Advisory Boards Becoming More Popular
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Source: Insight, The Magazine of the Illinois CPA Society As consolidation continues in the accounting profession, many firms are either merging up, or going out. This phenomenon is causing firms to “sit up and take action,” says Jay Nisberg, president of Jay Nisberg & Associates in Connecticut. He adds that firms are increasingly interested in thinking outside the box. One of the initiatives increasingly used is the advisory board. Advisory boards, usually made up of prominent business leaders in the community, help firms with strategic thinking.. Advisory boards also impose higher degrees of accountability on CPA firm management. Because management typically reports on financial results at the advisory board meetings, there is more pressure to make the numbers. They also get criticism they might not get from partners. But many CPAs don’t like sharing private information with outsiders. And this is especially so if clients are on the board. When setting up the board, one of the most important parts of the process is selection. Nisberg advises recruiting prominent people, including attorneys, bankers, and industry leaders. Women should be included. Over half the accounting profession is women. He suggests selecting people with expertise in major niches served by the firm. Be sure to recruit people who care, not people who serve simply as an ego trip. Board members should be paid. Board meetings can be quarterly or semi-annually. Agendas should include:
CPA firms should not become too dependent on the board. The board should add to the firm’s initiatives, not replace them. From Insight, The Magazine of the Illinois CPA Society, November/December 2005. For the complete article, click on the following link: |
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