Why Your Firm Should Rethink Its Partnership Model

garyeastwood
Loess Hills Accounting
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A solid partnership model is the foundation of any good accounting firm, particularly in today’s disruptive era, where employees are bouncing around from one firm to another. Many existing partnership models consistently fail to deliver, however, letting down both low-level employees and company executives by producing lackluster results over a sustained period of time.

A solid partnership model is the foundation of any good accounting firm, particularly in today’s disruptive era, where employees are bouncing around from one firm to another. Many existing partnership models consistently fail to deliver, however, letting down both low-level employees and company executives by producing lackluster results over a sustained period of time.

Here’s how you can get introspective and take a hard look at your partnership model, which doubtlessly needs an update to remain effect in the digital age. Change isn’t always easy, but some updates to your partnership model could soon have your accounting firm chugging towards the future at a new breakneck pace.

It’s not all about money

First things first, it’s important to establish that not everything is about money when it comes to your firm’s partnership model. Many accountants are making the same mistake time and time again, allowing themselves to believe that by offering larger paychecks they can lure in the best talent. Often, however, junior employees at a firm are looking for opportunities to grow and expand their authority more than they’re looking for a slight pay raise. Here’s how you can treat your up and coming employees rise, and guarantee they stick around for the long-haul.

You’ll want to start out by strengthening the foundations of your firm by establishing a strong talent pipeline. If you can reach your prospective workers at a young age, you can build a more effective partnership model that can entice newcomers to the industry and get them to set their sights on climbing the ranks of your company. Check out some of these tips to rely on when building a talent pipeline, and you’ll have fresh-faced, innovative workers forming the foundation of your partnership model in no time.

After you’ve guaranteed that you’ll have a consistent supply of hard-working junior employees to fill out the ranks of your company, you can really examine the senior part of your firm’s operations by seeing if your partnership model is enticing enough or not. Good partnership models ensure that up and coming employees are gaining additional responsibilities as well as increases in pay, so that they feel more invested in your firm’s long-term future.

At the end of the day, your goal should be rewarding those team players who contribute the most towards the firm’s future, rather than those who merely focus on their own success. While a healthy bit of self-interest is necessary for anyone’s success, team players can and should be elevated from the pack, gaining additional privileges as they ascend the corporate ladder. Examine some of the ways you can reward team players if you’re struggling with your mid-level employees, and you’ll see things turn around quickly.

Be honest about your existing commitments

One mistake many accounting firms are making over and over again is failing to come to terms with their existing commitments. Sometimes, your existing partnership model is stiffing the company over for the benefit of a few partners who have been riding on past successes for too long. Long-term success to the firm should be rewarded, and those who have demonstrated their value should be held in high-regard, but don’t allow yourself to fall into the old routine of placing the burden of the work on newcomers while allowing existing partners to skate by on their responsibilities.

Ushering in a culture of transparency and workplace honesty, according to many accounting essays, is the place to start here. If senior partners are slacking and generating a poor example for others in the firm, a transparent workplace culture won’t hesitant to sanction them to get them back on the right track. Age-old partnership models may entrench old ways of doing business that don’t cut it in the contemporary age, either, like models that de-emphasize diversity in the workspace. Taking a fresh look at your existing operations is thus a good way to guarantee you’re not being held up by older ways of thinking.

Establish a consistent schedule of fair performance reviews that root out the bad apples, and your partnership model will be all the better for it. Often, you’ll find that old ways of doing business have a way of keeping certain things hidden, which is why it’s necessary to usher in a culture of transparency if you don’t want your partnership model to be plagued by hidden inefficiencies. One easy way to guarantee this culture of transparency is to regularly hold internal audits – so make sure you’re up to date on how to do a proper internal audit.

The leading cause of failure in today’s market is a failure to innovate and get with the times, so don’t let your old partnership model keep dragging you down. Take a hard look at your partnership model today, and you can get to work ushering in the kinds of changes you’ll need to remain effective and successful in the 21st century.

Here’s how you can get introspective and take a hard look at your partnership model, which doubtlessly needs an update to remain effect in the digital age. Change isn’t always easy, but some updates to your partnership model could soon have your accounting firm chugging towards the future at a new breakneck pace.

It’s not all about money

First things first, it’s important to establish that not everything is about money when it comes to your firm’s partnership model. Many accountants are making the same mistake time and time again, allowing themselves to believe that by offering larger paychecks they can lure in the best talent. Often, however, junior employees at a firm are looking for opportunities to grow and expand their authority more than they’re looking for a slight pay raise. Here’s how you can treat your up and coming employees rise, and guarantee they stick around for the long-haul.

You’ll want to start out by strengthening the foundations of your firm by establishing a strong talent pipeline. If you can reach your prospective workers at a young age, you can build a more effective partnership model that can entice newcomers to the industry and get them to set their sights on climbing the ranks of your company. Check out some of these tips to rely on when building a talent pipeline, and you’ll have fresh-faced, innovative workers forming the foundation of your partnership model in no time.

After you’ve guaranteed that you’ll have a consistent supply of hard-working junior employees to fill out the ranks of your company, you can really examine the senior part of your firm’s operations by seeing if your partnership model is enticing enough or not. Good partnership models ensure that up and coming employees are gaining additional responsibilities as well as increases in pay, so that they feel more invested in your firm’s long-term future.

At the end of the day, your goal should be rewarding those team players who contribute the most towards the firm’s future, rather than those who merely focus on their own success. While a healthy bit of self-interest is necessary for anyone’s success, team players can and should be elevated from the pack, gaining additional privileges as they ascend the corporate ladder. Examine some of the ways you can reward team players if you’re struggling with your mid-level employees, and you’ll see things turn around quickly.

Be honest about your existing commitments

One mistake many accounting firms are making over and over again is failing to come to terms with their existing commitments. Sometimes, your existing partnership model is stiffing the company over for the benefit of a few partners who have been riding on past successes for too long. Long-term success to the firm should be rewarded, and those who have demonstrated their value should be held in high-regard, but don’t allow yourself to fall into the old routine of placing the burden of the work on newcomers while allowing existing partners to skate by on their responsibilities.

Ushering in a culture of transparency and workplace honesty is the place to start here. If senior partners are slacking and generating a poor example for others in the firm, a transparent workplace culture won’t hesitant to sanction them to get them back on the right track. Age-old partnership models may entrench old ways of doing business that don’t cut it in the contemporary age, either, like models that de-emphasize diversity in the workspace. Taking a fresh look at your existing operations is thus a good way to guarantee you’re not being held up by older ways of thinking.

Establish a consistent schedule of fair performance reviews that root out the bad apples, and your partnership model will be all the better for it. Often, you’ll find that old ways of doing business have a way of keeping certain things hidden, which is why it’s necessary to usher in a culture of transparency if you don’t want your partnership model to be plagued by hidden inefficiencies. One easy way to guarantee this culture of transparency is to regularly hold internal audits – so make sure you’re up to date on how to do a proper internal audit.

The leading cause of failure in today’s market is a failure to innovate and get with the times, so don’t let your old partnership model keep dragging you down. Take a hard look at your partnership model today, and you can get to work ushering in the kinds of changes you’ll need to remain effective and successful in the 21st century.

About garyeastwood

About garyeastwood

Gary Eastwood is a CPA licensed senior accountant from Seattle, Washington. He received his CPA license from the Washington State Board of Accountancy in 2001 before relocating to Onawa, Iowa in 2008. Over more than 15 years of accounting experience, Gary has worked with multinational health service providers and independent CPA firms. He has a proven ability in dealing with business clients from a variety of backgrounds as well as leading companies to greater efficiency and profitability. He is familiar with both US GAAP and China GAAP.

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