Change: The Secret to CPA Firm Success

Source: The Marc Rosenberg Blog

The following includes excerpts, reproduced with permission, from a blog entry by Marc Rosenberg.

“If nothing changes, nothing changes,” says Brian Mandell-Rice, a year and a half into his reign as the third MP of Denver-based Hein & Associates (68th largest CPA firm on Accounting Today's Top 100 list, with annual revenues of $46M).

Brian shared some of his firm's pearls of wisdom at a recent roundtable:

• One of Hein's keys to its high profitability level is staff-partner leverage. Another is specialization, which makes it easier to bring in business.
• Hein has embarked on an ambitious merger strategy after historically ignoring mergers as a growth strategy.
• The firm is not afraid to fire partners and terminate unprofitable service lines.
• Staffers are encouraged to participate in practice development activities, and more senior-level employees receive training in practice development.
• The firm has a marketing committee comprised of several partners, including the MP, functioning primarily as a think tank.
• Hein isn't afraid to try out new approaches. Its two business development people work in different ways. One is an accountant whose role is to make sure the partners are at the top of their game; the other is a traditional sales professional who makes lots of cold calls.
• The firm holds its core values sacred. Says Mandell-Rice: “Firms are better off having no core values than having core values that are not followed.”
• Hein's philosophy regarding its partner retirement plan is innovative. Starting at age 51, a partner's retirement benefits are funded. When the partner reaches retirement age, his or her benefits are 50 percent funded.

For the original entry, read “CPA Firm Management: If Nothing Changes, Nothing Changes.”

From The Marc Rosenberg Blog, August 7, 2012, http://blog.rosenbergassoc.com.