A patient was at her doctor’s office after undergoing a complete physical exam. The doctor said, “I have some very grave news for you. You only have six months to live.”
The patient asked, “Oh doctor, what should I do?” The doctor replied, “Marry an accountant.”
“Will that make me live longer?” asked the patient. “No,” said the doctor, “but it will SEEM longer.”
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Partners need to be something more than production machines. [Checklist included.]
by Marc Rosenberg, CPA
Increasingly, CPA firms are adopting the compensation committee system for allocating partner income. Firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work. When we compare the usage of the compensation committee today to 5 years ago, the increase in usage ranges from 16% to 26%.
If there is one overarching cause for this significant trend, it’s that firms are understanding that their partners need to be something more than production machines. In addition to bringing in business, managing a client base and working billable hours (all of which continue to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork. The compensation committee is one of the best systems available to CPA firms to allocate income based on this diverse array of performance criteria.
More Marc Rosenberg practice management trends and guidance: Three Ways to Break Partner Gridlock in an Accounting Firm | What Partners Are Entitled To, and What They’re NOT Entitled To | How to Make Partner? | Why Accounting Firm Partners Are “Popping Prozac like M&M’s” | The 15-Item Checklist for Your Next Partner Retreat | Five Key Responsibilities for a New Partner | Planning a Partner Retreat for Real Results | 6 Steps to Get Your Business to the Next Level | The 10 Biggest Mistakes in Reading MAP Statistics | Re-Engineering Partner Accountability | Marc Rosenberg: Why CPAs Aren’t Making More Money [VIDEO] | Marc Rosenberg: Slow Learners Need Not Apply | 10 To-Do’s for a Partner Buyout
When firms begin operating their new compensation committees, there is a lot of initial confusion and bewilderment about how to get started. For example: READ MORE →
The four-step process to use when a client asks for an outside consultant…
A guide to trend-spotting for accountants. by Bruce W. Marcus Professional Services Marketing 3.0 Learn to question everything you do. Ask yourself the question, “This is the way I did it yesterday. Is it the best way to do it … Continued
Examples from Nokia and Bechtel.
by Mark C. Thompson
Setting and maintaining goals is a fundamental part of our lives, but also one of the most challenging. Two companies which do it better than most are Proctor & Gamble and Nokia: they work with their customers to set mutual goals so they can achieve joint outcomes. This is a great way to do business.