Enhance the Value of Your Practice
Source: CPA Practice Management Forum
In this article, consultant Timothy I. Michel describes a strategic approach to increasing practice value. He maintains that the attributes that enhance value – including strong leadership, a robust culture, talented people, good clients, and specialty services – fall into the following practice management areas:
- Results
- Operations
- People
- Client services
- Business development
Michel discusses each area, identifying goals and strategies firms can adopt to enhance the value of their practices. For example, firms can:
- Improve cash flow by establishing meaningful time and billing policies that promote quicker billing of work performed;
- Strengthen operations by addressing issues related to culture, governance and leadership, and ownership;
- Bolster long-term employee retention by providing good orientation programs, challenging work, training and other personal development opportunities;
- Gain a competitive edge through superior customer service and service-line or industry-niche expertise; and
- Ensure that everyone in the firm participates in business development.
Firms that enhance their value will be better positioned for future growth, whether they strive to stay independent or seek merger and acquisition opportunities.
For the complete article, read “Creating Practice Value Through Effective Management.”
From CPA Practice Management Forum, Vol. 8, No. 10, October 2012, p. 5.