CPA Leadership Report
Expanding Your Knowledge While Conserving Your Time
Vol. 10 No. 2, February 2012
CPA Leadership Report is the monthly review of the most important management and leadership
articles in the accounting press. It includes electronic links to publishers’ websites, where you
can find the original complete articles. Our editors review more than 35 publications every
month.
Members of CPA Leadership Institute can access the reviews below. Nonmembers can become
familiar with CPA Leadership Report by reading the articles marked with an *.
Click here to learn about the comprehensive benefits of membership and the extraordinary value
of our Professional program level, which allows you to attend all our webinars at no cost.
Practice Management
*A Three-Pronged Approach to CPA Firm Growth
Consultant Allan Koltin outlines the “triangle offense.”
CPA Practice Management Forum
Checklists Enhance Performance and Reduce Risk
CPAs can learn valuable lessons from The Checklist Manifesto: How to Get Things Right.
Accounting Today
It’s 2012, Do You Know Where Your Partnership Agreement Is?
A partnership agreement is a critical tool for defining firm-partner relationships. Yet many firms
either have no agreement or haven’t reviewed their agreements in years or even decades.
The Managing Partner Advisor
Get Proactive: Grow Your Business in 2012
August Aquila offers four strategies to expand your business.
Partner Insights
Take a Step Toward Success
Consultant Jack Lee shares a few insights he has learned while helping firms succeed.
Convergence Coaching, LLC Inspired Ideas
Become the “Source” in Outsourcing
Your clients may not have to hire in-house finance executives if your firm can do the job for
them.
Accounting Today
Mistakes Managers Make
Eight mistakes managers make that keep them and their staff from performing their best.
Partner Insights
*The Right Way to Give a Bonus
Marc Rosenberg offers a straightforward plan for rewarding your team members with extra cash.
The Marc Rosenberg Blog
The CPA Profession: Trouble on the Horizon?
A CPA offers his critique of the AICPA’s CPA Horizons 2025 Report.
VeraSage Institute
Trouble on the Horizon? The AICPA’s Response
The AICPA’s Mark J. Koziel responds to Richard Muscio’s critique of the CPA Horizons 2025
Report (see above).
VeraSage Institute
Firing Clients the Right Way
Whatever the reason, if you decide to fire a client, it’s important to keep a cool head and consider
the process carefully.
CPA Practice Management Forum
Europe Contemplates Sweeping Audit Reform
Recently, the European Commission proposed legislation designed to delineate the auditor’s role
and enhance auditor independence.
Accounting Today
Succession Planning and M&A
How to Attract Up-and-Coming CPAs
Six ways to determine if your firm will appeal to the rising generation of talent.
AICPA CPA Insider
Marketing
A Searing Look at Hourly Billing
A proponent of value pricing asks, “Would you buy a pulled-pork sandwich if it was priced by
the hour?”
CPA Trendlines
A Helpful Look at the Next Generation
A brief statistical overview of Millenials as compared to Gen X, Baby Boomers, and the Silent
Generation.
Solutions for CPA Firm Leaders
Client Services
*Client Advisory Boards Offer Significant Benefits
CPA firms that have established and maintained client advisory boards say that the benefits far
exceed the costs.
Journal of Accountancy
Become a Trusted Advisor
Discover a few practical steps you can take to expand your role from “accountant” to “trusted
advisor.”
AICPA CPA Insider
Resources
What Should You Be Reading?
Tom Hood’s top 12 recommendations for 2012.
CPA Success
Practice Management
A Three-Pronged Approach to CPA Firm Growth
Source: CPA Practice Management Forum
Taking a cue from the Chicago Bulls’ championship teams of the 1990s, consultant Allan Koltin
outlines what he calls the “triangle offense” – a key growth strategy in many firms’ playbooks
today. In this strategy, the triangle’s three sides are:
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Organic growth. Although organic growth has been flat over the last few years, in 2011
firms recommitted themselves to organic growth in unprecedented numbers. Koltin has
observed a renewed emphasis on “guerilla marketing strategies” and strategic
investments in CMOs and other business development talent.
M&A. Two key trends today are significant increases in (1) “strategic,” as opposed to
succession-planning-driven, mergers and (2) “mega-mergers” of $25-million-plus firms.
Koltin also observes that many recent mergers have been more “surgical” in nature – that
is, designed to enhance a specific industry or service area or expand a firm’s geographical
reach. As the economy recovers, Koltin anticipates more “out of the box” mergers in
which firms acquire non-CPA “specialty boutique and consulting practices.”
Free agency or lateral talent. Many Top 200 CPA firms are taking advantage of
talented “middle-market” partners and managers who feel underappreciated at Big Four
firms (which increasingly are focusing on Fortune 1,000 clients).
For the complete article, read “Strategies for Growth: The Triangle Offense.”
[http://bit.ly/wZm8TT ]
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, January 2012, p.
21.
Checklists Enhance Performance and Reduce Risk
Source: Accounting Today
Consultant Gary Boomer suggests that CPAs can learn valuable lessons from The Checklist
Manifesto: How to Get Things Right, by Atul Gawande. Even though the book’s lessons are
derived primarily from the medical profession and airline industry, the idea that checklists can
reduce risk, foster discipline, and improve performance translates to any industry or profession.
Professionals may resist the use of checklists, viewing the steps as “no-brainers.” But even when
checklists outline routine tasks, they significantly reduce skipped steps. In medicine, for
example, simple checklists for routine procedures reduce or even eliminate infections. Many
people fear that checklists are “rigid” and interfere with the exercise of professional judgment.
On the contrary, Boomer explains, a checklist “gets the ‘dumb stuff’ out of the way and clears
the mind to focus on the harder stuff.”
Technology can be helpful in designing and implementing checklists, but it’s critical to use
technology properly. Otherwise, you can end up with excessively complex checklists that just
waste time. To be effective, checklists should be short and simple and should balance discipline
and accountability with the need to incorporate the right amount of professional judgment.
Also, it’s important to integrate checklists and other procedures throughout the firm. Too many
firms allow different departments to make their own technology and procedural decisions.
Finally, firms should regularly evaluate and, if necessary, update checklists to maintain their
effectiveness.
For the complete article, read “Driven by checklists, or professional judgment?”
[http://goo.gl/OjNHL]
From Accounting Today, January 1, 2012, SourceMedia Inc., One State Street Plaza, 27th Floor,
New York, NY 10004, 800-221-1809.
It’s 2012, Do You Know Where Your Partnership Agreement Is?
Source: The Managing Partner Advisor
A partnership agreement is a critical tool for defining firm-partner relationships. Yet many firms
either have no agreement or haven’t reviewed their agreements in years or even decades.
As you create or update your agreement, consider these six key provisions:
1. Mandatory retirement. Retirement ages have been increasing. But whatever “normal”
retirement age is for your firm, be sure to define it.
2. Notice and client transition. Increasingly, agreements are requiring partners to provide
reasonable notice before exiting the firm and to have a plan for transitioning clients over
time.
3. Caps on retirement benefits. Whatever the benefit amount, be sure to impose a cap on
total retirement benefits paid out in a year. Numbers typically range from 10 percent of
profits to 10 percent of gross revenue.
4. Competition provisions. These provisions are state-law-driven, but there’s a trend away
from prohibiting competition and toward compensating the firm for clients that are taken
away (based on one year’s billings, for example).
5. Vesting. Some agreements provide for retirement benefit vesting based on years of
service, such as a 25-year scale with full vesting after 25 years. Age may also be a factor.
For example, an agreement might call for benefits to be discounted 2.5 percent for each
year short of mandatory retirement age. Many firms use a combination of service- and
age-based factors.
6. Dispute resolution. Increasingly, agreements are providing for disputes to be resolved
through arbitration, which often is preferable to a jury trial.
For the complete post, read “Do Your Partner Agreements Include These Six Key Provisions?”
[http://goo.gl/4yJQ0]
From The Managing Partner Advisor, the blog of Gary Adamson, CEO of Adamson Advisory,
http://adamsonadvisory.com/blog, December 13, 2011.
Get Proactive: Grow Your Business in 2012
Source: Partner Insights
The following is a complete article by August Aquila, reproduced with permission.
Here are four growth strategies to embrace in 2012.
1. Beef up your sales and marketing efforts. Sales is not a four letter word, it is the lifeblood
of any growing organization. It’s time for partners to commit significant time and energy
to growing the firm. You need to ask each partner the following question: “What
specifically will you do in 2012 to help the firm achieve its goals?” If partners can’t help
the firm achieve its goals and they are not outstanding technical specialists, then they
may have to step aside or down.
2. Look for new niches. While niches are not a quick fix to today’s problems, they will
provide you with additional security in future downturns. Building a niche is a long-term
commitment, unless you merge a firm or practitioner with an existing practice.
3. Think merger. In today’s no-growth economy, you can grow by acquiring weaker firms
in the market. There are a lot of sellers in the market, many are not strong options, but
there are enough good firms out there to be had. Dedicate one or two partners to search
for mergers in 2012.
4. Add new services. If you can’t find new clients then you need to provide additional
services to your existing clients. Recent growth areas are business valuation, fraud, estate
planning, and don’t forget wealth management.
Make it happen!
For the original article, read “Don’t Play Defense!” [http://goo.gl/gOy9Q]
From Partner Insights, Aquila Global Advisors, LLC, January 2012,
http://www.aquilaadvisors.com.
Take a Step Toward Success
Source: ConvergenceCoaching, LLC Inspired Ideas
The following includes excerpts, reproduced with permission, from a blog entry by Jack Lee.
It’s hard to believe I am completing my second year with ConvergenceCoaching. I have learned
a lot over the past two years working with our clients to help them achieve success. I’d like to
share a selection of my newly attained wisdom.


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


There is no success without succession. Succession planning must be part of the day-today operation of your firm.
Trust is a critical success factor in high-performing and successful organizations.
It’s fundamental to achieving sustained success in business and life.
Success is a “team sport.” Rather than banding together for collective success, the focus
is often on “doing it my way,” internal competition, and maximizing personal success.
Most people, given the option, do not engage in any sort of personal or professional
goal-setting process. Those who do set goals often do so in an ineffective and
uninspiring way, by aiming at “minimum performance,” setting too many goals, or
setting “squishy” goals that lack specificity and measurability. Step 1 - Start setting
goals. Step 2 - Stop behaviors that “sabotage” your success.
Goal-setting is only an interesting mental exercise if you don’t transition to Step 3 Goal achieving. Those who are really serious about achieving their goals willingly
submit to a process of accountability, which includes putting your goals in writing,
sharing your goals with others, establishing a “return and report” process with interim
action steps and milestones, and getting better at skills needed to achieve your goals.
The real value of a firm is in its people rather than in its clients. The most successful
firms succeed by developing and nurturing their people to become future leaders.
For the complete article, read “Do Something New: Be Bold.” [http://goo.gl/EKPr5]
From Convergence Coaching, LLC Inspired Ideas, http://blog.convergencecoaching.com,
December 14, 2011.
Is Your Firm Facing Reality?
Source: RedZone, Play of the Month
The following includes excerpts, reproduced with permission, from an article contributed by
Accountants Advisory Group.
The CPA profession has changed significantly (continuous consolidation, lack of quality CPAs,
baby boomer partners retiring at a rapid pace, increased competition, etc.) and many firms are
having difficulty adjusting to this change and to the related new reality – they are falling into
deep denial.
The following are common symptoms of CPA firms in denial:
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Believing they can be successful in the long-term without strong leadership at the
managing partner level.
Avoiding merging into a larger firm (despite having no succession plan in place) because
some partners don’t have “the stomach” for a merger or because of the remote possibility
that a firm of young successful partners will merge in and provide an exit strategy for the
firm’s partners.
Not investing in quality professional marketing and human resource directors or
consultants because the partners feel it’s not a necessary element of succession planning.
Running the practice day to day as a preferential strategy over developing a strategic plan
for two- to five-year intervals, with partner accountability for implementing the plans.
Promoting managers, who will never be equity partners and who don’t bring in new
business, to non-equity-partner status as a retention strategy.
Thinking that a compensation system based on collections rather than on partner
performance will motivate partners to build a firm of the future.
Believing it’s acceptable to fail to implement action items from annual retreats because
the partners are too busy and the tasks at hand will eventually be accomplished.
Assuming that past success guarantees future success.
For the complete article, read “The Denial Syndrome in the CPA Profession.”
[http://bit.ly/xkgN8r]
From RedZone, Play of the Month, Accountants Advisory Group,
http://www.AccountantsAdvisory.com, January 2012.
Become the “Source” in Outsourcing
Source: Accounting Today
In this article, Daniel Hood highlights the outsourcing services offered by Piascik & Associates,
a Richmond, Va.-based firm. “Piascik Outsourced” began in response to clients repeatedly
asking the firm to take care of necessary financial details that they didn’t have the time, people,
or inclination to handle. According to firm president Steve Piascik, a major corporation that
would have to pay $150,000 to hire a comptroller can get the same services from Piascik
Outsourced for $90,000. In general, Piascik’s outsourced services will cost companies about onethird less than hiring an in-house financial executive.
Piascik & Associates is committed to excellent customer service, and that includes services it
offers through Piascik Outsourced. Each Piascik Outsourced client has three team members
assigned to it: one manager and two staff, who are available to the client all the time – including
nights and weekends.
It has taken Piascik several years to determine the right pricing model for its extensive
outsourcing services. At first the firm underestimated how much time it would take to serve
outsourced clients. Now it estimates the amount of time necessary for each client and provides
the client with a cap on the costs of outsourced services. If the firm has to work more, the client
doesn’t have to pay more. If the firm works less than anticipated, the client receives a credit in
the following year’s engagement letter.
Piascik has found that it takes at least a year of working with a client to most accurately
anticipate a year’s costs, making long-term relationships with clients especially desirable. With
that in mind, keeping staff satisfied is in Piascik’s best interest. The relationships and insight
staff members gain while working with outsourced clients are critical to keeping clients pleased
with Piascik’s services.
For the complete article, read “The firm that can’t say no.” [http://goo.gl/R29fH]
From Accounting Today, January 1, 2012, SourceMedia Inc., One State Street Plaza, 27th Floor,
New York, NY 10004, 800-221-1809.
Mistakes Managers Make
Source: Partner Insights
The following includes excerpts, reproduced with permission, from an article by Dr. Rhonda
Savage.
1. You come to work grumpy. Make a mental choice the moment you wake up in the
morning to be a positive influence on your staff members.
2. You micromanage the staff. Attention to detail is a positive trait, but if you’re
correcting every little detail or do everything yourself, you’ll hurt your performance and
that of the team.
3. You are too “hands off” and don’t hold employees accountable. Good leaders coach
and mentor but don’t micromanage or let things float along. You know the strengths and
weaknesses of your people.
4. You complain about the bad economy and lack of cash flow. Your employees care
about you and the company, but if you’re burdening them with your woes, morale will go
down. Don’t share everything.
5. You bring your personal life to work. Regardless of what is happening in your personal
life, it’s important to keep that separate from your professional life.
6. You don’t deal with problematic employees. If you don’t deal with problematic staff,
one or both of the following will happen:
a. The others will begin acting like them.
b. You’ll lose the respect of the staff.
7. You are always out of the office. It’s important that employees are able to count on you
for assistance, guidance, and support. A manager who is not available for staff members
will quickly lose their respect.
8. You overreact when we approach you with concerns or problems. Overreacting to an
employee bringing an issue to your attention is a bad idea. It’s important for the staff to
know they can come to you with problems and keep you updated on the business.
For the complete article, read “The 8 Things Your Staff Hates About You.” [http://goo.gl/7gjaQ]
From Partner Insights, Aquila Global Advisors, LLC, January 2012,
http://www.aquilaadvisors.com.
The Right Way to Give a Bonus
Source: The Marc Rosenberg Blog
The following complete blog post by Marc Rosenberg is reproduced with permission.
The best staff bonus plans I’ve seen base bonus payouts on two factors: how well the firm
performs vs. a target, and individual achievement of formal, written goals.
The mechanics work like this:
1. Decide on a target bonus pool.
2. Add up the base salaries of participating staff.
3. The ratio of (1) to (2) determines each person’s target bonus. So, if the target bonus is 10
percent, and a person’s base is $80,000, he or she can earn an $8,000 bonus if the firm
achieves 100 percent of its profit target and the individual hits 100 percent of his or her
goals.
4. Individual bonuses could slide higher or lower than target, depending on the extent to
which the firm’s profit target is met or exceeded.
5. The entire bonus pool is paid out. So, money NOT paid to lower achievers is paid to
those who enjoyed a high achievement rate.
The goals should have four main characteristics:
1. All goals should be SMART: Specific, measurable, attainable, realistic, and timebounded.
2. Staff goals should be aligned with the firm’s vision and with individual skills and
performance attributes that each person needs to grow.
3. Each person should have two types of goals: Production and qualitative. Production goals
are the common ones: Business brought in, size of client base, billable hours, realization,
etc. Qualitative goals help the firm and improve the skill level of the individual.
4. Reserve 25 percent of each person’s bonus for management’s discretion because there
will always be performance aspects that can’t be measured by goals.
Download a sample bonus pool for staff. [http://goo.gl/aPOZL]
From The Marc Rosenberg Blog, December 21, 2011, http://blog.rosenbergassoc.com/.
The CPA Profession: Trouble on the Horizon?
Source: VeraSage Institute
Recently, the AICPA published its CPA Horizons 2025 Report [http://goo.gl/p5O6e]. The goal
was to examine trends affecting CPAs and to gather “opinions on how these trends will impact
CPAs in the years ahead, and how the profession could meet the challenges and leverage
opportunities now and in the coming years.”
In this guest blog post, CPA Richard Muscio offers his comments on the report. Here are a few
highlights:
The report: “The services that CPAs provide have become so varied and diverse that the concept
of core services is no longer representative of the profession.”
Muscio’s comment: “[If] the AICPA-interviewed CPAs say that core services (preparing tax
returns and financial statements) are no longer representative of the profession, then why do
customers of CPAs not seem to know that?”
The report: “The profession must find solutions to offer investors and stakeholders up-to-date,
real-time financial information and to increase transparency.”
Muscio’s comment: “How about CPAs helping their business customers to predict how much
cash the business will have in the bank at the end of next week, next month, or at September 30,
2012? [If] CPAs cannot help customers to peer intelligently into the future, then irrelevance of
the CPA profession will certainly be the result.”
The report: “CPAs must embrace mobile technologies and social media to modernize and
enhance interaction and collaboration with clients and colleagues.”
Muscio’s comment: “I flat out disagree, because my customers want consistent and repetitive
face-to-face interaction, which includes ideas for value creation. The technology is merely how
we transmit certain information.”
He goes on to wonder “whether perhaps the AICPA should have interviewed 5,600 customers . .
. of CPA firms instead, because it doesn’t sound like very many of the 5,600 CPAs who were
interviewed asked their customers what they want . . . from the CPA profession.”
For the complete blog post, read “Guest Blog: Richard Muscio, CPA, on CPA Horizons 2025
Report.” [http://goo.gl/y5hx5]
From VeraSage Institute, http://www.verasage.com/index.php/community, December 20, 2011.
Trouble on the Horizon? The AICPA’s Response
Source: VeraSage Institute
The AICPA’s Mark J. Koziel responded to Richard Muscio’s critique (see above) of the CPA
Horizons 2025 Report. Here are a few highlights:
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Regarding Muscio’s comment about “core services,” Koziel explains: “The key point is
this: Because of their foundation in the core services of the profession, CPAs have been
able to broaden their offerings, targeting areas of need for their clients and employers. I
am a good example: Of my four key job areas, only two would fit in the five core
services listed in the Vision Project. Like me, many CPAs are expanding their services
beyond any type of core financial position. The Core Values and Core Competencies help
drive that.”
“You do bring up a great point that CPAs need to ask their customers what they want and
what they are looking for, beyond just what they need. We encourage this of [AICPA]
members through our client advisory board toolkit . . . . The CPA Horizons 2025 Report
also touches on this concept . . . .”
“In your post, you state there were three conclusions. All three conclusions appear to be
from the conclusion to the Technology Insight section. Your post focused primarily on
technology, but the CPA Horizons 2025 Report covers many other areas.”
You are correct that technology cannot replace face-to-face meetings but technology can
enhance those meetings. While some in the profession may be wary of social media, we
should not block our young professionals from developing online relationships and
networking with their peers.”
For the complete blog post, read “Guest Blog: AICPA’s Mark Koziel Responds to Richard
Muscio.” [http://goo.gl/PEByW]
From VeraSage Institute, http://www.verasage.com/index.php/community, January 4, 2012.
Firing Clients the Right Way
Source: CPA Practice Management Forum
Most firms have clients that they’d be better off without. The cost of keeping these clients – in
terms of money, resources, and stress – doesn’t justify the benefits. According to consultant
Hugh Duffy, the three main reasons to fire a client are:
1. The client consumes too much nonbillable time.
2. The client withholds information or asks you to do something unethical.
3. The client doesn’t want your help.
Whatever the reason, if you decide to fire a client, it’s important to keep a cool head and consider
the process carefully. Duffy offers several tips, including:
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Meet with the client face-to-face – don’t do it via email. If a letter is required for legal
reasons, meet in person first, if permissible.
Keep the conversation professional and explain the reasons for severing the relationship.
It’s important to treat the client with respect, particularly if it’s someone you like or will
see in social settings. Assure the client that you’ll keep the matter confidential. Follow up
with a letter.
If the client posts negative comments on social media sites, resist the temptation to
reciprocate. If necessary, ease the concerns of your colleagues or other clients privately
via email or a letter, and consult an attorney for guidance.
If you’re shifting the focus of your practice – to a specialty niche, for example – consider
selling the portion of the practice you’re giving up, rather than severing client
relationships.
For the complete article, read “How to Fire a Client.” [ http://bit.ly/yuAYZI ]
From CPA Practice Management Forum, CCH Incorporated, 800-449-8114, January 2012, p. 7.
Europe Contemplates Sweeping Audit Reform
Source: Accounting Today
Everyone’s talking about audit reform, and now the European Union may do something about it.
Recently, the European Commission proposed legislation designed to delineate the auditor’s role
and enhance auditor independence. Among other things, the proposed law would:
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Generally prohibit auditing firms from providing non-audit services to audit clients;
Require large audit firms to separate audit and non-audit services to avoid conflicts;
Mandate audit firm rotation, every six years (nine years for joint audits), for public
companies, with a four-year cooling-off period before an audit firm can engage the client
again; and
Create a single market for audit services, enabling auditors licensed in one member state
to practice throughout Europe.
For the complete article, read “Is reform just across the pond?” [http://goo.gl/uNyI2]
From Accounting Today, January 1, 2012, SourceMedia Inc., One State Street Plaza, 27th Floor,
New York, NY 10004, 800-221-1809.
Succession Planning and M&A
How to Attract Up-and-Coming CPAs
Source: AICPA CPA Insider
The following includes excerpts, reproduced with permission, from an article by Jennifer Wilson.
The article presents six areas that firms need to consider if they want to attract young CPAs.
Cultural Attributes
Old School or ‘Uncool’
New School or ‘Cool’
Clarity of firm
mission, vision, values,
objectives and
overall strategy
Firm may or may not have these
strategic elements. If they do,
these elements are not discussed
with team members regularly or
used to guide firm discussions.
Firm encourages input from
up-and-comers in the
formation of these strategic
elements and shares strategies
and status regularly with the
team as a whole.
Engagement of firm
leaders with
team members
Firm leaders interact with
directors and managers but have
little interaction with seniors and
staff.
Leaders invest development
time in their people and
include up-and-comers in
leadership team meetings.
Openness of
leadership to input
and change
Leaders do not encourage open
feedback on things the staff feel
should improve.
Firm regularly encourages
employee feedback on
improvements needed via
small group meetings or
surveys.
Firm’s development
of team members
Firm management responsibilities Firm leaders assign ownership
are entrusted only to those at a
of clients, projects and
certain level in the organization. initiatives to staff members at
many levels, working to
develop leadership skills in
staff and seniors wherever
possible.
Approach to work
hours and schedules
The firm’s leaders gauge peoples Firm is driving toward a work
commitment based on how often anywhere, anytime approach,
they see them in the office.
where firm leaders gauge
peoples commitment by their
ability to meet stated
objectives.
Technology
orientation
Technology is seen as a necessary Technology is seen as a
evil.
strategy enabler and a critical
element of the firm’s annual
plan.
For the complete article, read “Is Your Firm Old School or Cool?” [http://goo.gl/TUZFq]
From AICPA CPA Insider, November 28, 2011, http://www.CPA2biz.com.
Marketing
A Searing Look at Hourly Billing
Source: CPA Trendlines
In this humorous video, Aries Technology, which is pursuing an aggressive value-pricing
strategy, asks the question “Would you buy a pulled-pork sandwich if it was priced by the hour?”
To view the video, go to “BBQ’ing the Billable Hour.” [http://cpatrendlines.com/page/4/]
From CPA Trendlines, http://cpatrendlines.com, December 6, 2011.
A Helpful Look at the Next Generation
Source: Solutions for CPA Firm Leaders
In a recent blog post, Rita Keller posted an informational graphic comparing the Millenial
generation to Gen X, Baby Boomers, and the Silent Generation. It provides a creative
presentation of statistics on diversity, political views, social media habits, religion, education,
and employment.
A few statistics on Millenials:
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66 percent voted for President Obama
75 percent utilize social media
69 percent recycle
25 percent claim no religion
One in five is married
74 percent believe technology makes life easier
40 percent are attending college
36 percent rely on family for financial help
37 percent are unemployed
For the complete blog entry, read “Learn All You Can About the Millenials.”
[http://goo.gl/hhJ3y]
From Solutions for CPA Firm Leaders, the blog of Rita Keller, president of Keller Advisors,
LLC, rkeller@ritakeller.com, January 3, 2012, http://ritakeller.com/blog/.
Client Services
Client Advisory Boards Offer Significant Benefits
Source: Journal of Accountancy
CPA firms that have established and maintained client advisory boards say that the benefits far
exceed the costs. Those benefits include:
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Valuable feedback from clients on what they want, what the firm does well, and what the
firm can improve.
Ideas – from clients as well as from non-client board members – for new lines of
business.
Opportunities to cross-sell services to clients who serve on the board – and to gain new
business from non-client board members.
Referrals from board members.
This article reviews the benefits of client advisory boards and the challenges of running one.
(Finding the time and will is one of the biggest challenges.) It also offers tips on how to start a
board, who should serve on the board, and how to decide whether to use an outside facilitator.
For the complete article, read “Board of education: CPA firms, businesses can profit from
clients’ advice.” [http://goo.gl/jXBMT]
From Journal of Accountancy, American Institute of Certified Public Accountants, November
2011, http://www.journalofaccountancy.com/Issues/2012/Jan.
Become a Trusted Advisor
Source: AICPA CPA Insider
The following includes excerpts, reproduced with permission, from an article by Tracy Crevar
Warren.
According to the recent CPA Horizons 2025 Report [http://goo.gl/p5O6e] the trusted adviser role
is more critical than ever for the future of the profession.
“It’s an exciting time for the profession as CPAs are evolving,” said Eric Rigby, a partner with
New Orleans-based Rigby Financial Group. “Practitioners already have solid relationships with
their clients and know about their businesses, so it just makes sense to help them with other areas
that can strengthen trust and provide greater value.”
Keys to Success
1. Take pride in the potential value of your knowledge. “People really need help,
especially in these tough times,” said Rigby. “The key is to take pride in the vast
knowledge you have. Then use it to deliver the value that your clients seek.”
2. Set realistic goals. Rigby recommends practitioners identify two to three things they
want to accomplish over the next 12 months. For example:
a. Make a list of five clients you want to meet with.
b. Identify two to three potential clients that may have issues you can help resolve.
c. Provide two to three new advisory engagements.
d. Stay focused on your goals.
3. Clearly communicate objectives. It’s essential to communicate your objectives and
deliverables clearly. Convey progress toward those objectives regularly.
4. Provide clients with a source of confidence and clarity. “Trust comes by replacing
client’s confusion with clarity, and the confidence that goes along with it,” said Rigby.
5. Learn from mistakes. When you delve into uncharted territory you will make mistakes.
When it happens, step back and analyze the situation. Ask three questions:
a. What went wrong?
b. What could you have done differently?
c. What did you learn?
For the complete article, read “The Future Looks Bright for the Trusted Adviser.”
[http://goo.gl/yue2x]
From AICPA CPA Insider, November 14, 2011, http://www.CPA2biz.com.
Resources
What Should You Be Reading?
Source: CPA Success
The following includes excerpts, reproduced with permission, from a blog entry by Tom Hood.
One of our favorite sayings is this: To stay ahead of the competition in this turbulent economy,
your L > C; your rate of learning must be greater than the rate of change (and your competition).
Our New Year’s wish is for you to step up your reading and keep your L > C for 2012 and the
future.
Here are our top 12 reads for 2012:
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Today We Are Rich: Harnessing the Power of Total Confidence, by Tim Sanders.
Leadershift: Reinventing Leadership for the Age of Mass Collaboration, by Emmanuel
Gobillot.
The Little Big Things: 163 Ways to Pursue Excellence, by Tom Peters.
Drive: The Surprising Truth About What Motivates Us, by Dan Pink.
Linchpin: Are You Indispensable?, by Seth Godin.
Implementing Value Pricing: A Radical Business Model for Professional Firms, by Ron
Baker.
Data Dynamite: How Liberating Information Will Change Our World, by W. David
Stephenson.
Switch: How to Change When Change is Hard, by Chip and Dan Heath.
Delivering Happiness: A Path to Profits, Passion, and Purpose, by Tony Hsieh.
Strengths-Based Leadership, by Tom Rath and Barry Conchie.
Managing in Turbulent Times, by Peter Drucker.
Brain Rules: 12 Principles for Surviving and Thriving at Work, Home and School, by
John Medina.
For the complete article, read “The top 12 business books of 2011.” [http://goo.gl/EakQg]
From CPA Success, the blog of the Maryland Association of CPAs, http://www.cpasuccess.com,
January 5, 2012.