Source: Accounting Office Management & Administration Report

You can learn a lot about firm administration by conducting a post-tax-season survey of the entire team. Here are some tips:

• An anonymous survey can find out how the team felt about this particular busy season.
• Was it better or worse than last year?
• What did they think of the software's performance?
• Did the processes and procedures work well, or do some need to be tweaked?
• How did the administrative team perform?
• How do staff feel about the support they received from the internal technology team?
• Did review work flow through managers' and partners' offices as quickly as it should?

A review of processes and procedures may also be appropriate. Make sure all administrative personnel are cross-trained and knowledge of procedures is accessible by everyone in the event of absences.

You might consider whether your firm administrator carries enough responsibility. Administrators are often under-utilized. Following is a summary of roles of various levels of personnel in firm administration:

Director of administration.

• Partner level--reports to the managing partner or executive committee.
• Formalizes finance, personnel and general administration policy.
• Directs administrative personnel recruiting and may recruit accountants.
• Directs orientation, training, and/or evaluation of all personnel.
• Directs and supervises the firm's financial affairs including management data and reporting.
• Attends partner/executive committee meetings and retreats.
• Performs controllership functions if the firm does not have a controller.
• May also direct the marketing activities of the firm.

Firm administrator.

• Administers the internal affairs and reports to the managing partner or director of administration.
• Attends all partner meetings and retreats.
• Formulates annual budgets.
• Prepares and interprets management reports.
• Supervises accounting functions and systems.
• Maintains firm insurance.
• Responsible for hiring, training, salary advancement, discipline, and discharge.
• May also supervise office managers and administrative supervisors.
• Depending on the size of the firm, may be responsible for the firm's marketing efforts and internal technology.

Office manager (administrative manager).

• Responsible for the administrative activities of a CPA firm and reports to the managing partner, administrative partner, or director of administration.
• Supervises or conducts the accounting function.
• Supervises the administrative support functions of the firm.
• May assist in preparing budgets.
• Researches and recommends major purchases and personnel benefits.

Administrative supervisor.

• Supervises clerical, word-processing, filing, and other support services, including scanning, copying, reception, telephone, and mailing and messenger services.
• Conducts or assists in employment recruiting and interviewing of new administrative staff.
• Trains new administrative employees.
• Maintains personnel records.
• Takes an active role in evaluation of job performance.
• Responsible for ordering supplies and monitors client due dates.
• Reports to managing partner, director of administration, or firm administrator.

For the complete article, click here.

From Accounting Office Management & Administration Report, Institute of Management and Administration, Inc., Newark, NJ, subserve@ioma.com, March 2010, p. 2, "Keller's Comments: After April 15: Get Your Firm Administration House in Order."

Measuring CPA Leadership Effectiveness

CPA Firm Consultants in the Areas of Practice Management, Marketing and Human Capital