Being a Profitable CPA Firm

Source: Possibilities for CPA Firm Leaders

Following are excerpts from a blog posting by Rita Keller, reproduced with permission.

Many CPAs are living very comfortably, even during the economic downturn. 2009 is over and, as August Aquila tells us in a recent article in Accounting Today, "Now's a perfect time to get profitable."

Here's a brief overview.

Basic operating principles to embrace:

• Take strategic planning seriously.
• All firms need an effective managing partner.
• Pay all your people (including partners) based on performance.
• Strive to develop a strong marketing culture.
• Create a culture of accountability for everyone.

If you have the above basics in place, you can begin following some of Aquila's recommended tactics:

1. Identify core clients.
2. Raise fees.
3. Invest in business development.
4. Develop competencies.
5. Reduce your delivery costs.
6. Improve efficiencies.
7. Deal with under-performers.
8. Lower overhead.
9. Expect more from your people.
10. Improve realization.

Aquila elaborates on each item and gives some excellent tips. Click here to read the entire article.

To read the complete posting, click here.

From Possibilities for CPA Firm Leaders, the blog of Rita Keller, president of Keller Advisors, LLC, [email protected], "Getting Profitable," February 1, 2010, http://cpamanagement.blogspot.com.