Accounting firms aren’t all the way back to where they were before the Great Recession, but they are making progress. That’s one of the many findings of note in the 2012 National Management of an Accounting Practice (MAP) survey, sponsored by the AICPA Private Companies Practice Section in association with
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TOPICS / FIRM PRACTICE MANAGEMENT
Firm operations
Succession planning on the rise, but about half of CPA firms haven’t implemented a plan
With Baby Boomers nearing retirement, the number of succession plans in place for CPA firms is on the rise. But fewer than half of multiowner practices have succession plans ready, mentoring is largely informal, and the development of future partners is in decline, new research shows. Forty-four percent of multiowner
Gaining (from) your clients’ trust
For decades, CPAs in public practice have laid a foundation of trust with clients by competently handling confidential financial data and performing core services such as tax preparation. Today, forward-thinking CPAs are building on that foundation, expanding their business offerings, nailing down new revenue streams and cementing a more profitable
Planning and paying for partner retirements
John was one of three founding partners in a firm formed 35 years ago. He oversaw the buyout of the other two founding partners and, as managing partner, groomed three young managers as his successors. However, when the time came for these managers to be admitted as partners, two of
Pricing, billing and collecting fees
CPA firms provide invaluable advice to business clients but often struggle to run their own businesses effectively, particularly in the areas of pricing, billing and collections. Failure to set appropriate fees, deliver bills in a timely fashion and collect payment promptly—or even in full—cuts into a firm’s profitability, hurting the
Bridging compensation gaps in a merger
Accounting-firm mergers must overcome numerous obstacles. One of the most common—and challenging—involves compensation and benefits for partners and staff. Merging firms usually have differences in compensation levels, compensation methods and benefits packages. It’s crucial for staff and partner retention that the merging firms combine the varying systems into one without
Retreat to Move Forward
With the slow economy still making times—and dollars—tight, it might seem counterintuitive for a CPA firm to take its staff to the beach for an annual retreat. But handled correctly, such off-site activities can be effective investments of time and money. Here are some ideas for making the most of
Traps for the Unwary in CPA Firm Mergers and Acquisitions
You can’t hold back the demographic tide. In the U.S., another baby boomer turns 60 every eight seconds. This translates into a leadership change in the near future at many CPA firms. Thousands of partners are at or reaching retirement age now and in the next five years, putting a
GAPP Targets Privacy Risks
As of early 2011, 46 states had enacted some form of privacy regulation. In particular, those enacted by Massachusetts and Nevada in 2010 significantly raised the bar in terms of business requirements. Even organizations that have no facilities or personnel in Massachusetts may be subject to the state’s regulations if
Hitting the Target: National Survey Looks at How CPA Firms of All Sizes Stack Up
Practitioners have put their business management skills to the test within their own firms during the past two years to minimize potential damage from the economic downturn, according to a biennial survey conducted by the AICPA’s Private Companies Practice Section in conjunction with the Texas Society of CPAs. The results
CPAs Share Continuation Strategies
Editor’s note: Also read “Who Would Run Your Firm?” Feb. 2011, page 40. In August 1988, 48-year-old CPA Jim Feigel was in an accident that left him in a coma for 23 days. “If anything ever happens to me, the first thing you should do is sell the practice,”
Who Would Run Your Firm?
There comes a time when every sole practitioner or small firm owner needs to consider the consequences of a disruption in leadership of his or her CPA practice. Illness, disability, family obligation or death can be devastating for the CPA’s clients, family and employees. Proper planning, however, can mitigate the
New Investment Adviser Requirements of the Dodd-Frank Act: What CPAs Should Know
The Dodd-Frank Wall Street Reform and Consumer Protection Act, PL 111-203 (Reform Act, tinyurl.com/26zalzn), which was signed into law by President Barack Obama in July 2010, will require sweeping changes to virtually all areas of the financial services industry in the United States and will affect a wide variety of
Firm Survey Shows Profitability Preserved Amid Flat Revenues
Despite flat revenues, CPA firms managed to maintain profitability during the past two years, according to the 2010 PCPS/TSCPA National Management of an Accounting Practice (MAP) Survey, a biennial survey conducted by the AICPA’s Private Companies Practice Section and the Texas Society of CPAs. The survey results provide a comprehensive benchmarking
Project Management for Accountants
Project management is a client-focused process that significantly increases the probability of providing the desired results to the client. It can help an accounting firm plan its resources more effectively and ensure that work is delivered to clients in a timely manner. The project management methodology enables an accounting firm
Get Results: Specific Steps to Process Improvement
Editor’s note: This is a Web-exclusive sidebar for “Get Results: Improve Your Accounting Firm Processes Using Lean Six Sigma,” Jan. 10. Previous attempts by Rea & Associates to develop consistent procedures didn’t always result in the most successful, efficient or effective processes. Instead, 11 offices did things 11 ways
Get Results: Improve Your Accounting Firm Processes Using Lean Six Sigma
Poor processes directly affect client service and client satisfaction. You see it in delays in completing jobs, responding to client requests, or when a partner fails to communicate a piece of client-related information, causing an unnecessary mistake down the line. Inefficient processes can result in your firm’s inability to bill
Explaining the Sample Fixed-Price Agreement
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” Also see Exhibit 7, a sample fixed-price agreement. Date of the FPAThe fixed-price agreement (FPA) shown in Exhibit 7 can be either for a calendar or fiscal year, depending on
A Lesson in Value Pricing Ice Cream: From an Accountant
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” The history of business is the history of epiphanies. Sometimes the fog clears up, and the right path is seen. This certainly happened—with respect to pricing—for Ben Cohen and Jerry
After Action Review
Editor’s note: This is a Web-exclusive sidebar for “Pricing on Purpose: How to Implement Value Pricing in Your Firm.” The following questions should be answered by the pricing council/CVO after each major engagement: Did we add value for this client? How could we have added more value? Did we
Features
FROM THIS MONTH'S ISSUE
4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
