When Managing Partners Can’t

Word "fail" written in red markerFour ways to make sure managing partners will fail.

By Marc Rosenberg
The Rosenberg Practice Management Library

There is an intuitive notion that comes to partners that goes something like this: “Let’s all get together and form a firm that will make us all more successful than any of us could be individually. We’ll follow the principles of democracy by dividing up the management duties so that no one is overburdened. The partners will make decisions as a group, thereby avoiding vesting too much power in one person.”

MORE: Don’t Let Exiting Partners Double Dip | The 13 Signs You Have a Partner Problem | COVID-19, Adversity and Innovation | How Covid Impacts Partner Retirements |  Three Tough Questions in Partner Buyouts | Is Mandatory Retirement a Best Practice? | COVID-19: How Your Firm Can Respond
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Management by committee is doomed to fail. This list refutes the excuses partners often give for favoring management by committee.

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Political Correctness or Just Common Courtesy?

Latina businesswoman using earpiece with businessmen in backgroundWill you be ready when the demographics shift?

By Steven E. Sacks
The NEW Fundamentals

The 2016 presidential campaign had been engulfed in the battle for and against political correctness. What people thought but never verbalized – at least in a large company of people – had made the art of conversation more difficult. College campuses, the bastions of higher learning and the incubator for dissenting opinions resulted in additions to our lexicon, with such terms as “safe places” and “trigger warnings” in order to preclude the rise of “micro-aggression.” Legislation is trailing the changes taking place in the LGBTQ community, and decades after protective laws were passed, there still exist hostile work environments for women and minorities.

MORE: Effective Communications in the Age of COVID | Why Proper Communication Is Critical | How to Create Effective Internal Communications | How to Select Your Firm’s Board | Trust Is a Key Organizational Ingredient | Real Influence Vs. Immediate Gratification | Fake It ‘Til You Make It: An Ultimate Goal? | 4 Ways to Boost Job Satisfaction | Have You Gauged Your Staff’s Enthusiasm? | Why Knowledge Maintenance Is Key
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Today’s college students are exposed to greater on-campus diversity than in the days of my contemporaries, so one would think that there would be greater understanding and flexibility in human interaction. This really is not the case. If students think that tough challenges exist on campuses, wait until they graduate and enter the real world.
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Top 4 Personality Traits of Successful Accountants

Two partners celebrating business success outsideDo you agree?

By Hitendra Patil
Accountaneur: The Entrepreneurial Accountant

For years, I have been interacting with accounting firm owners and partners day in, day out from firms of all sizes, all over the country, and catering to a wide variety of industries and professions.

MORE ON ENTREPRENEURIAL STRATEGY: Client Accounting Services Poised to Surge in Post-Corona World | 20 Ways to Grow Your Firm in 2020 | 3,771 Accountants Help Uncover CAS Success Secrets | A.I. vs. Auditors | How to Be Ready for Real Artificial Intelligence | How Accountants Can Ride the Artificial Intelligence Wave | Blockchain: What You Need to Know Now
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Some have been in practice for several years. Some are just starting. But all of them are seeking success at the top of their agenda.
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The No. 1 Reason Accountants Fail To Build Advisory Practices

Shift your mindset for COVID-era client services. Stop thinking about selling and start thinking about helping.

By Ty Hendrickson

What is the number one reason that accountants get stuck providing transactional services?

Mindset.

Now, I’m not one of those gurus that preaches mindset and how if you want something in your life, all you have to do is visualize it. That’s not the mindset I’m talking about here. I’m talking about the mentality that accountants “feel bad” for charging someone for their expertise and advice.

MORE: The REAL Problems Created in a Remote Workforce |  Can You Really Grow Without Adding Clients? | 4 Reasons to Welcome Rejection |

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While this is not a new problem, it has bubbled to the surface amidst the Covid-19 crisis. In the vast majority of my conversations with firm owners recently, I hear the same line over and over again, “I’ve spent so much time talking to my clients about loans and explaining their options that I’ve hardly gotten any tax work completed. Now, I have to charge them $1,000 for those conversations, and I just don’t feel like I can do that because I know the financial situation they are in right now. I feel bad.”

What?!?!

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The Forecast: Partly Gloomy, Chance of Doom

Almost three in four accountants now foresee a deeper downturn for the U.S. economy.

It gets worse: Almost 25 percent of accountants forecast a “much worse” outlook for the nation’s economy over the next 12 to 18 months. And another 48 percent predict “somewhat worse.” (CPA Trendlines Research)

BUSY SEASON BAROMETER:
How accountants are battling the Coronavirus recession
Join the survey. Get the answers.

By CPA Trendlines Research

New CPA Trendlines 2020 Busy Season Barometer results bear bad tidings for CPA firms, their clients, and their families. The forecast is not good. Accountants know numbers, and the numbers they are seeing do not bode well.

MORE BUSY SEASON 2020: Busy Season Benchmarks in Free FallFIinal RS eFiling Stats: The End of Tax Season? | Say Hello to the New 24-Month Busy Season | 9 Big Ways the IRS Could Help Accountants | The Mystery of 10 Million Missing Tax Returns | Tax Pro E-Filings Down 20 Percent | IRS Web Traffic Doubles over Year-Ago | COVID Drowns IRS in New Filings |   Percent | IRS Web Traffic Doubles over Year-Ago | COVID Drowns IRS in New Filings | 2020 Tax Season Comes to a Screeching Halt | The Tax Season 2020 Dumpster Fire | Tax Pros Fall Behind 6.2% in Returns Filed
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As the U.S. braces for a summer surge in coronavirus infections, the economy is crashing – with GDP down at an annual rate of 33 percent last quarter, and a 10 percent drop from the first quarter – the worst declines in more than 70 years of record-keeping. And new jobless claims in the latest week rose by 867,000 to 17 million.

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Are You Your Biggest Obstacle?

Young man facing image of himselfSelf-reflection is useful. Self-criticism, less so.

By Bill Reeb

A couple of years ago, when I was consulting onsite with the executive team, one of the managers pulled me aside and asked me for some personal advice. She said, “I am thinking about asking to go part time because the stress of this job is really getting to me. What do you think they will say?”

MORE: Why We Risk Change | Work ‘Better,’ Not ‘Harder’ | What a Pro Knows | Don’t Let Opportunities Become Detours | COVID Crisis Requires New Mindsets | What Are You Giving Priority? | Don’t Let Others Block Your Path
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I told her that I thought they would be willing to do whatever she wanted. But then I added, “What are the owners or your direct boss doing to create this stress?” Here was the conversation that followed:
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