pay & compensation

4 first steps to the right partner comp system

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how to become and remain competitive in the marketplace.

by robert j. lees and august j. aquila
creating the effective partnership

the challenge in designing the right system for the firm’s context is ensuring it motivates the partners to deliver the initiatives the firm needs to be successful.

if compensation is supposed to motivate and reward productive behavior and outcomes, and discourage non-productive behavior and outcomes, then you must ask yourself, “how well are we doing?”

we don’t claim that our recommended system is perfect since we know that the perfect compensation system does not exist. we do feel, though, that it encompasses the critical elements needed for leaders to better engage and reward partners.

we believe that if a firm wants to maximize its performance and keep its partners motivated and engaged, then it needs to design a compensation plan, which includes the following elements: read more →

partner retirements and buyouts: today’s 24 major deal points

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what 80% of firms agree on.

by marc rosenberg
the rosenberg survey

if partner compensation is the single most critical and sensitive aspect of cpa firm practice management today, then a close second is partner retirements and buyouts – the money partners receive for the purchase of their ownership in the firm when they retire or leave the firm due to death, disability, withdrawal or expulsion.

the amount of money involved is quite significant.  roughly 80% of all firms consider the value of the firm to include: read more →

solving the partner compensation puzzle

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start with this 20-item checklist.

by marc rosenberg
author of “cpa firm management & governance“

if you ask the partners, they will tell you that the most critical and sensitive aspect of cpa firm practice management is the allocation of partner income.

because of the sensitivity of partner compensation, firms change various aspects of their allocation system quite often.  for this reason, the smart firms include wording in their partnership agreements on partner compensation that is very short and quite general.  this way, the firm doesn’t have to revise the partnership agreement every time a change is made.

it’s a complicated task. there are seven different systems in use today, three basic tiers, a couple ways firms are calculating bonuses, and at least a dozen other items to ponder and work through.

here is a checklist of decisions that the best firms are making to determine the compensation of each partner:

read more →

accounting firms launch new war for talent

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firms are hiring, and many staffers are thinking about a job change.
get more details, join the survey.

by rick telberg
卡塔尔世界杯常规比赛时间

now five years since the banking crash that forced record layoffs at tax and accounting firms, new survey results from 卡塔尔世界杯常规比赛时间 research show intensifying competition for talent, with more than 42% of accountants reporting that their firms are hiring and about half of all staffers ready to make a move.

chris hatcher
chris hatcher

“there’s a labor shortage out there,” according to chris hatcher, a partner at louisville, ky., baldwin cpas. “finding good talent is hard.” hatcher says baldwin cpas is looking for professionals with ambition, which he defines as an “owners  mentality.”

in this report, 卡塔尔世界杯常规比赛时间 research:

– reports the percentage of firms hiring, cutting or holding steady on headcount in the next six to 12 months;
– gathers comment from a representative sample of professionals on key economic and business trends; and
– analyzes latent discontent in the ranks of staffers,
– propensity to seek a job change, and
– overall confidence in the job market. read more →

accounting industry extends two-year growth trend

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but cpas lag behind non-cpas.

get the accountants’ business outlook: join the survey; see the results.

by rick telberg
卡塔尔世界杯常规比赛时间

screen shot 2013-08-06 at 7.34.21 pmthe tax and accounting industry is extending a two-year expansion by adding 2,500 new jobs in the latest month, according to 卡塔尔世界杯常规比赛时间 research.

in this report:

  • employment trends for the public accounting, bookkeeping, tax and payroll sector of the economy.
  • licensed cpa firms are lagging in growth behind non-cpa accounting providers.
  • employees book more hours.
  • but wage growth gets cut back.
  • more jobs and better pay for higher-paid positions and for men; fewer new jobs and smaller pay increases for women and production workers.
  • cpa firms add to headcounts more slowly than non-cpa firms, grant lower pay increases, and hire back fewer women.

read more →

‘unprecedented demand’ for accounting grads

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screen shot 2013-06-19 at 1.37.07 pm

cpa firm hiring tops 40,000 for first time ever.

by rick telberg

bolstering reports of a suddenly surging profession with a high demand for top talent, a new survey of colleges and firms by the aicpa shows that cpa firms are hiring a record number of graduates.

at the same time, the pipeline of accounting students is bulging, suggesting to some that the continuing high demand for new recruits can be met by newly minted graduates for the next few years.

this will come as good news to firms facing growing new-business opportunities, tougher competition and a growing need for entry-level staff.

it does not, however, help alleviate the catastrophic stall in growth dating back to the 1990s with the spread of the so-called 150-hour rule that has left the profession with a gaping hole in its succession and business continuity strategies. the profession, already facing a succession crisis due to the aging-out of the baby boomers, now finds itself with a dearth of 40- and 50-something senior managers and junior partners to take over management and control – a fact that a record supply of new graduates won’t correct for 10 or 20 years, if ever.

 

screen shot 2013-06-19 at 1.36.23 pm

the good news for hiring: pipeline fills with huge supply of talent.

the report shows: read more →

comp plans for the new managing partner

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lessons from the best-managed firms.

by marc rosenberg
author of “cpa firm management and governance: the managing partner’s guide to running a cpa firm like a business.”

baby boomer partners are rapidly approaching retirement age, resulting in a dramatic increase in new managing partners at firms.

in fact, 卡塔尔世界杯常规比赛时间 estimates that up to 25% of multi-owner firms are operating under managing partners who are relatively new to the job, with tenures under three years. and over the next five years, one-third of multi-owner firms will undergo a change in ownership and/or control. read more →

finance and accounting professionals forecast improving job prospects through 2013 [pro member exclusive]

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rebound in confidence after two quarters of decline.

next question: what’s your best career advice? join the survey; get the answers.

a leading measure of overall confidence among u.s. finance and accounting workers, rose 5.4 points to 55.8 in 4q 2012 — ending a two-quarter decline, according to new data reported by 卡塔尔世界杯常规比赛时间.

the new survey finds growing confidence in job availability and in workers’ personal employment situations, despite continued tepid sentiment in the strength of the economy.

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.

read more →

what new accounting grads want from your firm

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survey of college professors provides clues for successful recruiting.

internships and social networks speak loudest when new college accounting graduates weigh their first jobs offers, according to a new public accounting report survey obtained by 卡塔尔世界杯常规比赛时间.

the study ranks the relative importance of factors to students when choosing a job offer, including:

  • access to latest technology
  • compensation and benefits
  • desirable location or geographic base
  • long-term career opportunities
  • technical reputation
  • the firm’s long-term business outlook
  • the firm’s quality of life in terms of an employee-friendly environment
  • whether the offer is from a big four firm
  • workplace diversity

and the survey reveals the companies and cpa firms soon-to-be graduates are hoping to join:

  • a company in private industry
  • any big four firm
  • any top 25 firm
  • a local firm
  • bkd
  • deloitte
  • e&y
  • grant thornton
  • kpmg
  • pwc

the survey also shows how many undergrads have actually worked in a public accounting firm before graduation, and the top 10 corporations would recommend as employers. but the most closely followed part of the survey are the rankings  of the top 25 undergraduate accounting programs.

the responses are tabulated in the following charts with analysis by the survey’s author:

read more →

2013 trends in starting salaries in finance and accounting

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business demand drives hiring, new competition for talent.

special to 卡塔尔世界杯常规比赛时间

fueled by new demand from business clients, cpa firms of all sizes are looking to expand audit and tax practices and pursue new new market segments, according to a fresh report on the accountant jobs market. (pro members: get the full report, courtesy 卡塔尔世界杯常规比赛时间.)

read more →