By Marc Rosenberg
The Rosenberg Practice Management Library
When managers become new partners, they face numerous changes. Those include some things they’re entitled to … and not.
You’re an owner. As such, you get paid based on the firm’s earnings, not as an employee.
MORE: The 17 Rules for Making Partner at a CPA Firm | Who Shouldn’t Be a Partner? | Nine Reasons People Are Promoted to Partner | How to Make Partner
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You pay for your ownership. New owners in any business must pay money to acquire their ownership. At CPA firms, this is called a new partner buy-in. Because CPA firms have a substantial street value, it’s reasonable that new partners should be required to purchase their interest in the firm.