tax & accounting profession grows, but wages don’t
tax prep and payroll services are exceptions.
by beth bellor
pay & compensation
how to boost profits by (omg) sharing the upside
workers of the world unite.
by bill penczak
about a decade ago, the managing partner of our $100 million firm and i were discussing compensation and commission for our five business development professionals. he and i were in complete agreement that there should be no cap on commission or compensation – even if that compensation level with their base and commission was at par with or even exceeded that of the partner group.
more: 12 points of a good compensation plan | rate managing partners in six areas | eight ways managing partners make a real difference | five reasons that leaders fail | eleven things partners must do | seven keys to becoming an equity partner | how to achieve partner unity | the seven building blocks of a great partnership
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“if they’re making money, we’re making money,” he said. “why would i want to limit that?”
anyone who agrees with that premise should continue to read below. if not, feel free to move on to the next 卡塔尔世界杯常规比赛时间 article or the ny times short crossword.
bill penczak: stop forcing smart people to do stupid work
challenge your people and keep the work interesting or risk losing them.
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the disruptors
with liz farr
too many accounting firms have “smart people doing stupid work,” according to bill penczak, a veteran sales and marketing professional. the founder and chief insights officer for mica ventures said to think about the effort it takes to get an accounting degree and get your cpa, and contrast that with the years of mindless work that many new hires are required to do, especially if they go into audit, he said. “one of the reasons why there’s such a talent shortage is because the market has figured this out,” and no one wants to do that stupid work, penczak said.
more podcasts and videos: sandra wiley: staffing problem? check your culture | scott scarano: first, grow people. then firm growth can follow | jody padar: build a practice that works for you, not vice-versa | ira rosenbloom: with m&a, nobody wants a fixer-upper | peter margaritis: the power skills every accountant needs | joe montgomery: find the sweet spot of the right clients, right services and right prices | marie green: your bad apples are ruining you | megan genest tarnow: hire for curiosity rather than compliance | clayton oates: one way to keep clients for life | randy crabtree: follow these three rules to keep employees happy | erik solbakken: yes, you can work less and make more | donny shimamoto: future firm growth requires a mindshift | jennifer wilson: empower young workers to build the firm everyone loves | mike whitmire: re-think your hiring and training practices | hector garcia: success strategies of a quickbooks youtube superstar | blake oliver: why tax work yearns to be free| private equity explodes in u.k. | brannon poe: the status quo must go | accounting nerds, unlock your super powers | disruptor: jason statts shakes up the status quo | think small to think big with matt wilkinson | when financial statements go extinct with corey schmidt | can geraldine carter save accountants from themselves? | re-inventing accounting with tyler anderson
besides making smart people do stupid work, penczak said many of the firms he works with are realizing that they need to do a better job with mentoring and career development, as well as simply having more conversations with their people.
tax and accounting pay advancing at 5.9% pace
payroll services hours take some wild swings.
by beth bellor
11 best practices for partner compensation
bonus: seven systems to allocate income … and who uses them.
by marc rosenberg
how to bring in new partners
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: fifteen steps to new partner buy-in | what buying in actually means | how partner and staff actions impact profits | nuts and bolts of mentoring staff | nine ways to measure staff performance on the path to partner | sixteen duties of a partner | five people to keep out of partnership
best practices and key concepts
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.
- performance-based. there should be a strong link between pay and performance. when it comes to cpa firm performance and profitability: as the partners go, so goes the firm. the partners have a much greater impact on the firm’s success than professional staff and other personnel. if they perform at a high level, the firm will do the same. if partner performance lags, then the firm will suffer. therefore, the firm needs to motivate the partners to produce at high levels and reward them accordingly. compensation isn’t the best way to motivate anyone’s performance, but it is effective.
accounting jobs up 4% for year
payroll services up over 7 percent.
by beth bellor
卡塔尔世界杯常规比赛时间 research
employment in the accounting profession continues to climb, according to the most recent federal jobs data. new highs were set in
- employment overall and for staff, cpa firm staff, payroll, payroll staff, bookkeeping and women
- earnings overall and for staff, and for payroll staff
total nonfarm payroll employment rose by 339,000 in may, with the unemployment rate ticking up by 0.3 percentage point to 3.7 percent. the professional and business services sector added 64,000 jobs, similar to april.
read more →
nine standards for partner compensation
plus six questions to ask about your plan.
by august j. aquila
what makes a great partnership
ever wonder what the most appropriate partner compensation system is for your firm and how to assess partner performance?
more: 12 points of a good compensation plan | rate managing partners in six areas | five ways to keep your edge as a leader | managing partner: the toughest job in the world | why partners need written goals | eight criteria for partnership | how you can get partners to change
a firm’s compensation system is a reflection of its culture and external competitive factors. when was the last time you gave your partner compensation system a checkup?
read more →
12 points of a good compensation plan
how to reward partners.
by august j. aquila
what makes a great partnership
during the last 13 years i have focused a large part of my practice on helping firms develop compensation plans. a critical element in keeping partners engaged is having a compensation system that rewards them for doing the right things. here’s what i found to be some of the best practices.
more: rate managing partners in six areas | eight ways managing partners make a real difference | five reasons that leaders fail | eleven things partners must do | seven keys to becoming an equity partner | how to achieve partner unity | the seven building blocks of a great partnership
- every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. if a firm’s plan does not accomplish these objectives, it needs to be restructured.
16 steps to creating a partnership path
bonuses: 12 questions to ask staff about the future. advancing from staff to senior to manager.
by marc rosenberg
how to bring in new partners
“i think nothing is more important than what a firm does to create partners. i mean from day 1 of someone’s career. or maybe when a person is identified as a star. it’s critical what the firm does to nurture that person so that they become a partner someday.” – harry steindler, partner, michaelsilver (chicago)
more: nine ways to measure staff performance on the path to partner | three types of skills you need to become a partner | seventeen basic expectations of partners | nine ways to woo a prospective partner
here is what the best firms do to create a path to partnership. these practices are not ranked strictly, but items at the top of the list are more common and effective than those toward the bottom. however, all the items are important.
read more →
how do you value your most important asset?
yes, your employees.
by steven e. sacks
the new fundamentals
skills, abilities and experience are the elements recruiters use to assess candidates who come before them. but what is interesting is despite a skill set playing a dominant role in the value that an employee brings to the organization, it may not be recognized as such. this is not a new concept. i came across research conducted in 1918 by harvard university, the carnegie foundation and stanford research center.
more steve sacks: how to build a winning proposal | six ways to fix your firm agreement | the great resignation or a reshuffling? | listen to learn | build the framework to a solution with five answers | try for success, not a win
the study discovered that almost 95% of job success comes from having well-developed soft skills (better referred to as life skills ) and people skills, while only 5% of job success comes from technical skills and knowledge — hard skills.
cpa firm wages surge 9%
in payroll, employment is up, but earnings are down.
by beth bellor
卡塔尔世界杯常规比赛时间 research
want an easy way to make employees happy? give them more money – and that’s just what’s happening in the latest jobs report.
more: accounting staffs grow 4%; pay rates surge 8% | headcounts grow 5%; pay rates surge at 7% pace | cpa staff wages hit new high and keep climbing | firms battle staff shortages with pay hikes | tax & accounting firms beef up wages and headcounts | employee counts, earnings rise
except for payroll services, all tax and accounting sectors are seeing higher earnings year over year. overall pay was up 6.7 percent, with cpa firm staff pay close behind at 6.6 percent. cpa firms beat the national 7.7 percent inflation rate, increasing hourly earnings by a heady 9.2 percent.
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rosenberg invites partners to join comp study
results to help firms determine changes for their partner income allocation systems.
top trends ’23: look who’s making money now
partners’ percentages surge substantially.
by 卡塔尔世界杯常规比赛时间 research
the rosenberg map study
financially, it’s been a good year for accountants – especially at the partner level.
more: outlook 2023: compensation gets creative | what new leaders want in ownership | getting partners to accept a new pricing philosophy | survey results: partners rejoice on surging fee growth | headcounts grow 5%; pay rates surge at 7% pace | fourteen rules for lateral partner hires
revenues are up. the income per partner (ipp) is up. profitability is up. firms that qualify as “elite” are more elite than ever. and, yes, size matters.