how firms are compensating their coos

bar chart

real-life examples. about 29% are owners.

by kristen rampe
rosenberg associates

more and more firms are exploring the benefits of adding a chief operating officer (coo) to their leadership ranks. the coo role often encompasses strategic cpa firm leadership, holding partners accountable, making decisions in line with the firm’s strategy and overseeing all administrative functions.

more: help! a partner wants to retire really early
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this position can significantly reduce the time client service partners spend attending to these duties. and often the coo can do them better, as they aren’t distracted by the next fire drill from a high-profile accounting client. their only client is the firm.
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firms must choose best workplace model

man sitting at desk in otherwise empty office, facing glass wall

what will help you move forward?

by kristen rampe
the rosenberg map survey

editor’s note: every year, the rosenberg map survey asks the industry’s top consultants to share their observations from cpa firms across the country. how do you think the next 12 months will unfold? also, how would you assess the last 12 months?

the obvious: staffing challenges will continue. firms that are stuck in their old ways must add younger talent with the ability to influence leadership ranks. senior partners who are seeking an internal buyout, or better priced external sale, need to recognize how essential this is.

more: tech, capital will drive accounting profession growth | new energy comes from new ways of doing business | ai for accounting automation will be significant | a 40-hour workweek is feasible | it’s time for a new business model
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less obvious: workplace models will continue to be varied, and there is no one-size-fits-all. i have clients who hardly went home during covid-19, and their staff have to be asked to work from home to free up office space for a growing team. i also have clients with thousands of square feet of vacant office space because no one has returned. of both groups (and those in between), some have critical failures in productivity. some are crushing it.
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outlook 2023: grow your own partners

a little at a time still gets you there.

by kristen rampe
the rosenberg map survey: national study of cpa firm statistics

retiring will continue to be difficult for many partners of small firms. even if on paper they’ve done their job of bringing in new partners, many of their successors already have a full book of business and can’t absorb all of the outgoing partner’s client bases.

more: outlook 2023: authenticity comes to the workplace | private equity pumps up paychecks | look who’s making money now | compensation gets creative | the office is over | accounting firms face up to private equity
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not to mention that many newer-generation partners have no appetite for the long-hours lifestyle of baby boomers. it’s not uncommon to need two new partners to replace a founder who’s been working 3,200+ hours per year. few want that job.
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what do you expect from your senior associates?

expectations graph.do they know?

by kristen rampe

we polled a group of senior associates recently and asked what they believed the top five expectations of their role were. that is, what do the partners of the firm expect these seniors to do all day? they were not given time to research answers from any company documents describing expectations of seniors, just a moment to jot down what they felt was most important.

more: rewarding partners for seniority: pros and cons | what if founders don’t want to buy each other out? | when cpa partner votes go wrong | why billing less may mean earning more | what smaller firms must do to become firms of the future | when managing partners can’t | don’t let exiting partners double dip | the 13 signs you have a partner problem
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before reading further – what are your top five expectations of your senior associates?

write them down on a piece of paper or blank word doc and you can compare them to their responses below. looking at your list, how consistent would these expectations be across different partners or managers at your firm?
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rewarding partners for seniority: pros and cons

stressed person looking at graph.what best serves the firm?

by kristen rampe

in our work with cpa firms on partner compensation, we have asked countless partners what they think about various performance criteria and whether or not they should factor into a partner’s allocation of income. some examples of the performance criteria include firm management, business development, client service and billable hours. another criterion we ask about is seniority or tenure.

more: what if founders don’t want to buy each other out? | when cpa partner votes go wrong | when managing partners can’t | covid-19, adversity and innovation | is mandatory retirement a best practice?
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some partners respond to our questionnaire indicating that seniority or tenure should be a factor in income allocation. many partners believe it has no place. so, who’s right?
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why founders balk at their buyouts

blocking dominos from falling.solutions for when succession planning didn’t happen as it should have.

by marc rosenberg and kristen rampe

over the years, we have worked with a number of small firms that had the following dilemma: what to do when the partners are all in their 60s and none wishes to buy out the other?

more: when cpa partner votes go wrong | why billing less may mean earning more | don’t let exiting partners double dip | how covid impacts partner retirementscovid-19: how your firm can respond
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this problem is particularly acute with two-partner firms, though can be troublesome for other firms with multiple partners wanting to retire on a similar timeframe.

we have distilled this dilemma into a case study to guide firms to a solution. this case is based on real facts.
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top issues for millennial managing partners

group of four young professionalsbonus: six ways to prepare for the role.

by kristen rampe
the role of the managing partner

the next wave of cpa firm leaders is here, and millennials are already making the best of this role as leaders in smaller firms.

more: 44 hard-earned tips from new managing partners | partner compensation: a potent weapon | how long should it take to make partner? | the managing partner’s role in mergers | five ways to evaluate partners | manage partners with goal setting
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to understand and share the perspective of this up-and-coming group, we interviewed eight millennials who are relatively new to the position of managing partner.

revenue for the firms averaged $2.3 million, with two equity partners and a total fte headcount of 15. some of their views on the role of the managing partner were traditional, while others were somewhat unconventional. this group is pioneering some interesting changes because they are less restrained by historical approaches.
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make your plans count: 1-2-3

graph with arrow going upwhat do you want to have happened six months afterward?

by kristen rampe

a well-planned retreat can have a real impact on your firm’s performance.

more: team expectations: a checklist for busy season | tax season savvy: five ways to stay sane | why host a partner retreat? | effective stay interviews for cpa firms | the 16 biggest #fails in delegation  | work-life balance: according to whom?  | new survey results: two ways your strategic plan can reduce turnover
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a $2.4 million client of ours who holds annual management retreats (sole practitioner, coo, and key managers) wrote with this news when reflecting on their year-over-year improvements:

you would love our stats…

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