the essence of cpa firm profitability

what mickey mouse can teach accountants about accounting.

by marc rosenberg, cpa
author of the rosenberg map survey

it has been said that organizations should never have profitability as a goal. why? because profitability should be the result of an organization’s efforts, not its goal. profitability is a measure of success in accomplishing core business goals. the disney corporation probably says it best in their mission statement, which is short and sweet, but very powerful: “our mission is to make millions happy.”

related: compensation issues for the new managing partner | 20 decisions for your firm’s new partner compensation committee | 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” | more…

disney super-pleases parents by creating hundreds of quality movies and lovable characters children grow up with and adore, and by creating theme parks that tap into our fantasies and imagination.

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3 money leaks that may need plugging in your business

why we do it and what to do about it.

by sandi smith, cpa
accountant’s accelerator

everyone is looking on the income statement to find places to cut their business expenses. but the best place to look is not on a report.

it’s in the habits, processes, and procedures that you and your team do through your work day. it’s also in the mindsets, the inner game you bring to your work.

sandi smith

more from sandi smith at 卡塔尔世界杯常规比赛时间: seven tips to keep the clients you have  how to attract clients like a magnet  eleven easy ways to deliver more value to clients five things accountants take for granted that costs them revenue  • what’s in your new client funnel?  • what’s in your welcome kit for new prospects?
• five fun and easy ways to wow your clients  • six ways to give yourself a raise  • strategies to stop losing business to competitors
• five tips to manage your ‘overwhelm’ level  • easy ideas for a quick business boost  • four new mega-trend marketing strategies  • how to stop leaving money on the table

here are my top three money leak sources for you to look at and see what you can find:

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how to identify your firm’s core values

and some examples to consider.

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

core values are the attitudes and beliefs that define a firm’s culture and a critical ingredient in a successful compensation plan.

 

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

partners talk about the firm’s core values all the time, pointing out instances when someone’s behavior has clearly been impacted by them. these values are incorporated in processes throughout the firm, such as in the development and evaluation process, in the way income is allocated to partners, and in what raises are given to staff.

when identifying your firm’s core values, consider: read more →

when a partner is unwilling to help

maybe the problem is you.

here at 卡塔尔世界杯常规比赛时间, ed mendlowitz answers some of the toughest questions practitioners can throw at him. he’s the right one to ask. after more than 40 years in the business – building his own practice, running the firm, and eventually selling it to a major regional firm, withumsmith+brown, where he remains a senior partner and consultant to professional services clients – he has the answers. we’re happy to have him at 卡塔尔世界杯常规比赛时间. send your questions for ed here, or chime in with comments below.

meanwhile, browse more from ed here: what to do when you lose your biggest client  |  congratulations! you bought a tax practice. now what? | how accountants can keep the business when a client wants to sell theirs | 10 reasons clients don’t pay, and what to do about it | 13 reasons timesheets will never die |

— rick telberg
president / ceo

question: my tax partner gives me a hard time when i ask her for assistance.  is there anything i can do to get her to be more responsive?

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give employees freedom and creativity to get results

mark c. thompson
mark c. thompson

examples from nokia and bechtel.

by mark c. thompson

setting and maintaining goals is a fundamental part of our lives, but also one of the most challenging. two companies which do it better than most are proctor & gamble and nokia: they work with their customers to set mutual goals so they can achieve joint outcomes. this is a great way to do business.

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what a coach can do for you – and your firm

five tough questions and five good tips to take your firm and your personal effectiveness to the next level.

gary adamson, former managing partner of brady ware cpas, has become a living legend in the profession for taking his firm from a small, local player to a regional contender. but he’s the first to admit he didn’t do it alone. coaching helped. in fact, during his career at the firm, he used two business coaches.

more from gary adamson at 卡塔尔世界杯常规比赛时间: how to balance the six jobs of managing partner  |  the partner compensation checklist  |  how cpa firms make money in turbulent times

he learned a lot, and now he’s sharing what he learned with 卡塔尔世界杯常规比赛时间.

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ten do’s and don’t’s for performance reviews that work

the art of giving and taking feedback for a happy office.

by rick telberg

we’ve been asking accountants and finance managers how well their offices use feedback to keep folks happy. it’s clear that a little do-and-don’t advice seems in order for some of the nation’s accounting firms and finance departments.

our sources report some pretty big problems on the do side. out of seven questions in a cpa trendlines study, five showed that fewer than half the accounting and finance offices nationwide were doing what they should be doing all (or most) of the time.

more for 卡塔尔世界杯常规比赛时间 pro members on management skills:

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for instance, feedback offered on behavior — rather than on personality: only eight percent of managers do it all the time, and only 37 percent do it frequently. a full 20% do it rarely or never at all. ouch! whoever’s doing the feedback could use a little feedback themselves.

so here goes:

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firms at strategy session find their ‘rock stars’

top talent strategy session
cpa firm decision-makers hammer out the best clues to identify partner-potential professionals and how best to recruit, develop and retain them at a strategy session in milwaukee.

hint: it’s not about how smart they are or hard they work.

by rick telberg

how do you spot the hidden rock stars on your staff?

and what do up-and-coming tax, accounting and finance professionals need to know to get ahead in today’s profession?

rick telberg leading the strategy session
rick telberg leading the strategy session

these aren’t idle questions. many firms and individuals are struggling with these issues right now. but don’t take it from me. just listen to the decision-makers from a dozen firms i met with in a milwaukee hotel recently. the mission: learn how to deal with a looming new staff shortage. some took away solid action plans. “our firm,” said one, “is trying to develop our rock stars and this showed me we need to be doing more.” another said, “excellent! it gave us the details and the ‘how-to.’”

green team's top talent indicators notes
green team's top talent indicators notes

interestingly, the milwaukee group’s conclusions and recommendations closely parallel our related research findings. so we can be fairly certain that we’ve obtained some of the profession’s favorite strategies.

you could probably adapt one of our methods for your firm. in milwaukee, we divided the group into two teams, the green team and the blue team. after some preliminary coaching, each team hammered out a list of the top five talent indicators – the clues in an employee’s behaviors and attitudes that demonstrate the highest likelihood of the best roi for a firm’s time, energy, and money in training, coaching and mentoring. then the group filled several flip chart pages with their lists and hashed them out with each other. after identifying the key indicators, we moved on to identifying the best strategies for recruiting, grooming and retaining top talent.

blue team's top talent indicators notes
blue team's top talent indicators notes

by far, the top predictive indicator across all firms is the trait, “they are always trying to improve.” it comes in a few flavors or variations. for instance, the green team at the milwaukee strategy meeting favored a passion for “continuous learning.” the blue team preferred, “they do ‘extra credit’ – things that the partners wouldn’t normally expect from someone at their level.” but they add up to the same thing.

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how to balance the six jobs of managing partner

you run the job, or it runs you over.

by gary adamson
adamson advisory

most of us are thrust into the managing partner role in our firms with little or no training or coaching. who teaches you to be an effective mp? how do you know if you’re performing well?

your partners won’t tell you.  if you’re new to the job, do you just do it the same way as your predecessor? is that the best approach for the firm? who will mentor you?

as i can attest from experience in running my firm for over 20 years, it is a thankless job. i just took a deep breath and jumped in. the best feedback that most of us get is from other managing partners and from benchmarking ourselves against other firms. there are not too many places to turn for help.

whether you are new at the job or a veteran, here is an approach to organizing the job into six buckets that will help you. it is how i approached the responsibilities and it lends itself to dividing and conquering with the ability to delegate some responsibilities.

here are my six buckets: read more →

13 reasons timesheets will never die

ed mendlowitz

nor should they.

by edward mendlowitz, cpa
partner, withumsmith+brown

time sheets are an essential part of any professional services organization. some people contend that they should not be maintained since they should not be the basis of any pricing – that fees should be solely based on the value to the client. i disagree.

editor’s note: timesheets, billing, cost accounting, value and pricing strike at the core of the accounting firm business model. for more on the topic, see:
14 steps to find the right “value price,” by bruce w. marcus
you may be value-billing but don’t know it, video with terry putney
why the next boom could be the worst thing that ever happens to accountants, with ron baker

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