Are Partners Getting Younger?
CPA Trendlines
For the last dozen or so years, the number of partners over age 50 has steadily climbed upward, but now that’s changing, according to the new Rosenberg MAP survey.
partner
Making Partner: Today’s 15 Essential Skills and Traits
Do you have what it takes? Bonus: Six boxes to check off, and seven tough questions.
By Marc Rosenberg
What is the right stuff to earn a promotion to partner? This is one of several questions that if asked of ten partners from different firms, you may get ten different answers.
MORE: Why You Might Want an Executive Committee | How to Specify Managing Partner Duties | When Votes Must Be Taken, What Are the Options? | Ownership Percentage and Capital Accounts | 5 Key Reasons to Have a Partner Agreement
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I have worked the following script dozens of times at partner retreats: I ask the group what it means to be a partner and write their responses on a flipchart. When we’re done, one of the partners yells out “Oh no. None of us qualifies!” And because the truth is often said in jest, this retort is no joke.
Why Non-Compete and Non-Solicitation Covenants Matter
BONUS: A sample agreement.
“Non-compete” and “non-solicitation” are two terms often used interchangeably. Though they are similar, there are important differences.
MORE: Why You Might Want an Executive Committee | How to Specify Managing Partner Duties | When Votes Must Be Taken, What Are the Options? | Ownership Percentage and Capital Accounts | 5 Key Reasons to Have a Partner Agreement
For the sake of brevity, we use the term “non-competes” to refer to both covenants.
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Why You Might Want an Executive Committee
10 specific duties.
As firms evolve in size, many things need to change.
MORE: How to Specify Managing Partner Duties | Handling Pay During the Disability of a Partner | Why Voting Isn’t Such a Big Deal | What’s in a (Firm) Name? | Protect Your Business with a Solid Partner Agreement
One of the biggest changes over time is how the firm is managed.
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Partner Incomes Hit $430,000 per Year
Income per Equity Partner, one of the top measurements of overall firm profitability, is rising for the fourth year in a row. Take a look at the findings in the new Rosenberg Survey and see what metrics drive profitability. Learn more here.
6 Questions for Planning Your Succession
Make your planning spell SUCCESS.
By August J. Aquila
It’s no surprise to anyone thinking about retiring or selling a practice today that the number one issue they face is finding someone to take over the practice.
MORE ON GREAT PARTNERSHIPS: 7 Issues in Partner Retirement Planning | Solving Underperforming or Dysfunctional Partners | The 3 Types of Partners You Need | How MPs Can Make a Real Difference | 5 Reasons That Leaders Fail | 11 Things All Partners Must Do | Why Partners Need Written Goals
There is a definite shortage of buyers and those who are buying are becoming more and more selective. Many firms will find that it has now turned into a buyers’ market.
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The Toughest Job in the World: Managing an Accounting Practice
5 tips for better firm management.
By August J. Aquila
What Makes a Great Partnership
Wanted: Managing Partner
Requirements: Unique individual who can lead a group of independent-minded professionals; keep some semblance of normality; deal with super egos, unproductive partners and dysfunctional partners; grow the business, stay competitive in a rapidly changing and unfriendly environment, and figure out how to compensate everyone fairly. Interested parties should send resume and salary requirements to Box AA.
Why would you want this job?
MORE ON GREAT PARTNERSHIPS: Do Your Partners Pay Their Own Way? | 7 Keys to Becoming an Equity Partner | How and Why to Achieve Partner Unity | How You Can Get Partners to Change | Are You Driving Your Best Partners Crazy? | 7 Warning Signs for Your Firm | Don’t Weed Out the Roses | Back to Basics: 25 Ways to Grow Your Practice | 3 Ways to Halt a Poor Leader | 8 Financial Ducks to Line Up Now
Managing a practice today has never been more difficult, but it doesn’t mean that it’s impossible or not rewarding. It all depends on your focus and your willingness to solve the important problems at hand.
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11 Things All Partners Must Do
It comes down to this: What does being a partner mean?
By August J. Aquila
What Makes a Great Partnership
Partners are the culture in a professional service firm – what they believe, what they reward, what they do and how they do it determines what and how things get done.
MORE ON GREAT PARTNERSHIPS: Do Your Partners Pay Their Own Way? | How to Become the Firm of Choice | Five Factors for Measuring a Partner’s Value | Why Accountability Counts | Communication Goes Both Ways | 6 Ways to Pay Partners | 8 Questions to Analyze Your Pricing
But one of the problems we consistently hear about is the lack of clarity in what being a partner means. And in the absence of clarity, the partners typically fill the gap by doing what they think it means, with all of the differences of thought and behavior that inevitably brings. It’s these differences in behavior that result in firms failing to maximize their potential.
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Partner Comp Pearls of Wisdom
Don’t forget how you got where you are.
By Marc Rosenberg
Partner Comp: Art & Science
During my 20-year consulting career, I have been privileged to meet many amazing managing partners, who were very generous in sharing their knowledge with me. I wanted to share them with you.
“The best way to make a lot of money is to build a great team beneath you.”
Rosenberg’s take: Eat-what-you-kill may work out fine for small firms, and may maximize short-term earnings for all firms. But CPA firms operate much more effectively and profitably with the one-firm concept, with all firm personnel working as a team.
MORE ON PARTNER COMPENSATION: Paying for Current vs. Historical Performance | Partner Pay in Retirement Transition Period | How to Pay Non-Equity Partners | How Large and Small Firms Allocate Income | Partner Pay: Recapping the Compensation Systems | 3 Tiers of Compensation | Partner Compensation: An Art, Not a Science
“If you’re weak at client service and good citizenship, you flunk and you’re out.”