Maximizing the Value of the CPA Firm

Source: CPA Practice Management Forum

Following is a list of ideas to help maximize the value of your firm, whether there will be a succession from within or a sale to a third party.

1.      When partners work as individuals sharing an office and staff, each partner spends too much time teaching his or her way to the staff.

2.      Matching the skills and personalities of your personnel with the work to be done is one of the keys to good client service. It is important to consider the preferences of the clients. Do they value personal relationships with the accountants over the efficiency of the work? Proper matching will probably not be achieved if partners don’t delegate. Failure to achieve proper matching will typically result in lower realization.

3.      A fair and comprehensible compensation system for partners and staff is a key to success. Everyone must know what will be rewarded and what will not.

4.      Clients are in charge of how they are serviced, but CPA firms are in charge of who they select to be their clients. If a CPA firm is to be profitable and grow, its clients must do the same. In addition, clients should be selected and/or retained based on such factors as the reliability of their records, the perceived risk, payment of their bills, your level of gratification and enjoyment, and their referrals.

5.      The firm must utilize standardized and efficient practices, and must have a program of continuous improvement including the appropriate investment in technology.

6.      The firm must employ and retain the right people. See previous (and future) issues of CPA Leadership Report for material on this subject.

For the complete article, see CPA Practice Management Forum (CCH Incorporated), February 2005, p. 5.