What to Expect of Your Firm Administrator

Source: Accounting Office Management & Administration Report

A panel of managing partners at the Association for Accounting Administration’s Practice Management Conference in Providence, Rhode Island, discussed the role of firm administrator and their expectations of the position. Firm sizes ranged from 30 to 90.

According to the panel, a firm administrator should:

• Provide a level of comfort for the managing partner.
• Be a team leader.
• Have the ability to communicate with both senior and junior levels.
• Possess tact.
• Have problem-solving ability.
• Have multi-tasking ability.
• Have HR experience.
• Have independent and candid communications with partners.
• Be in charge of executing the firm’s strategic plan.
• Encourage managing partners (perhaps put pressure on them) to deal with sensitive issues—such as under-performing partners.
• Take the burden of billings and collections away from the partners.

The panel also noted that some firm administrators are partners and serve on executive committees.

Non-equity partnership

Making firm administrators non-equity partners is controversial and creates discord in some firms. One divisive issue for some firms is the difficulty in learning how to value intangible contributions, since firm administrators provide little, if any, billable time.

From Accounting Office Management & Administration Report, September 2007, p. 1. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $399. 212-244-0360, [email protected]. For the complete article, click here.