retirement

dealing with d clients (you know who we mean)

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abcd potall a’s isn’t necessarily the goal.

by bill reeb and dominic cingoranelli

partners, and in some firms, managers, need to take their responsibility for client relationship management seriously.

more on performance management: developing a three-year vision [video] | younger partners see succession differently | partners as role models: the good, bad & ugly | 4 ways to create more capacity | cpa firm performance assessments: 15 core competencies, 21 questions | what having your employees’ backs means | 5 harmful management attitudes (and how to fix them)
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in order to more fully explain these roles and responsibilities, we need to define for you what we mean when we refer to a, b, c and d clients.
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firms only grow when partners play their roles

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money tree growing in the middle of green meadowhow often are you seeing your clients?

by bill reeb and dominic cingoranelli

whether you simply desire to improve your firm’s operations, or identify and implement a new long-term strategy, you need to be clear about the role that the owner(s), partners or shareholders should be playing in your firm.

more on performance management: how big ‘books’ hurt firms | how small ‘books’ hurt firms | why the partner agreement matters | merging for the wrong reasons | accountability includes partners | 7 succession questions to ignore for now | develop your employees or suffer the consequences
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the roles and responsibilities we’ve suggested are based on the best practices we’ve had the opportunity to observe and be involved with in our work with cpa firms throughout north america.
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how big ‘books’ hurt firms

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young businessman with forehead resting on handsthe invisible hazards of book of business.

by bill reeb and dominic cingoranelli

as we stated in our last column, balancing “book of business” is one of the largest stumbling blocks for cpa firms.

more on performance management: how small ‘books’ hurt firms | the four basic parts of cpa firm partner agreements | younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality | make accountability a process | accountability requires clear expectations | base retirement on today’s operations | how involved should retired owners be? | how to find a partner’s replacement
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

it is difficult to resolve because it is symptomatic, for most firms, of some real trouble brewing.
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the smart way to pay partners transitioning into reirement

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how to create a win-win.

by marc rosenberg
partner comp: art & science

years ago, i had a consulting project that involved interviewing the firm’s eight partners in december and convening a group meeting in january. one of the partners was retiring, cold turkey, december 31.

more on partner compensation: paying new partners and lateral hires | paying part-time partners | the 8 basics for data-based partner performance evaluations | how to set the managing partner’s compensation | crash course: operating a compensation committee | partner pay: open vs. closed compensation systems | the 3 best partner compensation formulas | 11 points in designing a partner comp system | what partners earn and how they earn it | why most partner comp systems are performance-based
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he had been a great partner for 40 years and had successfully transitioned clients throughout his two-year notice period, so well that during the last month or so prior to his retirement, the gentleman literally had nothing left to do and was no longer coming to the office. but he was willing to make a special visit so i could interview him.
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how small ‘books’ hurt firms

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businessman sitting at desk, looking forward and smilingleverage, capacity and overservice are just some of the issues.

by bill reeb and dominic cingoranelli

balancing “book of business” is one of the largest stumbling blocks for cpa firms. it is difficult to resolve because it is symptomatic, for most firms, of some real trouble brewing.

more on performance management: the four basic parts of cpa firm partner agreements | developing a three-year vision [video] | mps: how to elect them … and fire them | managing the managing partner | accountability is for everyone | firms say what would change retirement pay | how retirement issues affect succession planning | develop your employees or suffer the consequences | job 1 for the practice owner: client management
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

optimal book size

the optimum condition for firms to flourish is for books of business to be balanced throughout the firm. from the largest book to the smallest, the percentage gap between them should be fairly small (about 20-25 percent or less than a couple hundred thousand in fees).
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when partners leave: what to do today, to be prepared for tomorrow

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man taking medication from caretakerset policies now based on business, not emotion.

by bill reeb and dominic cingoranelli

let’s review departure/termination policies.

more on performance management: the four basic parts of cpa firm partner agreements | developing a three-year vision [video] | mps: how to elect them … and fire them | firms say what would change retirement pay | action plans for transitioning partners | how retirement issues affect succession planning
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

these may include:
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the four basic parts of cpa firm partner agreements

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time to retire clock faceit’s complicated. but proper policies ease buyouts and transitions.

by bill reeb and dominic cingoranelli

here is a list of common policies regarding partner/shareholder agreements that we cover with our firms, as well as some common issues that are important to address in the policies.

more on performance management: developing a three-year vision [video] | why the partner agreement matters | younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality | how retired partners are robbing their own firms | action plans for transitioning partners | how retirement issues affect succession planning | develop your employees or suffer the consequences
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the sop (standard operating policy) categories are:
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why the partner agreement matters

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illuminated glass pyramid at the louvre, paris at nightmany agreements have long outlived a reasonable foundation for the firm’s current success level and size.

by bill reeb and dominic cingoranelli

most of the time when we are called in to work with firms, it is to help them plan for or implement significant change. the dialogue may start out with a general firm retreat, or it might simply be a session devoted to solving a few specific problems.

more on performance management: younger partners see succession differently | how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality | make accountability a process | accountability requires clear expectations | base retirement on today’s operations

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

visionary firms are always looking to make changes long before their operating environment forces them to, from enhancing their ability to compete, making changes to improve profitability, building infrastructure to support succession, upgrading their people development, modifying the compensation process, increasing revenues and more.
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four problems that prompt mergers

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six businesspeople in meeting around tableand three ways you win by tackling them now.

by bill reeb and dominic cingoranelli

when firms first start considering the idea to merge into a larger firm, they do it with the intent to solve a problem. common problems distressing enough to motivate this transaction are:

more on performance management: younger partners see succession differently | more merger questions than you imagined | mps: how to elect them … and fire them | partners as role models: the good, bad & ugly | managing the managing partner | pay varies when performance varies | accountability is for everyone | who decides what? | firms say what would change retirement pay | action plans for transitioning partners | how retirement issues affect succession planning

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  • leadership: not enough future partners on the ground or in a near-future pipeline to be able to take over and retain the client relationships of the retiring partners while simultaneously continuing to nurture and develop new clients. this concern tends to be expressed frequently by senior partners when they share their discomfort with the level of risk they are accepting regarding their future buyout.

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23 key provisions in a partner buyout

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handshake-1388361357w8dh9-150x150vesting, notice, clawback and other points to ponder.

by marc rosenberg
how to bring in new partners

in determining buyout, i have discussed several key points, such as:

more on partnership: buyout: the flip side of buying in | research results: how firms pay new partners | what does buy-in buy? | how to structure partner buy-in | keys to bringing in new partners

  • will the buyout be limited to capital only or will it include a goodwill provision? (ninety-five percent of all firms with retirement plans pay both.)
  • how will the goodwill be valued? the average goodwill valuation is roughly 80 percent of fees, although there are still many firms at 100 percent and many firms well below 80 percent.
  • how will an individual partner’s buyout amount be determined? two partner retirement benefit systems that you should consider are aav or average annual value, better described as “cumulative benefits,” and multiple of compensation, the most common method used by firms, especially those with six or more partners.

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younger partners see succession differently

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young woman driving a carare you acting like an owner or an employee?

by bill reeb and dominic cingoranelli

several of our younger partner readers have posed a couple of questions to us on the topic of mergers, as well as succession in general.

more on performance management: more merger questions than you imagined | merging for the wrong reasons | why accountability falls to mps | how to implement strategy, step by step | how to decide who decides pay | accountability includes partners | succession plan requirements | how retired partners are robbing their own firms | 4 ways to create more capacity | partner retirement and the war for clients | succession: the questions to care about | hazards of not reallocating equity | cpa firm performance assessments: 15 core competencies, 21 questions | 5 harmful management attitudes (and how to fix them)

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

at the end of the day, remember that just because junior and senior partners may be in different positions, have diverse perspectives and at times, opposite expectations, that doesn’t necessarily mean that you can’t find resolution in the same solutions. so, let’s pick up with a question/comment or two.
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more merger questions than you imagined

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business group of two women and two men shaking handsthere’s a lot to consider whether merging up, down or laterally.

by bill reeb and dominic cingoranelli

although we find that an internal ownership transition often can be your best bet, a merger makes sense in many cases. so, if this is the direction you are heading, we’ve highlighted some of the issues below that we think you ought to consider, with the first one being to really take a close and hard look at the compatibility of the organizations courting each other.

more on performance management: how to compensate your managing partner | the job of managing partner: empowered or emasculated? | how the best managing partners turn ideas into reality | make accountability a process | accountability requires clear expectations | base retirement on today’s operations

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who is a likely candidate for a merger?

if you are going to consider a merger, which firms would seemingly be a good fit for your practice – i.e., your clients and your employees and if, applicable, partners?  the better the fit, the more likely you will be able to retain clients and employees, and the greater the chance for overall success of the merged firms.
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merging for all the wrong reasons

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jigsaw puzzle with pieces missing and word "incomplete" in gapfirst: get your house in order; don’t expect someone else to do it for you.

by bill reeb and dominic cingoranelli

for at least the past 10 years, the merger market among cpa firms has been pretty active. while the market volume has waxed and waned a little several times during this period, mergers have been a topic in almost every strategic planning retreat we have facilitated.

more on performance management: how to compensate your managing partner | mps: how to elect them … and fire them | partners as role models: the good, bad & ugly | managing the managing partner | pay varies when performance varies | accountability is for everyone | who decides what?

 

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

 

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