the partnership

drive your profits with only four metrics

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accounting firm econ. 101, including a sample income statement.

by marc rosenberg
the rosenberg practice management library

all businesses have economic structures unique to their industries:

  • grocery stores are high volume, low-profit margin.
  • real estate ventures use accelerated depreciation and other tax angles to generate cash flow and healthy rois.
  • professional sports teams focus on increasing the value of the franchise so it can eventually be sold for a gigantic profit.

more: a crash course in the business of public accounting | how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the typical cpa firm is a low-volume, high-priced business, with a relatively high-profit margin (generally 30-45 percent of revenue).

why your billings are ruining your firm

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businessman sitting on scales with stack of coins in other traydo you see managing partner as a part-time role? if not, don’t treat it like one.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

question: about a year ago i became the managing partner of my 50-person, six-partner firm. we gross about $7 million. i still maintain my book of business, which is about $1 million, and have 1,000 chargeable hours.

more: get more done by saying no | make cpe worth your while | are you marketing for 2022 yet? | don’t fire that staffer on may 18! | what to do with a lousy client? | stop drowning in client documents | employee demands a raise she doesn’t deserve | but i am managing! | make more money starting now
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

needless to say, i have been working very hard, about 2,700 total hours, yet my partners are complaining i do not have enough chargeable time and i tend to agree with them. how i can increase my chargeable hours?
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a crash course in the business of public accounting

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woman looking at computer screen, man looking over her shouldercommon services, practice areas, and position titles.

by marc rosenberg
the rosenberg practice management library

personnel in any organization, from widget manufacturers to hospitals to baseball teams to charities, work with more enthusiasm and commitment when they genuinely feel part of the organization.

more: how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

when people understand how they fit into the overall scheme and what their role is and grasp the essentials of how the organization operates, they produce higher quality work and are more energized.

cpa firms are no exception.

and it starts with the partners:

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make your plans count: 1-2-3

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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
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

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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partner compensation: a potent weapon

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if the executive and compensation committees aren’t one and the same, they at least should have heavy overlap.

by marc rosenberg
the role of the managing partner

does compensation motivate partner performance?

i’ve done a lot of research on this over many years. the short answer: yes, money motivates performance, but it’s often not the best motivator.

more: the managing partner’s secret weapon | how to enforce the partner agreement | the 9 biggest merger pitfalls | 10 ways to hold partners accountable | make sure partners focus on two things | how the managing partner manages the partners
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the managing partner can best impact partner performance by the following:
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the managing partner’s secret weapon

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businessman holding up magnifying glassthe right people in the right positions will help you stay out of the weeds.

by marc rosenberg
the role of the managing partner

 

to be a great managing partner, you need a great team – a team that keeps you focused and out of the weeds.

the managing partner position is a big job. the high-level ceo of a complex, growing, highly profitable organization such as a cpa firm must be able to focus on the most important parts of the job, none of which is easy.

more: how to enforce the partner agreement | 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 | overarching authority that managing partners must have | herding cats: advice for managing partners
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

let’s drill down for a moment on the word “focus.” it means:

  • having the time to do the job properly. for this to happen, managing partners must avoid (a) having too many client responsibilities, which would preclude them from making the firm their #1 client most of the time and (b) spending time on matters that can be delegated to others, such as the coo/firm administrator and department/team leaders.

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why job #1 for new partners must be staff development

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hand holding a pile of dirt with a plant growing from itwhat do they want most? challenging work. surely you must have some.

by marc rosenberg
the rosenberg practice management library

firms have two levels of expectations of new partners. many firms aren’t consciously aware of these alternatives, but they exist nonetheless, and they are quite different from each other.

more: how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

expectation 1: the new partner is qualified for the job.

new partners must drive the firm by

  • increasing revenue by bringing in new clients
  • retaining clients and expanding services to them
  • developing staff, helping them learn and grow
  • providing proactive, world-class service to clients
  • having the leadership skills to take over the firm from existing partners

if new partners don’t do these things, then they don’t fully perform like partners.
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what partners don’t tell you

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//www.g005e.com/2021/04/29/industry-experts-speak-on-partner-competence/
dobek, tierney, baker

four outlooks from our exclusive expert council.

by martin bissett
passport to partnership

the skill in producing financial reports is limited by the quality of the information presented to the cpa by the client. the motivation of the client to influence that financial information comes in many forms, some intentional and some unintentional. competence comes first in being able to resist pressure and present a true and accurate position of the client’s organization.

more: don’t wait for business to come to you | your first sale is to yourself
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sounds obvious, doesn’t it? but there’s a twist.

competence doesn’t actually rank highly among the requirements for partners in our study at all.
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how to enforce the partner agreement

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senior businesswoman holding portfoliopartners should be allowed to work past mandatory retirement age only if they continue adding value to the firm. also: six agreement provisions that often are outdated.

by marc rosenberg
the role of the managing partner

when the managing partner’s job is discussed, their role in the firm’s partner agreement is rarely mentioned. perhaps in the overall scheme of things, it’s not as important as revenue growth, profitability and staff development, among many others. but it’s still critically important.

more: how long should it take to make partner? | how a good managing partner impacts profitability | how a great managing partner impacts firm growth | compensation is no way to manage partners | clarify partner expectations | exceptional managing partners offer their advice
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

if there is one person in the firm responsible for safeguarding the firm’s assets – its clients, people, proprietary data and practices, reputation and value – it’s the managing partner. and the most important way he or she does that is by enforcing a solid partner agreement.
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how long should it take to make partner?

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hourglass on money backgroundyour top candidates might not want to wait.

by marc rosenberg
the role of the managing partner

accounting today published a very interesting piece of research titled “the long path to partner.” the polling question: how many years does it take to make partner at your firm?

more: how a good managing partner impacts profitability | the 9 biggest merger pitfalls | 10 ways to hold partners accountable
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the results:

  • less than 5 years: 9%
  • 5-7 years: 12%
  • 8-9 years: 12%
  • 10-13 years: 30%
  • more than 13 years: 17%
  • don’t know: 20%

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how to get promoted to manager

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bonus: 12 questions to ask of staff.

by marc rosenberg
the rosenberg practice management library

cpa firms have many different titles or positions. we’ll address the most common:

  • staff
  • senior
  • manager

more: how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

i often use the term “staff” to refer to anyone who is not at the partner level. this is different from a “staff-level” associate, who typically has only a few years or less of experience in public accounting. this post addresses what it takes to advance from staff to senior and from senior to manager.
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how to create a path to partner

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… and measure staff performance along the way.

by marc rosenberg
the rosenberg practice management library

there are many ways to measure the performance of staff on the path to making partner.

more: making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

as is my style, i will present far more measures than most firms actually use. but i doubt you’ll perceive any of the methods here as unimportant. they are not listed in any particular order of importance. read more →

how a good managing partner impacts profitability

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10 best practices.

by marc rosenberg
the role of the managing partner

i have compared a “true” managing partner to an administrative partner. both are important positions. both share many common duties and expectations. but true managing partners are more valuable because they function like corporate ceos and thus make a bigger impact on the firm’s overall performance than admin partners.

more: the 9 biggest merger pitfalls | the managing partner’s role in mergers | five ways to evaluate partners | manage partners with goal setting | overarching authority that managing partners must have
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

these three duties differentiate true managing partners from admin partners. true managing partners

  1. manage partner performance and behavior
  2. hold partners accountable
  3. drive the firm’s growth and profitability

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