Partnerships

Here are some of the significant disclosure items that are either already required, or will be required, for next filing season.

The last several years have seen a “merger frenzy,” with small and midsize CPA firms (with annual revenues between $10 million and $24 million) getting acquired by larger CPA firms that have a strong brand and a track record of average to above average equity partner profitability.

Marketing directors and partners at accounting firms share the same goal: advancing the firm’s brand and helping it achieve specific growth and profitability targets.

For years, accounting firms have relied on firm partners to use their personal and professional connections, charisma, and contacts to “make it rain” — to bring in new business and revenue that would enable the firm to grow and succeed.

The Internal Revenue Service’s announcement last month delaying a requirement for reporting partners’ share of partnership capital offers some extra time to busy tax practitioners, but the issue still isn’t going away and may lead to some other problems.

The seven characteristics of a strong firm compensation plan.

For tax year 2018 filings, the IRS made a drastic change to the Form 1065, U.S. Return of Partnership Income, that went unnoticed by most practitioners.

There is considerable dysfunction in many smaller firms when it comes to management and corporate governance.

Mergers take numerous forms.

The notice delays a requirement for reporting partners’ share of partnership capital.

Unfortunately, almost every firm has a number of partners (usually high-performing partners who are also high-maintenance partners) who either interpret partnership agreement provisions in a way that benefits them in some way or, worse yet, choose to ignore these provisions altogether.

Preber succeeded Mike McGuire, who stepped aside in June and took the title of “CEO emeritus.”

If your firm isn’t actively addressing underperforming partners, you are looking at the world through rose-colored glasses.

A chief accountability officer can improve the functioning of accounting firms.

The service is looking for comments on the proposed forms within 30 days.

The simple answer is no!

Restrictive covenants are the prenuptial agreements of the accounting world.

In accounting, there's no such thing as too much information.

Every year a number of small and mid-sized CPA firms either die on the vine, break up, or merge up if a well-run firm is willing to take them on.

What firm leadership puts into developing the next generation of leadership is what will come out on the other end.