The Recession's Silver Lining for CPA Firms

Source: CPA Trendlines

In this video interview, consultant Marc Rosenberg suggests that the recent recession had a silver lining – it forced CPAs to run their firms like a business. He also offers several tips on making the most of this opportunity, including:

• Develop a coordinated marketing effort that includes formal marketing plans and strategies,
• Use specialization and practice niches to build a competitive edge,
• Provide staff with training on new business development (because rainmakers are made, not born),
• Trim overhead,
• Take advantage of recent industry layoffs to recruit top talent and shed weak performers,
• Take care of your “stars,” which may mean larger raises this year to avoid defections (either to other firms or to other industries),
• Pay more attention to partner performance and accountability, and allocate income accordingly.

Rosenberg believes there's “good money to be made” by firms that “re-engineer” themselves. During the boom years of 2002 to 2008, when new business was literally walking through the door, partners had little incentive to manage the firm better. But, Rosenberg suggests, “If a firm was making $350,000 per partner, if it were better managed maybe it could have made $450,000 per partner.”

For the full interview, view the video “Marc Rosenberg: Why CPAs Aren't Making More Money.”

From CPA Trendlines, http://cpatrendlines.com, February 1, 2011.