don’t put the one-firm concept at risk.
by marc rosenberg
partner comp: art & science
intuitively, it makes sense for any organization (not just cpa firms) with multiple locations and departments to measure the profitability of each area.
more on partner compensation: management stipends: who, how and why | partner pay in retirement transition period | how to pay non-equity partners | 5 types of partner evaluations | how large and small firms allocate income | partner pay: recapping the compensation systems | why firms use partner comp formulas | partner compensation: an art, not a science
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industrial companies routinely measure profits by product or plant. why shouldn’t cpa firms do the same, especially with the most obvious candidates: the accounting and auditing (a&a) and tax departments?