the partnership

13 traits of the best managing partners

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senior businessman with his team at officethat smile, that teamwork? genuine.

by marc rosenberg
the role of the managing partner

i have worked with over a thousand cpa firms during my 20-plus years of consulting. i’ve worked closely with hundreds of them. the 80/20 pareto principle certainly applies here: 20 percent shine brightly and are worthy of adulation. (managing partners, please, please, don’t call me to ask if you are in the 20 percent or the 80 percent group. i’ll plead the fifth!)

more: top issues for millennial managing partners | 44 hard-earned tips from new managing partners | how to enforce the partner agreement | the 9 biggest merger pitfalls | 10 ways to hold partners accountable | make sure partners focus on two things
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today, i’ll share with you the traits of those managing partners who, in my opinion, were the best.
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comp: what new partners don’t know

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businessman sitting on scales with stack of coins in other traybest practices: top firms use these seven systems for allocating income.

by marc rosenberg
the rosenberg practice management library

it would take a book much longer than this post to properly explain the finer points of partner compensation, especially how each of the major compensation systems works.

(oh, did i forget? we wrote such a book, cpa firm partner compensation: the art and science.)

more: making partner: 15 steps to the buy-in | making partner: do the math | a crash course in the business of public accounting | making partner: what managers need to know | nine reasons people are promoted to partner
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as is the case with all of my lists, no one firm incorporates all of these practices in its partner compensation policy.

but i have observed all of the practices below in one or more of the best firms i’ve worked with over 20 years.
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making partner: 15 steps to the buy-in

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also: common practices, impact of ownership percentage and alternate buy-in methods.

by marc rosenberg
the rosenberg practice management library

let’s go over structuring a new partner buy-in step by step.

more: making partner: do the math | there are two kinds of accounting firms | how to get promoted to manager | the 17 rules for making partner at a cpa firm
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we’ll start by calculating goodwill. and we’ll finish with signatures. read more →

top issues for millennial managing partners

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group of four young professionalsbonus: six ways to prepare for the role.

by kristen rampe
the role of the managing partner

the next wave of cpa firm leaders is here, and millennials are already making the best of this role as leaders in smaller firms.

more: 44 hard-earned tips from new managing partners | partner compensation: a potent weapon | how long should it take to make partner? | the managing partner’s role in mergers | five ways to evaluate partners | manage partners with goal setting
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

to understand and share the perspective of this up-and-coming group, we interviewed eight millennials who are relatively new to the position of managing partner.

revenue for the firms averaged $2.3 million, with two equity partners and a total fte headcount of 15. some of their views on the role of the managing partner were traditional, while others were somewhat unconventional. this group is pioneering some interesting changes because they are less restrained by historical approaches.
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tell managers what ownership means

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younger businesswoman and older businessman smiling and talking in office hallwaydon’t assume they see the benefits.

by gary bolinger

not long ago, i was in a firm meeting with several partners and senior managers. the plan for the meeting was for me to provide an update on current and emerging issues facing the profession and firms. the issue of succession planning came up (as it frequently does). i had been scanning the room to attempt to determine who was really tuned in and who was just warming the chair they were sitting in.

more: clients: what accountants don’t understand | why accountants fail at consulting | advisory vs. low-value clients | what + who leads firms to better service | how accountants are profiting in disruption | ask the right question(s) | seven elements of engagement for cpas | true advisory work isn’t just consulting
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a senior manager had caught my attention because he seemed intent on learning and understanding what was shaping his chosen profession. so, i took the opportunity to bluntly ask if he was interested in being an owner in the firm. i got a raised eyebrow from some of the partners. they obviously thought i was asking a question with a rather obvious answer. but …
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making partner: do the math

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man looking at 5 keysfive times when ownership percentages shouldn’t come into play… and alternatives.

by marc rosenberg
the rosenberg practice management library

accepting a partnership invitation offers two terrific, lifetime benefits to new partners that, for most people, cannot possibly be matched in any other career pursuit.

more: there are two kinds of accounting firms | drive your profits with only four metrics | a crash course in the business of public accounting | how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
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if they don’t see this and agree with it, then perhaps it would be unwise for them to accept the partnership offer.

let’s do the math.
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44 hard-earned tips from new managing partners

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//m.g005e.com/2021/07/08/advice-from-new-managing-partners/

everything from gaining credibility to where to turn for help.

by marc rosenberg
the role of the managing partner

the toughest lessons for new managing partners have nothing to do with taxes, accounting, or even textbook management. it’s all about people – such as people issues and handling partners, according to our straw poll survey of a handful of top-flight firm leaders.

we gleaned comments from 10 relatively new managing partners. eight are from firms with revenues from $10 million to $30 million and two are from $5 million to $10 million firms.

more: partner compensation: a potent weapon | the managing partner’s secret weapon | how a good managing partner impacts profitability | how a great managing partner impacts firm growth | clarify partner expectations | exceptional managing partners offer their advice
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

we posed three questions to the new managing partners:

  1. what advice would you give a new managing partner?
  2. what were your greatest challenges when you became a managing partner?
  3. if you had to do it over again, would you approach your ascension to the managing partner job differently? in what ways?

their responses tell us as much about how to do the job well as how to fail at it.

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there are two kinds of accounting firms

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maze with word "plan" at the centerwhich one is yours? bonus: the 25 best practices of the most successful firms.

by marc rosenberg
the rosenberg practice management library

there are two kinds of cpa firms.

the first kind of firm argues that there is not much that needs to be managed at a cpa firm. these cynics might say: “come on. running a cpa firm isn’t rocket science. you hang out your shingle. you get clients. you hire staff. you do the work. bill and collect. what needs to be managed?”

more: drive your profits with only four metrics | a crash course in the business of public accounting | how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

unfortunately, many cpa firm partners think this way – maybe not consciously, but it has the same effect.

when firms learn that the lack of commitment to firm management shown by this attitude creates problems, they often hire consultants like me to help them address these types of issues:
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drive your profits with only four metrics

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accounting firm econ. 101, including a sample income statement.

by marc rosenberg
the rosenberg practice management library

all businesses have economic structures unique to their industries:

  • grocery stores are high volume, low-profit margin.
  • real estate ventures use accelerated depreciation and other tax angles to generate cash flow and healthy rois.
  • professional sports teams focus on increasing the value of the franchise so it can eventually be sold for a gigantic profit.

more: a crash course in the business of public accounting | how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the typical cpa firm is a low-volume, high-priced business, with a relatively high-profit margin (generally 30-45 percent of revenue).

why your billings are ruining your firm

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businessman sitting on scales with stack of coins in other traydo you see managing partner as a part-time role? if not, don’t treat it like one.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

question: about a year ago i became the managing partner of my 50-person, six-partner firm. we gross about $7 million. i still maintain my book of business, which is about $1 million, and have 1,000 chargeable hours.

more: get more done by saying no | make cpe worth your while | are you marketing for 2022 yet? | don’t fire that staffer on may 18! | what to do with a lousy client? | stop drowning in client documents | employee demands a raise she doesn’t deserve | but i am managing! | make more money starting now
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

needless to say, i have been working very hard, about 2,700 total hours, yet my partners are complaining i do not have enough chargeable time and i tend to agree with them. how i can increase my chargeable hours?
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a crash course in the business of public accounting

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woman looking at computer screen, man looking over her shouldercommon services, practice areas, and position titles.

by marc rosenberg
the rosenberg practice management library

personnel in any organization, from widget manufacturers to hospitals to baseball teams to charities, work with more enthusiasm and commitment when they genuinely feel part of the organization.

more: how to get promoted to manager | how to create a path to partner | making partner: what managers need to know | the 17 rules for making partner at a cpa firm | who shouldn’t be a partner? | nine reasons people are promoted to partner | how to make partner?
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

when people understand how they fit into the overall scheme and what their role is and grasp the essentials of how the organization operates, they produce higher quality work and are more energized.

cpa firms are no exception.

and it starts with the partners:

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make your plans count: 1-2-3

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graph with arrow going upwhat do you want to have happened six months afterward?

by kristen rampe

a well-planned retreat can have a real impact on your firm’s performance.

more: team expectations: a checklist for busy season | tax season savvy: five ways to stay sane | why host a partner retreat? | effective stay interviews for cpa firms | the 16 biggest #fails in delegation  | work-life balance: according to whom?  | new survey results: two ways your strategic plan can reduce turnover
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a $2.4 million client of ours who holds annual management retreats (sole practitioner, coo, and key managers) wrote with this news when reflecting on their year-over-year improvements:

you would love our stats…

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partner compensation: a potent weapon

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if the executive and compensation committees aren’t one and the same, they at least should have heavy overlap.

by marc rosenberg
the role of the managing partner

does compensation motivate partner performance?

i’ve done a lot of research on this over many years. the short answer: yes, money motivates performance, but it’s often not the best motivator.

more: the managing partner’s secret weapon | how to enforce the partner agreement | the 9 biggest merger pitfalls | 10 ways to hold partners accountable | make sure partners focus on two things | how the managing partner manages the partners
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the managing partner can best impact partner performance by the following:
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