outlook & analysis

seven world-tested strategies for coping with fee pressures

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global accountants’ association warns profit squeeze may “the new normal.”

in the face of profit problems for accounting practices worldwide, the international federation of accountants, which represents the world’s national accountancy institutes, is warning the global profession that fee pressures may be “the new normal.”

with many clients around the world “faced with subdued demand” for their products and services, “it’s not surprising to find small- and medium-sized practices facing demands to negotiate fees or cut prices.”

related: fee pressures emerge as worldwide problem

with that in mind, ifac suggests seven strategies: read more →

after an economic pause, the accounting industry restarts expansion engines

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the 卡塔尔世界杯常规比赛时间 busy season barometer
click to join the survey; see the results

but many cpa firms appear to be missing out on the recovery.

by rick telberg
卡塔尔世界杯常规比赛时间  research

the nation’s tax and accounting industry appears to have re-started expansion with new hiring in january, after a two-month pause at the end of 2012 in november and december, according to 卡塔尔世界杯常规比赛时间 research. but the gains appear to be concentrated in non-cpa-owned offices.

analysts are attributing the 2012 year-end economic stall to two major storms which slowed economic activity: one, hurricane sandy, and, the other, congress, which has been gridlocked under a bubble of hot air.

卡塔尔世界杯常规比赛时间 pro members:
get the instant download
full report (pdf, 20 pages), here.

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when is it time to shift your firm from partnership-style to corporate-style governance?

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which is best for your firm?

by marc rosenberg
author of “cpa firm management and governance.” 

cpa firm management styles generally fall into two categories:  partnership and corporate. for the sake of argument, let’s use the terms “partnership” and “corporate” to describe management styles, rather than legal entities such as partnership, corporation, llc, etc.

marc rosenberg
marc rosenberg

more on cpa firm management and leadership for pro members [go pro here]:   not every firm needs a general patton  • overcoming the three biggest obstacles in succession planning at cpa firms  •  cpa firm merger “non-negotiables”   •   the “aha moment” in cpa firm leadership   •  leadership is overrated: it’s good management that makes successful firms •  40 great ways to improve firm profitability  •  four management metrics that fool even the best-run firms  •  19 ways to improve accounting firm profitability • de-bunking the myth about niche marketing for tax and accounting firms •

in this article, we’ll:

  • define each style
  • compare the two styles’ pro’s and con’s
  • explain the concept of “rights”
  • explain the key duties of a partner in a corporate-style firm
  • when a firm needs to think about shifting from partnership to corporate

read more →

not every firm needs a general patton

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but leadership remains crucial to making things happen. by marc rosenberg, cpa the author of “cpa firm management and governance.” every firm asks the question, at one time or another:  do we want the firm managed by a leader, which … continued

19 easy ways to cut costs, find more cash in time for tax season

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start the new year with the resources you need. by sandi smith, cpa accountant’s accelerator could you use a bit of extra cash each month? i think most people would say yes.here are several tips to start your new year with a little more green in your pocket.

sandi smith

more for soloists and small firms from at 卡塔尔世界杯常规比赛时间: more for soloists and small firms:   •    10 tips for creating more energy this tax season  •   take a cue from venture capitalists: your firm needs a brain trust trinity    •   accountants, do you know your opportunity number?    •  five ideas to overcome client price-sensitivity   •    5 mistakes to avoid when seeking new clients  •  3 steps to start running on millionaire time   •  the missing ingredient in your marketing that will make all the difference 

  1. if you bill your time by the hour and sometimes forget to write your time down (i know i’m guilty), put in some extra procedures to capture that time. that’s a big cash drain in your business that needs plugging in 2013. read more →

marketing directors take over succession planning

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or, isn’t this really the partners’ job?

lisa tierney

accounting firm marketers – already tasked with landing new clients and adding new revenue, in addition to recruiting new staffers – are getting a new job: succession planning.

a new survey of 100 marketers shows 35% cite “the identification and development of potential successors for retiring managing partners as their top priority over the next 12 months.”

the new data suggests turnover among managing partners in the next 12 months will be far greater than anyone now imagines and it speaks to the critical inadequacy of incumbent partner teams to deal with the crisis on their own.

the survey was conducted among members of the bkr international network of firms by tierney coaching & consulting. here, lisa tierney reports on the results and the implications.

her report includes data and commentary on:

  • leadership as a top concern for firms
  • five challenges to be considered over the next 10 years
  • how a firm’s success is integral to the effective leadership of its professionals
  • the definition of effective leadership as it applies to the successful firm
  • six key leadership characteristics defined
  • the distinct roles
    • for partners,
    • for seniors and managers, and
    • for supervisors and associates
  • leadership and team building strategies

– rick telberg read more →

accountants chop prices for schedule c’s

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but most other rates are increasing.

in another sign that the profession is pushing through at least some price increases in a highly fee-pressured environment, a new survey reports that professional tax preparers this year will be charging an average of $246, up 6%, for a typical 1040 with a schedule a and a state return. still, the survey finds price pressure for schedule c’s.

the survey shows pricing for the bread-and-butter forms delivered by local independent tax professionals, including:

  • form 1040 schedule c (business)
  • form 1065 (partnership)
  • form 1120 (corporation)
  • form 1120s (s corporation)
  • form 1041 (fiduciary)
  • form 990 (tax exempt)
  • form 940 (federal unemployment)
  • schedule d (gains and losses)
  • schedule e (rental), and
  • schedule f (farm)

the survey also breaks down pricing patterns by region, and adds data on client payment options.

read more →

practice doctor q&a: how to get started in family office services

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ed mendlowitz cpa the practice doctor q and aincluding a sample engagement letter.

question: some of my clients are getting older and are becoming unable to handle their own financial affairs and i have been asked if i could assist them.  what is involved and how do i charge for it?

ed mendlowitz, vpa, pfs, abv, responds: many large firms provide “family office” services.  this is a complete one stop financial service that helps clients manage their money, pay their bills, collect their dividends and interest, and make sure insurance isn’t cancelled, mortgage, car lease or condo fee payments aren’t skipped, and tax payments paid on time.

more from ed: seven ways to increase fees in 2013 | 10 best practices for tax season  | nine healthy things to do during tax season  |  12 reasons to love tax season | free instant download: sample fee schedule for 1040s | ask the geek: a couple great gadgets for saving money on all your other gadgets | three and a half ways to get your own cpa practice |  also: “implementing fee increases” and “the tax season opportunity guide.”

following is a sample engagement letter that i use with clients needing such services. also, this letter provides a detailed description of what the service involves. read more →