the partnership

twelve questions that prospective partners should ask

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plus 11 questions your firm should ask prospective partners.

by marc rosenberg

this post should be read from the perspective of two different audiences: prospective partners and existing partner groups.

  • prospective partners: well before accepting a partnership offer, prospective partners should ask basic, critically important questions to help them judge whether accepting it would be a smart decision.
  • existing partner group: well before extending a partnership offer, the firm should get its house in order to avoid being embarrassed by smart questions posed by partner candidates.

more: adding new partners: 19 reasons to choose between equity and non-equity | what firms should address in partner agreements | 11 best practices for partner compensation | why buying into a firm is such a great investment | the business side of cpa firms | it shouldn’t take so long to make partner | three types of skills you need to become a partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

questions prospective partners should ask their firm

it’s one thing for a staff person to join a cpa firm, enjoy the job and experience success via nonstop promotions, feeling all along that the firm is a great place to work. but it’s quite another thing for a staffer to consider whether or not to accept a partnership offer that may come in the future.
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five questions for measuring partner potential

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ptp_2ndcplus how to read your firm’s cultural blueprint.

by martin bissett
passport to partnership

what conclusions can you draw from your knowledge of how the promotion system works in your firm that you need to keep in mind?

more: culture can’t be ignored | why firm culture matters for partners | three things that rich accountants do | four reasons it’s hard to sell | win your first client: yourself | 10 questions for reconsidering your prices | a list is not a pipeline | are you committed to your firm?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in terms of firm culture, you need to understand the four navigational points of the compass:

  1. who do i need to stay on the right side of?
  2. what are the unwritten rules in my firm?
  3. whose opinions can be trusted?
  4. what really impresses the partners?

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adding new partners: 19 reasons to choose between equity and non-equity

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the ways they differ.

by marc rosenberg

it’s worth exploring the reasons for equity partners in great detail.

here are the key points:

  1. new partners deserve the promotion to such a great extent that the firm can’t afford not to admit them to the ownership ranks.
  2. the firm needs to expand its partner ranks.
  3. the firm needs to replace a departed partner.
  4. it rewards longtime managers who have solid client service skills.

more: what firms should address in partner agreements | six systems used to determine partners’ goodwill payments | fifteen steps to new partner buy-in | four philosophies for managing a cpa firm | public accounting as a business, 101 | 16 steps to creating a partnership path | six ways new partners differ from managers | the four essentials for every new partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

  1. it’s part of a succession planning strategy.
  2. partner promotions send a strong message to the staff.
  3. it energizes the partner group.
  4. it’s part of a merger strategy.

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what firms should address in partner agreements

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businessman sitting in office and reading documents
… and what partner candidates should know before they sign.

by marc rosenberg
how to bring in new partners

what is a partner agreement?

according to nolo.com, “a partner agreement spells out the rights and responsibilities of the firm’s owners. without one, firms will be ill-equipped to settle or avoid conflicts because if certain key passages are missing or written improperly, the courts will intervene in ways that the partners may not like. a partner agreement allows the firm’s partners to structure their business relationships with each other in ways that suit their desires, needs and preferences.”

more: six systems used to determine partners’ goodwill payments | how partner buyouts work | what buying in actually means | how partner and staff actions impact profits | nuts and bolts of mentoring staff | nine ways to measure staff performance on the path to partner | sixteen duties of a partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

any post on partner agreements will have an obligatory paragraph like that. here is a more in-depth description that may be illuminating.
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why firm culture matters for partners

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with insight from our exclusive expert council: dunn, pipe, grundy.

by martin bissett
passport to partnership

the passport to partnership study collated a number of responses from existing partners of accounting practices in a conversational style.

more: five ways to rally your firm to its culture | three questions about your competence | 10 can’t-skip steps for business development | attract clients, don’t chase them | success in business comes second | business won’t come to you
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

examples that really stood out on the realities of individual variances in firm culture are showcased below.

“our partners have articulate minds, and that’s what we want to be demonstrated by any new appointees.”
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six systems used to determine partners’ goodwill payments

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businesswoman using calculator while reviewing something on laptop screenalso: 28 main provisions of partner buyout plans.

by marc rosenberg
how to bring in new partners

this chart shows the different systems that firms across the country are using for partners’ goodwill payments. the data is from a recent edition of the rosenberg map survey.

more: how partner buyouts work | 11 best practices for partner compensation | why buying into a firm is such a great investment | the business side of cpa firms | it shouldn’t take so long to make partner | three types of skills you need to become a partner | seventeen basic expectations of partners
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

six systems used to determine partners’ goodwill payments

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three questions about your competence

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confident businesswoman looking straight at camerahow do others view your partnership readiness?

by martin bissett
passport to partnership

the passport to partnership study collated a number of responses in a conversational style.

more: competence is step one of seven | when would-be partners aren’t candidates | make your expertise a new-client magnet | don’t think of it as selling | experts: what it takes to become partner | where is your next money coming from? | your website promises. do you deliver?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

but two brief but succinct examples on the realities of how a firm assesses an individual’s “competence” for leadership are showcased really stood out:

  1. they need to explain technical data to me in a way that i know they understand.

  2. what kind of lifestyle does this person have outside of work? we’ll be looking at facebook, twitter, and google to find out.

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how partner buyouts work

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//www.g005e.com/?p=77973three big issues must be decided.

by marc rosenberg
how to bring in new partners

one of the benefits that new partners receive in exchange for their buy-in is that they will receive a buyout when they retire. this amount can be in excess of a million dollars at many firms. receiving a retirement buyout is one of the major reasons becoming a partner is so lucrative.

more: 11 best practices for partner compensation | fifteen steps to new partner buy-in | what buying in actually means | why buying into a firm is such a great investment | four philosophies for managing a cpa firm | how partner and staff actions impact profits | the business side of cpa firms
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the flip side of this is that new partners must agree to buy out older partners when their day comes. therefore, any plan for bringing in new partners must include a provision for a partner retirement/buyout plan.
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competence is step one of seven

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what to do after the prerequisites.

by martin bissett
passport to partnership

staffers aspiring to be partners must learn the key characteristics of successful partners. they also must learn how to develop their own personal plans to achieve partnership. firms and staffers alike need a clear set of procedures, processes and milestones for turning top talent into the next generation of firm leadership.

more: when would-be partners aren’t candidates | 10 can’t-skip steps for business development | attract clients, don’t chase them | success in business comes second | business won’t come to you | forged in fire: the pains of leadership | a lesson in customer service and reputation | prioritize your prospects | good enough is not enough
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there are seven critically important criteria by which partners assess partners-to-be. i call them:

the seven c’s

1. the first is competence. as a prerequisite, but only a prerequisite, accountants must master their technical abilities and qualifications, whether it be audit, tax or management accounting. whatever your area of specialty, as a staffer the partners expect you to be able to know at least as much as anyone else who may report to you.
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when would-be partners aren’t candidates

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//www.g005e.com/2021/02/17/a-rose-by-any-other-name/what we’ve got here is failure to communicate.

by martin bissett
passport to partnership

have you ever wondered what the partners of your firm are looking for from you, beyond your technical abilities?

more: 10 can’t-skip steps for business development | three things that rich accountants do | four reasons it’s hard to sell | eight questions to hold yourself accountable | win your first client: yourself
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

for full disclosure, i am not an accountant, but i have spent decades working with accounting firms of all shapes and sizes in the united kingdom, the united states and europe.
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11 best practices for partner compensation

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bonus: seven systems to allocate income … and who uses them.

by marc rosenberg
how to bring in new partners

it would take a book much longer than this post to properly explain the finer points of partner compensation, especially how each of the major compensation systems works. oh, did i forget? we wrote such a book, “cpa firm partner compensation: the art and science.”

more: fifteen steps to new partner buy-in | what buying in actually means | how partner and staff actions impact profits | nuts and bolts of mentoring staff | nine ways to measure staff performance on the path to partner | sixteen duties of a partner | five people to keep out of partnership
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

best practices and key concepts

as is the case with all of my lists, no one firm incorporates all of these practices in its partner compensation policy. but i have observed all of the practices below in one or more of the best firms i’ve worked with over 20 years.

  1. performance-based. there should be a strong link between pay and performance. when it comes to cpa firm performance and profitability: as the partners go, so goes the firm. the partners have a much greater impact on the firm’s success than professional staff and other personnel. if they perform at a high level, the firm will do the same. if partner performance lags, then the firm will suffer. therefore, the firm needs to motivate the partners to produce at high levels and reward them accordingly. compensation isn’t the best way to motivate anyone’s performance, but it is effective.

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retiring partners are valuable assets

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smiling senior businesswoman holding eyeglasseswhy throw them out?

by august j. aquila
what makes a great partnership

there has been a lot of debate about the lack of future partners and how firms are going to survive from one generation to the next. and, at the same time, many firms may have an asset that they are getting ready to retire – their older partners. firms are so worried about generational differences in the workplace that they tend to forget about the value of their senior or older partners.

more: how to deal with underperforming partners | when ‘quiet quitting’ hits the partner ranks | 12 points of a good compensation plan | ten steps to a new managing partner | what managing partners must be doing | do your partners pay their own way? | how to create firm accountability
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

i am not suggesting or recommending that unproductive partners should be kept in the firm. these partners should be dealt with immediately, no matter what age they are.

however, i am suggesting that we look at senior partners as valuable assets and determine how we can best employ them.
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fifteen steps to new partner buy-in

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plus the impact of ownership percentage on partner issues.

by marc rosenberg
how to bring in new partners

let’s go over structuring a new partner buy-in step by step.

more: what buying in actually means | why buying into a firm is such a great investment | the business side of cpa firms | it shouldn’t take so long to make partner | three types of skills you need to become a partner | seventeen basic expectations of partners | nine ways to woo a prospective partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

1. calculate the value of a cpa firm as accrual basis capital plus goodwill. goodwill is commonly expressed as a percentage of the firm’s annual revenue. this total value should not be given away to anyone without being paid for. bringing someone in as an owner in a profitable, viable business for little or no buy-in makes no sense.
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