MAP Ideas From the AAA Conference

Source: Accounting Office Management & Administration Report
AOMAR attended the Association for Accounting Administration’s National Practice Management Conference in June and prepared a report on ways to improve management of an accounting practice (MAP) including these highlights:

• Pay for Performance—More than half the firms in a pre-session survey said they use pay for performance. Some of the practices included:
  • Bonuses based on the number of billable hours in excess of goals.
  • Team rewards for exceeding realization goals.
  • Rewarding supervisors and managers on the basis of profit, client satisfaction, staff development, practice development, hours, etc.
  • Some use compensatory time as rewards.
• Managing Millennials
  • Get them involved in the business of the firm, not just the clients.
  • Create transparency in firm operations so people feel more connected and develop a sense of ownership.
  • Conduct regular meetings and share information about the firm.
  • Get them involved in recruiting and interviewing.
• Partner Compensation
  • Most use formulas.
  • Some set goals and measure progress in areas other than billable time, e.g., mentoring.
  • One-firm v. entrepreneurial approach—emphasize contributions to the firm rather than individual achievement.
  • If you use a committee to allocate partnership income, rotate the committee membership periodically.
• Firm Governance—About two-thirds of the firms have a managing partner. Others are governed by a committee.
• Women—If the firm has no women partners, women staff are less likely to stay.
• Retention
  • Open firm retreats to staff.
  • Consider flex partners and part-time partners.
  • Emphasize value over hours worked.
  • Let people know their potential.
• Social Networking—Most firms are not yet using MySpace, Facebook, or other social networks for recruiting.

For the complete article, click here.

From Accounting Office Management & Administration Report, October 2008, p. 1, “PFP Practices, Managing Millennials, & More: MAP Ideas From the AAA Conference.”

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