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Dan McMahon was recently published in Accounting Today
Daniel McMahon • September 11, 2023
"Don't confuse firm governance with ESG"
Dan McMahon
When I first arrive at a client's office to talk about governance, I'm often greeted with skepticism. Many employees, especially those in the middle or latter stages of their careers, are bracing themselves for another discussion about ESG (environmental, social and governance). But I'm talking about a different kind of "G.
Dan McMahon contributed to the following article in Illinois CPA Society's Insight Magazine summer issue on the topic CPA firm M&A.
Check out Dan McMahon who recently appeared as a guest on Doug Noll’s Listening with Leaders podcast. Dan and Doug discuss the importance of listening as a leader, the art of improvisational theater performing, and why management teams must follow a parliamentary procedure for decision making.
Key Takeaways
See Dan McMahon’s latest article on Firm Governance Best Practices, which was published in the Summer issue of New Jersey CPA Magazine.
A March Madness primer for corporate teams
CPA firms nationwide are struggling to find the quality and quantity of staff needed to fulfill their ever-increasing workload demands. The failure to meet these necessary personnel levels has direct consequences on bottom line performance and client satisfaction. You would think that these extreme challenges would impact the methodologies and processes that firms utilize and cause them to change. Unfortunately, for many, this is not the case. It’s truly a question of insanity, doing the same thing over and over again and expecting a different result. The following 7 actions are impediments to successful hiring today. CPA firms that follow these will proportionally lessen their level of success in attracting and hiring the resources they need.
CPA firm CEOs who are evaluating their talent on the front lines of this tax season. Some firms are suffering from the pains of mismatched staff, perhaps the result of hiring too fast simply to fill an opening at a bargain price. The cost of a mismatched hire is significant and can come along with cultural impacts of engagement inefficiencies, applying unnecessary stress to staff relationships, putting clients at risk, impacting profitability, and causing unwanted aggravation. Smart CEOs are constantly assessing the strengths and weaknesses of their organization charts, looking to close gaps, and preparing to assertively make improvements where necessary. The treadmill is already in motion and talented people will be on the move sooner than later. Will you be positioned to grab the cream of the crop when they make their move? IGA does recruiting differently from the typical search firm. Learn how by setting up a no obligation consultation with Gary Kravitz, our lead executive recruiting advisor. Take a brief survey to determine if we can be your solution by clicking here .
“Let’s wait until after the 15th.” No CPA has ever said that, right??? Much to the chagrin of many CPA firm leaders, these words are uttered all too easily by partners, managers, and staff. The fact is that the treadmill of the business world is always running and it doesn’t stop because a CPA is battling the priorities of tax season. There is no time like the present to deploy strategies and tactics that enhance the firm’s performance and value. Stepping forward with baby steps is better than not stepping forward at all. More Valuable Firms Perform Better CPA firm valuation is typically driven by top line billings or net fees. Ultimately, buyers will pay a multiple of anywhere between percentage points to a higher multiple beyond 1X net fees. The beauty is in the eye of the beholder, or buyer, of course. With that said, what beauty is a managing partner who plans to not sell beholden to? Is it more profitability? Is it better performance? Is it reduction of write-downs? Is it top line growth? If valuation is a function of any or all of these, does it then support the notion that a firm should be always driving a higher valuation? IGA supports firm owners on their journey to building the firm today that will be sold or transitioned tomorrow, next year, or in 10+ years. A more valuable firm is also a firm that performs better and puts money in the pockets of the owners along the way. So, build the value incrementally, day-by-day, month-by-month, and season-by-season. The treadmill of your firm’s commitment to growth should never pause. Value & Performance Enhancing Considerations for Tax Season Growth-minded CEOs work diligently year-round to improve their firms and they make large chunks of progress especially in the offseason. How can they continue the incremental progress during their busiest seasons? We share a handful of suggestions below. For a more detailed list, click here . Get your team to view your firm as a business enterprise and influence their understanding of how a CPA firm is more than simply a “practice,” its a viable “enterprise.” A successful firm is broken into manageable parts: SALES+PEOPLE+ADMIN+CLIENTS
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