what really makes cpa firms profitable?

links to download your downloads will appear on the order confirmation screen after purchase and in your email receipt from auto-confirm@www.g005e.com.
* rosenberg pdfs are read-only – no printing, markup, reproduction, or further distribution. downloadable to five personal devices within 90 days of purchase.

don’t ask a cpa what profitability means

if you asked the president of a fortune 500 company or the owner of a restaurant to define profitability, they would be able to give a quick, definitive answer. not so with cpas.

surely you’ve heard the story, perhaps apocryphal, of the company that was interviewing for a new cpa firm. only one question was asked of each candidate: “how much is two plus two?” the firm that won the bid gave the answer, “how much would you like it to be?”

the same can be true of cpa firm profitability. how do we measure it? you would think that the uncontested champions of measuring financial data, cpas, would have this down to a science. but such is not the case.

including the latest benchmarks from the rosenberg map survey

newly added to the second edition:

• debunking over-reliance on partner income as a percent of revenue as a measure of profitability.
• how a firm’s culture affects profitability in a big way.
• how adopting best practices for managing staff has a huge impact on profitability.
• pricing practices that add more dollars to your bottom line and streamline your client list.
• increasing profitability with mergers. why hundreds of firms acquire several firms every year.
• how the selection of the firm’s partner compensation system impacts profitability in ways that few realize.
• expanded list of the 25 all-time best practices for cpa firms.
• what doesn’t increase profitability.

more hot topics:

• the essence of cpa firm profitability
• accountability and acting like a partner
• cpa firm benchmarking
• marketing and the bottom line
• strong management and leadership: the most reliable path to profitability
• other ways to improve profitability
• 25 best practices that move firms from good to great
• what doesn’t seem to be important to firm profitability
• partner relations: happy partners are productive partners
• 40 great ways to improve cpa firm profitability

from the introduction

“if your firm is not profitable today, there are no easy ways to turn things around. there are few quick fixes. many of the ideas we’ll present embrace concepts that you may already be familiar with. properly applied, they work. some work better than others, and some techniques are preferable to others, depending upon your firm’s current situation. but they do work.

the approaches suggested are based on my experiences working with over 700 firms. the ideas presented here are not merely my suggestions; they are the techniques being used by the most profitable and successful firms in this country.”

– marc rosenberg, cpa

table of contents

1.  the essence of cpa firm profitability

• • what does profitability mean?
  • don’t ask a cpa what profitability means
  • a deep dive on partner income as a percentage of fees
  • beware of lubrm to measure profitability
  • no recipes available, but here are some tasty morsels
  • an elementary economics lesson
  • a final word on what drives cpa firm profitability

2. strong management and leadership

• • the most reliable path to profitability
  • the proper management structure
  • managing partner role
  • other essential roles
  • the value of strategic thinking
  • the importance of culture
  • the 25 best practices that transform good firms into great firms

3. how benchmarking boosts profits

• • cpa partners often operate in a cocoon
  • benefits of benchmarking in a nutshell
  • benchmarking is a three-step process
  • numbers don’t lie
  • 10 key metrics benchmarks for cpa firms
  • the 10 biggest mistakes in benchmarking
  • benchmarking statistics for cpa firms
  • pay attention to these benchmarking metrics
  • cpa firms make more money when partners do less billable work

4. increasing profitability with effective staff management

• • your staff: a major factor in success and profitability
  • advice from jack welch
  • staff best practices

5. increasing profitability with growth and business development

• • “you can’t not try”
  • best marketing practices

6. increasing profitability with partner compensation systems

• • you get what you reward
  • using your partner compensation system to increase profits
  • so now what do you think?

7. increasing profitability with pricing

• • do higher rates equal lower realization?
  • some clients may leave, and that’s ok
  • dealing with pushback on prices
  • evaluating your client list
  • sample letter for increasing fees
  • value positioning: questions to ask prospects
  • menu, fixed fee and value pricing

8. increasing profitability with mergers

• • the merger frenzy
  • merger definitions
  • how do mergers increase profitability?
  • merger terms that lead to increased profitability for buyers
  • do mergers work?

9. partner relations

• • happy partners are productive partners
  • call me now or call me later
  • partner collegiality vs. accountability: can’t we have both?
  • pick your partners right to begin with
  • know when to stay together and when to part
  • communication
  • conflict resolution
  • health and psychological issues

10. the strong link between partner accountability and profitability

• • the “a” word in practice management
  • ten time-tested partner accountability measures

11. other ways to improve profitability

• • what isn’t as important to profitability as some people think

12. 50 great ways to improve profitability

click here to peek inside the handbook

about the authors

marc rosenberg cpa

managing partner

marc rosenberg is a nationally known consultant, author and speaker on cpa firm management, strategy and partner issues. managing partner of the chicago-based consulting firm, rosenberg associates, he is the founder of the most authoritative annual survey of mid-sized cpa firm performance statistics in the country, the rosenberg survey. he has consulted with more than 1,000 firms throughout his decades-long consulting career.

annually recognized by accounting today as one of the top 100 most influential people, rosenberg regularly contributes to leading industry publications.
he is best known as the author of his acclaimed practice management series—a compilation of knowledge and experience amassed throughout his consulting career on key topics pertinent to cpa practice management.

rosenberg is a graduate of the university of illinois.

contact: marc@rosenbergassoc.com | +1.847.721.4888 | see more marc rosenberg at 卡塔尔世界杯常规比赛时间 here

.

kristen rampe cpa

managing partner

kristen rampe is a nationally known consultant to cpa firms and a frequent speaker at practice management conferences. she specializes in helping small to mid-sized firms with partner compensation, partner agreements, buyouts, strategic planning and leadership development. in 2016, rampe began working with marc rosenberg on practice management projects, and in 2022 they joined their consulting practices together as rosenberg associates.

rampe spent ten years in public practice with big 4 powerhouse pwc, and top-50 ranked frank rimerman in san francisco before founding her consulting practice in 2011. she has been named a woman to watch by the california society of cpas, 40 under 40 by cpa practice advisor, and top 100 most influential people by accounting today.

rampe holds an active cpa license with the state of california. she has been featured in fortune and investor’s business daily. she is also the co-author of the role of the managing partner along with marc rosenberg. rampe is a graduate of butler university.

contact: kristen@rosenbergassoc.com | +1.616.219.0375 | see more kristen rampe 卡塔尔世界杯常规比赛时间 here.

complete your marc rosenberg practice management collection here.