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Source: Partner’s Report, the Monthly Update for CPA Firm Owners
Management problems including “incompatible service areas,” and sub-par training programs, can increase your exposure to professional liability. So can the following:
- No partnership agreement.
- Insufficient attention to professional development.
- Not communicating with partners when accepting known risks.
- Profitability of all the clients and practice areas are not known to all partners.
- No succession plan.
- Lack of awareness of the firm’s future makes partners skeptical about remaining with
the firm.
- Partners do not buy in to the firm’s goals.
- Systems do not facilitate the sharing of calendars, client management, conflict potential, or trust account information.
- Firm members are not accountable.
- Problem clients soak up too much partner time.
- Cash flow is not strong.
- Personal interests are more important than the firm.
- Compensation is based solely on individual results without regard to contributions to
the firm, i.e., “eat what you kill.”
From Partner’s Report—the Monthly Update for CPA Firm Owners, September 2005, p. 3. For the complete article click here. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $329. 212-244-0360, [email protected]. |
