Rosenberg Associates Blog
Marc Rosenberg, CPAThe Facts Excerpted from Michael Cohn’s article in Accounting Today, July 24, 2015 issue: The IRS budget has shrunk: from $12.1 billion in F/Y 2010 to $11.0 billion in fiscal 2014, a reduction of 9 percent. Steeper cuts on the way: The House budget for F/Y 2016 allotted $10.1 billion—$838 million less than the current…
Question from a Reader: What should our Managing Partner earn? Our 3.4M revenue firm is comprised of 4 equity partners with income averaging $231,000. Ownership percentage is the sole determinant of income. The MP spends a substantial amount of time managing the firm and maintains a $775-800K book of business. The MP’s ownership percentage is…
QUESTION FROM A READER: In your interview of BKD MP Ted Dickman, he revealed that his firm’s partner buyout plan pays retiring equity partners 2x annual compensation paid out over 10 years. Our firm, with revenue of $10 million, pays 3x compensation. In the past five years we have retired two partners, each of whom…
Kristen Rampe, CPAEngagement and retention tactics always need refreshing. What else can we do to keep our talent onboard and serving clients well? Consider adding a stay interview program to bump up your effort in this area – here is a Q&A guide to get started.
Most multi-partner CPA firms structure their partner comp systems to pay at least two tiers of income, most commonly the base and a bonus. Many firms have a third tier for interest on capital, but we won’t address this in today’s blog. Base and bonus defined: Base: Compensation for a partner’s historical value to the…
Any discussion of partner compensation must start with a fundamental concept: Should a partner group’s income allocation system be performance-based? Compensation motivates performance. To be successful year after year, CPA firms need to service their clients well on a continuous basis. CPA firms typically lose 10-20% of their revenue sources every year because clients merge…
We were initially surprised and stumped that in a continually improving economy, the 2014 CPA firm growth rate (including mergers) remained the same as 2013 at 6.7%. Firms are projecting much of the same for 2015. Given the following growth rate history in the years since the recession, one would expect the trend of higher…
My good friend Terry Putney, CEO of Transition Advisors, made a presentation to my Chicago roundtable group and used a term that resonated with me: “Must-Haves.” These are terms, often identified early in the merger process, that buyers and sellers feel they must have to do the deal. Examples are a sale price, downpayment, compensation,…
Your firm is profitable and clients are pleased with your work. You have some women in leadership. Why make a concerted effort to bring that percentage higher?
My large firm roundtable group in Chicago recently invited Allan Koltin, President of Koltin Consulting, to share his experiences with us. If there were an election of the most highly visible, sought-after consultant to CPA firms, Koltin would be the hands-down winner. Some of his accolades: Accounting Today’s Top 100 Most Influential list for 15…
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