Archive for the ‘Partner topics’ Category

Wednesday, October 24th, 2018

Within Driving Distance of Indianapolis? – Join me!

“Develop a passion for learning. If you do, you will never cease to grow” – Anthony J. D’Angelo

I know many of you are not within driving distance – but I also know that Indiana has many great CPA firms and the Indiana Chapter of CPAFMA has a great membership.

So, mark your calendar for Friday, November 16th. I will be speaking at the Indiana Chapter meeting. It is a morning presentation so you can have all afternoon to drive back home (or to the office).

My topic is “Surviving Change in the CPA Profession.” It is an exciting time to be a CPA or working in a CPA firm, but how is your firm preparing future? It is not a time for a “wait and see” attitude.

Follow this link to download a document that gives you all the information about the meeting and how to register.

The very first CPAFMA I ever attended over 30 years ago was in Indianapolis. The Indiana Chapter is near and dear to me.

  • Education is what remains after one has forgotten what one has learned in school.
  • Albert Einstein

Friday, October 12th, 2018

In a Hurry?

Lots of experts tell us that millennials want to know how fast they will be promoted. While I agree that you must be able to explain how a career path plays out at your firm, I wonder if a bit of reality might be in order.

Reading the following quote made me realize what a long journey it is to build relationships, learn, and keep current, on loads of technical issues, become well-known in your business community and also build a reputation as “the expert” in a certain discipline.

“It took me fifteen years to make it look easy.” – Fred Astaire

I am not saying that it should take 15 years to become a partner. I am saying that after you do become a partner you must continue to learn, grow and develop ways to make what you do look easy.

  • Life is not easy for any of us. But what of that? We must have perseverance and above all confidence in ourselves. We must believe that we are gifted for something and that this thing must be attained.
  • Marie Curie

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

Monday, October 8th, 2018

Partner Buy-Out & Retirement – Webinar

“Golf is played by twenty million mature American men whose wives think they are out having fun.” – Jim Bishop 

I get so many questions about what a partner buy-out and retirement should look like. Here’s an opportunity for you to learn about the current trends presented by Gary Adamson of Adamson Advisory via CPA Leadership Institute.

October 10, 2018 – 1:00 – 1:50 pm EST – Surviving Succession – Partner Buyout and Retirement.

If you’re like most firms, your partner agreements have not been reviewed or updated in a long time. That is dangerous given the succession issues in our profession today and the number of baby boomers retiring. I will discuss best practices and latest trends in how to value your practice, how to pay out the retiring partner, building your bench, and successful client transition to the next generation.

REGISTER HERE.

 

Wednesday, September 26th, 2018

Compensation & Succession

“Do your job and demand your compensation – but in that order.” – Cary Grant

Here’s a heads-up regarding two upcoming webinars sponsored by CPA Leadership Institute and presented by Gary Adamson of Adamson Advisory. These two topics are usually at the top of the list of partner issues.

Here’s the information regarding date, time and topic:

October 4, 2018 – 1:00 – 1:50 pm EST – Partner Compensation Methods and Trends Update
I will discuss the most common compensation systems in use today and provide my perspective as a former managing partner of a top 200 firm. I will help you determine what is right for your firm and how a firm evolves from one system to the next as it grows. I will also give you some tips on setting up a performance-based system in your firm and how to align your compensation system to your firm’s strategic plan.
October 10, 2018 – 1:00 – 1:50 pm EST – Surviving Succession – Partner Buyout and Retirement.
If you’re like most firms, your partner agreements have not been reviewed or updated in a long time. That is dangerous given the succession issues in our profession today and the number of baby boomers retiring. I will discuss best practices and latest trends in how to value your practice, how to pay out the retiring partner, building your bench, and successful client transition to the next generation.
  • Planning is bringing the future into the present so that you can do something about it now.
  • Alan Lakein, author

Friday, September 21st, 2018

The 3 Kinds of Partners

“You have to take risks. We will only understand the miracle of life fully when we allow the unexpected to happen.” – Paulo Coelho

I recently watched a short video featuring my dear friend, Allan Koltin. He describes for us the three kinds of partners (and other CPAs) that we encounter inside CPA firms.

I definitely agree with his observation. The three types are Content, Climber and Crazy.

Watch Koltin’s video here. It’s only 2.21 minutes long and you will definitely be entertained and enlightened. Do you recognize yourself?

By the way – you have and need all three!

  • To expect the unexpected shows a thoroughly modern intellect.
  • Oscar Wilde

Monday, September 17th, 2018

Due Date Decisions

“You’ve done it before and you can do it now. See the positive possibilities. Redirect the substantial energy of your frustration and turn it into positive, effective, unstoppable determination.” – Ralph Marston

The extended due date is here.

You and your team have been working very hard during a time of year when you should not have to work so hard.

You have those fire-drill clients that almost always hold you hostage right up until the drop-dead extension deadline. It is frustrating. Your team wonders why you put up with these clients.

Why do you? Putting extra strain and frustration on your employees in times where employees are valuable and new ones are difficult to cultivate doesn’t seem like a good plan.

Use this client retention analysis form to help you sort out which clients to outplace.

Or, just ask your employees to vote for 5 clients that they would enjoy seeing gone from the client list.

 

  • Hope fills the holes in my frustration in my heart.
  • Emanuel Cleaver

Thursday, September 13th, 2018

GOFER or NOT?

 “In business, what’s dangerous is not to evolve.” – Jeff Bezos

Is your firm administrator (aka, Practice Manager) a gofer or a take-charger?

Many CPA firms have various titles for the person this person. Often it depends on the size of the firm. It could be an office manager, executive assistant, firm administrator, director of administration, chief operating officer, practice manager, and others.

No matter what the title, the mission is the same, to save partners valuable time. What the partners do with that “saved” time is a topic for another day.

It is an executive position and, over time, takes complete responsibility for the operations of the firm. This means everything that goes on behind the scenes. Most Practice Manager job descriptions are quite expansive and include processes, procedures, human resources, financial activities, marketing, facilities, and technology. If you need a sample job description, let me know.

If your managing partner is using this person as a gofer (someone who just does what they are told and immediately reports back), you’ve got it all wrong.

It is a take-charge position and if you have someone who is happy being a gofer, you’ve got the wrong person.

If you are in this role and not operating at a take-charge level, don’t hesitate to speak up and ask for more responsibility, training, and education. So much is available via the CPA Firm Management Association.

  • Innovation distinguishes between a leader and a follower.
  • Steve Jobs

Tuesday, September 11th, 2018

Trust Those Around You

“The best way to find out if you can trust somebody is to trust them.” – Ernest Hemingway

Trust is a word that is thrown around the CPA profession all of the time. “Most Trusted Advisor” is familiar to most of you. CPAs have been claiming that mantra for many years now.

I see that the AICPA even has a Trusted Client Advisor Toolbox and Workshop.

Let’s explore trust a little deeper as it exists inside accounting firms. Here’s a familiar story about firm administrators. The administrator is an experienced professional. He/She takes over most of the day-to-day operations of the firm from the partners and implements procedures to make processes flow smoothly inside the firm. Soon the managing partner is distanced from the details (a very good thing) and can focus on managing the partners. The managing partner trusts that the firm administrator will take care of things.

Trust imparts obligation. The firm administrator takes that responsibility very seriously and works diligently to not disappoint the partners.

In my consulting work, I have experienced many situations where staff members do not trust the partners (owners). Building trust that goes both ways is a continual activity in a firm with a healthy culture. Not there yet? Keep working at it.

  • Trust is the lubrication that makes it possible for organizations to work.
  • Warren Bennis

Thursday, September 6th, 2018

Three Factors in Effective Firm Management from Koltin

“If the role of managing partner isn’t valued, don’t give up your day job.” – Alan Koltin

KoltinLast evening I watched a short video via the Journal of Accountancy by Alan Koltin. He is so right-on, I loved it. I hope you’ll take just two and one-half minutes to learn about three factors in effective firm management.

I have observed that so many firms have little respect for the role of managing partner. Some even think that it is something the person designated should do in their spare time.

There are many factors of success in managing an accounting firm but Koltin has featured the big three:

  1. Talent
  2. Setting management up for success (authority)
  3. Valuing the role

Watch the video or read the transcript here.

  • Instead of being a speedboat, often you are like the Titantic.
  • Alan Koltin