here’s what you’re looking for: marc rosenberg

leadership

compensation issues for the new managing partner

five factors to consider in their new compensation plan. and five key responsibilities for the new managing partner.

by marc rosenberg, cpa
author of how to operate a compensation committee

baby boomer partners are rapidly approaching retirement age, creating a huge demographic shift. one result of this is a dramatic increase in new managing partners at firms.

many firms are skipping a generation and turning the reins over to “younger” partners. firms are also asking their new mps to divest themselves of a significant part of their client base to enable them to focus more on managing the firm.

how should the new mp be compensated?

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pay & compensation

20 decisions for your firm’s new partner compensation committee

partners need to be something more than production machines. [checklist included.]

by marc rosenberg, cpa

increasingly, cpa firms are adopting the compensation committee system for allocating partner income.  firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work.  when we compare the usage of the compensation committee today to 5 years ago, the increase in usage ranges from 16% to 26%.

if there is one overarching cause for this significant trend, it’s that firms are understanding that their partners need to be something more than production machines.  in addition to bringing in business, managing a client base and working billable hours (all of which continue to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork.  the compensation committee is one of the best systems available to cpa firms to allocate income based on this diverse array of performance criteria.

more marc rosenberg practice management trends and guidance: three ways to break partner gridlock in an accounting firm  | what partners are entitled to, and what they’re not entitled to | how to make partner?  |  why accounting firm partners are “popping prozac like m&m’s”  |  the 15-item checklist for your next partner retreat |  five key responsibilities for a new partner  |  planning a partner retreat for real results  |  6 steps to get your business to the next level  |  the 10 biggest mistakes in reading map statistics  |  re-engineering partner accountability  |  marc rosenberg: why cpas aren’t making more money [video]  |  marc rosenberg: slow learners need not apply  |  10 to-do’s for a partner buyout

when firms begin operating their new compensation committees, there is a lot of initial confusion and bewilderment about how to get started.  for example: read more →

pro member exclusive

three ways to break partner gridlock in an accounting firm

when one-partner, one-vote isn’t working. 

by marc rosenberg, cpa
author of how to bring in new partners

most firms vote on a one-person, one-vote basis despite varying ownership percentages.

more marc rosenberg practice management trends and guidance: what partners are entitled to, and what they’re not entitled to | how to make partner?  |  why accounting firm partners are “popping prozac like m&m’s”  |  the 15-item checklist for your next partner retreat |  five key responsibilities for a new partner  |  planning a partner retreat for real results  |  6 steps to get your business to the next level  |  the 10 biggest mistakes in reading map statistics  |  re-engineering partner accountability  |  marc rosenberg: why cpas aren’t making more money [video]  |  marc rosenberg: slow learners need not apply  |  10 to-do’s for a partner buyout

but is that always the best way? here are three better ways.

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leadership

what partners are entitled to…

…and what they’re not entitled to. 

partners are entitled to a lot. at some firms, they are virtually royalty. but that’s no way to run a firm these days.

here, marc rosenberg, cpa, and author of how to bring in new partners and a 卡塔尔世界杯常规比赛时间 affiliate, lists what every partner – especially new and wanna-be partners – need to understand.

more from marc rosenberg:  how to make partner? | why accounting firm partners are “popping prozac like m&m’s” | the 15-item checklist for your next partner retreat | five key responsibilities for a new partner | planning a partner retreat for real results | 6 steps to get your business to the next level | the 10 biggest mistakes in reading map statistics | re-engineering partner accountability | marc rosenberg: why cpas aren’t making more money [video] | marc rosenberg: slow learners need not apply | 10 to-do’s for a partner buyout

a partner is entitled to:

1. attend partner meetings and retreats.

2. have access to all confidential firm financial data.

3. receive a return on capital; repayment of capital when he/she leaves the firm. read more →

leadership

the 15-item checklist for your next partner strategy meeting

how to focus on the big issues.

by marc rosenberg, cpa
guide to planning the firm retreat

most firms spend their time at retreats planning for the future, forming goals and addressing pressing issues and problem areas. the problem areas aren’t day-to-day issues such as purchasing a new copy machine or revising the policy on sick days. the problem areas are more strategic: morale issues, recruiting problems, profitability, etc.

here are some specific examples: read more →

pro member exclusive

planning a partner retreat for real results

and why the best firms make them regular events.

by marc rosenberg, cpa
author of guide to planning the firm retreat

retreats are critically important to a firm’s success.

a retreat provides an opportunity for key people to meet off premises to plan for the future, devise strategies, form goals and address problem areas. another objective of a retreat is less tangible, but equally as important: to enhance the quality of the relationships among co-workers and improve communications between them.

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management

the 10 biggest mistakes in reading map statistics

don’t focus on what’s average. be exceptional.

by marc rosenberg
the rosenberg survey

i have never ceased to be amazed at the lack of understanding that partners – including managing partners – have about reading a map survey and computing map statistics. these difficulties prevent partners from properly using a map survey for the purpose for which it was intended: to improve firm performance. here are some of he biggest mistakes i see again and again:

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outlook & analysis

rosenberg survey 2011: cpa firms on rebound

at the typical cpa firm: “the bleeding has stopped.”

revenues at the typical cpa firm are up 1.7%, a slight improvement from the 1.4% increase in the year before, according to the 2011 rosenberg map survey.

still, when the impact of mergers is taken out, the growth rate was only 0.8%. the rosenberg map survey, founded 13 years ago by nationally known practice consultant marc rosenberg, reports on the results of 408 firms, most of which range from $2 million to $20 million in annual fees. nearly 100 metrics are collected and compared.

though the revenue increase is small, the authors say it’s noteworthy because — for the first time in two years — the growth rate increased from the prior year instead of decreasing. “the bleeding has stopped,” they say.

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leadership

marc rosenberg: slow learners need not apply

what little league umpires can teach us about succeeding in today’s competitive market.

to thrive in today’s tough and fast-changing market, accounting firms must become more agile and adaptable than ever before. but what are the characteristics of an agile, adaptable, quick-learning cpa firm?  and how do you get that way?

marc rosenberg
the rosenberg associates

my initial, somewhat amusing (probably just to me) thought was the credo for little league umpires (who in many communities are 14-18 years old):

be mobile.

be assertive.

be loud

it may have more relevance to what follows than either of us might initially think.

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management

annual rosenberg survey: cpa firms feel recession’s chill

six-year culture of abundance ends with a thud, firms re-group, restructure and re-learn how to operate in a culture of recession.

via news release

the cpa profession opened 2008 on the heels of several years of extraordinary growth and profits, hopeful that the economic slowdown would not morph into a recession.  cpa firms ended the year with results most industries would have been happy with.  the full effect of the recession didn’t have a big impact on cpa firms in 2008 because by the time the economic woes surfaced in the 4th quarter, most firms’ revenues were collected, invoiced or booked.  firms with annual net fees over $2 million (referred to as the “over $2m group”) posted the following 2008 results:

  • annual net fee growth was 8.2%, down from 10.8% in 2007. this marks the end of a remarkable six-year run for the cpa profession, triggered by the scandals of enron and others in 2002 and fueled by the multi-billion dollar market created by legislation that followed.
  • average income per partner declined slightly to $365,000 compared to $369,000 the year before. but larger firms’ (over $10 million in annual fees) earnings were down 8% from 2007 due to a drop-off in sarbanes-oxley and internal audit work. however, medium sized firms’ ($2-10 million) profits were up almost 1%.

changes hit the cpa profession like a ton of bricks

“the cpa profession had a great run for these past six years,” said marc rosenberg, creator of the rosenberg survey. “the post-enron climate created a huge surge in demand for cpa firm services, allowing firms to virtually become order takers.  throttled by a historically low supply of experienced staff, partners worked harder than ever before, and the benefits showed up in their paychecks:  income per partner rose 50% since 2003.”

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