Which is best for your firm?
By Marc Rosenberg
Author of “CPA Firm Management and Governance.”
CPA firm management styles generally fall into two categories: partnership and corporate. For the sake of argument, let’s use the terms “partnership” and “corporate” to describe management styles, rather than legal entities such as partnership, corporation, LLC, etc.
More on CPA firm management and leadership for PRO members [Go PRO here]: Not Every Firm Needs a General Patton • Overcoming the Three Biggest Obstacles in Succession Planning at CPA Firms • CPA Firm Merger “Non-Negotiables” • The “Aha Moment” in CPA Firm Leadership • Leadership Is Overrated: It’s Good Management that Makes Successful Firms • 40 Great Ways to Improve Firm Profitability • Four Management Metrics that Fool Even the Best-Run Firms • 19 Ways to Improve Accounting Firm Profitability • De-Bunking the Myth about Niche Marketing for Tax and Accounting Firms •
In this article, we’ll:
- Define each style
- Compare the two styles’ pro’s and con’s
- Explain the concept of “rights”
- Explain the key duties of a partner in a corporate-style firm
- When a firm needs to think about shifting from partnership to corporate
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