partnership

You Probably Have Too Many Partners

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man sitting at desk, staring off thinking

Average collected rates are only part of the equation.

By Domenick J. Esposito
8 Steps to Great

More often than not, CPA firms support too many partners relative to the firm’s revenue, profitability and its anticipated growth rate. That usually means, too, that the partners are doing a lot of work that could or should be done by staff.

MORE by Domenick J. Esposito
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Look at the average revenue per partner for the mid-market sustainable brands and you will see that the trend is to get more done with fewer partners, more staff and more effective use of technology.
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Non-Equity Partners: Why Have Them?

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10 sample provisions.

By Marc Rosenberg

In a CPA firm, the equity partners are the “drivers.” They bring in business, retain clients by providing great service, lead others and develop staff into leaders. They drive the firm’s revenues and profits. Their talent, leadership skills, personality and work ethic enable the organization to achieve excellence.

MORE: Making Partner: Today’s 15 Essential Skills and Traits | Why Non-Compete and Non-Solicitation Covenants Matter | 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
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All organizations need drivers to excel beyond the competition, to exceed being average. Sports teams, governments, charities, orchestras and yes, CPA firms all need drivers. An organization that lacks drivers will slide to average or worse, mediocrity.
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6 Questions for Planning Your Succession

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August Aquila: "Holding on too long is the most serious sin you can commit."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
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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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Are You Attracting the New Breed of Equity Partners?

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Businesswoman shaking hands with someone out of view7 tactics to address the “new normal.”

By Domenick J. Esposito
8 Steps to Great

There’s no argument within the accounting profession that today’s economy is anemic, margins are squeezed and talent, particularly tax talent, is very scarce.

MORE ON STRATEGIC PLANNING: Stay Independent But Keep Looking Upward | 10 Ways to Link Compensation and Strategy | Develop Home-Grown Future Leaders | How to Capitalize on the Trusted Business Advisor Opportunity | Leadership Must Be Persistent and Consistent
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On top of that:

  • The philosophies of: (a) finders, minders, grinders and (b) an accounting firm model (principally low-margin compliance services) are no longer sufficient and probably are counterproductive to the perpetuation of a firm.
  • Clients have the upper hand in their accounting firm relationships.
  • Technology will continue to create a lesser demand on lower-level staff.
  • It is widely believed that Google and Microsoft will soon become fierce competitors for certain compliance services.

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Is It Time for a Partner Compensation Tune-up?

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Six questions to ask, nine standards to follow.

By August J. Aquila
What Makes a Great Partnership

Ever wonder what the most appropriate partner compensation system is for your firm and how to assess partner performance?

MORE ON GREAT PARTNERSHIPS: The 3 Types of Partners You Need | 6 Focuses for Managing Partners | 10 Steps to Transitioning to a New MP | What Managing Partners Should Be Doing | 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 | Why Expectations Must Be Defined | Are You Driving Your Best Partners Crazy? | 7 Warning Signs for Your Firm
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A firm’s compensation system is a reflection of its culture and external competitive factors.

When was the last time you gave your partner compensation system a checkup?
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