![\"\"](\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/04\/teamworkingongrowth_adobestock_42128534.jpeg\")
<\/p>\n<\/p>\n
an example from outside the accounting profession.<\/strong><\/p>\n by marc rosenberg<\/i> it has been said that organizations should never have profitability as a goal. why? because profitability should be the result of an organization\u2019s efforts, not its goal.<\/p>\n more: <\/b>core values: why your firm needs them<\/a> | five keys in compensating new managing partners<\/a> | what partners do and don\u2019t deserve<\/a> | five steps to transition to partnership<\/a> | disturb the present to improve the future<\/a> profitability is a measure of success in accomplishing core business goals. the disney corporation probably says it best in their mission statement, which is short and sweet, but very powerful: \u201cour mission is to make millions happy.\u201d they create the disney magic by operating their entertainment facilities with fastidious devotion to efficiency and cleanliness, and fanatical attention to the tiniest details, and by countless other efforts. disney\u2019s customers not only pay for their access to disney, but they do so with a smile on their face, and they keep coming back for more. at disney, the philosophy is clear: create and maintain a world-class organization that satisfies the customers\u2019 needs, and the profits will come as a result.<\/p>\n the same theme is true with cpa firm profitability. to be truly profitable, firms need to achieve successfully business goals other than profitability<\/strong>. then, and only then, will firms be profitable.<\/p>\n if your answer to any of the above questions is \u201cyes,\u201d you\u2019ll be disappointed.<\/p>\n let\u2019s clarify what we mean by \u201cprofitable.\u201d<\/p>\n at a cpa firm, profits often are measured with an imperfect figure called income per partner, or ipp.\u00a0 it represents revenues less expenses but excluding any payments to partners. let\u2019s say a firm has five partners and the total income for the five is $2 million, which is distributed to the partners for an average income per partner of $400,000.<\/p>\n now it becomes important to distinguish between the terms \u201cprofits\u201d and \u201ccompensation.\u201d<\/p>\n to properly<\/strong> measure profits, as opposed to \u201cincome,\u201d a portion of the partners\u2019 compensation would have to be classified as compensation expense. because there is no simple way to allocate the $2 million between compensation and profits, most firms don\u2019t bother doing so.<\/p>\n","protected":false},"excerpt":{"rendered":" an example from outside the accounting profession.<\/strong>
\nthe rosenberg practice management library<\/i><\/a><\/p>\n
\n![\"goprocpa.com\"](\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.jpg\")
exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
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\ndisney super-pleases parents by creating hundreds of quality movies and lovable characters children grow up with and adore, and by creating theme parks that tap into our fantasies and imagination.<\/p>\n\n
\n![\"\"](\"\/\/www.g005e.com\/wp-content\/uploads\/2024\/01\/250_rosenberg_teamworkingongrowth_adobestock_42128534.jpg\")
<\/a>
\nby marc rosenberg<\/i>
\nthe rosenberg practice management library<\/i><\/a><\/p>\n","protected":false},"author":1339,"featured_media":48468,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1908,3120,3002],"tags":[],"class_list":["post-119774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\n