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i | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
THE INSIDE PUBLIC ACCOUNTING FIRM ADMINISTRATION REPORT
2015
EXCERPTED IN PARTONLINE ONLY
ii | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
THE ANNUALINSIDE PUBLIC ACCOUNTING
FIRM ADMINISTRATION REPORT2015 survey and analysis conducted by: The Platt Group / INSIDE Public Accounting
The Independent Gold Standard of Accounting Firm Benchmarking Since 1990
Published by: The Platt Group / INSIDE Public Accounting 4000 West 106th Street, Suite 125-197 Carmel, IN 46032 (317) 733-1920 P (317) 663-1030 F www.insidepublicaccounting.com
2015 PRICING
$379 (PDF Copy)
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Authorization to photocopy information, tables or graphs contained in this report is expressly prohibited without written consent of The Platt Group / INSIDE Public Accounting. For customized reprints of tables, graphs or
analysis within this report, please contact The Platt Group / INSIDE Public Accounting.
The Platt Group / INSIDE Public Accounting
4000 W. 106th St., Suite 125-197, Carmel, IN 46032-7730
Phone: (317) 733-1920 Fax: (317) 663-1030
Web: www.insidepublicaccounting.com
E-mail: survey@plattgroupllc.com
THE 2015 INSIDE PUBLIC ACCOUNTING
FIRM ADMINISTRATION REPORT SPONSORED BY
iii | P a g e The 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
TABLE OF CONTENTS Page PREFACE ................................................................................................................................................................................ i HIGHLIGHTS ........................................................................................................................................................................ iv
MEMBERSHIP Member of Association for Accounting Administration ................................................................................................ 1
GOVERNANCE Firm Structure ....................................................................................................................................................................... 2
Firm Management ............................................................................................................................................................... 2
Partnership Agreements..................................................................................................................................................... 3
Succession Planning ............................................................................................................................................................. 4
PROFESSIONAL LIABILITY Premiums ............................................................................................................................................................................... 5
Coverage ............................................................................................................................................................................. 5
Gross Billings ........................................................................................................................................................................ 5
Limits ...................................................................................................................................................................................... 5
Deductibles ........................................................................................................................................................................... 5
Costs as a Percentage of Firm Net Revenue ................................................................................................................. 5
EMPLOYMENT PRACTICE LIABILITY Premiums ............................................................................................................................................................................... 6
Coverage ............................................................................................................................................................................. 6
INTERNAL ACCOUNTING DEPARTMENT STAFFING, COMPENSATION, BONUSES, MERIT INCREASES
CFO ....................................................................................................................................................................................... 7
Controller .............................................................................................................................................................................. 7
Payroll Specialists ............................................................................................................................................................... 8
Accounting Staff .................................................................................................................................................................. 8
Administrative and Support Staff .................................................................................................................................... 9
FIRM ADMINISTRATION STAFFING, COMPENSATION, BONUSES, MERIT INCREASES Firm Administrator ............................................................................................................................................................... 10
COO ...................................................................................................................................................................................... 10
CEO ....................................................................................................................................................................................... 11
Administrative and Support Staff .................................................................................................................................... 12
HUMAN RESOURCES STAFFING, COMPENSATION, BONUSES, MERIT INCREASES
Human Resources Director ................................................................................................................................................. 13
Recruiter ................................................................................................................................................................................ 13
Training Director ................................................................................................................................................................. 14
Benefits Administrator ........................................................................................................................................................ 14
Administrative and Support Staff .................................................................................................................................... 15
MARKETING STAFFING, COMPENSATION, BONUSES, MERIT INCREASES
Marketing Director ............................................................................................................................................................. 16
Marketing Coordinator ...................................................................................................................................................... 16
Social Media Staff ............................................................................................................................................................. 17
Administrative and Support Staff .................................................................................................................................... 17
iv | P a g e The 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
BUSINESS DEVELOPMENT STAFFING, COMPENSATION, BONUSES, MERIT INCREASES
Business Development Director ......................................................................................................................................... 18
Sales Staff ............................................................................................................................................................................ 18
Administrative and Support Staff .................................................................................................................................... 19
INTERNAL INFORMATION TECHNOLOGY STAFFING, COMPENSATION, BONUSES, MERIT INCREASES
IT Director ............................................................................................................................................................................. 20
CTO / CIO ........................................................................................................................................................................... 20
Systems / Network Administrator .................................................................................................................................... 21
Help Desk ............................................................................................................................................................................. 21
Administrative and Support Staff .................................................................................................................................... 22
PARTNERSHIP ISSUES Equity Partner Ownership ................................................................................................................................................. 23
Equity Partner Demographics ........................................................................................................................................... 24
Other Partner Ownership .................................................................................................................................................. 24
Total Male / Female Equity Over the Age of 50 ........................................................................................................ 24
Equity Partner Compensation Distribution ...................................................................................................................... 25
Non-Equity Partner Compensation Distribution ............................................................................................................. 26
PARTNER RETREATS
Retreat Information ............................................................................................................................................................. 27-30
FIRMWIDE CHARGE HOURS CHARGE HOUR BUDGET, ACTUAL CHARGE HOURS, HOURS WORKED Equity Partners .................................................................................................................................................................... 31
Non-Equity Partner ............................................................................................................................................................. 31
All Other Professional Staff .............................................................................................................................................. 32-34
PROFESSIONAL STAFF UTILIZATION Tax Department .................................................................................................................................................................. 35
Audit Department ............................................................................................................................................................... 36
All Other Practice Areas .................................................................................................................................................... 37
BUSINESS DEVELOPMENT INCENTIVES Offer Incentives – New Clients ......................................................................................................................................... 38
Offer Incentives – New and Existing Clients .................................................................................................................. 39
Distribution and Duration of Incentives for New Clients .............................................................................................. 40
Distribution and Duration of Incentives for Existing Clients ......................................................................................... 41
Effectiveness of Incentive Program .................................................................................................................................. 42
Primary Reasons for Increase in Revenue ..................................................................................................................... 43
Secondary Reasons for Increase in Revenue ................................................................................................................ 44
FIRMWIDE METRICS AND PROFITABILITY Profit Margin Metrics Tracked.......................................................................................................................................... 45
Profit Metrics Shared Within the Firm….
Net Revenue ......................................................................................................................................................................... 46
Profit Margin ....................................................................................................................................................................... 47
Utilization ............................................................................................................................................................................. 48-49
Net Revenue per Hour ....................................................................................................................................................... 50
Firmwide Net Income .......................................................................................................................................................... 51
Realization ........................................................................................................................................................................... 52
CLIENTS / WORKFLOW / ACCOUNTS RECEIVABLES Formal Client Acceptance Process ................................................................................................................................... 53
Formal Client Classification Process ................................................................................................................................ 53
Client Value ......................................................................................................................................................................... 53
v | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
Percentage of Revenue in the Pipeline ........................................................................................................................... 53
Standard Hourly Billing Rate Multiple ............................................................................................................................ 54
Client Fees ............................................................................................................................................................................ 55
Process for Client A/R Collections ................................................................................................................................... 56
Sell-Off and Credit Card Payment ................................................................................................................................. 57
Interest Charged ................................................................................................................................................................. 57
TAX RETURN PROCESSING Offer Guaranteed Turnaround ........................................................................................................................................ 58
Outsourcing .......................................................................................................................................................................... 58
FEEDBACK AND OPINIONS Firm View of the Economy ................................................................................................................................................. 59
Clients’ View of the Economy ............................................................................................................................................ 59
Staffing Outlook ................................................................................................................................................................. 60
Key Strategies for New Business Development............................................................................................................. 61
THANK YOU TO CPA FIRM MANAGEMENT ASSOCIATION FOR SPONSORING THE 2015 REPORT
vi | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
THE 2015 FIRM ADMINISTRATION REPORT
The annual INSIDE Public Accounting Firm Administration Report is an independent, up-to-date set
of economic and management statistics available about the accounting profession.
“If you want to work with people, then you have to know how to administrate, that is
to organize them and lead them.” ― Sunday Adelaja
IPA’s Methodology: Each survey is reviewed
and examined. If data appears to be incorrect
or questionable, we resolve issues with the
reporting firm. While we do everything possible
to ensure accuracy, the participating firms bear
the ultimate responsibility for providing
accurate data.
Throughout this report, all tables are presented by revenue bands and geographic regions. IPA does
not provide data on any individual firm.
TERMS AND DEFINITIONS
Non-Big 4: This category includes all participating firms and includes all national firms, but excludes
Big 4 firms.
Averages: The averages included in this report are averages of data supplied by survey participants.
In some instances, the averages may not appear to total correctly; this is a function of rounding. All
data excludes the Big 4.
SPONSORED BY CPA FIRM MANAGEMENT ASSOCIATION
vii | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
We wish to extend our gratitude to the more
than 121 firms that participated in the 5th
annual Firm Administration survey.
Managing partners, firm administrators,
controllers, office managers and others all
played a part in gathering the required data
for the survey. We appreciate your efforts
and flexibility, your input and suggestions
for improvement, and your willing cooperation in ensuring accurate and timely submissions.
Maintaining confidentiality is a responsibility we at INSIDE Public Accounting take very seriously.
That uncompromising commitment is the foundation of our business, and we appreciate the trust you
have placed in our company.
We hope you will find value in this report.
Please remember IPA can also serve as a resource to you as you gather your management team to
review benchmarking and performance improvement opportunities. Consider inviting IPA to make a
customized presentation at your next partner retreat. IPA can delve deeper into the trends and
provide detailed information on specific areas of interest.
We look forward to continuing to serve you and the profession, and we encourage you to always
“expect better” in the future.
Please feel free to contact us at
mplatt@plattgroupllc.com or
kplatt@plattgroupllc.com to see how
the lessons learned from hundreds of
firms can be used to improve
performance at your firm.
Mike & Kelly Platt
viii | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
SUMMARY HIGHLIGHTS Publishers’ Note: Unless otherwise noted, all commentary relates to non-Big 4 firms, but includes all
participating national firms. Not all firms chose to answer all questions. Percentages cited in the
following pages/tables are based on firms that answered those specific questions.
OVERVIEW
The universe of firms that participated in the IPA
Firm Administration survey this year includes the
following:
51- Firms above $20 Million
47- Firms $10 Million - $20 Million
10- Firms $5 Million - $10 Million
13- Firms under $5 Million
A few observations are worth noting as you review this IPA Firm Administration Report, which drew
participation from 121 U.S. firms.
REVENUE GROWTH
There are many reasons for changes in revenue, which this year averaged 5.3% (organic growth)
and 7.2% (including mergers) across all firms that participated in the IPA survey.
Primary reasons attributed by participants for their growth include:
64% Organic growth
15% Economic Conditions
9% Mergers / Acquisitions
7% New Service or Niche Launched
3% Addition of New Partner(s) – Lateral Hires
ix | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
CLIENTS / WORKFLOW / ACCOUNTS RECEIVABLE
Less than 1% of participating firms guarantee a
specific turnaround time for tax returns. This could
present an opportunity to differentiate your firm.
Credit cards are acceptable for payment by 84% of
firms.
Sixty-one percent of participating firms charge
interest on overdue accounts receivables, with the
average charging 1.24% monthly.
Less than 1 in 13 firms report outsourcing some portion of tax return processing work, with the
majority of those coming from firms greater than $30 million in revenue.
Eighty percent of participating firms have a formal client acceptance process. If yours is one of the
firms that doesn’t, consider adding one – and sticking to it.
Less than one-third of participating firms do not have a process to prevent further work for a
client(s) that has an overdue AR balance. If you do not have one, it would be worth considering.
Only 2% of firms sell receivables to a third party – this is a practice that is certainly not common in
the profession, and maybe for a good reason.
Forty-nine percent of firms do not know or do not track their percentage of annual revenue “in the
pipeline” at any given time. Of those that do track, 42% say that it’s between 0% and 5% of their
annual revenue.
FIRMWIDE METRICS / PROFITABILITY
Measuring your firm’s profitability beyond the firmwide
number can identify strengths and weaknesses.
Consider the following percentage of firms and their
means of tracking profit margin:
69% By Office
62% By Department
56% By Client(s)
39% By Staff
x | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
Philosophical differences exist among many firms on what information should be shared with staff.
Fifty-seven percent of firms share top-line numbers firmwide.
Firmwide utilization is shared with all staff in 36% of participating firms.
Realization is shared with all staff in 35% of all participating firms.
Net income is shared with all staff in only one in 10 firms.
PARTNERSHIP ISSUES
Only 8% of participating firms offer equity ownership to
administrative (C-Suite) personnel. This area could be a
differentiating factor for firms. As the talent war becomes more
crucial to the success of firms, IPA will be keeping an eye on this
number to see if it trends upward or downward.
PARTNER RETREATS
Partner retreats are alive and well, according to the IPA firm administration survey.
Eighty-one percent of firms report that they conduct annual retreats.
Of those that hold retreats, 18% report they conduct them every six months, and 73%
conduct them annually.
Of the firms that indicate they hold partner retreats, 45% of these firms travel 50 miles or
more from the office. Fifty-three percent are held locally, off-site.
More than 50% of all participating firms include a formal survey of the partner group to
gather information prior to developing the retreat agenda.
A mere 29% of participating firms solicit feedback from clients / non-partners within the
firm. This is a great opportunity to consider for your next partner retreat.
A healthy 70% of participating firms include the firm administrator in the retreat.
Less than one-in-five participating firms invite/include guests from outside the firm
(advisory board members, clients, etc.)
xi | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
Hot Topics for Partner Retreats…
Strategic planning, business development and practice development initiatives dominate,
with 96%, 93% and 91% of firms, respectively, indicating that these areas are discussed.
Less frequent discussions are succession planning (83%) and partner issues (63%).
FIRM GOVERNANCE
Fifty percent of participating firms report that their structure is more like a corporation than
a partnership.
A full 85% have updated partnership agreements within the past three years with 26% of
those doing so within the past year.
Only 42% of participating firms have a written / formal succession plan in place for all
equity partners. This continues to be one of the greatest challenges in the profession.
One in 14 firms have a succession plan for their high level (C-Suite) administrative staff.
BUSINESS DEVELOPMENT INCENTIVES
Most firms acknowledge that they need staff looking for new
business opportunities, whether new clients or adding services
to existing clients.
Philosophically, many may argue that business development is
the responsibility of all partners, and is part of the compensation
expectations, and admittance into partnership. Some argue that new business development
initiatives as part of the compensation formula incentivizes partners to do the jobs they are
supposed to do. This is an opportunity to define the rainmakers, the workers and those who can
cross-over.
Seventy-two percent of firms offer incentives to 6- to 8-year staff. In 70% of those firms, incentives
are provided for only new business development. IPA asks, “Why wouldn’t you incentivize staff for
new business from current clients as well? (Note: The No. 1 strategy identified by all participating
firms for generating new business is “Increase value-added opportunities with existing clients.”)
Less than a third of firms that have an incentive plan compensate staff for the first year of the new
client. Some are more generous, with 29% compensating for two years and 9% for the life of the
newly acquired client(s).
xii | P a g eThe 2015 IPA Firm Administration Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
Less than half of participating firms rate their incentive program as “good” or “excellent,” and 22%
believe their program is “fair” or “poor.” The other 30% consider their program “average.” Offering
an excellent incentive program could be a differentiator for your firm.
LIABILITY INSURANCE COVERAGE
An aggregate of $26 million is spent annually in professional liability insurance coverage by the
121 participating firms.
The average premium increase was 4.7%.
A total of $1.5 million more is spent in premiums for liability coverage of employment practices,
with the average premium increase rising 5.4%.
1 | P a g e The 2015 IPA Firm Administration Benchmarking Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
FIRM MEMBERSHIPS
No. of Responses
Member of Association for Accounting Administration
(AAA)?
If yes, do you find value in
your membership?
FIRM SIZE (Net Revenues)
All Non-Big 4 121 64% 92%
>$75 Million 9 56% 80%
$50-$75 Million 11 55% 100%
$30-$50 Million 12 67% 88%
$20-$30 Million 19 74% 93%
$15-$20 Million 20 70% 100%
$10-$15 Million 27 67% 89%
$5-$10 Million 10 60% 100%
$3-$5 Million 6 67% 75%
< $3 Million 7 29% 100%
REGIONAL DATA
Southeast 31 61% 100%
Great Lakes 19 68% 85%
Northeast 21 62% 92%
Great Plains 22 77% 94%
West 28 54% 87%
2 | P a g e The 2015 IPA Firm Administration Benchmarking Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
GOVERNANCE
Firm Structure
Management by Managing
Partner
Management by Executive Committee
Management by Full/Majority Partnership
Firm Structured
like Partnership
Firm Structured
like Corporation
FIRM SIZE (Net Revenues)
All Non-Big 4 20% 70% 10% 50% 50%
>$75 Million 0% 100% 0% 55% 45%
$50-$75 Million 9% 91% 0% 36% 64%
$30-$50 Million 23% 77% 0% 38% 62%
$20-$30 Million 20% 80% 0% 35% 65%
$15-$20 Million 10% 80% 10% 70% 30%
$10-$15 Million 32% 50% 18% 44% 56%
$5-$10 Million 10% 60% 30% 67% 33%
$3-$5 Million 17% 50% 33% 100% 0%
< $3 Million 57% 29% 14% 29% 71%
REGIONAL DATA
Southeast 19% 75% 6% 35% 65%
Great Lakes 16% 79% 5% 47% 53%
Northeast 25% 67% 8% 61% 39%
Great Plains 18% 64% 18% 50% 50%
West 21% 66% 14% 59% 41%
3 | P a g e The 2015 IPA Firm Administration Benchmarking Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
GOVERNANCE
When was the last time your partnership agreements were updated?
Less than 1 Year ago
1 - 3 Years ago
3 - 5 Years ago
5 - 10 Years ago
More than 10 Years ago
Never Updated
FIRM SIZE (Net Revenues)
All Non-Big 4 26% 46% 13% 11% 0% 2%
>$75 Million 30% 40% 20% 10% 0% 0%
$50-$75 Million 18% 64% 9% 9% 0% 0%
$30-$50 Million 23% 38% 31% 8% 0% 0%
$20-$30 Million 25% 55% 5% 10% 5% 0%
$15-$20 Million 25% 40% 20% 15% 0% 0%
$10-$15 Million 26% 52% 7% 15% 0% 0%
$5-$10 Million 30% 30% 10% 10% 20% 0%
$3-$5 Million 50% 50% 0% 0% 0% 0%
< $3 Million 20% 20% 20% 0% 0% 40%
REGIONAL DATA
Southeast 16% 55% 3% 19% 6% 0%
Great Lakes 17% 56% 28% 0% 0% 0%
Northeast 30% 43% 9% 9% 4% 4%
Great Plains 36% 36% 18% 5% 0% 5%
West 32% 39% 14% 14% 0% 0%
4 | P a g e The 2015 IPA Firm Administration Benchmarking Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
GOVERNANCE Succession Plan
Succession Plan in Place for
MP/CEO
If yes, the entire Partner Group is Aware of
the Plan
Succession Plan for ALL
Equity Partners
Succession Plan for ALL
High-Level Administrative
Staff
FIRM SIZE (Net Revenues)
All Non-Big 4 43% 94% 42% 7%
>$75 Million 90% 89% 30% 10%
$50-$75 Million 55% 100% 36% 0%
$30-$50 Million 54% 86% 77% 15%
$20-$30 Million 32% 100% 35% 5%
$15-$20 Million 30% 100% 40% 11%
$10-$15 Million 44% 92% 48% 8%
$5-$10 Million 30% 100% 20% 0%
$3-$5 Million 60% 100% 60% 0%
< $3 Million 14% 100% 14% 0%
REGIONAL DATA
Southeast 45% 93% 38% 3%
Great Lakes 22% 75% 37% 6%
Northeast 57% 92% 50% 10%
Great Plains 48% 100% 43% 11%
West 41% 100% 41% 7%
7 | P a g e The 2015 IPA Firm Administration Benchmarking Report / Copyright ©2015 INSIDE Public Accounting / www.insidepublicaccounting.com
INTERNAL ACCOUNTING STAFF
HAVE A
CFO? Average
Compensation
Were Bonuses
Paid?
Most Recent Merit
Increase
HAVE A
CONTROLLER? Average
Compensation
Were Bonuses Paid?
Most Recent Merit
Increase
FIRM SIZE (Net Revenues)
All Non-Big 4 25% $175,049 79.4% 3.7% 51% $96,405 71.0% 3.9%
>$75 Million 50% $216,917 83.3% 4.5% 67% $141,481 100.0% 3.7%
$50-$75 Million 58% $153,700 85.7% 4.4% 58% $109,686 85.7% 4.4%
$30-$50 Million 36% $223,750 80.0% 1.2% 64% $98,562 77.8% 3.7%
$20-$30 Million 24% $130,567 60.0% 4.5% 67% $89,745 71.4% 4.3%
$15-$20 Million 14% $135,848 100.0% 6.7% 43% $91,312 55.6% 4.7%
$10-$15 Million 24% $156,261 71.4% 3.1% 62% $82,057 61.1% 3.7%
$5-$10 Million 9% $350,000 100.0% 0.0% 18% $105,934 50.0% 1.8%
$3-$5 Million 0% 14% $65,000 100.0% 3.0%
< $3 Million 0% 13% $66,000 0.0% 3.5%
REGIONAL DATA
Southeast 33% $163,205 81.8% 4.6% 48% $90,950 75.0% 3.9%
Great Lakes 35% $175,496 100.0% 3.7% 50% $90,597 80.0% 2.7%
Northeast 28% $220,286 85.7% 3.0% 64% $112,885 87.5% 3.6%
Great Plains 4% $91,545 100.0% 3.0% 52% $91,081 50.0% 4.4%
West 28% $159,905 50.0% 3.3% 52% $91,799 60.0% 4.7%
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Tracy Gallagher
For Many Firms, A Lateral Partner HireProvides The Right Prescription For Growth
A lateral partner hire can be just the right medicine for firms looking togenerate new revenue streams, develop or reinvigorate a niche, expandgeographically or grow within a developing service line.
According to Allan Koltin, president and CEO of Chicago-based PDIGlobal, during the past five years, more partners have left the Big Fourto join the Top 200 firms than ever before. It is the No. 1 growth strategyfor many firms, he says.
So how has the trend of lateral hiring gained traction? Part of it, Koltintells IPA, stems from the fallout at Andersen, which set the stage forgrowth within other non-Big Four firms. And as firms increasinglybecoming more specialized and niche-focused, demand rises for specificexpertise.
Tracy Gallagher, senior managing director ofCleveland-based CBIZ Tofias,* sees lateral hiring as a tremendous opportunity for growth. Bringing in aspecialist to revitalize a niche can produce dramaticresults, he says. For many years, Tofias did “some”business in the not-for-profit arena. “We had peopledoing it part time but it really wasn’t their specific areaof expertise.”
That changed in 2004 when Mike Burns left GrantThornton to join Tofias. “Clearly,” says Gallagher, “Mikeput us on the map.” Today, according to Gallagher, CBIZ Tofias is thepremier not-for-profit player in the greater Boston area. The firm isinvolved with high-end not-for-profits, including more than a dozen colleges and universities, major cultural institutions and renownedmuseums. “Before Mike came on board, we couldn’t even get our footin the door,” he says.
April 2009 Volume 23, Number 4
FIRMSPlante & Moran Readies For Leadership Change 4
PEOPLEFormer Rea & Assoc. MP Goes Solo 5
AICPA / PCPSPCPS Assists Firms WithThe Economic Crisis 6
ASSOCIATIONSHow To Choose The Right Fit For Your Firm 8
REGULATIONSMark-To-Market OnThe Hot Seat 10
TRENDSSome Firms TellingStaff “Stay Home” 11
EXPANSION Doeren Mayhew Makes A Bold Move 12
LEADERSHIPKeeping Skills HonedIs Key To Success 13
OTHER NEWSAssociation Bulletin 15 Strategic Moves 15 People In The News 16 Legal Issues 18 Of Interest/Online 19
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Tracy Gallagher
For Many Firms, A Lateral Partner HireProvides The Right Prescription For Growth
A lateral partner hire can be just the right medicine for firms looking togenerate new revenue streams, develop or reinvigorate a niche, expandgeographically or grow within a developing service line.
According to Allan Koltin, president and CEO of Chicago-based PDIGlobal, during the past five years, more partners have left the Big Fourto join the Top 200 firms than ever before. It is the No. 1 growth strategyfor many firms, he says.
So how has the trend of lateral hiring gained traction? Part of it, Koltintells IPA, stems from the fallout at Andersen, which set the stage forgrowth within other non-Big Four firms. And as firms increasinglybecoming more specialized and niche-focused, demand rises for specificexpertise.
Tracy Gallagher, senior managing director ofCleveland-based CBIZ Tofias,* sees lateral hiring as a tremendous opportunity for growth. Bringing in aspecialist to revitalize a niche can produce dramaticresults, he says. For many years, Tofias did “some”business in the not-for-profit arena. “We had peopledoing it part time but it really wasn’t their specific areaof expertise.”
That changed in 2004 when Mike Burns left GrantThornton to join Tofias. “Clearly,” says Gallagher, “Mikeput us on the map.” Today, according to Gallagher, CBIZ Tofias is thepremier not-for-profit player in the greater Boston area. The firm isinvolved with high-end not-for-profits, including more than a dozen colleges and universities, major cultural institutions and renownedmuseums. “Before Mike came on board, we couldn’t even get our footin the door,” he says.
April 2009 Volume 23, Number 4
FIRMSPlante & Moran Readies For Leadership Change 4
PEOPLEFormer Rea & Assoc. MP Goes Solo 5
AICPA / PCPSPCPS Assists Firms WithThe Economic Crisis 6
ASSOCIATIONSHow To Choose The Right Fit For Your Firm 8
REGULATIONSMark-To-Market OnThe Hot Seat 10
TRENDSSome Firms TellingStaff “Stay Home” 11
EXPANSION Doeren Mayhew Makes A Bold Move 12
LEADERSHIPKeeping Skills HonedIs Key To Success 13
OTHER NEWSAssociation Bulletin 15 Strategic Moves 15 People In The News 16 Legal Issues 18 Of Interest/Online 19
INSIDE PUBLIC ACCOUNTINGA publication of
The Platt Consulting Group www.plattgroupllc.com
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