{"id":134713,"date":"2024-11-10t12:00:31","date_gmt":"2024-11-10t17:00:31","guid":{"rendered":"\/\/www.g005e.com\/?p=134713"},"modified":"2024-11-12t18:01:53","modified_gmt":"2024-11-12t23:01:53","slug":"how-will-private-equity-impact-accounting-careers","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/11\/10\/how-will-private-equity-impact-accounting-careers\/","title":{"rendered":"how will private equity impact accounting careers?"},"content":{"rendered":"

\"two<\/strong><\/p>\n

pe may push dei for new talent.<\/strong><\/p>\n

by 卡塔尔世界杯常规比赛时间 research<\/em><\/p>\n

private equity investment is creating a seismic shift in the accounting profession. leadership structures are getting overhauled. career paths are branching both up and out. investments are opening opportunities in services and clientele.<\/p>\n

more: <\/b>eleven questions about kids, wealth and the family business<\/a> | twelve years and out: seasoned accountants join the exodus<\/a> | how accounting firms are handling the staff shortage<\/a> | gen ai in accounting: epic transformation, or overheated hype?<\/a> | survey shows big opportunities in small business<\/a> | salary guides for accountants vary widely: whom do you believe?<\/a> | are you earning what you deserve?<\/a> | the slow, painful death of the 150-hour rule<\/a> | partner comp earnings gap: what\u2019s the right spread?<\/a>
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 <\/p>\n

how will this impact the core of cpa firms?<\/p>\n

good question. and the 2024 accounting move project has some answers.
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\nthe gold hidden in accounting firms<\/strong><\/p>\n

the accounting move project, developed by wilson-taylor associates, investigates factors essential to the careers of women in accountancy. this year\u2019s annual report focuses on the impact of private equity as it reshapes traditional career paths and challenges long-established firm structures.<\/p>\n

the report sees big opportunities coming for women and minorities.<\/p>\n

\u201cpe investors have discovered the gold hidden in accounting and advisory firms and are restructuring career paths as they mine for return,\u201d the report says. \u201coutsiders buy with the intention of restructuring the linear career paths that characterize firms, offering incremental opportunities for rising talent to cash in on or pivot to new career paths within the firm.\u201d<\/p>\n

buying a bench<\/strong><\/p>\n

bob lewis, president of the visionary group, sees profound changes stemming from a \u201cshift in the very definition of client service.\u201d<\/p>\n

\u201cpreviously, you were buying a book of business,\u201d lewis says. \u201cnow you are buying a bench to serve bigger and better clients.\u201d<\/p>\n

that bench is what it\u2019s all about. talent: the more a firm\u2019s got, the more places it can go.<\/p>\n

securing talent involves far more than better salaries and some bennies. pe is unearthing the gold mine within accounting firms by shifting away from the traditional partnership and toward a more corporate advancement structure.<\/p>\n

the traditional partnership structure is founded on what the move report calls \u201cdeferred gratification\u201d \u2013 the long-term benefits that accrue to those who stick with a firm until they attain partnership.<\/p>\n

intractable conflict<\/strong><\/p>\n

deferred gratification doesn\u2019t work so well with women. though they have certainly seen unprecedented advances in the accounting profession, they reach a point of intractable conflict: they can have a baby or two and raise a family, or they can fully dedicate themselves to the pressures of the path to partnership.<\/p>\n

ethnic minorities often suffer a similar dropout. seeing few role models in senior management and \u201csimmering with frustration at the slow pace and sometimes opaque process of partnership progression,\u201d they pursue faster advancement \u2013 undelayed gratification \u2013 in other areas.<\/p>\n

pe can\u2019t afford to put up with that. pe exists for revenue, and for revenue, it needs productive talent.<\/p>\n

\u201cthe pe model wants people to become owners sooner,\u201d says terry putney, managing director at whitman transition advisors. \u201cthey want to identify talent and retain them, so they are pushing down the ownership stakes to earlier in their career. pe believes they have a much more lucrative career path … it\u2019s easier to become an owner, and you realize the financial benefits throughout your career.\u201d<\/p>\n

even firms devoted to remaining independent will need to adjust to the demands of a pe-dominated market. their personnel will be tempted by the career advancement potentials at other firms.<\/p>\n

the report recognizes downsides to the pe fast track. pe expects increases in revenue. those increases are generally made possible with more work and higher fees. the pressure on professionals and the cost concerns of clients are a tough combination. some professionals may prefer a sane pace, fair if not exorbitant compensation, and collegial relationships with coworkers.<\/p>\n

diversity, equity and inclusion are a big part of those collegial relationships. a survey of 9,889 accounting and financial professionals conducted by the association of chartered certified accountants in early 2024 asked if respondents agreed with the statement \u201can organization that has a strong culture of diversity and inclusion would be a key factor in deciding to work there.\u201d<\/p>\n

and guess what:<\/p>\n