Vol. 8 No. 11, November 2016
The Leadership Forum is a panel of the most prominent thought leaders in the profession. This month we asked two questions and asked them to respond to the questions dealing with CPA firm management and leadership.
This month's question was:
Today, thousands of sole practitioners are bringing in younger staff as partner, so their whole approach to running their firms must change. What are the most important practice management tips for solos planning on bringing in new partners? What must change?
Consultants and Other Prominent Observers
| Marc Rosenberg |
The Rosenberg Associates |
www.rosenbergassoc.com [email protected] |
Operational:
- The END of "the world revolving around me" way of running the firm. No more last minute stuff that suits the solo's whims. Better planning is needed. More attention to what other firm members think and suggest.
- Avoid small firm mentality: Accepting any client with a heartbeat. Quoting fees regardless of the time it takes to do the work. Partners delegate work. Hire admin staff to do admin work.
- Clarify expectations for all partners, including yourself. This was N/A when you were a solo. Now you have partners. People perform better when their expectations are crystal clear and in writing. Accountability is now a must.
- Price assertively. Stop having low rates as your primary marketing tactic. Stop having low rates because they are a blend between higher partner rates and staff rates.
- Delegating clients to new partner(s).
Written agreements are needed that weren't required as a solo:
- A system for how new partners buy in; buy-in amount, ownership percentage, etc.
- A partner buyout plan.
- General partner agreement -- issues other than the buyout agreement.
- System for allocating income. Note: this should not be in the partner agreement, but nonetheless, the system needs to be crystal clear to all.
- Non-solicitation agreement. To protect the firm, new partners should be comfortable signing an agreement that prevents them from leaving the firm and taking clients and staff with them.
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