Art of Accounting: Managing an accounting practice for non-managing partners

Unless you play a supporting role in a large accounting firm, you manage a book of business. I received a recent surge of calls about this. Also, with the passing of Sidney Kess, I’ve been reviewing the articles we wrote together and came across an answer to my callers in an article we posted here in 2020.

That column was directed toward new partners, but I suggest all partners, at whatever level, read it using the above link. The truth of the matter is that while each firm has one managing partner, each partner plays a role in managing part of that practice. They may not have overall firm marketing, cash flow or IT responsibilities, but they interact daily with clients, staff and the admin and support staff, and need to manage each of these relationships. 

Without repeating anything in that previous column, I will add some new comments here based upon recent encounters with “unhappy” or “ill-equipped” partners. This also applies to senior managers at larger firms and anyone at a lower level at any size firm that aspires to become a partner. Here goes.

1. Staff management, scheduling, growth, culture, satisfaction and excitement are definitely your responsibility. This needs daily efforts and attention. Happy staff = happy partners and happy clients. It also increases staff retention. This requires partners to increase their knowledge and learn about these functions and emulate how successful partners do it.
2. Client relationships are a key to client retention, satisfaction, referrals and growth in services and fees. The annual look-see with the financial statement or tax return and an occasional email do not bond the relationship. Regular check-ins and calls and listening sessions do.
3. Pricing services has become an art and a marketing process. Fees are competitive and there are many new and novel ways of determining fees and payment arrangements and presenting them to clients. Some of my recent conversations have “proved” to me the necessity for all partners to find out about the larger picture of modern pricing techniques.
4. Practice development, i.e., marketing, is a must for a practice to grow. This is everyone’s job. Many so-called technical skills partners do not think this is their responsibility, but they are wrong. You need to get with the program. This includes being responsible for and managing organic growth with your book of business. 
5. Nurtured relationships with your admin and support staff are essential when you need something special or extraordinary done for a client. Understanding what they do and how they do it and knowing how they get things done can make the difference between getting something done at the very last minute or missing an important deadline. If this happens once a year, it is probably too often, but whenever it comes, it can be a client-saving opportunity. 
6. You need to grow and you will not be able to if everyone you work with does not grow, and neither will your firm. You might not be responsible for your partners’ growth, but you are responsible for your growth and that of everyone you work and interact with. Work at this!

I’ve written many columns (and books) on each of these topics and many more, as have many other writers who share their experiences. Articles and books are all well and good (including the ones that are not that good), as they create learning and awareness opportunities for your growth. Your growth = your firm’s growth. Growth takes more than one strong leader and needs leadership from all partners. Further, spending a couple of days a year at a practice management conference is a great investment, plus you get to interact with others in similar circumstances, and that too creates learning and growth opportunities. I know this because I do it, and it works wonders.

Managing THE practice might not be your job, but practice management is!

Do not hesitate to contact me at emendlowitz@withum.com with your practice management questions or about engagements you might not be able to perform.