Posts Tagged ‘cpa-firm-profitability’
Touchdowns and Penalties: How Partners Score Wins
As featured in AccountingToday. The basics of running a CPA firm are indisputable: clients need to be served, billings and collections completed. For most accounting professionals, these activities are top of mind and top of the priority list, like a football team running plays in a game. But what sets outstanding firms — ones that achieve…
Read MoreSPECIAL REPORT – Partner Compensation: Why Accountability Matters
By Kristen Rampe, CPA, and Dr. Christopher Harper, CPA, MBA, Assistant Professor of Accounting, Seidman College of Business at Grand Valley State University Partner compensation has been a dilemma ever since professionals began joining forces to earn revenue. Although a few firms have mastered this process, compensation mechanisms are more likely to create disappointment and…
Read MoreHow Firms Are Compensating Their COOs
More and more firms are exploring the benefits of adding a Chief Operating Officer (COO) to their leadership ranks. The COO role often encompasses strategic CPA firm leadership, holding partners accountable, making decisions in line with the firm’s strategy and overseeing all administrative functions. This position can significantly reduce the time client service partners spend…
Read MoreTakeaways from Busy Season 2024
At a recent NextGen Roundtable meeting, we discussed the successes and challenges of busy season. This roundtable consisted of more than a dozen partners and partner candidates from small to mid-sized firms based in the US. In an initial poll, members rated this busy season from best to worst. Using a five-point scale, 33% of…
Read MoreHighlights of the 2023 Rosenberg MAP Survey
The Rosenberg Survey is compiled by The Growth Partnership. Charles Hylan, a partner at TGP, heads up their survey team. This is the 25th year of the survey, which reports on 2022 data. As always, “partner” means equity partners only. Percentage increases or decreases are based on data only for firms over $2M in revenue.…
Read MoreCredit Card Processing Fees: To Charge or Not to Charge
Many CPA firms accept electronic payments. It is 2023, after all. If your firm has been accepting credit cards, you may wonder whether to charge the merchant or processing fees back to the client. There are two ways to tackle this: Build the processing fees into your pricing by adding your processing rate, usually around…
Read MoreWhy Revenue Growth is Old School
Once 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…
Read MoreIndustry Trends and Takeaways from the 2022 Rosenberg Survey
The 2022 Rosenberg Survey has been released, and, along with it, volumes of data on the CPA industry’s performance over the past year. The survey asks the industry’s top consultants to share their observations from CPA firms. Here are the questions and our responses. How would you assess the last 12 months? Trends? Observations? Struggles?…
Read MorePodcast Highlight: What Does It Mean to Build a Profitable Firm and What Are You Doing Wrong?
“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…
Read MoreBenchmarking Boosts Your Profits – How Do You Measure Up?
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…
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