Vol. 1 No. 12, December 2009
In fulfilling our commitment to continuous improvement in CPA firm management, CPA Leadership Institute has created the Leadership Forum, a panel of the most prominent thought leaders in the profession. Each month we ask them to respond to a question dealing with CPA firm management and leadership.
This month's question is: Do you believe, as has been reported in some accounting publications, that the profession has reached its top in partner compensation and the run of the last 25 years has peaked?
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Consultants and Other Prominent Observers
| August J. Aquila |
Aquila Global Advisors |
www.aquilaadvisors.com
aaquila@aquilaadvisors.com |
| I don't not believe in this prediction. The accounting profession will continue to evolve as it has over the last 25 years and partner compensation over the long term will continue to rise. That is not to say that there may be some flat or down years...More |
| Steve Erickson |
National Consultant to CPA Firms |
www.SteveEricksonLLC.com
Steve@SteveEricksonCPA.com |
| Absolutely not! It is my opinion that CPA firms will right size and right structure in order to continue to provide great client service while improving profitability. I see some firms now that are pulling close to 50% to the bottom line. More |
| Angie Grissom |
The Rainmaker Consulting Group |
angie@therainmakeracademy.com |
| I believe that partner compensation will be flat for some firms and may even decline for some this year and maybe even next year. However, as firms continue to grow and be profitable, partner compensation will continue to increase. The accounting industry will continue to thrive as more and more service opportunities continue to present themselves...More |
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| Bob Lewis |
Visionary Marketing |
www.thinkvisionary.com
blewis@thinkvisionary.com |
| No. Like any entrepreneur every CPA firm is unique. The very large firms might have hit a wall in compensation because they are too large to easily change they way they operate, but the typical small to mid-sized and even the large local firms have opportunities to significantly increase compensation. They just need to stop thinking traditionally and begin approaching client; More |
| Jay N. Nisberg |
Jay Nisberg and Associates |
jaynisberg@snet.net |
| No! I do not believe the profession has peaked in top partner compensation. I believe partner value and fees will see new high levels as the methodology shifts... More |
| Richard Rinehart |
Grant Partners, LLC |
rrinehart@grantptrs.com |
| ... The clients are impacted deeply by the economy as a whole and it is in turn impacting CPA firm partner compensation. CPA firms are again agressively competing with each other ... More |
| Joel Sinkin |
Accounting Transition Advisors |
www.transitionadvisors.com
jsinkin@transitionadvisors.com |
| Therefore for most traditional firms until we see organic growth start to increase to past levels and staff shortages return, it is unlikely to see compensation continue to explode. That said there are always those few firms who seem to find a niche, value bill and produce tremendous results. I am still seeing firms, while far less than the past, explode and I am watching their partners professionally and financially grow with the firm still. More |
| Sandra Wiley |
Boomer Consulting, Inc. |
www.boomer.com
sandra.wiley@boomer.com |
| Partners are the leaders in the firm. They are the individuals who will find new ways to bring in revenue, diversify the practice and even if things level off for a little while, they will find innovative ways to jump start their practices, find new revenue opportunities and ultimately increase their compensation. Will it be as easy as past years? More |
| Jennifer Wilson |
ConvergenceCoaching LLC |
www.convergencecoaching.com
jen@convergencecoaching.com |
| I don't think it has ended -- just fallen off briefly with the rest of the U.S. economy. Smart firms who focus on visioning, unity, planning, people, business development and learning will continue to thrive and partner compensation in those firms will rebound as the recovery takes hold and we'll see new highs for those firms in the future. More |
Firm Leaders
| Bob Knight |
Lane Gorman Trubitt, L.L.P. |
|
| It may have plateaued, but I don't think it has reached its peak. With staffing leverage and technology, it can continue to increase once the economy has turned around. More |
| John C. Malone |
Malone & Bailey, PC |
http://www.malone-bailey.com/ |
| These changes lead to many opportunities for CPAs everywhere. Such opportunities include new practice niches and new ways of addressing old ones. Ever larger compensation opportunities will continue as long as these changes are so significant, because the 'agents of change' deserve it under our capitalist philosophy. More |
