{"id":46581,"date":"2016-02-28t05:00:11","date_gmt":"2016-02-28t10:00:11","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=46581"},"modified":"2024-08-14t09:36:01","modified_gmt":"2024-08-14t13:36:01","slug":"comparing-partner-compensation-formulas","status":"publish","type":"post","link":"\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/","title":{"rendered":"why firms use partner comp formulas"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg\" rel=\"attachment wp-att-47818\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-47818\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-424x337.jpg\" alt=\"numbers floating around man examining calculator with magnifying glass\" width=\"424\" height=\"337\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-424x337.jpg 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-768x611.jpg 768w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-849x675.jpg 849w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 1600w\" sizes=\"(max-width: 424px) 100vw, 424px\" \/><\/a>plus 5 ways to make them more sophisticated.<\/strong><\/p>\n<p><i><span style=\"font-weight: 400\">by marc rosenberg<\/span><\/i><br \/>\n<strong><a href=\"\/\/www.g005e.com\/shop\/partner-compensation\/\"><i><span style=\"font-weight: 400\">partner comp: art &amp; science<\/span><\/i><\/a><\/strong><\/p>\n<p>compensation formulas are the most common system used by cpa firms to allocate partner income. indeed, many small firms are not even aware that there are alternative systems available, and they\u2019re puzzled as to why a firm would <em>not<\/em> want to use a formula.<\/p>\n<blockquote><p><b>more on partner compensation<\/b><b> <a href=\"\/\/www.g005e.com\/membership-options?s2-ssl=yes\">for pro members<\/a><\/b>: <a href=\"\/\/www.g005e.com\/2016\/02\/21\/performance-based-subjective-systems\/\"><span style=\"font-weight: 400\">3 subjective compensation systems<\/span><\/a><b> |<\/b> <a href=\"\/\/www.g005e.com\/2016\/02\/14\/designing-a-partner-comp-system\/\"><span style=\"font-weight: 400\">11 points in designing a partner comp system<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2016\/02\/07\/46574\/\"><span style=\"font-weight: 400\">3 tiers of compensation<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2016\/01\/26\/partner-compensation-101\/\"><span style=\"font-weight: 400\">partner compensation 101<\/span><\/a><span style=\"font-weight: 400\">|<\/span> <a href=\"\/\/www.g005e.com\/2016\/01\/03\/what-partners-earn-and-how-they-earn-it\/\"><span style=\"font-weight: 400\">what partners earn and how they earn it<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2015\/12\/27\/partner-compensation-an-art-not-a-science\/\"><span style=\"font-weight: 400\">partner compensation: an art, not a science<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2015\/11\/02\/rosenberg-comp-performance-based\/\"><span style=\"font-weight: 400\">why most partner comp systems are performance-based<\/span><\/a><\/p><\/blockquote>\n<p>compensation formulas are most heavily used by small firms, especially those with fewer than five partners. since over 90\u00a0percent\u00a0of all cpa firms have fewer than five partners, formulas are the most common system. but once firms hit the five-partner mark, they find that other systems, mainly the subjective systems described in the previous chapter, are preferable. this will be explained later in this post.<br \/>\n <a href=\"\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/#more-46581\" class=\"more-link\">read more &rarr;<\/a><\/p>\n<div class='shareinpost'><ul class=\"socialwrap row\"><li class=\"icon_text\"><a  rel='nofollow'  target='_blank'  title='https:\/\/www.facebook.com'  href='http:\/\/www.facebook.com\/sharer.php?u=https%3a%2f%2fwww.g005e.com%2f2016%2f02%2f28%2fcomparing-partner-compensation-formulas%2f&amp;t=why+firms+use+partner+comp+formulas'  ><img  src='\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif'  height='24' width='24'  class='image-24' alt='facebook'  style='background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-300px 0px'   \/> <span class=\"head\">like this on facebook<\/span><\/a><\/li><li class=\"icon_text\"><a  rel='nofollow'  target='_blank'  title='https:\/\/www.linkedin.com\/'  href='http:\/\/www.linkedin.com\/sharearticle?mini=true&amp;url=https%3a%2f%2fwww.g005e.com%2f2016%2f02%2f28%2fcomparing-partner-compensation-formulas%2f&amp;title=why+firms+use+partner+comp+formulas&amp;summary=plus+5+ways+to+make+them+more+sophisticated.%0d%0a%0d%0aby+marc+rosenberg%0d%0apartner+comp%3a+art+%26amp%3b+science%0d%0a%0d%0acompensation+formulas+are+the+most+common+system+used+by+cpa+firms+to+allocate+partner+income.+indeed%2c+many+small+firms+are+not+even+aware+that+there+are+alternative+systems+available%2c+and+they%e2%80%99re+puzzled+as+to+why+a'  ><img  src='\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif'  height='24' width='24'  class='image-24' alt='linkedin'  style='background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-850px 0px'   \/> <span class=\"head\">share on linkedin<\/span><\/a><\/li><li class=\"icon_text\"><a  rel='nofollow'  target='_blank'  title='https:\/\/twitter.com\/'  href=\"http:\/\/twitter.com\/share?url=https%3a%2f%2fwww.g005e.com%2f2016%2f02%2f28%2fcomparing-partner-compensation-formulas%2f&amp;text=%23cpa+link%3a++-+ via+%40cpa_trendlines\"  ><img  src='\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif'  height='24' width='24'  class='image-24' alt='twitter'  style='background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-1625px 0px'   \/> <span class=\"head\">tweet this item<\/span><\/a><\/li><li class=\"icon_text\"><a rel=\"_self\" href=\"mailto:?subject=cpa%20trendlines%20:%20why%20firms%20use%20partner%20comp%20formulas&amp;body=here's%20something%20worth%20seeing%20from%20\/\/www.g005e.com...\r\n\r\n\r\n\r\n%20%20\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/\" title=\"email this: why firms use partner comp formulas \"><img loading=\"lazy\" decoding=\"async\" src=\"\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif\" height=\"24\"  width=\"24\" style=\"background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-275px 0px\" class=\"image-24\"  alt=\"email\" \/> <span class=\"head\">email this<\/span><\/a><\/li><\/ul><div class=\"clean\"><\/div> <\/div>","protected":false},"excerpt":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg\" rel=\"attachment wp-att-47818\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-47818\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-424x337.jpg\" alt=\"numbers floating around man examining calculator with magnifying glass\" width=\"424\" height=\"337\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-424x337.jpg 424w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-768x611.jpg 768w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845-849x675.jpg 849w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/02\/numberscalculator_dollarphotoclub_48699845.jpg 1600w\" sizes=\"(max-width: 424px) 100vw, 424px\" \/><\/a>plus 5 ways to make them more sophisticated.<\/strong><\/p>\n<p><i><span style=\"font-weight: 400\">by marc rosenberg<\/span><\/i><br \/>\n<strong><a href=\"\/\/www.g005e.com\/shop\/partner-compensation\/\"><i><span style=\"font-weight: 400\">partner comp: art &amp; science<\/span><\/i><\/a><\/strong><\/p>\n<p>compensation formulas are the most common system used by cpa firms to allocate partner income. indeed, many small firms are not even aware that there are alternative systems available, and they\u2019re puzzled as to why a firm would <em>not<\/em> want to use a formula.<\/p>\n<blockquote>\n<p><b>more on partner compensation<\/b><b> <a href=\"\/\/www.g005e.com\/membership-options?s2-ssl=yes\">for pro members<\/a><\/b>: <a href=\"\/\/www.g005e.com\/2016\/02\/21\/performance-based-subjective-systems\/\"><span style=\"font-weight: 400\">3 subjective compensation systems<\/span><\/a><b> |<\/b> <a href=\"\/\/www.g005e.com\/2016\/02\/14\/designing-a-partner-comp-system\/\"><span style=\"font-weight: 400\">11 points in designing a partner comp system<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2016\/02\/07\/46574\/\"><span style=\"font-weight: 400\">3 tiers of compensation<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2016\/01\/26\/partner-compensation-101\/\"><span style=\"font-weight: 400\">partner compensation 101<\/span><\/a><span style=\"font-weight: 400\">|<\/span> <a href=\"\/\/www.g005e.com\/2016\/01\/03\/what-partners-earn-and-how-they-earn-it\/\"><span style=\"font-weight: 400\">what partners earn and how they earn it<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2015\/12\/27\/partner-compensation-an-art-not-a-science\/\"><span style=\"font-weight: 400\">partner compensation: an art, not a science<\/span><\/a><span style=\"font-weight: 400\"> | <\/span><a href=\"\/\/www.g005e.com\/2015\/11\/02\/rosenberg-comp-performance-based\/\"><span style=\"font-weight: 400\">why most partner comp systems are performance-based<\/span><\/a><\/p>\n<\/blockquote>\n<p>compensation formulas are most heavily used by small firms, especially those with fewer than five partners. since over 90\u00a0percent\u00a0of all cpa firms have fewer than five partners, formulas are the most common system. but once firms hit the five-partner mark, they find that other systems, mainly the subjective systems described in the previous chapter, are preferable. this will be explained later in this post.<br \/>\n <a href=\"\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/#more-46581\" class=\"more-link\">read more &rarr;<\/a><\/p>\n<div class='shareinpost'>\n<ul class=\"socialwrap row\">\n<li class=\"icon_text\"><a  rel='nofollow'  target='_blank'  title='https:\/\/www.facebook.com'  href='http:\/\/www.facebook.com\/sharer.php?u=https%3a%2f%2fwww.g005e.com%2f2016%2f02%2f28%2fcomparing-partner-compensation-formulas%2f&amp;t=why+firms+use+partner+comp+formulas'  ><img  src='\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif'  height='24' width='24'  class='image-24' alt='facebook'  style='background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-300px 0px'   \/> <span class=\"head\">like this on facebook<\/span><\/a><\/li>\n<li class=\"icon_text\"><a  rel='nofollow'  target='_blank'  title='https:\/\/www.linkedin.com\/'  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title=\"email this: why firms use partner comp formulas \"><img loading=\"lazy\" decoding=\"async\" src=\"\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/images\/blank.gif\" height=\"24\"  width=\"24\" style=\"background: transparent url(\/\/www.g005e.com\/wp-content\/plugins\/share-and-follow\/default\/24\/sprite-feb-24.png) no-repeat;padding:0;margin:0;height:24px;width:24px;background-position:-275px 0px\" class=\"image-24\"  alt=\"email\" \/> <span class=\"head\">email this<\/span><\/a><\/li>\n<\/ul>\n<div 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is optimized with the yoast seo plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>why firms use partner comp formulas - 卡塔尔世界杯常规比赛时间<\/title>\n<meta name=\"description\" content=\"actionable intelligence for tax, accounting, and financial professionals\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/\" \/>\n<meta property=\"og:locale\" content=\"en_us\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"why firms use partner comp formulas - 卡塔尔世界杯常规比赛时间\" \/>\n<meta property=\"og:description\" content=\"actionable intelligence for tax, accounting, and financial professionals\" \/>\n<meta property=\"og:url\" content=\"\/\/www.g005e.com\/2016\/02\/28\/comparing-partner-compensation-formulas\/\" \/>\n<meta property=\"og:site_name\" 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