Archive for the ‘News’ Category

Thursday, October 14th, 2021

Salaries

“These men ask for just the same thing, fairness, and fairness only. This, so far as in my power, they, and all others, shall have.” – Abraham Lincoln

I always get questions about salaries for the CPA profession. Firms want to know what other firms are paying by level – Staff, Senior, Manager, etc. I even did a limited survey myself but was disappointed by the response.

Yesterday, I read a post by goingconcern addressing CPA salaries in eight cities: Baltimore, Cincinnati, Detroit, Indianapolis, Louisville, Milwaukee, Oklahoma City, and St Louis. The author used various sources.

There are three salary percentiles.

  • 25th percentile: New to the type of role, still acquiring relevant skills.
  • 50th percentile: Average experience, has most of the necessary skills.
  • 75th percentile: Above-average experience, has all needed skills.

For example, here is the listing for an entry-level tax accountant in Cincinnati:

  • 25th percentile: $41,000 -> $39,975
  • 50th percentile: $50,250 -> $48,994
  • 75th percentile: $59,500 -> $58,013

Read the post here. I think you will find it very helpful.

  • If we expect others to rely on our fairness and justice we must show that we rely on their fairness and justice.
  • Calvin Coolidge

Monday, October 4th, 2021

My Copy Arrived

“There are no shortcuts to any place worth going.” – Beverly Sills

As with every Fall, I anticipate the arrival of my copy of the Rosenberg Survey. I learn so much from this valuable resource and it is a very helpful tool as I do my advisory work with local and regional firms.

For example: Why should firms located in cities with over 2 million in population have partner billing rates that range from $474 down to $277?

  • Firms with lower rates are less aggressive than those with higher rates.
  • Firms with higher rates believe they are worth every penny of their rates.
  • Firms with higher rates are often providing more advisory level work and less compliance services.

You can order your copy of The Rosenberg Survey here.

  • Far and away the best prize that life has to offer is the chance to work hard at work worth doing.
  • Theodore Roosevelt

Thursday, September 23rd, 2021

The Rosenberg Survey

“Great firms continually reinvent themselves.” – Marc Rosenberg


The 2021 Rosenberg Survey is NOW available!

Each year The Rosenberg Survey does an analysis to see which metrics have the strongest correlation to profitability, as measured by income per partner. It never fails, the Top 4 are all related to leverage and rates!  As we work with firms who are struggling with profitability, we start by looking at their various leverage ratios followed by comparing their billing rates to like-sized firms in like-sized markets. 
CLICK HERE to Order the Survey!
The Rosenberg Survey, a comprehensive benchmarking study for CPA firms, is now available! Our Survey is nearly 200 pages, full of dozens of metrics, ratios and analyses of accounting firm financial performance. Order your book today and receive valuable data to help guide your firm. The fee for the Survey is $500. For questions, please contact us at (314) 209-0922 or email chylan@rosenbergsurvey.com
  • Facts are stubborn, but statistics are more pliable.
  • Mark Twain

Thursday, September 23rd, 2021

CPA Exam Resources

“I’m forever testing myself. As a person and as an actor, I have no sense of competition.” – Michael Caine

Once the Fall due dates have passed, I imagine many of your valuable team members will be focusing more seriously on passing the prestigious CPA Exam.

I often get inquiries about the kind of employee benefits accounting firms should provide relating to the CPA Exam. My advice is always to be generous.

I became aware of a site that provides lots of great (free) information for those focusing on The Exam. I found it very helpful. It features the CPA Exam Requirements by individual states.

A message from CPAExam.com:

We offer free resources on our website which are available to those who are planning to take the CPA Exam. Aside from the free resources on the cpaexam.com website, they can also download the free ebook “28 Things You Need To Know About The Ethics Exam” here https://www.cpaexam.com/cpa-ethics-exam/

Our mission is to provide educational resources which are readily available with rich yet concise information and tips on how to pass the CPA Exam via digital and innovative learning, paving the way for their professional success and for them to lead meaningful lives.

As always, I strongly urge recent accounting graduates to focus on passing The Exam immediately after graduation. Some new hires I have known have already passed The Exam before they reported for their first job at an accounting firm. The sooner you take it the better chance you have at passing quickly. Once you have the CPA credential, you have a definite advantage in building a successful career in the business world.

Another reminder for the firm – be generous and supportive of your candidates.

  • Everything you want is out there waiting for you to ask. Everything you want also wants you. But you have to take action to get it.
  • Jack Canfield

Tuesday, September 14th, 2021

New Survey About Remote Work

“Being a great place to work is the difference between being a good company and a great company.” – Brian Kristofek

Here are some interesting findings from a recent survey by flexjobs. The last segment about the importance of company culture should be something CPA firms should consider.

44% Know at Least One Person Who Has Quit or Plans to Quit Because of Employers Revoking Remote Work

New FlexJobs survey highlights the high-value employees place on remote work, mental health support, and company culture

Boulder, CO, September 13, 2021 – According to FlexJobs’ survey of over 4,600 respondents, 44 percent know at least one person that has quit or is planning to quit because their employers are requiring them to return to the office. 29 percent are actively looking for a new job because they want to work remotely, while 17 percent have quit a job because it did not offer remote work options.

“It’s a job seeker’s market right now, and workers are more empowered than ever to leave job situations that aren’t ideal, or leave companies that aren’t allowing them to work the way they want to,” said Sara Sutton, Founder and CEO of FlexJobs. “As our latest survey highlights, workers are placing an extremely high value on the option to work remotely, and they’re committed to finding companies that are embracing remote work as a long-term workplace model and have a healthy company culture to support it,” Sutton concluded.

Remote Work Matters:

  • 44% know at least one person that has quit or is planning to quit because their employers are requiring them to return to the office
  • 29% are currently looking for a new job because they want to work remotely
  • 17% have quit a job because it did not have remote work options
  • 21% would give up some vacation time, and nearly a quarter (24%) would take a 10-20% cut in pay in order to work remotely as much as they want
  • Post-pandemic, 58% prefer a fully remote job, and 39% want a hybrid arrangement that combines both office and remote work; only 3% report wanting to return to the office full-time
  • However, 42% report that post-pandemic, their employers will require them to be in the physical office; 27% will have hybrid work arrangements; 17% will be fully remote; the remaining 14% were unsure of their company’s plans

Other key insights from the survey:

Mental Health Matters:

  • 70% say a permanent remote job would have a huge improvement or positive impact on their mental health 
  • 81% of respondents said having better work-life balance is the #1 factor for wanting a job with a flexible work option
    • Other reasons for wanting a flexible job include commute stress (50%), family (47%), and exposure to illnesses (43%)
  • Lack of healthy work-life boundaries would cause 57% to not apply, not accept, or to quit a job
  • Nearly one in five (18%) said not offering mental health support was a big mistake their company made during the pandemic

Company Culture Matters:

  • Toxic culture would cause 73% of respondents to not apply, not accept, or to quit a job. Other reasons include:
    • Micromanaging boss (58%), lack of healthy work-life boundaries (57%), and not allowing remote work (55%) or flexible options (50%); the top reason was a low salary (79%)
  • Poor communication from leadership was the biggest mistake made by employers during the pandemic (30%). Other top-reported mistakes included: 
    • Not fully understanding the stress of work-life conflicts during the quarantine (25%)
    • Unrealistic expectations about productivity during quarantine (22%)
    • Poor management of workers overall (22%)
    • Being too rigid with schedules (17%) 

Read more here.

  • We have a culture where we are incredibly self critical, we don't get comfortable with our success
  • Mark Parker, CEO, Nike

Monday, September 13th, 2021

Leadership Development

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

Once again it is time to remind you of the leadership development programs offered by Convergence Coaching. Too many firms have ignored the need for structured leadership development programs and thus limit their choices when considering firm succession.

Convergence’s flagship program:

Transformational Leadership Program™ (TLP) – Kicking off with a remote web seminar on November 1, participants pay $6,500 for the year. This one-year “finishing school” for high-potential managers, senior managers, directors, new partners and key administrators includes a combination of one-on-one coaching, two 2-day workshops (in-person or can pivot to remote if needed), 2-hour web-based roundtables, online self-study and a special in-firm project. Participants join a cohort of up to 26 other leaders from firms around the country, learning both from facilitators and each other in this year-long program.

There are also other programs for up-and-comers in your firm:

  • Leadership Development Program for Seniors and Supervisors (Kicking off October 25)
  • Client Advisor Program (Will soon be scheduling 2022 dates)
  • Rainmaker Development Program (Will be scheduling 2022 dates)

Here’s a graphical view of the programs available:

  • A leader takes people where they want to go. A great leader takes people where they don't necessarily want to go, but ought to be.
  • Rosalynn Carter

Tuesday, September 7th, 2021

Subscription Pricing

“You’re going to have to define the kind of customers you want, which is much easier if you’re niched.” – Ron Baker

Ron Baker has been talking about value pricing since 1994. You have read his books and heard him speak many times.

In a recent article, he makes the case for subscription pricing. We are keenly aware of subscription pricing. Many things from Netflix to shaving supplies can be bought via subscription.

Baker says, “It’s what I’m calling Value Pricing 2.0 – the subscription business model.”

Read Baker’s article via Thomson Reuters, titled: “Subscription pricing for tax and accounting services? I know this is a great idea because it scares the hell out of people.

Baker thoroughly explains the pricing model. He also covers how it is better for an accounting firm than traditional pricing models.

As with most things from Baker, I think you will find this very interesting.

  • It always amazes me that some firms have $100,000 clients and yet they have a bunch of $500 clients — that’s insane.
  • Ron Baker

Thursday, August 26th, 2021

“THE” Exam

“Students are struggling to afford that fifth year of school.” – Daniel Hood 

There are a lot of discussions recently about the difficulty of passing the CPA Exam and requiring five years of education (the 150-hour rule) to become a CPA. These are the reasons college accounting majors are giving for not going into public accounting.

Accounting Today editor-in-chief, Dan Hood puts this dilemma in question form to all of you out there. He asks, “Is it too hard to become a CPA?” He notes that CPA profession leaders/consultants say that the number of students in accounting dropped from 2% in 1990 to 1% in 2000. The 90s is when the 150-hour rule became prominent in many states. The Exam itself is widely known to be very grueling. What could be the answer?

Read the article and give him your personal feedback.

In my personal opinion (and please note, I am not a CPA but have worked with them for over 40 years), the extra year of education is a waste of money and effort. I have never been able to see how that extra year made incoming recruits any better prepared than those that came before them. The CPA Exam should be on the “grueling” side. Clients rely on CPAs for their amazing expertise and advice. If they want to remain “the most trusted advisor” they not only have to prove their current knowledge, they have to commit to LIFE LONG learning to add to that knowledge.

  • The CPA profession is facing serious staffing challenges and long-term threats around its ability to attract future professionals.
  • Daniel Hood

Monday, August 23rd, 2021

Firms Are Adapting

“We look forward to this next chapter on our journey to be the Firm of the Future.” – Matt Snow, CEO DHG

There has been a lot of talk about how firms will adjust their workforce model going into the future.

Back in July, I shared some news about one large firm’s new office and how it is designed to serve future needs.

Recently, CPA Practice Advisor shared some news about DHG’s new hybrid workforce model. DHG, in September, will be unveiling something they call “DHG Anywhere”. The workforce model will create flexibility within reasonable boundaries and is being called “Freedom Within a Framework.”

Their plan makes a lot of sense to me and I expect many other firms to make similar adjustments in the coming months and years.

Be sure to read the article to get the full details.

  • The future depends on what you do today.
  • Mahatma Gandhi

Thursday, August 5th, 2021

Interesting Development

“Every skill you acquire doubles your odds of success.” – Scott Adams

I read a press release yesterday that I thought would be of interest to you.

Rootworks (Darren Root) has acquired CPA Practice Advisor. As you probably know, Rootworks was acquired by Right Networks a while back. Rootworks is now “a company of Right Networks.”

Here’s a link to the press release via Yahoo.

  • All the knowledge I possess everyone else can acquire, but my heart is all my own.
  • Johann Wolfgang von Goethe