For 4 hours of CPE credit, Thurs., Oct 30, go to CPEcoalition.org.
Help your clients account for marketing costs.
By Sandi Smith Leyva
The Accountant’s Accelerator
One of the value-added services we can offer clients is to align their chart of accounts with their tax form so that the numbers are easy to pull off at tax time. But there’s an even bigger opportunity if we take a deeper look. READ MORE →
Valuing a CPA firm for partner retirement purposes is much different than a valuation for merger purposes.
By Marc Rosenberg
Retirements & Buyouts
Profitable, attractive firms, generally under $2 million, sold in a market with many potential buyers, will often fetch 110 percent to 150 percent of fees.
If this is the case, why do CPA firms value goodwill for retirement purposes at no more than 100 percent of fees and usually, 80 or 90 percent of fees? Here are six good reasons why:
When leadership models are male, sometimes female candidates go unrecognized.
By Ida O. Abbott
Sponsoring Women: What Men Need to Know
Let’s assume a powerful man works with two junior colleagues, a man and a woman, who are both equally talented, motivated and superbly skilled performers. According to what we know from research and experience, that powerful man is more likely to sponsor the man than the woman.
MORE ON SPONSORING WOMEN FOR LEADERSHIP: Men Advance 2 to 1 over Women without Sponsors | 18 Ways Sponsors Can Help Their Protegees | The 6 Market Advantages of Women-Led Firms | Beyond Mentoring: Why Sponsoring Women for Leadership Matters READ MORE →
EY and UT Austin top professors poll.
In considering job offers from competing accounting firms, the most highly sought-after students weigh three criteria equally, and it doesn’t much matter whether the offer is for big money or whether it’s from a Big Four firm anymore, according to a leading survey of several hundred college accounting professors.
Students today consider compensation and benefits, “work/life balance and a family-friendly environment” and a desirable geographic location each about equally, according to the 33rd Annual professors Survey for 2014 by Public Accounting Report.
The difference is barely discernible, PAR reports. On a scale of 0 through 10, with 10 being the most important, professors marginally differentiated between the three in order of importance. They rated compensation and benefits an average of 8.10, quality of life/family-friendly environment 8.09 and desirable geographic location 7.99. READ MORE →
9 factors that ensure retirement plans will pay off.
By Marc Rosenberg
Retirements & Buyouts
When a partner group crafts their firm’s partner retirement plan, they are hopeful that the plan will play an important role in their financial futures. They are guardedly optimistic that their buyouts will be realized.
But the path toward the retirement payday is a perilous one. Many actions are necessary and a number of obstacles must be overcome for a firm’s partner retirement plan to pay off. READ MORE →
What you need to know to go from Wi-Fi to Mi-Fi.
By Roman H. Kepczyk
Quantum of Paperless
One of the revolutions in remote connectivity is happening within your cellphone, as digital cellular providers have beefed up and expanded their networks to provide reliable Internet access to remote devices.
About 94 percent of firms utilize smartphones for access to email, calendar and contacts, and 33 percent provide tablets or netbooks to senior management, according to the Association for Accounting Administration.
MORE ON TECH SPENDING: How Safe Is Your Internet Lifeline? | New Tech Tools for the 24/7 Accounting Firm | The Single Best Defense Against Computer Viruses | When to Adopt Microsoft’s New Office Apps | What Windows 8 Means for How Accountants Will Work in the Future | How to Choose the Right Backup System | How to Know It’s Time to Scrap Your Old Server | Where Laptops Rule at CPA Firms Today | Step 1 in Building the Paperless Firm: Scanners | How Many Computer Monitors Do You Need?
The first step is to determine which telecom provider is the best in your firm’s area of operations. Consider: READ MORE →
By Ed Mendlowitz
The CPA Trendlines Practice Doctor
QUESTION: Occasionally I get a new client in an area I am unfamiliar with. How do I find out what I do not know?
RESPONSE: This happens to everyone and probably more often than we expect. Thankfully we will continue to get new business and getting clients in areas we are unfamiliar with enables us to grow.
MORE PRACTICE DOCTOR Q&A: 10 Do’s and Don’ts for Making Small Business Clients Happy | Client’s Difficult Daughter Balks at Bill | 6 Simple Steps to Impress a Prospect | 10 (Nearly) Painless Ways to Keep Up to Date with Technology | When a Staffer Stops Listening | 10 Ways to Get New 1040 Clients | Making Meetings More Productive | Tax Return Reviewer Ticking and Tying
Here is what I suggest: READ MORE →
It’s easy to get discouraged. Here’s how to not let it happen to you.
Courage and perseverance are traits you can actually nurture and develop. From the financial advisors’ advisor Horsesmouth.com, here are 29 tips compiled from top achievers. Try one today. READ MORE →
By Sandi Smith Leyva
The Accountant’s Accelerator
Here’s a quick exercise: Choose any person in your work life or personal life. Now think back to last few interactions you had with that person. Recall what was said and classify your list into two groups.
What interactions, comments and questions did you have with your chosen person that were negative? Here are some examples of things that are in the “negative” group: READ MORE →
By Robert J. Lees and
August J. Aquila
Creating the Effective Partnership
Just as the partners need to engage with the firm’s vision so do the firm’s people. But, like everyone, they actually engage with people not words. So, effective partners continually engage with their people, regardless of their level and role. They go out of their way to create a personal bond, sharing personal information and operating with honesty and integrity in all of their interactions.
Creating the Effective Partnership: Every Partner’s First Question: ‘What’s in It for Me?’ | The 9 Building Blocks of a Winning Vision that the Big Four Have Discovered | The Politics of an Accounting Firm Partnership | Nine Rules to Creating Highly Effective Partnership Teams | Audacious Vision and Grand Purpose Prove Essential to CPA Success | Are You Creating a Sustainable Firm? | The Debilitating Effects of Denial at Accounting Firms | The Five Psychological Hurdles that CPA Firms Must Confront Today READ MORE →
How to run your training like a business.
By Michael Ramos and Cate Miller
With CPA firms spending 1.5 percent to 2.0 percent of revenue on learning, budgets can be hundreds of thousands of dollars even for a modest-sized firm. But firms invest in learning because it is a critical component in addressing many of the top issues facing CPA firms today.
The best organizations view learning as an investment, and they manage their investment the same way a venture capitalist manages a portfolio company – like a business. Unfortunately, many CPA firms have a less disciplined approach to learning, which means they’re probably leaving money on the table. READ MORE →
Why you can’t believe your own press clippings.
By Gale Crosley, CPA
Ever run a race and immediately sense that you got off to an exceptionally fast start? It’s a good feeling, but if your goal is to beat out the competition there’s really only one way to know for sure how you’re doing. And that’s by marking your progress toward the finish line relative to the other racers.
The same can be said of efforts to grow your firm. To gauge your progress you have to get outside your own four walls and see how you measure up to the competition. READ MORE →
Looking inside firms with income per partner over $500,000.
By CPA Trendlines
Rosenberg MAP Survey
If you’re a firm with two or more partners wondering just how well your business compares to the CPA profession’s “elite” firms, you should be looking for a 5.2% revenue gain this year, according to the new Rosenberg Survey. And your revenue growth last year should have been at least 7.4%, excluding any changes that resulted from mergers.
The survey, based on activity at firms across the country with annual fees ranging from less than $2 million to more than $20 million, defines “elite” as the firms with income per partner of more than $500,000. By comparison, the average income per partner for the profession’s “mainstream” firms is $345,177.
The report provides comparisons for benchmarks including billing rates, partner-to-staff ratios, hours billed annually, staff turnover rates, men-to-women ratios, partner ages, client services and partner compensation.