MANAGEMENT

Taking steps “little and often” works, but you have to get started.

By Martin Bissett
Passport to Partnership

A big concern in recent years has been how the incoming partners will purchase equity or fund the capital account and exit of a retiring partner.

Much has been written that examines the mathematical complexities of this topic but the bottom line is simple. Would-be partners in the age demographic of 28-42 are part of a generation who are already heavily borrowed in the form of credit card debt, mortgage debt and other forms of personal loans.

MORE: Five Questions About Facing Challenges | The Real Math Behind the Sales Pipeline | Keep Business Development Going During Busy Season | Walk the Commitment Walk | Two Steps Toward Mastering Selling | Thirteen Ways to Show Commitment | Clients Can’t Grow without You | Seven Mistakes in Winning New Fees | How to Develop Your Communication Abilities | Five Questions for Measuring Partner Potential
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Their capacity to borrow in the current economy is extremely limited and it would appear that this will be the environment for the foreseeable future. In turn, banks’ willingness to lend has also been largely withdrawn in recent years.

This has produced a cash impasse that has forced partners to consider gifting equity, especially on the basis of time served in the firm. There is not scope within this piece to give full examination of best practice within this area except to highlight that 72 percent of partners surveyed highlighted that a senior manager’s ability to “buy in” to the firm and assume responsibility for funding the retirement plans of exiting partners was among their top three concerns about passing their practice on to existing employees.
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Twelve things to do before you get busy again.

EDITOR’S NOTE: The end of every busy season means a new beginning for practitioners, which is why we thought this Q-and-A was particularly timely.

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

Question: Do you have any suggestions for the New Year?

MORE: Hold Staff Accountable If You Want Them to Listen to You | When Selling a Firm to Staffers Is Tricky | Courting a Client? Don’t Give Too Much Away for Free | Nine Tips for a Healthier Tax Season | Fifteen Strategies for First-Time Supervisors | Measure Knowledge Gaps (Then Close Them) | Should You Offer Financial Services? | Ready to Retire? Selling Your Practice Is No Strategy | 20 Things You Need for a Business Valuation
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Answer: Checklist of things to do in the New Year:

1. Stop marking SALY next to your New Year’s resolutions. Make one or two big-time life goals resolutions that you will do.
2. Check your personal insurance coverage. Make sure you have adequate uninsured motorist, umbrella, workers compensation at your home and life insurance.

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Concrete steps for effective staff management.

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

Question: My staff doesn’t listen to me. To be able to manage and control my business, I need them to prepare a monthly schedule of what they plan on doing that month. I further need to know each morning if they did what they were supposed to do the previous day, and whether there was anything not done, or anything extra that wasn’t planned on.

MORE: When Selling a Firm to Staffers Is Tricky | Want to Merge? Six Steps to Take | How to Start Providing Family Office Services | Every Accounting Firm Needs Quality Control | No One Listens to You? Change How You Talk | 47 Types of Business Valuation to Provide | Thirteen Things to Consider Before You Sell Your Practice
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My problem is that they don’t give me the schedule and then don’t call or email me to tell me what they did. I really need to know this stuff and can’t figure out how to get them to do it. What can you suggest?
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What to say instead.

By Ed Mendlowitz
202 Questions and Answers: Managing an Accounting Practice

Question: I usually give away too much info at a meeting to get a new client.

MORE: How to Start Providing Family Office Services | Higher Fees to Start: Ten Ways to Make Your Tax Season Better | Three Ways to Start an Accounting Practice | Free Consultation? Not Always | Referral Fee? Forget It | How Much Is Your Tax Practice Worth? | Merge in Lower-Priced Work without Losing Out
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We simply answer too many of their questions during the initial meeting. We don’t know how much info to give away so the possible new client will get hooked and not take the information and run to somebody else.
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