In response to our question: “Is there a better way? The answer, according to our Commenters, is a resounding yes!
“In the latest CPA Trendlines Research Update, firms seem to be focused on profitability like never before. And they seem to be relying on only three strategies: 1) Timesheets. 2) Timesheets. And, 3) Timesheets.
To be sure, some firms have avoided the time-keeping rut. But many others have nothing left in their toolkit. They’ve already made all the cuts they can in partners and staff, overhead and leases, expense accounts and club memberships. Some have even gone too far and are now dialing back. And many firms are looking to improve profitability with new clients and new, higher-margin services. But here, too, this takes time and some good luck.
So most firms seem to be looking more closely than ever at realization, utilization, staff-to-partner ratios — the nuts-and-bolts of CPA firm economics. If there’s a better way, please let me know by email or in Comments below.
– Rick Telberg
CPA Trendlines
President, CEO
Maybe there is, indeed, a better way…
Here are some comments, including some from the cross-post at Linkedin:
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