Archive for the ‘Firms’ Category

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.

Thursday, May 17th, 2018

The Partner Pledge

“Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work.” – Vince Lombardi

I have talked with many firms about the use of a partner commitment statement. It is a list of things that a person commits to when they become an owner (partner) in a CPA firm. The first example I ever saw was from Sam Allred of Upstream Academy.

Over the years I have encouraged all firms to establish some guidelines for partners to follow. In so many firms, it is a sort of “now I am a partner so I can do whatever I want” culture. Progressive firms are setting the expectation for partners and I think it would be helpful to all partner groups.

Thanks to the CPAFMA discussion board, I recently read a sample Partner Pledge shared by Scott Chicoine, Firm Administrator for KerberRose, a prominent Wisconsin firm. They have kindly agreed to share their Partner Pledge with all of you. Thank-you, KerberRose!

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PARTNER COMMITMENT PLEDGE

Mission:
To Make our Clients and Employees Successful

Core Values:
• Honesty
• Integrity
• Respect
• Balanced Life
• Community Orientated

As a Partner of KerberRose, S.C., I understand that partnership is a privilege and not a right…this privilege must be continuously earned. I have a responsibility to KerberRose, the Partners, and the team members. As a Partner, I understand that I am on display for all to see and serve as a role model. My effort, attitude and desire will serve as a constant point of reference for employees. As such I pledge to:

-Commit to the Core Values of KerberRose in all interactions with all of The Firm’s Team Members
-Make myself more valuable every year and strive for continuous improvement
-Ensure the perpetuation of KerberRose through the transfer of knowledge and talents to future firm leaders
-Support firm efforts to develop and train future firm leadership
-Foster a culture that promotes inclusivity, family values, and opportunity for team members
-Continually engage with Team Members… be accessible, show them they are valued and help them to achieve their goals
-Be a great role model for success and judgment… be an inspiring Partner
-Make myself available for meetings with Firm Administrator and Managing -Partner to help monitor my personal goals and firm goals
-Delegate as appropriate, giving proper direction and setting reasonable expectations
-Commit to a unified and cohesive Partner group, but allow for creative thinking and challenging the status quo
-Commit to spirited involvement rather than grudging compliance
-Act in a modest manner and set ego aside
-Promote the full offering of available services to clients and prospects
-Ensure the services I offer are beneficial to clients
-Understand that we should provide clients exceptional service
-Always put the business interests of KerberRose ahead of my personal business interests
-Use my best efforts to meet or exceed my new business goals on an annual basis
-Use my best efforts to attain both chargeable and non-chargeable goals each year
-Establish non-chargeable hour goals that enhance the future of KerberRose
-Prepare billing timely and fairly
-Follow established collection policies and requirements of Partners
-Record my time daily
-Always give my best attitude, effort, and desire
-Make a lifelong commitment to learning

I, ________________________________have read, understand, and agree to do my best to approach my daily work in accordance with this KerberRose Partner Commitment Pledge.

 

  • Unless commitment is made, there are only promises and hopes... but no plans.
  • Peter Drucker

Thursday, January 18th, 2018

The Cloud Accountant

“Those without self-awareness do not look to improve, often because they do not think they need to.” – Jessica Daley

I talk with so many practitioners who struggle with the belief that they should employ remote employees. Whether you are convinced or not, it is a rapidly growing component of the accounting profession.

I recently read an article, 3 Essential Personality Traits of a Cloud Accountant by Jessica Daley of Xcelerate Business Solutions.

I enjoyed her article but was even more impressed when I visited the Xcelerate website.

Here’s the opening paragraph of the article. Does it sound like you and your team?

Today, flourishing in accounting requires a new way of thinking. It is less about the technical expertise and number-crunching, and more about whether you can handle systems, communicate well, innovate, solve problems, and build a rapport with your clients. If someone on your team is unable to do this, their accounting expertise does not matter—they simply will not be a very good accountant in the client’s eyes.

The 3 essential personality traits:

Curiosity – Your have to be curious about all the apps and technology so you can help your clients make the most of them.

Pride – You and your staff must have pride in what you do. You take ownership of your work and solve client problems.

Self-awareness – In the author’s opinion, this is the most important trait. You need to be aware of what you do not know.

Read more about these 3 traits here.

  • My best staff are relentless in their ownership of a client.
  • Jessica Daley

Tuesday, December 12th, 2017

Firms Are Optimistic About Growth

“There is only one way to avoid criticism: do nothing, say nothing, and be nothing.” -Aristotle

Accounting Today conducted their annual survey of over 500 firms of all sizes in November, on everything from their growth expectations to their plans for tech spending, their use of social media, and the new services they’re offering.

Here’s what firms think about their growth in 2018:

Atoday

Check out all of the results from the survey. It also shows how firms feel about hiring and retaining talent.

  • Don’t be too timid and squeamish about your actions. All life is an experiment. The more experiments you make the better.
  • Ralph Waldo Emerson

Monday, September 11th, 2017

Utilize Stay Interviews

“Be yourself; everyone else is already taken.” – Oscar Wilde

I have blogged a few time about the topic of stay interviews. They have gained more wide-spread popularity in recent years, of course, because of the accounting profession’s need to retain top talent.

One interesting observation that has been uncovered with the use of stay interviews is the fact that your people want you to hire great people. They do not want the firm to tolerate poor performers.

It certainly does make sense – they want to be part of a high-performing team. If you keep mediocre people, the firm will also eventually become mediocre.

Inovautus Consulting recently did a spotlight article about the stay interview process at DesRoches & Company, CPAs in Virginia Beach. It is a great story.

  • Growth is painful. Change is painful. But, nothing is as painful as staying stuck where you do not belong.
  • N. R. Narayana Murthy

Monday, August 28th, 2017

Future Ready

“Yesterday’s skills will not be sufficient for tomorrow.” – Joey Havens, CPA 

Last week I followed the Horne Leadership Summit via Twitter (#HLS2017). I follow Joey Havens, Horne’s Executive Partner, reading his tweets and his blog.

Providing an inspiring leadership day, featuring some of the profession’s all-stars, is an example that I hope many firms will follow.

Today, I just wanted to share this slide from their leadership day. I hope you are guiding your CPA firm to be a Future Ready firm.

Horne future

  • If we set ourselves on a course of being happy in the present, our performance will be better—which will lead to more success.
  • Joey Havens, CPA

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