Practice Management news

Practice Management

Rate Your Prospects

By Troy Waugh, Waugh & CO, Inc.With a powerful and focused marketing and sales program that generates many leads, the partners find themselves meeting with prospects regularly. The partners’ focus at the initial meetings with a prospect is to understand the prospect’s business and the issues of the company. For example, if the business is not related to a niche in which the firm has expertise, a red flag goes up. If the business is calendar year or price driven, the partners begin to question their capacity to handle the client.
Practice Management

E&Y Bursts Outsourcing Bubble

The trend of outsourcing key functions in the financial services sector has a long-term negative impact on shareholder value, Ernst & Young has found.Senior executives from 26 leading financial service companies said that since they have outsourced major parts of their operations they appreciated the short-term cost saving, but admitted that it could mean a loss of control in their relationship with the customer.Companies are increasingly outsourcing activities that have traditionally been regarded as core, such as check processing, loan administration, and fund management, the study sai
Practice Management

Warning Signs of an Impending Liability Claim

The Ohio CPA Journal has published an in-depth article explaining the likelihood of CPAs being faced with liability claims and how risk can be mitigated.The article suggests that working with a risk advisor can increase the odds of: avoiding a claimcontrolling the situationkeeping a lid on damages, orprevailing when litigation occurs.The article explains the expectations of insurance companies, and offers six warning signs of an impending claim:Clients who won't payUncooperative clientsFraud/embezzlement defalcation
Practice Management

KPMG Makes Advances in U.S. Legal Arena

Accounting firms have been hiring lawyers for years. In the United States, however, lawyers and accountants are not allowed to share a practice, offering both legal and accounting services out of the same office. Outside of the United States it's a different story. Accounting firms in much of the rest of the world provide legal services to clients.
Practice Management

Ernst & Young Goes Forward with Law Practice

According to a report in Legal Week, Ernst & Young has initiated its law capacity in this country with a New York connection to law firm Donahue & Partners. Eberhard Rohm, formerly of U.S. firm Fulbright & Jaworski, has joined Donahue & Partners as the firm's managing partner.Mr. Rohm indicated that the alliance conforms with New York State Bar rules which allow American law firms to have a "side by side" alliance with accountants.
Practice Management

Trend: Firms Ban Use of Hand-Held Phones in Vehicles

A wrongful death lawsuit was filed against a Washington, D.C. law firm after one of the firm's lawyers hit and killed a pedestrian while driving and talking on a cell phone.A broker for Salomon Smith Barney ran a red light and killed a motorcyclist while trying to retrieve a dropped cell phone. The firm settled a lawsuit related to the matter for $500,000."The recent lawsuit focused our attention," said David Fuss, partner at Washington, D.C. law firm Wilkes Artis.
Practice Management

E&Y Expands Reach to Online Customers

According to a report on CNET, financial services provider FinancialOxygen has added tax and accounting services provided by Ernst & Young to the mix of services available on FinancialOxygen's BankOxygen e-bond Web site.BankOxygen provides online trading, products, and services to 21,000 independent banks, thrifts, and credit unions.Ernst & Young will provide its Online Tax Advisor and Accounting & Auditing Toolk
Practice Management

Building a Successful Technology Team

By Sandra L. Wiley, Boomer Consulting, Inc.A crucial element to success in technology is leadership and making progress towards established action plans and goals. You might think that I am going to talk about the Managing Partner or the Technology Partner’s role in the process, but you would only be partially correct. In the area of technology, one person does not make things happen. It must be a team effort. In many firms you will hear this group referred to as the Technology Committee. I like to refer to it as the Technology Team.
Practice Management

Guide to The Management of The Professional Services Firm

Many professional service firms measure their performance based primarily on financial measurements, such as the total number of hours billed, revenue generated per partner or net income per partner. But there are at least three other worthwhile ways in which to measure firm performance, besides the commonly-used, financial perspective. These other methods are: The Client Perspective: "How do our customers see us?" For instance, if a CPA firm says it is concerned about meeting the clients' needs, it should be measuring key indicators relating to the client.
Practice

FASB Issues Statement on Asset Retirement Obligations

The Financial Accounting Standards Board today issued Statement #143, Accounting for Asset Retirement Obligations.Originally initiated seven years ago to deal with nuclear decommissioning, the scope of the project has been expanded over the years to include the accounting for similar closure costs of other assets at any time during their life.According to the FASB press release, the standard requires entities to record the fair value of a liability for an asset retirement obligation in the period in which it
Practice

SEC May Start Curtailing Pro Formas

For years, companies have used pro forma statements as a means of better comparing previously reported financial statements with current statements where circumstances have changed significantly, as in a merger or acquisition.But recently, companies have been using pro forma statements to reflect what they believe to be the "true" financial health and well being of the company, taking into consideration various assets that may not appear on traditional accounting books, such as brand loyalty, market share, patents and other intellectual property.It is through this pro forma reporting pro
Practice Management

Indiana Joins Others in Allowing Non-CPA Ownership of Firms

In case you missed it earlier last month, the Indiana state legislature has passed a law which allows non- CPAs to own 49 percent of a firm, minimizes barriers to CPAs practicing in more than one state, and relaxes requirements to become a CPA.Indiana is just the latest in a number of states to have radically changed the way a CPA firm ownership is structured.By allowing non-CPA ownership, firms can better compete by attracting workers through stock options, and other equity models.
Practice Management

Accenture Releases Study on the Entrepreneurial Spirit

For those of you who thought being an entrepreneur means going it alone, you may be in for a bit of surprise. A new survey conducted by Accenture over a period of 18 months shows that true and effective entrepreneurship is really a collaborative effort. Survey results also show that American business owners are among the least likely to embrace this theory.For the study, "Liberating the Entrepreneurial Spirit," Accenture interviewed 880 senior executives from organizations around the world, including 110 dot-com leaders.
Practice Management

Top 10 Stumbling Blocks to Growth of New Businesses

Top 10 Stumbling Blocks that Prevent New Businesses from Growingwritten by Philip HumbertNever in history have more entrepreneurs launched more new businesses! In America, thousands of businesses open their doors every single day! Unfortunately, most of them (nearly 90% of them) also close their doors within two years. Businesses are started with high hopes and glorious dreams. It is easy to start a business. It is much more difficult to build it, to make it succeed, to avoid the traps and pitfalls and frustrations, and to enjoy the fruits of success over the years.
Practice Management

Random Sales Efforts Fuel Staffing Problems

By Terri M. Sommella, President, Sommella Market StrategiesToday, a bright and talented tax manager at a public accounting firm called to let me know that he had accepted a position in private industry. Why? The negative work environment and stress finally pushed him over the edge. Last week, a former managing partner lamented the scheduling decisions to which he attributed his firm’s merger.
Practice Management

Knowledge Management: What It Means in Your Firm

By Roman H. Kepczyk, CPA, CITPAs an industry analyst for the accounting profession, InfoTech Partners North America, Inc. was asked to write the Knowledge Management section for the AICPA's e-MAP Handbook (Management of an Accounting Practice) as well as present a program at last month's AICPA TECH 2001 symposium. Through our research, we found that Knowledge Management is garnering acceptance within CPA firms, but the term means something completely different to every firm, as well as every person within the firm.
Practice

Deloitte Discloses Secrets of Business Success

Deloitte Touche Tohmatsu (DTT) has just completed its third annual ranking of the top 200 publicly traded Global Growth Companies.
Practice Management

Information Management in the CPA Firm

This article is provided by Knowledge Concepts, Inc., creators of FirmWorks.Today's CPA economy has firms working harder than ever, struggling to find and retain staff and challenged to maintain profit margins. Combine the competitive market pressures with significant advances in technology, and we have a market ripe for true information management.The CPA firm is a wealth of information existing in countless forms.
Practice Management

Malpractice Web Site Aids Accountants

A new Web site, www.accountingmalpractice.com has surfaced with the goal of providing accountants with information they can use to protect themselves against potential malpractice claims.The site, just three months old, was developed by Mark Cheffers, CPA, formerly of PricewaterhouseCoopers.
Practice Management

Managing Financial Turnarounds

A new study from the Financial Executives International (FEI) Research Foundation provides case studies and insights into how to guide a company through a financial turnaround.Advice offered in the study includes:Eliminate emotional ties to previous policies.Make cash flow allocation your first concern.Identify and monitor internal key performance indicators daily.Look for problem

Pages