be proactive and intentional.
by tamera loerzel
the rosenberg national survey of cpa firm statistics
while i could list many trends, predictions and thoughts, i think there are two important considerations to pay attention to over the next 12 months:
- complacency continues to run rampant in some firms. growth has been good for most firms, which means profits have been good and partner compensation is at an all-time high for many, which gives a false sense of security.
editor’s note: every year, the 2024 rosenberg national survey of cpa firm statistics asks the profession’s top consultants two sets of questions:
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- how do you think the next 12 months will unfold? trends? predictions? other thoughts?
- how would you assess the last 12 months? trends? observations? struggles?
more: solving staffing requires intention | how accounting firms are handling the staff shortage | the future of fees | as private equity closes in, firms seek new answers to staffing problems | when staffing falls short, clients get culled | how accounting firms are dealing with retirement | next five years are critical for accounting firms | staffing turnover’s down, but why? | what’s your firm worth? private equity wants to know | the new pipeline: outsourcing and offshoring | is this the last year of accounting’s golden age?
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in addition, the noise from the m&a activity and private equity funding along with continued capacity and pipeline issues, velocity of emerging technologies, and other business model transformation needed, many leaders freeze with inaction. those who delay or stop investing in developing leaders; hr and other operational roles; ai, rpa or other technologies; and more will be left behind.
this year, it will become even clearer those firms that have vision and strategy for the next five years and are sharing it with their team members, clients and the market regardless of what that strategy is. uncertainty and lack of transparent communication causes fear and uncertainty in your team. firm leaders need to unify around their vision and strategies, whether it’s merging, taking private equity funding or remaining independent, and communicate it and engage all stakeholders in their role for moving forward. and, if firm leaders are still undecided, be authentic and transparent about that, too, and share what your leadership team is doing to come to a decision and create a clear vision for the firm’s future.
- firms are focused on proactive and intentional growth. most firms have been blessed with an abundance of existing and new client opportunity the past four years, and now are finding they need to be intentional about how much to grow, what areas they want to grow with the right mix of new and current services, and who their ideal target clients are for the future. growth is a strategic imperative that all partners and leaders need to unify around and answer these how, what and who questions. in addition, firms have not had to develop rainmaking, personal marketing and sales skills because of the abundance of client opportunity and partner retirements that have been filling future partners’ plates, and they are seeing a gap in this critical ability in their partners and all levels. many firms are searching for leadership development and coaching, from staff to partner, specifically focused on this area this coming year and beyond. firms should focus on making rainmaking one-size-fits-one, so each partner and team member can identify their way to develop business, cross-sell to existing clients and build a strong network and referral sources.
the last 12 months have continued to be strong with client work and demand for new services, despite the uncertain market and political climate. some firms have reported a “softening” on capacity in certain service areas and at specific levels, yet some staff, and most managers/senior managers, are still feeling squeezed. partners share that they are burnt, too, and don’t have the time to work on practice growth or people developing, with some even taking early retirement so they don’t have to continue on the path they are on.
firms have made strides in solving the capacity challenge by hiring non-cpas or client service coordinators to manage the client workflow and communications as well as other tasks that don’t require an accountant, and by using alternative staffing providers, whether outsourcing, offshoring or fractional employees. however, there is more to go. firms that have made these moves need to do more and firms that have not ventured into these business model shifts and new ways to elevate all levels, including partners to work at their highest and best use, are going to continue to struggle. partners are challenged serving clients and addressing their increasing needs and retaining team members who expect more efficient workflows and processes, in-depth use of technology, and work/life balance without the grueling hours the accounting profession has a reputation for.