Rosenberg Associates Blog
Matt RampeOnce upon a time, staff were abundant and CPA firms made plans to grow revenue every year. Life was good! Then one day, a staffing crisis hit our industry and took many of the staff away. Revenue growth became harder and harder without staff. Partners worked more and more hours until… “I can’t and won’t…
Marc Rosenberg, CPA
Kristen Rampe, CPA“Looking for profitability? First you need to define what it means for you and your partners, and then you need to get past some all-too-common misconceptions. No one knows better than accountants that profitability can be a slippery concept, but when it comes to their firms, you’d hope they’d be able to nail it down…
The integrity of CPAs is consistently rated among the highest of all professionals. Primary reasons for this are dedication to client service, delivery of high-quality work and a high degree of technical excellence acquired from working with hundreds, if not thousands, of clients. Partners at many CPA firms pursue this dedication to the point of neglecting…
2022 is just around the corner. If you’re planning key strategic initiatives for next year, here are my responses to the annual Rosenberg Survey Analysis and advice for what will define a successful future for firms. Now that we are more than a year from the start of the pandemic, what do you feel are…
The Rosenberg Survey Analysis includes the perspective of consultants across the nation each year on the past 12 months and the 12 months up ahead. The last year has been unique, to say the least, and the consultants’ responses consistently highlighted themes around staffing issues, flexible and remote work arrangements, and regular reviews of client…
In bowling, a perfect game is 300 but the top professionals average around 230. In baseball, you’re a star if you get a hit 30% of the time. In CPA profitability, if every aspect of managing a firm was optimized, the income per equity partner (IPP) would be roughly $1.5M. The actual average, per the…
I have had the pleasure and honor of exchanging spirited emails for years with the MP of an amazing CPA firm. We sometimes disagree but when I tell you the metrics of this firm, you’ll understand why I respect him so much. The firm’s revenue is $30M; 7 equity and 6 non-equity partners; income per…
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…
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…
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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