Archives for September 2009

Help Future Leaders Fill Your Shoes

Perhaps the most often discussed question and concern among older CPA firm partners is, “Who is going to grow the firm and lead it into the future once we are gone?” As they look up and down their staffing list, they are struggling to find people that have the passion, drive, work ethic and desire to lead the firm and take it to the next level. Generational differences have partners befuddled. Perhaps, too often, they are seeking replicas of themselves.

Meanwhile, CPA firms are facing challenging issues. Sophisticated buyers are demanding more than the traditional services firms have offered. Stiff competition for quality people not only makes the recruiting function challenging, but also means firms must step up their game in order to retain good people. All this is occurring while
the Baby-Boomer leadership of the firm is getting closer and closer to retirement. So what can a firm do to ensure its long-term viability? You want talented staff with passion? What are you waiting for?

First Step – Find the Right People

Successful firms will find good people, no matter what generation they come from. These firms utilize personality profiles and well-trained interviewers to locate the right people for their staff. Personality profiles allow firms to get a glimpse of what makes the prospect tick. Do they work best alone or are they more effective working in a team? Do they require a lot of detail to make decisions? Are they sales oriented? Knowing a person’s character traits will help a firm place them in a position where they can utilize their strengths and be successful.

Make It Exciting and Fun

Think back to when you were a staff person. Somehow, armed only with a good education and whatever work ethic your parents laid on you, you entered the CPA profession ready to build your career. What was it that made the work interesting, motivated you to strive for advancement and kept you coming back every day?

When I was an office manager, and later as chief executive of a regional firm, I often wondered whether we were doing the things that would cause our staff to be excited about building a career with us. I knew it was easy for staff to get buried in the minutia that comes with getting the work done.

Successful firms have built a culture that encourages their people to help grow the firm and, in return, offers a meaningful secure place in it for them. They make the work interesting by taking the time to paint the big picture. Consequently, the staff better understands how what they are doing has importance and relevance. They assign challenging work to their staff that continually stretches their abilities and knowledge. Early on, they include staff in decision making, teaching them to think for themselves and not let it up to others. They provide training in the soft-skills, leadership and business management. And they make it fun.

Be a Person of Influence

The technical training I received in college provided me with little knowledge of growing a business or training, supervising and leading people. As I look back, I remember the partners and managers that influenced my development. They displayed a genuine interest in my success, often taking the time to explain the big picture, talking situations through with me, and challenging me with new assignments that stretched me.

Partners who are concerned about the succession of their firms need to take action. Ask yourself, “If I were in the staff person’s shoes, what would I want from the partners in the way of attention, coaching and advice?” Decide today that you will be a person of influence. Start by seeking to understand how each generation thinks. Use that knowledge to help them become better at what they do. Your job is to raise up leaders.

Some of the areas to focus on include:

– Assigning your people meaningful work. They want to know that what they are doing will make a difference.

– Having your staff communicate with the client as much as possible. It will build their confidence, get them comfortable with interacting directly with the people they serve and teach them to listen to their needs.

– Encouraging people to step up and take responsibility. Partners often complain that young staff do not readily accept engagement responsibility. You can have a direct impact on your employees’ progress by clearly establishing your expectations with them, devising a plan of development and coaching them through the process.

– Training your replacement. Put them in positions to lead others. Hold them accountable for completing engagements timely and on budget. Have them give feedback to the members of their engagement team. Be available to mentor them through this process.

A Rewarding Experience

Influencing others to succeed is perhaps the most rewarding part of being a partner in a CPA firm. It is an opportunity to make a meaningful difference in the development and lives of your people. In addition to the self-satisfaction it brings, it also strengthens the firm by providing leaders at every level and goes a long way in solving issues with engagement management, firm growth and profitability, and partner succession. You will have the comfort of knowing the firm you helped build is in good hands.

Reprinted with permission from September 2009 edition of Accounting Today

About the author: Timothy I. Michel, CPA is a consultant to CPA firms and a former managing partner of a Top 100 CPA firm. He helps CPA firm owners create value in their practice by drawing on his own experiences to assist them in identifying and overcoming obstacles and focusing on opportunities to increase growth and profitability. For more information, visit the website at www.michelconsultinggroup.com or contact Tim directly at tim@michelconsultinggroup.com.

September 2009 Of Interest

Income / Non-Equity Partner Checklist
Consultant Bob Gallagher shares key items that all firms should consider when promoting senior managers to income or non-equity partner status.

One-Third of Execs Expect Rise in Fraud and Misconduct, KPMG Survey Finds
Amid a continuing economic downturn, renewed government regulatory enforcement and with trillions of dollars of government money infused into the U.S. economy, nearly one-third of corporate executives expect fraud or misconduct to rise in their organizations, according to a survey by the audit, tax and advisory firm KPMG LLP.

IRS Goes After Foreign Golfers
As South Korean golfers sweep major golf tournaments in the United States, the Internal Revenue Service is planning to tax all foreign golfers for wearing, using and promoting a corporate sponsor’s product or logo at competitions, reports The Korea Times.

PEOPLE IN THE NEWS

Gollob Morgan Peddy & Co Admits New Partner
Kevin R. Cashion, CPA, was recently admitted as a partner in the CPA firm of Gollob Morgan Peddy & Co., Cashion has been associated with the firm for over 20 years, concentrating his practice in audits of cities and small manufacturing companies.

Parente Adds New Healthcare Partner

Lou Feuerstein has joined the Parente team as a Principal in firm’s Healthcare Practice in the New York and New Jersey offices. “Lou brings to Parente Randolph the wide-spread industry expertise he gained during his 35+ year career spent with a Big Four firm,” Robert J. Ciaruffoli, chairman and CEO of Parente Randolph says.

SEC Names Kroeker Chief Accountant
James L. Kroeker has been named as the Chief Accountant in the SEC’s Office of Chief Accountant. In this capacity, Mr. Kroeker will oversee accounting interpretations, professional practice issues, and international accounting matters.

Greenspan Leaving Moss Adams at End of the Year
Rob Greenspan, managing partner of the Los Angeles office of Moss Adams, has announced that he will be leaving the firm after 30 years of service.

SEC Charges Las Vegas-Based Accountant For Issuing False Audit Reports
The SEC alleges that Michael J. Moore and his firm Moore & Associates Chartered of Las Vegas issued unqualified audit reports with deficient documentation after untrained employees conducted few if any auditing procedures on the financial statements of their clients.

Former House Chairman Michael Oxley to Lead ERC Board
Michael G. Oxley, a former member of Congress best known as cosponsor of the Sarbanes-Oxley Act of 2002, has been elected chairman of the board of directors of the nonprofit Ethics Resource Center,

Top PwC China M&A partner Xie Quits
PricewaterhouseCoopers announced that its long-time China partner Xie Tao had resigned. The resignation of Xie, based in Beijing for PwC as its corporate finance leader for the China market, was a surprise to many dealmakers in China as he has handled more than 100 mergers and acquisitions over the past decade there.

FIRMS AND MERGERS

Shea Labagh Dobberstein Faces Accusations of Fraud By Former Employee
A former employee has brought a $5 million lawsuit against the San Francisco firm allegedly “violating their legal duties” in connection with tax returns the firm had prepared on behalf of two of its corporate clients.

Accounting firm M&A specialist Allan Koltin predicts a “mega-merger” will take place within the profession before the end of the year.
WebCPA reports that at the 2009 Forum on Recruiting and Retention in Chicago in August, Allan Koltin told the audience, “Don’t be surprised to hear about a mega-merger involving two of the top 25 CPA firms in the country who, on day one, would have a revenue base equal to that of the 10th largest CPA firm in the country.”

LECG Announces Proposed Merger With SMART, New CEO and $25M Cash Infusion

Sikich Buys Levi Littell Herbst

Marcum Merges in Margolis

Marcum Search Opens Florida Office

LarsonAllen acquires Ganim, Meder

Beene Garter Acquires Barrons State Tax Consulting

Greenstein Rogoff Olsen Acquires Ronald Boyer Accountancy