How Small Firms Can be More Productive

Source: AICPA CPA Insider

The Journal of Accountancy interviewed a variety of practitioners and consultants on how small firms can grow while maintaining their cultures and avoiding over-stressed managing partners.

Small firms are defined as those with fewer than five staff professionals. Here are some ideas resulting from these interviews:

• A managing partner of a small firm spent most of two years as “temporary” CFO for a client. Most of his client responsibilities were transferred to staff, who increased their work with clients. The firm grew. The lesson? The MP had been hoarding his clients and therefore inhibiting the firm’s growth. His more important role was hiring good people. He learned that turning clients over to staff was what he should have done in the first place.
• Another MP turned client service work over to others, which allowed them to become successful. This allowed the MP to focus on the overall success of the firm. It also turned out to be great for retaining staff.
• One MP learned that “buying” clients with low fees was creating staff dissatisfaction.
• Associations of firms are excellent sources of assistance in serving niche specialties. This can also create referrals.
• CPAs should turn administrative work over to administrators, freeing up CPAs to get closer to their clients.
• MPs should delegate administrative duties and spend time developing visions and strategies.
• Should the MP be the partner with the most clients, or the one with the best leadership and management skills? The best firms are choosing the latter.
• One of two partners in a firm wanted to phase out. The remaining partner was faced with the prospect of working more hours or not growing. His solution was to hire an administrator to reduce nonproductive hours.

From AICPA CPA Insider, April 9, 2007, www.cpa2biz.com. For the complete article, click here.