Archive for the ‘Partner topics’ Category

Thursday, May 28th, 2020

Do Some Planning

“All you need is the plan, the road map, and the courage to press on to your destination.” – Earl Nightengale

Many of you know and remember Rebecca Ryan. She spoke at many CPA management conferences a few years back and work with several firms focusing on planning for the next generation. She is a futurist and economist.

Ryan’s recent post, “What to tell your team when everyone’s freaked out” is something that I highly recommend you read.

As she notes, “A great antidote to being scared is to do some planning.” She talks about Assumptions, First Principles, Pivot plan, financial contingency plans, and shares some personal reflections from another tough time we went through (the Great Recession).

I think you will find her thoughts very helpful as you plan for the future of your firm and your people. Click here to read her post.

  • Tell me, what is it you plan to do with your one wild and precious life?
  • Mary Oliver

Wednesday, May 27th, 2020

Admin – The Super Team

“The strength of the team is each individual member. The strength of each member is the team.” – Phil Jackson

I have always been a strong advocate for the CPA firm administrative team. I have observed that they are often the heart and soul of a firm.

During the last three months I have heard from many firms that the only employees going into the office are the admin team members. They went in to do scanning, take care of mail, distribute supplies, and more. Some firms had drop-boxes outside the office door where clients could drop off their tax information. The admin team checked the drop-box daily and scanned the information needed by the accountants. The firm administrator is often responsible for some technology support activities.

Often, the CPA firm’s admin team is under-appreciated. That is why it made me happy to hear the following story from an experienced firm administrator. I am hoping that you are very proud of your admin team, too.

The admin staff and I have been working at the office all through the Pandemic, and have each taken some well-deserved time off since April 15th. The partners recognized that it was the admin team that was taking the biggest risk AND enabling our entire staff and most of the partners to continue to serve our clients while they all worked from home. I bring this up because for the first time ever the admin staff and I all received a really nice bonus on April 15th to show the partners’ appreciation.

Besides doing the firm administration and helping the admin team, I also help everyone with their IT issues. We have a strong IT infrastructure and an outsourced vendor for network support. This is what got us through the pandemic. We also use CCH Axcess which has been such a blessing. I think other firms that are not in the cloud, or don’t have a good infrastructure to allow their staff to work from home are going to have to ramp up their IT spend to stay in the game.

The reason I bring up the admin staff in this email is – as you know, typically firms cherish their professional staff, and the admin staff is not held in the same regard. This has now proven how essential the admin staff is to the firm! I hope other firms recognize this too!

  • If you want to lift yourself up, lift up someone else.
  • Booker T. Washington

Tuesday, May 12th, 2020

Changed Forever

“The art of life lies in a constant readjustment to our surroundings.” – Kakuzo Okakura, The Book of Tea

Consultants and profession leaders have been continually prodding and pushing many CPAs toward significant change. Mostly, it has been by asking practitioners to take baby steps toward change. I have been talking about baby steps for years because most accountants have a great fear of quick, even if it is meaningful, change.

COVID-19 did what consultants and profession leaders couldn’t accomplish in decades. That is, forcing CPAs to suck it up and make immediate adjustment to their operation behaviors.

There is no going back now. The changes most firms made rather quickly will endure.

Gary Shamis, former managing partner of SSG, a large, progressive firm that got gobbled up by BDO has an interesting article via Accounting Today titled, Our Profession Has Changed Forever.

Three things that have changed:

  • The virtual practice
  • The client experience
  • Office real estate

Three things that have stalled:

  • Advisory services
  • M&A
  • Diversity & inclusion

Be sure to read the article to learn what he says about each.

  • Adaptability is about the powerful difference between adapting to cope and adapting to win.
  • Max McKeown

Wednesday, May 6th, 2020

Don’t Let This Be Your Plan

“Plans are only good intentions unless they immediately degenerate into hard work.” – Peter F. Drucker

I recently read a Facebook post intended make fun of a plan to re-open a state. We have to smile and keep our sense of humor in these COVID-19 times.

It immediately reminded me of partners’ strategic plan that comes from a two-day retreat of discussing and re-discussing the same topics they talked about last year at the retreat.

I have modified the original post to fit a CPA firm, just for your amusement.

We have identified a 6 phase strategic plan. The plan will be a phased plan that we will plan to utilize in phases. The phases will be planned and the planning will be phased. We will move quickly and slowly to change but will remain the same. We have created a staff of staffers who will plan the phase and planning while phasing their phases. And that is our phased and planned strategic plan.

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

Tuesday, May 5th, 2020

Practice Management Webinars

“Losers live in the past. Winners learn from the past and enjoy working in the present toward the future.” – Denis Waitley

On May 6th and May 7th, Gary Adamson, President of Adamson Advisory will be hosting two webinars for CPA firm leaders. The sessions are sponsored by CPA Leadership Institute.

May 6th – Valuation is Driven by Terms of CPA Mergers – And Other Keys to Success

  • Date/Time: May 6, 2020 @ 1-1:50pm ET

During this session, you will receive an overview of the M&A frenzy in the profession today and give you tools to help you, whether you are a potential buyer or seller. Adamson will discuss the trends in valuations and the terms, and why the terms drive the multiples that we all hear about.

For more information and to register, click here.

  • May 7th – How to Maximize Performance of Best Practices in Partner Admission, Transition, and Buyout

Date/Time: May 7, 2020 @ 1-1:50pm ET

This session focuses on partner admission, transition and buyout. Adamson will discuss the 25 best practices in both admitting a new partner, buying out a parter and the transition issues associated with the buyout.

For more information and to register, click here.

  • Any fool can know. The point is to understand.
  • Albert Einstein

Thursday, April 30th, 2020

Be Prepared

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.” – Friedrich Nietzsche

If your are a CPA firm leader, you should always remember the Boy Scout motto:

Be Prepared – The Scout motto means that you are always ready to do what is necessary to help others. It also means you are ready, willing, and able to do what is necessary in any situation that comes along.

Peter Drucker told us – The manager will have to look at her task and ask, “What must I do to be prepared for danger, for opportunities, and above all for change?”

Recently, you have had to face danger and change yet not forget about opportunities. Some firms have done a commendable job of this because they were prepared. Some have struggled because they did not have strong enough technology and procedures.

Going forward it is a great time to make sure your firm is lean and can move fast as our new world of work evolves.

Employing the right talent is always an issue. As you have heard many times, you must have the right people on your bus and have them in the right seats. You must be able to trust your people.

Many of your people are skilled, experienced, and loyal. They can work remotely without someone looking over their shoulder. You can trust them. What are you going to do with the people you don’t trust?

  • For there to be betrayal, there would have to have been trust first.
  • Suzanne Collins

Friday, April 24th, 2020

Don’t Forget! – Feedback!

“Feedback is the breakfast of champions.” – Ken Blanchard

So many things are on your mind right now. How will we cope in the new normal? How will we permanently establish a remote workforce? Which team members should be in the office and which ones should stay away? What about the most vulnerable on our team?

Yes, lots of challenges and so much to do. But, don’t forget one of the most important things your team needs… feedback. You don’t see them in person and most of your contact is via email so you might forget that important ingredient to a person’s success in their job.

Here’s a flashback post about feedback – it’s Flashback Friday. Stay Safe.

  • Mistakes should be examined, learned from, and discarded; not dwelled upon and stored.
  • Tim Fargo

Thursday, April 16th, 2020

Don’t Waste Dollars On Coaching

“Procrastination is one of the most common and deadliest of diseases and its toll on success and happiness is heavy.” – Wayne Gretzky

Progressive accounting firms invest in their people. They are not stingy when it comes to sending the right people to the right conferences. They are aware of the needs of their team and invest in the proper CPE to help them improve their technical skills. They send their Practice Manager to CPA management conferences such as the CPAFMA annual conference. (This year’s has, of course, been canceled. The next conference will be in Sarasota, November 9-11, 2021.)

These successful, growing firms also invest in individual mentoring/coaching for their partners, managers and others. Especially with partners, these significant dollars are wasted. They have no intention of changing.

There is a great article via HBR titled, 4 Signs an Executive Isn’t Ready for Coaching. Here are the 4 signs – be sure to read the entire article that gives details on each of the signs.

  1. They blame external factors for their problems.
  2. You can’t get on their calendar.
  3. They focus too much on tips and tactics.
  4. They delay getting started with a coach to “do more research” or “find the right person.”
  • Nothing will work unless you do.
  • John Wooden

Monday, April 13th, 2020

Work Habits of CPA Partners

“Without ambition one starts nothing. Without work, one finishes nothing. The prize will not be sent to you. You have to win it.” — Ralph Waldo Emerson

Many non-partner CPAs and others working in or advising the CPA profession have said that partners work too many hours.

Advisors have been saying for years that your young CPAs won’t want to become a partner because they see the partners setting the wrong example – they work too hard and too many hours.

A recent article via HBR stated that, based on a study, top CEOs of public companies work an average of 62.5 hours per week. CEOs are always on, and there is always more to be done. Think about how that statement applies to your partners, especially the managing partner, the executive committee, etc.

If you want to be a partner someday, keep in mind that you will have two roles, owner and employee. Non-partner CPAs in public practice work with clients. Yes, they have some additional roles by serving on committees or special task forces for the firm but mainly, they help clients.

Partners serve clients and their second job – which maybe should be their first job – is running an efficient, effective and profitable business – the firm. They are paid well if the firm is successful. Their employees are paid well if the firm is successful.

If you are critical of your partners, keep in mind, they are always on, and there is always more to be done.

You might find the HBR article interesting – How CEOs Manage Time.

  • I am focused on the work. I am constantly creating. I am a busy girl. I live and breathe my work. I love what I do. I believe in the message. There’s no stopping.
  • Lady Gaga

Monday, April 6th, 2020

AICPA Coalition Recommends PPP Applicants Use Gross Payroll Approach in Calculations

“The role of genius is not to complicate the simple but to simplify the complicated.” – Criss Jami

WASHINGTON, DC (April 4, 2020) – For the calculation of the Average Monthly Payroll cost under the Paycheck Protection Program (PPP), the Gross Payroll approach should be used for the application, according to the recommendation from the AICPA-led small business funding coalition
. This recommendation was developed in conjunction with the National Payroll Reporting Consortium (NPRC). It comes after the additional guidelines Treasury and the Small Business Administration (SBA) issued on Thursday.

For the calculation of the Average Monthly Payroll cost, we recommend that payroll providers and CPAs use Gross Payroll based on 2019 data versus Net Payroll (defined as Gross Payroll less federal withholding and employee FICA). Neither the CARES Act nor the recent guidance instructs the PPP applicant to exclude federal withholding and employee FICA for the 2019 period. The Average Monthly Payroll cost includes Gross Payroll and the other defined PPP payroll cost elements such as health care, etc.

“Treasury and the SBA have acted quickly to generate this small business stimulus. As key stakeholders in the implementation of the PPP relief, we are collectively working to drive consistency in the interpretation of the administration’s guidance. Our goal is to help produce an efficient application process to quickly get the funds in the hands of small businesses and their employees,” said Erik Asgeirsson, president and CEO of CPA.com.

Mark Koziel, CPA, CGMA, the AICPA’s executive vice president of firm services, added, “Based upon statements from members of Congress, it appears that the intent of the PPP was to base the salary calculation on gross wages with no adjustment for federal taxes. This ensures that payroll tax expenses are not passed on to the small businesses in need. In a program of this magnitude, it’s expected that guidance will evolve and terms will be clarified.”

The AICPA also said that its discussions with Treasury, SBA, banks and payroll processors to address these and other issues are ongoing and that it will keep its members, coalition partners and small businesses updated on the efforts to protect Main Street America.

  • I'm full of fears and I do my best to avoid difficulties and any kind of complications. I like everything around me to be clear as crystal and completely calm.
  • Alfred Hitchcock