why you need a new partner
plus 27 thresholds and core competencies.
by marc rosenberg
bringing in new partners is vital to keeping your firm strong.
here are some key concepts that are important to understand: read more →
here’s what you’re looking for: marc rosenberg
how to set the managing partner’s compensation
a management stipend keeps the mp “whole.”
by marc rosenberg
partner comp: art & science
many firms, especially under $10 million, have a partner on board with the title of managing partner who in reality functions more as an admin partner. this post only addresses how the true mp should be compensated.
more on partner compensation: how large and small firms allocate income | integrating partner comp with strategic planning | partner pay: the declining importance of book of business | 3 non-performance-based comp systems | 3 subjective compensation systems | partner compensation 101
ok, for those of you dying to know what a true mp is, here’s the scoop. a true mp:
read more →
a startling revelation: 1 times fees is a steal
do the math and don’t be afraid to pay more or ask for more.
by marc rosenberg, cpa
partners in accounting firms are familiar with the rule of thumb that a cpa firm’s goodwill is worth one times fees; however, like many other “rules of thumb,” this notion is often incorrect.
when buyers begin to think about how much they will pay for a smaller firm, they often have the “1 x fees” concept in mind. then, when sellers are bold enough to ask for a price in excess of one times fees, buyers often balk because they feel that the asking price is too rich.
use this white paper to make your case.
10 best practices for setting goals
plus mission statements vs. vision statements.
by marc rosenberg
cpa firm retreats
a mission statement is:
- an overarching purpose or reason for being
- why we exist
- motivating, distinctive and feasible
- action-oriented; it should lead to change and improvement or it has no value
more on retreats: 5 reasons cpa firms are bad at succession planning | staff best practices … for the firm | staff likes and dislikes about the accounting profession | 25 ways to turn good firms into great firms
cpa firms have a very difficult time creating mission statements that are motivating and distinctive. regardless of how hard firms try, most cannot come up with a mission statement that is different from every other firm. for this reason, i advise firms to skip the creation of a mission statement.
read more →
how large and small firms allocate income
how many of these 8 criteria does your firm use?
by marc rosenberg
partner comp: art & science
for purposes of this post, we will group cpa firms according to five different sizes:
more on partner compensation: integrating partner comp with strategic planning | crash course: operating a compensation committee | partner pay: open vs. closed compensation systems | the 3 best partner compensation formulas | 11 points in designing a partner comp system | what partners earn and how they earn it | why most partner comp systems are performance-based
- the big 4. they are the ultimate of sophistication, running their firms as true, colossal corporations, regardless of their legal entity. virtually none of this post relates to big 4 firms.
- the top 100 firms, excluding the big 4. the 100th largest firm was $33 million in 2015.
- multipartner firms from $15 million to $33 million.
- multipartner firms from $5 million to $15 million.
- multipartner firms below $5 million.