{"id":52707,"date":"2017-09-11t05:00:12","date_gmt":"2017-09-11t09:00:12","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=52707"},"modified":"2022-01-10t13:49:58","modified_gmt":"2022-01-10t18:49:58","slug":"entrepreneurial-accountant-oxymoron","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/09\/11\/entrepreneurial-accountant-oxymoron\/","title":{"rendered":"the accountant as entrepreneur: an oxymoron?"},"content":{"rendered":"

\"thoughtful<\/a>plus: 21 characteristics of an ideal partner.
\n<\/strong><\/p>\n

by rob nixon<\/i><\/p>\n

entrepreneur: \u201cone who takes the initiative to create a product or establish a business for profit. generally, whoever undertakes on his\/her own account an enterprise in which others are employed and risks are taken.\u201d<\/p>\n

more on strategy: <\/b>how to structure your firm for success<\/a> | be a history maker<\/a> | experience doesn\u2019t mean what you think it does<\/a> | why \u2018steady as she goes\u2019 isn\u2019t enough<\/a> | the final critical traits: how do your tires look?<\/a> | how to calculate a value price<\/a> | boost efficiency and your bottom line<\/a> | 4 sales systems and some secret sauce<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p>\n

see hitendra patil’s definitive definitive guide to “the enrteprenurial accountant” here<\/a><\/p><\/blockquote>\n

are partners of accounting firms entrepreneurs? this is an interesting question. according to the definition they own a business (although most did not start the business they own), they employ people, they take risks and they provide products and services \u2013 hopefully for a healthy profit.
\n
\ndoes this make them entrepreneurs? would most partners of accounting firms describe themselves as entrepreneurs? probably not.<\/p>\n

so what do they call themselves? normally they say, \u201ci am a partner in an accounting practice,\u201d or words to that effect. rarely do they say, \u201ci am an entrepreneur who owns an accounting business.\u201d<\/p>\n

in this post i will challenge every aspect of your partnership model and hopefully convince you to operate under a different \u2013 more commercial \u2013 model.<\/p>\n

why are partners, partners?<\/h3>\n

although most accounting firms are operated by sole practitioners (one owner), by my educated guess there are approximately three partners for every accounting firm in the world. and from my basic research there over 1 million firms in the world. so, there are somewhere in the order of 3 million partners. worldwide it is estimated to be more than a $1 trillion industry. that\u2019s more than the gdp of australia!<\/p>\n

that is a lot of accounting firms and a lot of owners of accounting firms. far too many of both in my opinion!<\/p>\n

so how do the partners become partners? here are some typical (and perplexing) scenarios.<\/p>\n

    \n
  • as an accountant goes through the ranks and learns their craft, at some point in time they “make partner” \u2013 as if it is their given right.<\/li>\n
  • sometimes a team member puts pressure on the partners and threatens leaving if they do not become a partner \u2013 and the partners cave in.<\/li>\n
  • sometimes current partners think<\/strong> they must elevate a team member to partner status just to keep them \u2013 so they do.<\/li>\n
  • i even know of partners who have become partners without knowing the financial situation of the firm they are buying into. who would want to be in business with someone who did not understand the financial situation of the business they were buying into?<\/li>\n<\/ul>\n

    there are too many partners who are there for retention reasons \u2013 not good business reasons.<\/p><\/blockquote>\n

    what about the partner who starts his\/her own firm? these are the real entrepreneurs in this industry. it\u2019s interesting how they come to be. the individual in question starts life as a junior accountant or graduate, learns how to do that part of the job, stays in the current firm for a few years, gets more experience and then shifts firms. they stay at the next firm for a few years and then maybe shift firms again. all the way observing how each of the partners conduct business.<\/p>\n

    one day (usually in the person\u2019s 30s) they wake up and say to themselves, \u201ci am sick of being an employee of an accounting firm. i\u2019m a good accountant. i want to go out on my own. i want to start my own firm.\u201d they have just had an entrepreneurial seizure!<\/p>\n

    off they (you?) go believing that just because they are a good accountant that they know how to run a successful accounting business that provides great accounting services. nothing could be further from the truth. being a technician (knowing how to do the work) and being a business owner (knowing how to run a business that works) are two vastly different scenarios.<\/p>\n

    here\u2019s the issue. how did this new entrepreneur learn how to run the business they have just started?<\/p>\n

    from the partners that they worked for. they learned by osmosis. and where did those partners learn their great (tongue firmly planted in cheek) business skills from? the partners before them. and so on and so forth.<\/p>\n

    if you want to run a better business you must first become a better business person.<\/p>\n

    if you stick to the traditional model, the only real way to create wealth in this business is to have fewer partners in your firm and a higher leverage of people per partner.<\/p>\n

    there are plenty of sole practitioners around the world who hire 20+ people and as such they are making $1 million-plus profit per annum. the issue of low profitability starts when you have too many partners and the leverage (people per partner) is low.<\/p>\n

    it\u2019s very easy to prop up profits in an accounting firm \u2013 just have the partners charge more time. they have the highest (apparently) charge rates, so all time charged by partners is theoretically all profit.<\/p>\n

    recently i asked a simple question at one of my coaching club meetings. “if you could wave a magic wand, then the ideal business partner is someone who\u2026?” and then got them to answer the question. this is what the group came up with.<\/p>\n

    the ideal partner in an accounting firm is someone who\u2026<\/p>\n

      \n
    1. brings something to the table \u2013 complements existing partners<\/li>\n
    2. is a good cultural fit in the firm<\/li>\n
    3. is a good communicator at the partner level<\/li>\n
    4. is a good communicator with team members<\/li>\n
    5. is a good communicator with clients<\/li>\n
    6. is stable \u2013 emotionally and financially<\/li>\n
    7. is profit- and growth-motivated<\/li>\n
    8. has a good work ethic<\/li>\n
    9. is reasonably fit and healthy<\/li>\n
    10. is at the same stage in life mentally<\/li>\n
    11. shares similar values and ethics<\/li>\n
    12. has an ability to respect other partners<\/li>\n
    13. knows what they want \u2013 goal-oriented<\/li>\n
    14. is supportive of new ideas<\/li>\n
    15. is flexible in their thoughts and actions<\/li>\n
    16. is a good business builder<\/li>\n
    17. is fun to be with<\/li>\n
    18. shares the vision<\/li>\n
    19. walks the talk not just talks the talk<\/li>\n
    20. acts in the best interests of clients and the firm at all times<\/li>\n
    21. can bring in new business<\/li>\n<\/ol>\n

      how many of these 21 can your current partners answer favorably? maybe some partners you have are not a fit. do you need fewer, more or different partners?<\/p>\n

      maybe some change needs to happen in your firm at the partner level.<\/p>\n","protected":false},"excerpt":{"rendered":"

      plus: 21 characteristics of an ideal partner.<\/strong>
      \nby rob nixon<\/em><\/p>\n","protected":false},"author":1840,"featured_media":49750,"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":[3058,2254,3120],"tags":[],"class_list":["post-52707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-client-accounting-services","category-growth","category-pro-member-exclusive"],"acf":[],"yoast_head":"\nthe accountant as entrepreneur: an oxymoron? - 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\/2017\/09\/11\/entrepreneurial-accountant-oxymoron\/\" \/>\n<meta property=\"og:locale\" content=\"en_us\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"the accountant as entrepreneur: an oxymoron? 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