Valuing Your Practice for Partner Retirements

How to brace yourself for the "Baby Boomer Bubble."

By Gary Adamson, CPA

I think about the BBB a lot. No, this BBB is not the Better Business Bureau; it is the Baby Boomer Bubble. There is constant reference by the news media about the aging of the Baby Boomers but I for one did not know exactly what it meant. Until I Googled it.

RELATED: How to Create a No-Equity Partner Position in Your Firm | What a Coach Can Do for You – and Your Firm | How to Balance the Six Jobs of Managing Partner | Planning a Partner Retreat for Real Results | The Partner Compensation Checklist | How CPA Firms Make Money in Turbulent Times

What I found is not good news for the accounting profession. The BBB is 76 million of us born in the United States between 1946 and 1964 and we are fairly evenly spread through those 19 years. That means the oldest of this huge bubble are 4 million folks who turned 65 last year. And, we have another 18 years to go!  READ MORE →

How to Create a No-Equity Partner Position in Your Firm

It may be the answer to keeping talented people.

by Gary Adamson, CPA

Most firms are faced with the dilemma of keeping long term managers who are major contributors to the firm but for whatever reason are not ready to be equity partners (or who perhaps never will have what it takes to be equity partners).

Here is a seven-point outline of what the no-equity position looks like, how it differs from the normal equity partner spot and some considerations to implement it in your firm.

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Seven Pearls of Wisdom for the New Managing Partner

A thankless job: Divide, conquer and delegate.

Most CPAs are thrust into the managing partner role with little or no training or coaching. Who teaches you to be an effective managing partner? How do you know if you're performing well?

Your partners won't tell you. If you're new to the job, do you just do it the same way as your predecessor? Is that the best approach for the firm? Who will mentor you?

Gary Adamason, longtime managing partner of Dayton, Ohio-based, BradyWare, has been there, done that, and come back with a few wise words:

More at CPA Trendlines: What a Coach Can Do for You  |  How to Balance the Six Jobs of Managing Partner  |  The Partner Compensation Checklist  |  How CPA Firms Make Money in Turbulent Times

There are not too many places to turn for help. Whether you are new or a veteran, here is an approach to organizing the job with a focus on dividing and conquering and delegating when necessary. READ MORE →

What a Coach Can Do for You – and Your Firm

Five tough questions and five good tips to take your firm and your personal effectiveness to the next level.

Gary Adamson, former managing partner of Brady Ware CPAs, has become a living legend in the profession for taking his firm from a small, local player to a regional contender. But he's the first to admit he didn't do it alone. Coaching helped. In fact, during his career at the firm, he used two business coaches.

More from Gary Adamson at CPA Trendlines: How to Balance the Six Jobs of Managing Partner  |  The Partner Compensation Checklist  |  How CPA Firms Make Money in Turbulent Times

He learned a lot, and now he's sharing what he learned with CPA Trendlines.

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How to Balance the Six Jobs of Managing Partner

You run the job, or it runs you over.

by Gary Adamson
Adamson Advisory

Most of us are thrust into the managing partner role in our firms with little or no training or coaching. Who teaches you to be an effective MP? How do you know if you're performing well?

Your partners won't tell you.  If you're new to the job, do you just do it the same way as your predecessor? Is that the best approach for the firm? Who will mentor you?

As I can attest from experience in running my firm for over 20 years, it is a thankless job. I just took a deep breath and jumped in. The best feedback that most of us get is from other managing partners and from benchmarking ourselves against other firms. There are not too many places to turn for help.

Whether you are new at the job or a veteran, here is an approach to organizing the job into six buckets that will help you. It is how I approached the responsibilities and it lends itself to dividing and conquering with the ability to delegate some responsibilities.

Here are my six buckets: READ MORE →

The Partner Compensation Checklist

It's a process.

by Gary L. Adamson
Adamson Advisory

There is a constant topic of conversation both inside firms and at almost every conference. It is the age-old question of partner compensation and “how do you do it”. As our firm grew, we evolved from everyone is equal, to the “slip of paper” approach, to a more goal driven, performance based system. Every firm is a little bit different but the issues surrounding how you split the pie are pretty consistent.

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How CPA Firms Make Money in Turbulent Times

Rosenberg Survey uncovers the power of leverage.

by Gary L. Adamson
Adamson Advisory

The universal measure of profitability in accounting firms is average income per partner. Another universal tool is the annual Rosenberg National MAP Survey. It's a must-have for running your firm.

In the latest survey, Rosenberg identifies his "elite" firms, which are the 54 that had income per partner of more than $500,000. Not bad considering it is based on 2009 economic data—from the middle of the recession.

It's interesting, if you dig into the data in the survey, you will find that these 54 aren't just the biggest firms, although as Rosenberg puts it, bigger is better in terms of profitability. In fact, 24 of them are in the $2-$10 million fee range and three are sole proprietors.

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