most tax and accounting firms are falling behind in their operating practices and processes, according to a new survey.
and, astoundingly, they know it and admit that it may take them years to catch up.
rosenberg survey uncovers the power of leverage.
by gary l. adamson
adamson advisory
the universal measure of profitability in accounting firms is average income per partner. another universal tool is the annual rosenberg national map survey. it’s a must-have for running your firm.
in the latest survey, rosenberg identifies his “elite” firms, which are the 54 that had income per partner of more than $500,000. not bad considering it is based on 2009 economic data—from the middle of the recession.
it’s interesting, if you dig into the data in the survey, you will find that these 54 aren’t just the biggest firms, although as rosenberg puts it, bigger is better in terms of profitability. in fact, 24 of them are in the $2-$10 million fee range and three are sole proprietors.
start with planning and coaching.
by steve erickson
steve erickson llc
improving partner and staff accountability is essential in these economic times.
review notes and backward looking evaluations might well have some influence on future performance but do not have any impact on what has already taken place. there is a better way to get to get your partners and staff to take ownership and agree to be accountable.
here’s how you can immediately improve accountability and performance in your firm: read more →
and five areas where innovation will produce significant results
by l. gary boomer
accounting firms generally are not who you think of when you mention “innovation,” yet many firms excel at innovation and there is a pattern to their success.
even a few hours a week to start will be a big relief, from the creator of the accountant’s accelerator.
and dozens of possible solutions from staffers…
at a recent staff workshop, there was a brainstorming session to answer some key questions about what constitutes excellence in client service. four questions were placed on the table:
1. how can we make it easier for our clients to do business with us?
no, you don’t own your clients.
by jason m. blumer, cpa/citp
founder, thriveal +cpa network
chief innovation officer, blumer & associates cpas
i’m learning a lot these days. for instance, i’ve learned the value of where my real assets are found.
an australian colleague said he doesn’t call his clients “his” anymore. that is, he has realized something that many of us in the business are slow to accept – your clients are not your property and you do not own them. ouch.
why do i believe this?
before we hit some practical aspects to this truth, 
let me discuss the deeper reasons for this new belief. with the accountancy revolution, i’m seeing that clients, or customers as i like to call them, have the freedom to make their own choices for their service providers. and i now believe this deeply.
you can’t do it without your marketing director.
by august aquila
aquila advisors
research shows that managing partners and marketing directors are still facing some major challenges when it comes to getting their firms to implement change. why? read more →
three essentials to making it work: entrepreneurial spirit, leadership skills and knowledge.
by paul rich
rothstein kass
if your goal is to be a “firm” (rather than a collection of sole practitioners) with the potential for significant growth, maximization of revenue and profits, the “one firm” model should start upon the commencement of business operations.
here’s something we should have known before the banking crash…
the new practice management discipline.
by august aquila
aquilaadvisors.com
no profits no mission, as one of my partners is fond of saying.
while leadership, balanced life, outstanding client service and efficient processes are critical for success, they mean nothing if the firm is not sufficiently profitable to make investments for the future and compensate performers. i want to focus on ten ways to make your practice more profitable.
these ten areas form the basis of my practice operational review. read more →
a framework for action.
if trust has been broken in your accounting firm—and given the great recession, odds are, it has been—you must start now to rebuild it.
michelle and dennis reina, authors of “rebuilding trust in the workplace: seven steps to renew confidence, commitment, and energy” (berrett-koehler, 2010), recommend a seven-step process, drawn from two decades of research, for healing and rebuilding trust.
to be sure, the seven-step process isn’t a silver bullet. but it may provide a framework for leaders to demonstrate courage and to take concrete, constructive, and compassionate action. read more →
work/life balance proves essential to recruiting, retaining staff.
by rick telberg
if that cpa working next to you appears stressed out by the job, take a long, hard look because you may not see him or her again in the future.
while cpas in all walks of the profession are strained and face tough workloads, those feeling the greatest stress and workplace demands are more likely to be seriously in the market for another job. at any given moment, according to my studies, about one on three cpas would consider changing jobs, even it meant a pay cut, in exchange for better working conditions. among the most stressed-out cpas, the ratio of job seekers jumps to about half.
so it’s imperative for managers of cpas to offer state-of-the-art workplaces if they want to retain hard-to-find staff. read more →