{"id":22215,"date":"2012-09-03t20:55:45","date_gmt":"2012-09-04t00:55:45","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=22215"},"modified":"2017-10-16t06:35:50","modified_gmt":"2017-10-16t10:35:50","slug":"dont-ask-a-cpa-what-profitability-means","status":"publish","type":"post","link":"\/\/www.g005e.com\/2012\/09\/03\/dont-ask-a-cpa-what-profitability-means\/","title":{"rendered":"don\u2019t ask a cpa what profitability means"},"content":{"rendered":"<p><strong>you&#8217;d think they could agree on a common definition for their firms. they can&#8217;t.<\/strong><\/p>\n<p>by marc rosenberg, cpa<em><br \/>\nauthor of <a href=\"http:\/\/baystreetgroup.com\/store\/rosenberg-profit\/\">what really makes cpa firms profitable<\/a><\/em><\/p>\n<p>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\u2019ve heard the story, perhaps apocryphal, of the company that was interviewing for a new cpa firm. only one question was asked of each candidate: \u201chow much is two plus two?\u201d the firm that won the bid gave the answer, \u201chow much would you like it to be?\u201d<\/p>\n<p style=\"padding-left: 60px;\"><em>related: <a title=\"permanent link to: compensation issues for the new managing partner\" href=\"\/\/www.g005e.com\/2012\/08\/02\/after-the-baby-boom-a-new-generation-of-managing-partner-takes-over\/\">compensation issues for the new managing partner<\/a> | <a title=\"permanent link to: 20 decisions for your firm\u2019s new partner compensation committee\" href=\"\/\/www.g005e.com\/2012\/07\/26\/20-decisions-for-your-firms-new-compensation-committee\/\">20 decisions for your firm\u2019s new partner compensation committee<\/a> | <a title=\"permanent link to: three ways to break partner gridlock in an accounting firm\" href=\"\/\/www.g005e.com\/2012\/07\/19\/why-one-partner-one-vote-isnt-always-the-best-way-to-run-a-firm\/\">three ways to break partner gridlock in an accounting firm<\/a> | <a title=\"permanent link to: what partners are entitled to\u2026\" href=\"\/\/www.g005e.com\/2012\/07\/12\/what-partners-are-entitled-to\/\">what partners are entitled to, and what they\u2019re not entitled to |<\/a> <a title=\"permanent link to how to make partner?\" href=\"\/\/www.g005e.com\/2012\/07\/05\/how-secrets-hurt-a-cpa-firm\/\">how to make partner?<\/a> | <a href=\"\/\/www.g005e.com\/2012\/06\/26\/why-accounting-firm-partners-are-popping-prozac-like-mms\/\">why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d<\/a> | <a href=\"\/\/www.g005e.com\/?s=marc+rosenberg\" target=\"_blank\" rel=\"noopener\">more&#8230;<\/a><\/em><\/p>\n<p>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. <a href=\"\/\/www.g005e.com\/2012\/09\/03\/dont-ask-a-cpa-what-profitability-means\/#more-22215\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>you&#8217;d think they could agree on a common definition for their firms. they can&#8217;t.<\/strong><\/p>\n<p>by marc rosenberg, cpa<em><br \/>\nauthor of <a href=\"http:\/\/baystreetgroup.com\/store\/rosenberg-profit\/\">what really makes cpa firms profitable<\/a><\/em><\/p>\n<p>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\u2019ve heard the story, perhaps apocryphal, of the company that was interviewing for a new cpa firm. only one question was asked of each candidate: \u201chow much is two plus two?\u201d the firm that won the bid gave the answer, \u201chow much would you like it to be?\u201d<\/p>\n<p style=\"padding-left: 60px;\"><em>related: <a title=\"permanent link to: compensation issues for the new managing partner\" href=\"\/\/www.g005e.com\/2012\/08\/02\/after-the-baby-boom-a-new-generation-of-managing-partner-takes-over\/\">compensation issues for the new managing partner<\/a> | <a title=\"permanent link to: 20 decisions for your firm\u2019s new partner compensation committee\" href=\"\/\/www.g005e.com\/2012\/07\/26\/20-decisions-for-your-firms-new-compensation-committee\/\">20 decisions for your firm\u2019s new partner compensation committee<\/a> | <a title=\"permanent link to: three ways to break partner gridlock in an accounting firm\" href=\"\/\/www.g005e.com\/2012\/07\/19\/why-one-partner-one-vote-isnt-always-the-best-way-to-run-a-firm\/\">three ways to break partner gridlock in an accounting firm<\/a> | <a title=\"permanent link to: what partners are entitled to\u2026\" href=\"\/\/www.g005e.com\/2012\/07\/12\/what-partners-are-entitled-to\/\">what partners are entitled to, and what they\u2019re not entitled to |<\/a> <a title=\"permanent link to how to make partner?\" href=\"\/\/www.g005e.com\/2012\/07\/05\/how-secrets-hurt-a-cpa-firm\/\">how to make partner?<\/a> | <a href=\"\/\/www.g005e.com\/2012\/06\/26\/why-accounting-firm-partners-are-popping-prozac-like-mms\/\">why accounting firm partners are \u201cpopping prozac like m&amp;m\u2019s\u201d<\/a> | <a href=\"\/\/www.g005e.com\/?s=marc+rosenberg\" target=\"_blank\" rel=\"noopener\">more&#8230;<\/a><\/em><\/p>\n<p>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. <a href=\"\/\/www.g005e.com\/2012\/09\/03\/dont-ask-a-cpa-what-profitability-means\/#more-22215\" class=\"more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":1339,"featured_media":0,"comment_status":"closed","ping_status":"open","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":[1908,5,3120,9],"tags":[93,691,570],"class_list":["post-22215","post","type-post","status-publish","format-standard","hentry","category-management","category-outlook","category-pro-member-exclusive","category-strategy","tag-management","tag-profitability","tag-strategy","membership-content","access-restricted"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo 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