Professionals worldwide rely on CPA Trendlines for exclusive, actionable intelligence to identify and act on emerging issues and opportunities…
By Ida O. Abbott
Sponsoring Women: What Men Need to Know
If you are concerned about the possibility of sex-related problems, consider the degree of risk involved and whether you are willing to assume it.
Before you decide, consider
- first that you might be exaggerating the risk, and
- second that this is a risk that can be prevented and managed.
MORE ON SPONSORING WOMEN FOR LEADERSHIP: Use Others to Promote Your Protégée | 8 Ways Sponsors Can Highlight Opportunities | 17 Ways Sponsors Can Help Protégées | What Sponsors Need from Protégées | 3 Ways to Derail Sponsorships | Keep Close Relationships From Getting Too Close | 4 Reasons Women Hold Themselves Back | 4 Ways Sponsors Can Help Women Seek Power | Judged on Performance, Not Potential? Must Be a Woman | Gender Bias Still a Problem | Why Women Are Overlooked (And How to Fix It) | Women Need Promotions, Not Just Advice | 4 Ways Women Leaders Improve Firms | CPA Firms Must ‘Man Up’ and Get Women On Board
By Marc Rosenberg
CPA Firm Mergers: Your Complete Guide
Why do firms merge?
Whether you’re looking to acquire a smaller firm, merge upward into a larger one or join forces with an equal, answering this basic question honestly and objectively is key to laying the groundwork for a successful merger.
Foot-dragging firms lose out on best candidates as hiring trend forces wages upward.
By CPA Trendlines Research
The tax and accounting industry's new growth spurt is leading to increased volatility in the ranks, with a surge in the number of CPAs looking for better jobs and firms scrambling for talent, according to CPA Trendlines Research.
In this report, CPA Trendlines covers:
- Current hiring trends in each of the bookkeeping, tax, payroll and CPA segments of the industry, indicating growth and shrinkage among sectors.
- Average hourly wages for key segments, with trends in employee pay rates.
- Typical hours worked per week, showing utilization and productivity.
- Trends concerning women in the workforce, including hiring rates.
Today 28% of employees report they could change jobs in the next few months, up from a preceding12-month average of 19%, according to CPA Trendlines Research. This comes as 57% of firms say they are adding to their rosters, with only 39% holding steady and 6% cutting staff.
"We need to continue to build depth," says Jim Lewis, managing shareholder at KPM CPAs in Branson, Mo. "Staff isn't as loyal as in the past, so turnover continues to be a problem."
At the Xponent group n LaGrange, Ill., founder Catherine Riddick reports "business is growing and we need additional staff to handle the workload."
At Vine Dahlen in Lynnwod, Wash., Becky Mackenstadt reports, "We are currently looking to fill about six positions." She adds, "We offer a great variety of career options. You get to interact directly with clients quickly. And we have a great client base to work with."
Jodi Chavez, senior vice president of Accounting Principals, says that right now, accounting is one of the fields where there are more openings than candidates. The better news? "We don’t see any indication that it is lightening up."
In the CPA Trendlines tracking poll, a manager at a smaller regional firm said they will be adding as well, “Because my firm had significant turnover in the past year and a half of experienced staff.” Calling it “a great place to start with a fantastic culture,” the same manager noted that because they specialize in a few industries, “our scope of work is somewhat limited.”
Specialization is a positive elsewhere. A manager at one large firm said they will be adding staff because of “growth in certain sectors, especially healthcare IT transformation.”
Employers also may be taking advantage of the large number of candidates to do some weeding out they couldn’t afford when times were worse.
A metro Atlanta firm noted, “We have to replace a couple positions that we had laid off non-ideal staff from,” and a manager elsewhere said, “We have assessed our needs after this past tax season and hired new individuals to replace others that were not productive.” READ MORE →
Attest, M&A and SALT lead top trending niches.
Accounting Today's annual listing of its Top 100 firms reflects what the industry as a whole is seeing: Business is good and it's getting better.
Overall growth was a healthy 8.44 percent, similar to but slightly higher than recent years.
Firms with revenues between $100 million and $1 billion outpaced the others in growth mode, although mergers had a great deal to do with that.
The most difficult challenge cited was – no surprise – recruiting and retaining qualified staff, especially those with three to five years of experience. Pressure is being put on the talent pool by retiring Baby Boomers only exacerbates the problem. Tools to counter it include: READ MORE →
By Roman H. Kepczyk
Quantum of Paperless
One of the revolutions in remote connectivity is happening within your cell phone, as digital cellular providers have beefed up and expanded their networks to provide reliable Internet access to remote devices.
MORE ON TECH SPENDING: When Is the Last Time You Renegotiated Your Internet Rates? | Remote Access Boosts Productivity, Requires Planning | Get Ahead of Your Software Updates | Blame Accounting Vendors: Accountants Stuck with Outdated Versions of Microsoft Office | Ready or Not, Here Comes Windows 10 | Back Up and Check Your Backup | Cloud Computing Can Cost Less | Laptop-Only Workers More Common | Scanners Allow Data Capture at the Source | In PC Monitors, More Is Better
It is anticipated that in the next few years, the vast majority of the U.S. and Canada will be able to access the Internet through the 4G digital cellular network at speeds of 1Mpbs or more, which is adequate for remote access to most applications, particularly those hosted by cloud providers.
CPA Trendlines joins with The Succession Insititute to launch new Practice Management Resource Center for firms of all sizes.
CPA Trendlines is pleased to offer growth-minded firms a vast new set of resources through a special alliance with the Succession Institute LLC.
The Succession Institute LLC provides firms with educational and advisory services in CPA firm management, leadership development, succession management, and practice development.
The program is led by two of the profession's most distinguished advisors, Bill Reeb and Dominic Cingoranelli, who bring a world of experience to CPA firms, having practiced and consulted for their entire careers.
Reeb is one of the profession's leading luminaries in his own right, active as a member of the AICPA, including service on the board of directors, and consistently ranked as one of the profession's most influential visionaries.
We're thrilled to have them as partners. And we're sure you will be too.
– Rick Telberg
President / CEO
PS: Don't miss their first CPA Trendlines column here:
Job 1 for The Practice Owner: Client Management
By Ed Mendlowitz
The CPA Trendlines Practice Doctor
QUESTION: Do you have any advice to someone preparing to sell their practice?
MORE PRACTICE DOCTOR Q&A: How Much Should You Pay To Buy, Sell or Merge an Accounting Practice? | When Is It Time to Merge? | 8 Times When Hourly Billing Trumps Value Pricing | 10 Do’s and Don’ts for Making Small Business Clients Happy | 10 (Nearly) Painless Ways to Keep Up to Date with Technology | 5 Time Management Tips for an Overworked Accountant | Complaining Client? No Wonder! | Running an Accounting Business | Pricing, Billing, Costing: Don’t Blame Clients
ANSWER: Here are some things to do when preparing to sell your practice:
READ MORE →
Plus how to handle partners who want to opt out.
By Marc Rosenberg
Retirements & Buyouts
How do mergers impact a firm’s partner retirement plan?
MORE ON BUYOUTS: Why 30% of CPA Firm Retirement Plans Are Defective | Are Partner Buyout Plans Just Ponzi Schemes? | Clawback and How to Handle It | Can Partners Compete After They Leave? | Disability Is Far More Complex Than Death | Mandatory Retirement? 4 Reasons The Firm Comes First | How to Transition Clients from Retiring Partners | Vesting Can Cover Part-Timers, Too | Eat What You Kill? Then Maybe ‘Book of Business’ Is for You | The Multiple of Compensation Method, Fully Explained | 5 Points to Consider When Paying Out Goodwill | How to Set Terms and Limits for Goodwill Payouts | 4 Ways to Decide How to Pay Out Capital
These suggestions propose verbiage that could be included in the firm’s partner agreement: READ MORE →
Rethink how you communicate.
By Jody Padar
The Radical CPA
Social should be in your DNA. Identify the communication gatekeepers in your firm.
Do you want everybody in your firm tweeting? It’s a good idea — just like you have all your firm members representing your firm wherever they are.
MORE ON RADICALISM: 5 Radical Ways to Be Social AND Strategic | How I Got Started Being Social | How Social Media Transforms Firms to their Core | Six Competitive Advantages for The Radical CPA | Radical Customers Are On Their Way | 5 Radical Transparencies; Are You Ready? | 4 Questions Radical Firms Must Face | Being Radical Is All About Your Customer | Going Radical: The 4 Tenets of a ‘New Firm’ | Why Should CPAs Be Radical? | The Roots of ‘Radical’ CPAs | The First 3 Questions I Should Have Asked Before Starting My Own Practice
A lot of firm owners are hesitant to let younger members tweet because they are concerned about content. My response is if you can’t trust your younger members to tweet or put responsible things on Facebook, then what are they saying about you when they’re not online? That’s a hiring issue, not a social media issue. READ MORE →