five keys in compensating new managing partners
plus five things the other partners should expect from their leader.
by marc rosenberg
the rosenberg practice management library
salary
top 20 tough choices for the partner comp committee
production isn’t all that matters.
by marc rosenberg
the rosenberg practice management library
increasingly, cpa firms are adopting the compensation committee system for allocating partner income. firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work.
more: voting on ownership basis? three better methods | what partners do and don’t deserve | tell potentials what partnership takes | fifteen big questions for your next strategy session | five steps to transition to partnership | disturb the present to improve the future
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if there is one overarching cause for this significant trend, it’s that firms are understanding that their partners need to be something more than production machines. in addition to bringing in business, managing a client base and working billable hours (all of which continue to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork. the compensation committee is one of the best systems available to cpa firms to allocate income based on this diverse array of performance criteria.
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staff wages hit record high
their bosses aren’t seeing the same increases.
by beth bellor
卡塔尔世界杯常规比赛时间 research
going into the new year, the average american is doing somewhat better. earnings are up a bit; unemployment is down a bit.
more: despite staffing crunch, firms freeze pay raises | tax & accounting firms grow for 9th straight month | tax & accounting profession grows, but wages don’t | tax and accounting pay advancing at 5.9% pace | accounting jobs up 4% for year
for employees in the tax, accounting and bookkeeping business, things are more complicated. pay for employees overall? usually down, way down. but pay for staff in every sector? all-time highs.
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despite staffing crunch, firms freeze pay raises
millennials say compensation isn’t the most important thing. employers say, “heard.”
by beth bellor
suppose you’re a leader in a field that has fretted for months over staff shortages. would you put on your thinking cap, plug it in for a while and come up with… frozen pay?
more: tax & accounting firms grow for 9th straight month | tax & accounting profession grows, but wages don’t | tax and accounting pay advancing at 5.9% pace | accounting jobs up 4% for year
strangely enough, that’s what the latest tax and accounting profession earnings data show. compared to previous months, the trend is stagnant or even down. the only bright spot was in payroll services staff, which also added bodies – but cut hours.
(how’s that song go? if it weren’t for bad luck?)
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tax & accounting firms grow for 9th straight month
bookkeeping is playing the tortoise game.
by beth bellor
bit by bit, the accounting profession is growing. despite a staffing shortage. despite an uncertain economy. despite everything, tax and accounting firms are steadily adding to headcounts.
more: tax & accounting profession grows, but wages don’t | tax and accounting pay advancing at 5.9% pace | accounting jobs up 4% for year
as tax and accounting professionals begin planning for the year ahead, the 卡塔尔世界杯常规比赛时间 research team is fielding a new survey to check the pulse of the profession, detect emerging trends, and identify the best success strategies going into 2024.
join the survey. get the results.
click here to launch the 10-minute survey.
according to the latest data mined by 卡塔尔世界杯常规比赛时间 research, new highs were reached in september in employment overall, staff, cpa firm staff, bookkeeping, women overall and women in cpa firms. staff also hit a new mark for hourly earnings.
staff need good pay and tlc
they’re scarce. here’s how to keep them happy.
by 卡塔尔世界杯常规比赛时间 research
it’s no news to the accounting industry that staff and professionals are hard to find and hard to keep from wandering off to some other firm.
more: survey: accountants economic outlook brightens | the 7 categories of cybersecurity solutions firms need | understanding the full cost of a data breach | research: accounting pros cautiously optimistic about generative ai | how auditors can beat ai | why the u.s. must act now to protect our online privacy
and the law of supply and demand hasn’t failed to rule, according to the global talent trends 2023 survey of the association of chartered certified accountants: scarce employees expect a good salary, good treatment and a chance to work outside the office.
identifying and dealing with these employees’ expectations is essential to a continuous and successful flow of business. the survey found five challenges to that flow.
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tax & accounting profession grows, but wages don’t
tax prep and payroll services are exceptions.
by beth bellor
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
“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.
subscribe to 卡塔尔世界杯常规比赛时间 podcasts anywhere: apple, google, spotify, iheart, deezer, amazon music and audible, player fm, audacy, gaana (india), and boomplay (africa).
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.
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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?
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