pay & compensation

the great resignation: five reasons accountants are quitting

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and five strategies for addressing attrition – before it strikes.

gauging the staff shortage:
how are accounting firms adapting?
join the six-minute survey. get the answers.

by bill penczak

firms are getting nervous and with good cause. as they plan for the 2022 busy season, audit and tax departments are realizing they may not have the resources to staff their jobs already on the books, much less any new work that comes about in the fourth quarter of 2021.

more on the staffing crisis: the digital toolset for hiring at a small accounting firm  |  learning how to hire amid covid  | how covid rewrites the rules for recruiting | new covid strategies for staff recruiting and retention | irs has recruiting problems, too | 12 signs it’s time to outsource | how aging boomers impact the accounting profession | why remote workers need retreats |

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

there’s been a lot written in the past few months about the great resignation, but the turnover problem in cpa firms has been endemic before the pandemic. one recent report finds that turnover in the top 50 firms is 17%, and one in every six firms experiences an annual turnover of 20 percent or more. that means that one out of five people who attend the busy season kickoff event won’t be around for the next one.

here are five reasons your people are quitting your firm for other firms, for a job in industry, or to become a citizen of the gig economy and work virtually from a beach in thailand:

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critical pieces of your new-partner agreement

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businessman signing document as another looks onfirms: have you addressed all these items? be ready.

by marc rosenberg
the rosenberg practice management library

what is a partner agreement?

more: what new partners should know about buyouts | comp: what new partners don’t know | there are two kinds of accounting firms | how to get promoted to manager | the 17 rules for making partner at a cpa firm
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

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.”
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what new partners should know about buyouts

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man's hands on pile of moneybonus: 28 main provisions.

by marc rosenberg
the rosenberg practice management library

this article summarizes key points that new partners should know about cpa firm partner buyout plans. if you want greater detail, you’re in luck. we devoted an entire book to the subject, cpa firm partner retirement/buyout plans.

more: comp: what new partners don’t know | making partner: 15 steps to the buy-in | drive your profits with only four metrics | how to create a path to partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

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.
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are you too generous with your write-offs?

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five ways to improve operating margin.

by bill penczak

the pandemic has placed new strains on most cpa firms, with a paucity of events other than zoom meetings and many clients hunkering down and not making any changes to anything – least of which their accounting firm relationships, under some semblance of normal.

more penczak: re-thinking today’s firm with five global leaders | 5 things your firm should do differently this summer | do you have the guts to beat the covid crisis? | how to inoculate your firm against covid competition | ‘found money’ delights clients | don’t buy a rolodex, buy a process | the three r’s for beating the corona crisis | 6 reasons why your marketing sucks
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

so when it comes to preserving your original profit goals – or at least salvaging them – firms have an opportunity to seek better processes or staffing options, or both to pivot to the times. as a cfo i once worked with used to say, “you can either raise the bridge or lower the water.”

here are five options for lowering the water (labor cost) as a short- and long-term strategy for greater firm success: read more →

profit sharing for a staffer?

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percentage signs on round hanging tagsthe owner wants to offer a percentage to a staff person, but how?

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

question: i have a small practice and have a staff person with me for eight years (who had nine years of experience before coming to me), and i want to offer him some profit-sharing percentage.

more: the secret recipe for staff retention | writing a reference? here’s how | 44 key attributes for assessing staffers | make cpe worth your while | what to do with a lousy client? | but i am managing! | how to run a practice in 90 pages
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

how do i approach it?
read more →

comp: what new partners don’t know

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businessman sitting on scales with stack of coins in other traybest practices: top firms use these seven systems for allocating income.

by marc rosenberg
the rosenberg practice management library

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: making partner: 15 steps to the buy-in | making partner: do the math | a crash course in the business of public accounting | making partner: what managers need to know | nine reasons people are promoted to partner
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

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.
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making partner: do the math

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man looking at 5 keysfive times when ownership percentages shouldn’t come into play… and alternatives.

by marc rosenberg
the rosenberg practice management library

accepting a partnership invitation offers two terrific, lifetime benefits to new partners that, for most people, cannot possibly be matched in any other career pursuit.

more: there are two kinds of accounting firms | drive your profits with only four metrics | 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.

if they don’t see this and agree with it, then perhaps it would be unwise for them to accept the partnership offer.

let’s do the math.
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women lag men in accounting jobs recovery

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new records set in hourly earnings.

by beth bellor

across the tax and accounting industry, almost all the jobs relinquished by men in the coronavirus layoffs have been regained by men. the jobs given up by women, on the other hand, are still largely vacant.

more on jobs: comeback stalls as layoffs hit 1,500 in accounting | tax & accounting regains 3,800 jobs | accounting jobs recovery slows | tax & accounting firms rehire two-thirds of pre-covid workforce | tax & accounting firms rehire two-thirds of pre-covid workforce
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

overall, the tax, accounting, tax prep, payroll, and bookkeeping sectors employed 1.02 million full-time equivalents in march 2020, before 70,000 layoffs hit in april. so far, the industry has re-filled all but 17,600 positions.

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comeback stalls as layoffs hit 1,500 in accounting

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cpa firms cut average staff pay.

“the tax season from hell?”
join the survey. get the results

by beth bellor
卡塔尔世界杯常规比赛时间 research

the accounting profession sector by sector generally looks slightly brighter, with most reporting headcount growth for the month – but losses for the year.

exceptions include the profession overall, which is taking a 0.2 percent dip, tax preparation services up for the year 3.3 percent, and bookkeeping, up 1 percent.

more on jobs: tax & accounting regains 3,800 jobs | accounting jobs recovery slows | tax & accounting firms rehire two-thirds of pre-covid workforce | tax & accounting firms rehire two-thirds of pre-covid workforce | new job cuts at cpa firms | covid job toll: tax & accounting cuts 17,500 employees | firms recall half of furloughed staffers
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in this report, 卡塔尔世界杯常规比赛时间 highlights:

  • current and long-term hiring trends in each of the bookkeeping, payroll, tax, and cpa segments of the industry (all data seasonally adjusted)
  • average hourly wages for key segments
  • typical hours worked per week
  • trends concerning women in the accounting workforce

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accounting jobs recovery slows

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cpa firms and tax prep still down somewhat.

by beth bellor

unemployment edged down to 6.7 percent in november, but the accounting profession saw few of those gains, with its only upticks coming in the payroll services sector.

more on jobs: tax & accounting firms rehire two-thirds of pre-covid workforce | new job cuts at cpa firms | covid job toll: tax & accounting cuts 17,500 employees | firms recall half of furloughed staffers | covid kills 67,600 jobs in tax and accounting | pre-covid-19, accounting profession hits new highs
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in this report, 卡塔尔世界杯常规比赛时间 highlights:

  • current and long-term hiring trends in each of the bookkeeping, payroll, tax, and cpa segments of the industry (all data seasonally adjusted)
  • average hourly wages for key segments
  • typical hours worked per week
  • trends concerning women in the accounting workforce

read more →

new job cuts at cpa firms and no recovery in sight

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payroll remains the hardest-hit sector.

by beth bellor

after shedding 77,800 jobs in april, tax and accounting employers have added back 45,300 employees, but the total headcount has dipped again and remains down by 32,300 from the pre-covid level, according to the latest data reviewed by 卡塔尔世界杯常规比赛时间.

more on jobs: covid job toll: tax & accounting cuts 17,500 employees | firms recall half of furloughed staffers | covid kills 67,600 jobs in tax and accounting | pre-covid-19, accounting profession hits new highs | planning for the coronavirus recession
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

in this report, 卡塔尔世界杯常规比赛时间 highlights:

  • current and long-term hiring trends in each of the bookkeeping, payroll, tax, and cpa segments of the industry (all data seasonally adjusted)
  • average hourly wages for key segments
  • typical hours worked per week
  • trends concerning women in the accounting workforce

read more →