How Accounting Firms Can Cope with the Future

Source: Accounting Today

Not only is there a high rate of turnover, only 29 percent of accounting graduates choose public accounting, and the rate has been falling.

Firms are increasingly wondering where they will find someone to buy them.

Firms have been too concerned with chargeable hours instead of with nurturing leaders throughout the firm, including successors to top positions.

Future success will depend on doing more with fewer people, improving processes, and optimizing technology.

Firms are beginning to reward people for management and people development, not just for running a book of business.

Specifically, firms must:

Create a strategic plan that is regularly conveyed to the entire firm. Future leaders should participate.
Create a culture where vision, not just overhead, is shared.
Develop governance by a CEO, not by a committee.
Develop a learning organization, not one that simply requires CPE. In a learning organization, everyone learns and teaches.
Initiate value billing.
Place more value on management, planning, and growth.
Focus on managing people, not just managing a book of business.
Require partners to be accountable, and committed, to the strategic vision.
Tie the partner compensation plan to the strategic plan.
Make sure technology is strategic, not overhead.

From Accounting Today, December 19, 2005. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=16582&;pg=acctoday.