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Recruiting New Hires: What You Need to Know

Marc Rosenberg, CPA / December 1, 2020

CPA firms often say their staff is just as important as their clients. A challenge that firms face in walking this talk is the unique personality traits of today’s entry-level staff.  To help us understand today’s young people, our Chicago roundtable convened a panel discussion with luminaries from two of Chicago’s leading universities: Jessica Gagle,…

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How Does a New Partner’s Role Differ from a Manager?

Marc Rosenberg, CPA / November 22, 2020

This is a question that has long perplexed CPA firms. And of course, one reason why it’s perplexing is that you’ll get a different response depending on the firm you ask. On the one hand, the promotion to partner is a major event – both to the firm and the new partner. Generally speaking,  the…

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The 2020 Rosenberg Survey: Takeaways

Marc Rosenberg, CPA / November 6, 2020

The 22nd annual Rosenberg MAP Survey, as always, contains numerous morsels of valuable advice for CPA firms. In this year’s survey, 338 firms participated, 80% with revenues in the $2-20M range. The survey and our companion book, What Really Makes CPA Firms Profitable, is committed to encouraging the practice of benchmarking as a powerful way…

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Elected or Appointed? A Choice for Your Compensation Committee

Marc Rosenberg, CPA / November 2, 2020

Compensation committees are the best of several common partner compensation systems for achieving a balance between recognizing traditional production accomplishments and rewarding intangibles. The compensation committee (CC) approach aligns the firm’s strategic plan and vision with how partners are evaluated and how they are compensated. It motivates partners to produce what the firm needs them…

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Overarching Authorities That MPs Must Have

Marc Rosenberg, CPA / October 26, 2020

For MPs to be effective, they must have the authority and flexibility to make decisions without first getting approval and without subjecting those decisions to the nitpicking and negativity that may occur when management decisions are open for debate and discussion. There are two caveats to this: Most firms reserve a few major decisions for…

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Operating-Model Flaws Guaranteed to Complicate Partner Compensation: Flaw 3 of 3

Marc Rosenberg, CPA / October 19, 2020

One of the nuances of partner compensation is how to reward partners who are able to add value to the firm in many ways. In our third blog on this topic, we discuss the inherent time conflict between managing a firm well, serving a large client base, and developing a significant amount of new business….

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Operating-Model Flaws Guaranteed to Complicate Partner Compensation: Flaw 2 of 3

Marc Rosenberg, CPA / October 12, 2020

Understanding how common CPA firm operating model flaws affect partner compensation helps firms review and modify their comp systems to better achieve the firm’s goals. In our second blog on this topic, we discuss complacency which can creep into a firm without much fanfare, and causes havoc when partners realize how hard it is to…

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Essential Actions for New Managing Partners

Marc Rosenberg, CPAKristen Rampe, CPA / October 3, 2020

In August, we held a live Managing Partner Q&A event. One MP asked, “As a new managing partner, what would be the first thing that I should focus on or do that might make the transition easier.” The transition period into any new role is imperative in setting the course for your tenure, in your…

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Operating-Model Flaws Guaranteed to Complicate Partner Compensation: Flaw 1 of 3

Marc Rosenberg, CPA / September 23, 2020

Partners at multi-partner CPA firms earn $300-600K a year, more than 99% of all people on earth. How can I have the audacity to suggest that the traditional CPA firm operating model is deeply flawed when partners live so high off the hog? Easy. Money is not the sole measure of excellence. Many CPA firms…

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Should a Line Partner Perform Firm Administrator/COO Duties?

Marc Rosenberg, CPA / September 12, 2020

QUESTION (from an MP): We are a 7-partner firm. Several years ago when our Firm Administrator retired, one of our partners took on the role in addition to his existing client duties. We are now reconsidering this situation and are wondering if it would be best to have a non-partner in that role.  What would…

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