, I discovered that he and I have something in common. We like to focus our consulting efforts on smaller firms.

Over the years I have worked directly with over 100 firms and advised and spoken to thousands of CPAs, firm administrators, HR directors, marketing directors and, IT managers. I have a large following for my daily blog and tweets. I have found, much like Mr. Mendlowitz, that small firms need help.

These firms, unlike the larger firms, aren’t big enough to justify hiring full-time support professionals such as HR, marketing, and management professionals. They need and are willing to pay for outside resources that will help them manage better and improve operations.

I find leaders of smaller firms interesting, enthusiastic and receptive to new ideas and methods. Yet, much like accountants in larger firms, they find it very challenging to implement.

Be sure to read the article in the link above.

  • I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.
  • Steve Jobs

Friday, September 28th, 2018

The Firm Name

“What’s in a name? That which we call a rose by any other name would smell as sweet.” – William Shakespeare

I read an article in the news this morning about Macedonia’s upcoming vote on whether to change the country’s name. If you are a Macedonian, it is a very big deal.

Of course, to me, it brought to mind the name issue within CPA firms especially in this time of merger after merger.

Two things to remember:

  1. If you are in merger discussions with another firm – talk about the name issue early on in those discussions.
  2. Keep it short and simple.

Some firms have adopted names that do not even reflect a partner’s name, such as Apiro and Fluence.

Here’s some explanation about the Apiro name and here’s some insight about Fluence.

Recently, I heard about a firm that actually used six partners names. If your firm name is something like – Smith, Jones, Adams, Brown & Black – I bet your clients call you Smith Jones. Why not brand it?

  • Experience is simply the name we give our mistakes.
  • Oscar Wilde

Thursday, September 20th, 2018

It Arrived! – My Copy of the Rosenberg Survey

fullsizeoutput_42cf“80% of firms never make it to the second generation.” – Marc Rosenberg

I always look forward to the day in September each year when my copy of The Rosenberg Survey arrives. That happened yesterday.

I have always found that public accounting is a fascinating profession. It’s challenging, interesting, never boring and profitable (if your firm is managed properly). For example, this year in the Forward section of the survey, Charles Hylan shows us that the average HIGH partner comp in the largest firms is $1,175,000 and the LOW partner comp in smaller firms is $247,000. That’s quite a spread and shows young accountants the possibilities for their career growth. Use the survey to see where your firm is doing well and where you might need to focus some attention. You can order it here.

Be sure to read my comments, along with several other CPA management consultants, in the Observations section beginning on Page 6.

  • Most firms are still stuck managing the compliance services at the expense of the advisory work.
  • Jeff Pawlow

Monday, August 27th, 2018

The Importance of Technology When Talking M&A

Any sufficiently advanced technology is equivalent to magic.” – Arthur C. Clarke

BoomerDuring the 2018 Boomer Technology Circles Summit, Jim Boomer moderated a panel discussion on best practices in mergers and acquisitions regarding technology. I know at my firm, the tech staff were involved early on in any merger discussions and often seemed to work magic.

Boomer has written a great summary of the discussions. THIS IS GREAT INFORMATION for anyone considering a merger. Be sure to read it!

Here are the questions that were explored:

How early does IT need to get involved in the due diligence process? And as an IT professional, how do you push to get involved?

We’ve counseled firms that the technology cost of acquiring a firm runs, on average, $10,000 per person. Is that consistent with your experience?

If there a time of year that’s best for making the integration fast and effective?

There’s a lot of talk about “rip and replace” strategy versus peeling off the bandage slowly. What’s the more effective method in your experience?

How long do you let legacy data ride? And what if the acquired firm’s technology spend wasn’t what you were told?

What are your top three priorities to have implemented on Day 1?

  • The human spirit must prevail over technology.
  • Albert Einstein

Thursday, July 12th, 2018

Accounting Firm Websites

 “If you want success, be unique.” – Natalie Massenet

Many firms I have talked to recently are focusing on updating their website this summer. Your website is so important. It is the first impression that a new client has of your firm. Does it look modern and trendy or does it look conservative, boring and old?

BNA logoI look at a lot of CPA firm websites and my favorite remains BNA CPAs & Advisors in Rock Hill, South Carolina. Their site is modern and trendy, clean and sleek and so are their offices and attitudes.

I met Bernie and Jason Ackerman many years ago at a conference and have stayed in touch over the years. They have been so proactive in improving their firm and its processes. They embrace technology to the fullest. Their focus remains on how they can provide even better client service.

Visit their site and explore. Learn how BNA delivers tax returns in 3 days. Then, compare it to your website. How do you stack up?

  • My personal ambition remains the same - to be creative, to be modern, to stay one step ahead, to enjoy life.
  • Natalie Massenet

Thursday, June 28th, 2018

Reminder – Participate in the Rosenberg Survey

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to participate in the Rosenberg Survey!
The Rosenberg Survey, a comprehensive benchmarking study for CPA firms, is now open for participation. Our Survey is nearly 200 pages, full of dozens of metrics, ratios and analyses of accounting firm financial performance. Participate and receive valuable data to help guide your firm.
Thank you to those who have already participated!
The fee for the Survey is $400. For questions, please contact us at (314) 209-0922 or email chylan@rosenbergsurvey.com.