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

Marc Rosenberg, CPAMarc 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, CPAMarc 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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Updated Effects of COVID on CPA Firms – New Survey Results

Marc Rosenberg, CPAMarc Rosenberg, CPA / September 10, 2020

This month, we repeated a survey of 52 CPA firms to better understand the effects COVID is taking on the industry. The vast majority of respondents were repeat participants from our June COVID survey of 61 firms. Read our previous blog post here.   Most firms surveyed were in the $7-15M revenue range. Forty-seven of…

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CPA Firms’ Overemphasis of Ownership Percentage

Marc Rosenberg, CPAMarc Rosenberg, CPA / August 5, 2020

It may seem intuitive to use ownership percentage to decide important financial and governance issues, here are three common reasons why: 1. Many clients use ownership percentages to drive important matters. CPA firms reason: “If our clients do it, why shouldn’t we?” 2. Related to #1, many CPA firm clients are companies who derive a…

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Proof CPA Firms Make MORE Money When Their Partners Do LESS Billable Work

Marc Rosenberg, CPAMarc Rosenberg, CPA / August 5, 2020

QUESTION FROM A CLIENT: “As the firm’s MP, I’m trying to encourage our partners to delegate as many billable hours as possible to the staff instead of doing it themselves. What is the benchmarking metric for how much of partners’ billing responsibility should be performed by themselves?” ROSENBERG RESPONSE:  There is a natural tendency for…

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What Smaller Firms Need to Do to Become Firms of the Future – Part 2 of 2

Marc Rosenberg, CPAMarc Rosenberg, CPA / July 27, 2020

If you want your firm to be a firm of the future, these are seven more things your firm should be brainstorming at your upcoming partner retreats. Visit the previous post on this topic, What Smaller Firms Need to Do to Become Firms of the Future – Part 1 of 2, to see the other…

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Current Effects of COVID on CPA Firms – Rosenberg’s Analysis

Marc Rosenberg, CPAMarc Rosenberg, CPA / July 17, 2020

The CPA industry is as steady as an ocean liner in heavy seas… in normal times, which is 90% of the years.  Most established multi-partner firms experience increases in revenues and profits on an annual basis…in normal times. Sure, there are major challenges such as finding staff, retirements, technology’s relentlessly huge impact on how CPA…

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What Smaller Firms Need to Do to Become Firms of the Future – Part 1 of 2

Marc Rosenberg, CPAMarc Rosenberg, CPA / July 13, 2020

It used to be common for practice management conference agendas to include a panel of luminaries – prominent consultants and rock star managing partners – to make predictions for the CPA industry.  As an up-and-coming consultant (who was too new to be invited as a panelist), I saved several years of these predictions to see…

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The Antithesis of the Managing Partner: Management by Committee

Marc Rosenberg, CPAMarc Rosenberg, CPA / July 8, 2020

There is an intuitive notion that comes to partners that goes something like this: “Let’s all get together and form a firm that will make us all more successful than any of us could be individually.  We’ll follow the principles of democracy by dividing up the management duties so that no one is overburdened. The partners…

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CPA Firm Leadership Tips From a Top MP

Marc Rosenberg, CPA / June 29, 2020

Randy Nail is the Managing Partner (MP) of Hogan Taylor, a $50M Oklahoma-based firm in Tulsa and three other locations.  Randy got a unique baptism to managing the firm in several respects. In 2009, Hogan Taylor was created from a merger of two equal $10M firms.  One of the two firms’ MPs initially served as MP,…

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