{"id":22514,"date":"2012-09-18t11:24:38","date_gmt":"2012-09-18t15:24:38","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=22514"},"modified":"2015-10-24t19:22:39","modified_gmt":"2015-10-24t23:22:39","slug":"the-10-biggest-mistakes-cpa-firms-make-in-reading-map-statistics","status":"publish","type":"post","link":"\/\/www.g005e.com\/2012\/09\/18\/the-10-biggest-mistakes-cpa-firms-make-in-reading-map-statistics\/","title":{"rendered":"the 10 biggest mistakes cpa firms make in reading map statistics"},"content":{"rendered":"

do the math.
\n<\/strong><\/p>\n

by marc rosenberg, cpa
\nauthor of the rosenberg map survey<\/a><\/em><\/p>\n

reading map surveys and analyzing the statistics they contain can be challenging, but when used properly these surveys can be valuable tools to improve firm performance. here\u2019s a list \u2013 in no particular order \u2013 of the 10 biggest mistakes partners make in reading and computing map statistics.<\/p>\n

related: compensation issues for the new managing partner<\/a> | 20 decisions for your firm\u2019s new partner compensation committee<\/a> | three ways to break partner gridlock in an accounting firm<\/a> | what partners are entitled to, and what they\u2019re not entitled to |<\/a> how to make partner<\/a> | why accounting firm partners are \u201cpopping prozac like m&m\u2019s\u201d<\/a> | more…<\/a><\/em><\/p>\n

avoid these common pitfalls and you\u2019re well on your way to improving your firm\u2019s performance.<\/p>\n

1. over-reliance on partner income percentage as a measure of profitability: <\/strong>this metric is impacted as much by the firm’s staff\/partner ratio as by innate profitability. therefore, we caution firms to avoid making rash judgments about profitability based solely on partner income percentage. many partners have a rule of thumb that 33% is the minimum acceptable partner income percentage, and that to be “truly profitable,” this metric must be 40% or more. but as the data below illustrates, one must take the staff\/partner ratio into account before determining norms for partner income percentage. if a firm is leveraged heavily, partner income percentages in the 20s and low 30s are perfectly acceptable.the following statistics, from a recent rosenberg map survey, are based on firms with annual fees of two to $10 million dollars:<\/p>\n