A Checklist for Managing the Firm

Source: Public Practice E-News

AOMAR presented a checklist for managing partners, prepared by Joel A. Rose and Associates in Cherry Hill NJ. It is used to identify all areas of the firm's operation and well-being. Here are some highlights:

• Organization
  1. Are CPAs and others informed on lines of organizational responsibility?
  2. Do any younger CPAs serve on committees? Does representation on committees reflect all firm members?
  3. Is the firm's equipment and office technology up to date?
• Firm culture
  1. Is the firm a congenial place to work? Team-spirited?
  2. Is the firm humanistic? Is it sensitive to the quality of life, particularly the family life of staff and partners?
  3. Has the firm maximized profits at the expense of quality of life?
  4. Has the firm grown too fast, without adequate planning?
  5. Is firm accessible to firm members?
• Dissemination of information
  1. What kind of information is considered appropriate to disseminate? Why and how is that determination made?
  2. Are all staff aware of the firm's history and projections for long-term growth?
  3. Do CPAs and other staff have access to financial data concerning the firm?
  4. Do CPAs and other staff know the hourly rates of partners and staff, and the policy concerning expenses?
  5. Are the criteria for accepting and rejecting clients known to all?
  6. Does the firm conduct evaluations on a regular basis? Are the evaluation criteria meaningful?
  7. Are the criteria for becoming a partner known?
• Work assignments
  1. How are work assignments determined? By whom?
  2. Can a young CPA seek specific types of work? With a particular client? Within a specific area of practice?
• Planning, decision-making and practice development
  1. Do staff CPAs participate in decision-making?
  2. Are staff CPAs involved in the billing process?
  3. Are staff CPAs' views and input encouraged. What is the extent of staff CPAs' participation in meetings? Firm social functions?
  4. Are staff CPAs informed about events and planning regarding the number of CPAs and other staff to be hired? Department expansion or contraction? Major or interesting new engagements? Honors? New space? Long-range plans? Office automation or reorganization?
  5. Does the firm advocate and encourage cross-selling of services of its departments? Are staff CPAs aware of one another's expertise in various practice areas?

For the complete list and commentary, click here and read “A Checklist for MPs: Can You Answer All of These Issues?”

From Public Practice E-News, Texas Society of Certified Public Accountants, June 2010, http://www.tscpa.org/.