{"id":86436,"date":"2021-07-27t12:00:09","date_gmt":"2021-07-27t16:00:09","guid":{"rendered":"\/\/www.g005e.com\/?p=86436"},"modified":"2024-08-14t09:34:46","modified_gmt":"2024-08-14t13:34:46","slug":"what-new-partners-should-know-about-compensation","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/07\/27\/what-new-partners-should-know-about-compensation\/","title":{"rendered":"comp: what new partners don’t know"},"content":{"rendered":"

\"businessman<\/a>best practices: top firms use these seven systems for allocating income.
\n<\/strong><\/p>\n

by marc rosenberg<\/i>
\nthe rosenberg practice management library<\/i><\/a><\/p>\n

it would take a book much longer than this post to properly explain the finer points of partner compensation, especially how each of the major compensation systems works.<\/p>\n

(oh, did i forget? we wrote such a book, cpa firm partner compensation: the art and science<\/span><\/a>.)<\/p>\n

more: <\/b><\/strong>making partner: 15 steps to the buy-in<\/a> | making partner: do the math<\/a> | a crash course in the business of public accounting<\/a> | making partner: what managers need to know<\/a> | nine reasons people are promoted to partner<\/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><\/blockquote>\n

as is the case with all of my lists, no one firm incorporates all<\/em> of these practices in its partner compensation policy.<\/p>\n

but i have observed all<\/em> of the practices below in one or more of the best firms i\u2019ve worked with over 20 years.
\n<\/p>\n

best practices and key concepts<\/h3>\n
    \n
  1. performance-based. <\/strong>there should be a strong link between pay and performance. when it comes to cpa firm performance and profitability: as the partners go, so goes the firm. the partners have a much greater impact on the firm\u2019s success than professional staff and other personnel. if they perform at a high level, the firm will do the same. if partner performance lags, then the firm will suffer. therefore, the firm needs to motivate the partners to produce at high levels and reward them accordingly. compensation isn\u2019t the best way to motivate anyone\u2019s performance, but it is<\/strong> effective.
    \n<\/em><\/li>\n
  2. business getting. <\/strong>bringing in business must be a major factor in allocating partner income. business development is the most important aspect of partner performance that is also the most difficult<\/strong>. the majority of cpa firm partners are not highly skilled in business development. it doesn\u2019t come naturally to them. to be successful at bringing in business and contributing to the firm\u2019s revenue growth, most partners need to go outside their comfort zones. these efforts must be handsomely rewarded if firms expect their partners to make the extra effort to bring in business.<\/li>\n
  3. most important partner performance factors. <\/strong>these are easily the biggest factors among many:<\/li>\n<\/ol>\n