Does Remote Work Work? Skeptics and Supporters Discuss What They’ve Learned FEBRUARY 2024 • Vol. 38, Issue 02
a look
INSIDE
FEBRUARY 20 24
Vol. 38, Issue 2
firm management
4 Does Remote Work Work? 8 The Case for Keeping Timesheets, But Making It Easier and Faster
10 IPA Data Dive: From Formulas To Committees 12 IPA Profile: Jessica Levin 15 How Many Hours is Too Many? in the news
18 Firms in the News 20 People in the News
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Does Remote Work Work? Skeptics and Supporters Discuss What They’ve Learned BY: CHRIS CAMARA
MP Doug Urquhart won’t even talk to a candidate looking for a fully remote position. And while hybrid working arrangements are fine for certain professionals, its positives are overblown, said the leader of Meadows Urquhart Acree & Cook of Henrico, Va., (FY22 net revenue of $8.1 million). “I think that remote work gets talked about as if it fits everybody and it’s perfect. I personally think it’s crippling to less experienced people.” In Austin, Texas, leaders at Maxwell Locke and Ritter (FY22 net revenue of $44.4 million) generally allow staff to work where and when they choose. “I wasn’t sure if full remote was going to work, but it does,” said ML&R auditor Cindy Buttress, speaking from her home office in Blue Springs, Mo. “You can make the relationships work if you’re intentional about it.” 4
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INSIDE Public Accounting Monthly talked with two firms and a consultant to discuss what works and what doesn’t with remote work, the temporary experiment that has now permanently changed the accounting profession.
NOT FOR BEGINNERS, SAYS ONE MP
Senior professionals in mature roles may not need to come in the office very often, but for newer employees, there’s no substitute for face-to-face interaction when it comes to training, creating communities and learning new perspectives, Urquhart says. “I think the people who are running to remote work are running to an early grave because the biggest hurdle in the CPA profession in the next 10 years is adaptation, and when you’re asking people to adapt to change, that is like taking them back
to being beginners.” Learning to adapt is “infinitely harder” online, he says. At his firm, staff work under a number of arrangements, but in-office work is required when it’s best for the team. On a typical day, about 80% of staff show up, but on Fridays about 10% of staff come in, Urquhart says. “I think remote work is necessary and I think that it can be incredibly positive if it’s managed, understood and applied appropriately,” he said. “I think it’s a quick death sentence if you’re just hiring someone to do a task because you’re not going to adapt with that.”
MAKING IT WORK AT ML&R
A little over half of the 170 or so staff at ML&R mix at-home with in-office time, with the remainder working fully remote in 16 states or remote, but close to the firm’s Austin or Round Rock, Texas, offices. “We encourage our people to work when and where is best for them and don’t have mandatory in-office requirements,” said Amy Gates, talent and culture coordinator. To engage the remote employees, known as the “remotees,” the firm offered an optional 10-week “fall fun frenzy” of activities that paired virtual and in-office staffs in team-building games. For example, an “ML&R Mascot Madness” tournament, which instead of NCAA basketball squads, featured brackets of staff college mascots that were advanced or knocked off by popular vote. (The Blue Blob at Xavier University is Gates’ favorite). “Seasonal Shuffle Groups” are offered to connect remote and in-person team members to encourage participation in firm-sponsored outings with their assigned group, such as sharing a meal together on Zoom or participating in a virtual escape room.
from day one. The partner group also checks in with remote team members frequently to make sure they feel supported and connected. Remote team members are also flown in for the annual firmwide meeting and holiday party. Gates said the firm recently conducted an employee experience survey to gauge its efforts and found that the remote employees are happy with the frequency and variety of opportunities offered. “We definitely realize that we’re not able to mimic the inperson experience 100%. That’s hard to do completely, but we do our best and we’re trying to get better every day to make sure our remote team members feel important,” Gates said. “They’re a very important part of our team and we love having them, and we’re thankful we can get the best talent across the country instead of just focusing on the best talent we can find in Austin.”
SURVEY: 94% ALLOW FLEX SCHEDULES
CovergenceCoaching partner Tamera Loerzel has been advocating for remote work long before COVID hit, and she recognizes the progress over the years. In a 2022 ConvergenceCoaching survey of 216 accounting firms, 94% allowed for flexible schedules, and 80% allowed teams to work remotely all or part of the time, which is double the percentage from 2020. She worries about recent sentiments, however. “Here’s my fear: We all figured out really fast in March of 2020
But it takes more than virtual events to make remote work successful. ML&R assigns each team member a peer and partner advisors when they join the firm. Tenured team members participate in training and onboarding new hires to build relationships IT IS A VIOLATION OF FEDERAL COPYRIGHT LAW TO REPRODUCE ALL OR PART OF THIS PUBLICATION WITHOUT CONSENT. COPYRIGHT ©2023 INSIDE PUBLIC ACCOUNTING
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that we can work remote. What’s sad and concerns me is now we’re saying we’re not effective remote and you need to come back to the office.”
Loerzel. Set clear expectations about what work needs to completed and when. Check in often to see what kind of support staff need to get there.
While there is ample evidence that remote work can be successful, that doesn’t mean leaders want staff to stay away. In cities where long commutes can break even the most hard-core urban warriors, less flexible jobs are proving to be a deal-breaker to more employees. That’s not the case for LMC, a Big Apple firm that last summer mandated that employees work three days in the office instead of two. With social events and a more modern office that is twice the size, staff have been willing to return.
Additionally, if leaders support remote work, they should make sure they’re walking the talk. Research shows that remote staff believe the arrangement has numerous benefits – working mothers in particular appreciate the flexibility – but many fear staying away from the office can hurt career progression. Leaders can’t say they’re committed to remote work while also advancing staff with the most visibility or transmitting the message that training is only effective in person, Loerzel says.
SKILLED MANAGERS CAN MEAN SUCCESS
Her firm’s 2022 survey urges firm leaders to stop sending mixed messages by creating a list of things that leaders should say about remote work as well as a list of things that shouldn’t be said. “Don’t let your people make up their own messages or policies or be off message.”
Researchers generally agree that the new normal in businesses across the nation is half-full offices and about a quarter of workdays spent at home, according to the New York Times. Citing numerous research papers, The Times reported that some studies showed drops in productivity while others showed increases of as much as 24%. The most successful remote arrangements are the ones in which well-trained managers support employees while allowing for in-person gatherings occasionally, the newspaper reported. Clear communication is key, says ConvergenceCoaching’s
“We encourage our people to work when and where is best for them and don’t have mandatory in-office requirements.”
AMY GATES, TALENT AND CULTURE COORDINATOR MAXWELL LOCKE AND RITTER
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Buttress, the ML&R auditor, believes the messages were clear from the start, and she opts for Teams meet-ups, with cameras, rather than emails to ask questions and cement the relationships. The first in-person meeting, several months after she began, felt like a reunion. “I was hugging everybody. It felt right to me.”
The Case for Keeping Timesheets, But Making It Easier and Faster BY: CHRIS CAMARA
If a firm must track time – and Tim Moy believes it’s essential – why not figure out a way to make it less onerous?
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Moy, the MP of Baraboo, Wis.-based MBE CPAs (FY22 net revenue of $15.4 million) and board member of goVirtualOffice, an Oracle Netsuite provider, came up with the idea driving home from a board meeting. Netsuite had asked goVirtualOffice to consider creating an Enterprise Resource Planning (ERP) system for one industry, and the board’s ideas ranged from law firms to golf courses. “It's about a 45-minute drive from my place to the board meeting and so as I was driving back I was reflecting on the meeting,” Moy said. “I called Dirk and I said, ‘You know, the CPA industry is desperate for good ERP systems.’ ” Dirk Shimpach, founder of goVirtualOffice – who says firms typically use disparate systems that don’t talk with each other – agreed. They also agreed that the testing ground should be MBE. Now MBE is using a new integrated system, PracticeERP, a platform that bundles CRM, client management, billing, and time and expense tracking, and Moy is an evangelist – not only for automating timesheets, a key feature of PracticeERP, but for keeping track of time in general. Trashing the timesheet was a rallying cry of value-pricing advocates for years. Although the concept has lost popularity recently, the idea persists that firms should focus on the deliverable rather than the time to make it happen. Even so, Moy still thinks tracking time is critical. “I am not in favor of the movement of no timesheets and the reason I'm not is from a management or a shareholder perspective. If I'm going to put a product out to the market even if I flat-fee bill it, I still want to know what it cost me to produce that product. And as long as time is a major input to the output, I'm going to want to know what that time costs.” He adds, “Without good data, which is of course what we're sacrificing if we go to a zerotimesheet environment, you can't properly score good clients and good employees.” One of the drawbacks to keeping time is the frustration and effort it takes to do it, however. Every firm wants to increase efficiency, and
one way to do it is to cut the administration of keeping time through automation. “I’ve cut the time to keep time by 75%,” Moy says. Tim Moy Additionally, the firm now can measure time not only by employee but also by project, which he calls revolutionary. “It's not just that we're going to get better numbers, we're going to get better utilization, we're going to get better realization, we're going to get better leverage, and we're going to get more accurate pricing.” Shimpach, who noted that “data is king,” added, “They can analyze where their teams are most efficient or inefficient, or where they're most profitable or not profitable. We've just taken it to another level.” Staff benefit as well. Though using timers is nothing new, some staff still track time by filling in spreadsheets or marking it down on a notepad by their desks, Shimpach said. “I think it's one of the hugest detractors of keeping professionals in our industry,” Moy said. “They come out of college and we call them professionals and then we start telling them to keep their timesheet by three-minute intervals. Even if I went to the local factory and was an hourly employee, they might only ask me to keep it by the hour or by the day.” Automatic tracking means employees are aware of their own time budgeting, meaning fewer nudges by supervisors. Finally, firms can use the extra time to improve their businesses, Moy said. “It might be a better work life-balance; it might be better client service; it might be producing more money; it might be working on the firm. But because we are a professional service organization that is so dominated by time anyway, we can gain time that has a multiplication effect that you can use any way you want.”
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IPA Data Dive
From Formulas To Committees
A Data Dive on Partner Compensation Systems BY: CHELSEA SUMMERS
The philosophy of how a firm’s compensation system is set up ranges from, “This is how it’s always been so why change it?” to a well thought-out conversation with buy-in from all partners and outside counsel. For some firms, a strictly formula-based system works best and in others (particularly smaller firms) the MP decides compensation for all partners. However, the most common system for the nearly 600 firms participating in the 2023 IPA Practice Management Survey was a compensation committee, at 46%.
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23%
32%
24%
25%
29% 54%
77% 68%
76%
60%
$75-$150 Million
$50-$75 Million
$30-$50 Million
100%
71%
75%
46%
>$150 Million
79%
$20-$30 Million
Compensation Committee
40%
$15-$20 Million
$10-$15 Million
$5-$10 Million
10% 22% 12%
For firms over $20 million, 73% use a compensation committee to decide partner compensation for the firm. “Formulas show the numbers, but that’s not the whole story,” said consultant Carl George, founder of Carl George Advisory, in a July 2021 interview about compensation committees. Building a big book of business, or “playing to the formula,” may not be in the best long-term interest of the firm, he said. “If you are only formula-based, there’s a good chance that all partners will not be in alignment with the vision. Also, the MP can’t possibly know all aspects of a partner’s work. Hearing perspectives from other comp committee members provides a fuller picture and a fairer process.” For more information on compensation systems and other KPIs from the 2023 IPA Practice Management Report, order your reports today. The 2024 IPA Practice Management Survey is now open for participation. Contact IPA for your access to the survey.
< $5 Million
All Other Compensation Systems
Similar to the $20-million threshold when a firm chooses to go from an open compensation system to a closed system, at $20 million in net revenue, firms are much more likely to appoint a compensation committee to decide partner compensation at the firm. For firms under $20 million, 28% of firms utilize a compensation committee while the rest are split among formula-based (29%), MP decides (17%) and partner group decides (15%).
21%
10%
46%
All Participating Firms Formula-Based System Partner Group Decides Compensation Compensation Committee Decides MP Decides Compensation Other
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IPA Profile
Jessica Levin
COO and North America Regional Director Abacus Worldwide
Abacus Worldwide
What is the single biggest challenge facing your association right now?
FOUNDED IN
2012 HEADQUARTERED IN
Miami
102 MEMBERS
80 accounting, 22 law
53 COUNTRIES
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For Abacus Worldwide, the challenge is always to provide value to our members in a way that helps them stay ahead of the curve. Change is happening at such a rapid pace that staying one step ahead is more challenging than ever. We're a group of progressive firms, and our members want and need fresh ideas to deal with their most pressing needs. This requires us as an association to get two steps out so we are offering them the best guidance and pointing them in the direction of new opportunities long before they become best practices in the industry.
Where do you expect to be focusing most of your attention in the next two to three years? We will be spending time understanding how firms will look different as AI matures. The industry has been talking about AI for years and technology has already created incredible opportunities. That said, we expect to see exponential growth in the use of AI and that will revolutionize the way firms operate. As the services firms deliver changes, we need to adapt the programs we offer to members. This is an opportunity to learn and be flexible as the next era of technology emerges and reshapes the way we do business.
What is the biggest and sometimes often missed opportunity for the profession?
What was the best advice you received as a young up-and-comer in the profession?
One of the most significant opportunities for the accounting profession is to remain relevant in the face of rapidly evolving technology, which is often overlooked. With the advent of new software and tools that automate traditional accounting tasks, professionals in this field must shift their focus toward providing insights and strategic advice that go beyond just crunching numbers. We all struggle with not knowing what we don’t know. Delivering consulting services that are more subjective than tax and audit work has always been a challenge for firms. The ability to create these services and deliver them in a way that provides value to clients will be a differentiator. Firms that struggle to define their roles in areas other than regulatory compliance will find it hard to stay afloat. The firms that master it will be successful. Firms must identify leaders who have enough experience to bridge the gap while having enough time left in their careers to want to invest the time to learn, evolve and teach the next generation.
I was encouraged from day one to go out and meet people. I remember sitting at a networking event feeling very uncomfortable being new and awkward. I sat down next to someone who, 20 years later, still jokes about our first encounter and how reserved I was. The person I met led me to many, many opportunities that I would not have had if I didn’t show up. I am incredibly fortunate to have been taught about the value of building relationships and how they can shape your career. Even as we become more technologically advanced, I am still confident that businesses will rely on relationships as a key factor in growth and development.
What advice would you offer to someone entering the accounting profession today? This is a time to redefine what it means to work in the accounting profession. While the standard services will
“Firms that struggle to define their roles in areas other than regulatory compliance will find it hard to stay afloat.” JESSICA LEVIN
COO — ABACUS WORLDWIDE
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“The next five years will continue to see consolidation, but also the emergence of smaller, boutique firms.” JESSICA LEVIN COO — ABACUS WORLDWIDE
become more of a commodity, the value-added consulting services will become more of a differentiator. People will still hire these based on relationships. Trusted referrals combined with expertise matter. Start to build your professional network on day one. As you meet people in business, you develop a sense of what support they need. As someone working in the accounting profession, you can become a resource to them. If you can develop strong relationships with five people who share this mindset, you will be busy for the rest of your career.
What motivates you most as a leader? I was lucky enough to have strong mentors in my life. This has made me a mentor. When I see the people I have supported now mentoring others, it’s fulfilling. Sharing my experiences with one person is exponential. Knowing that they are passing along learnings, incorporating their own lens, brings me joy and motivates me to continue to share and learn from others.
Where do you see the accounting profession in five years? How do you see it changing/developing and/or how would you like it to change? The next five years will continue to see consolidation, but also the emergence of smaller, boutique firms. Mergers bring efficiency and are good exit strategies for the large number of people nearing retirement. However, large organizations aren’t for everyone – both employees and clients. We will see entrepreneurial accountants break away
to create new types of firms. These will likely have heavy consulting focuses, offering a wide range of services. The advantage will be the credibility of the CPA designation. In general, I want to see firms embrace change while recognizing that there is more to life than just work. I look forward to seeing the end of busy season hours and a commitment to offering meaningful careers that allow people to work smart and enjoy life outside work.
What is a business book you'd recommend to other leaders? One of my favorites is Richard Branson’s The Virgin Way. One of the biggest takeaways is his emphasis on being a good listener. You don’t have to own an airline or a cruise line to take advantage of this advice.
What is your proudest professional achievement? I recently earned a doctorate in business administration. Going back to school while working full time was challenging. The schoolwork was even more challenging. However, completing the degree allowed me to meet a longtime life goal and is something I worked for and earned. It’s not only a proud achievement, but a practical one. My capstone title is: “Strategies to Create Positive Culture to Attract and Retain CPAs.” I’ve been able to translate my academic experience into realworld solutions for the firms I work with, which is very rewarding.
The IPA community wants to get to know you better! If you’d like to share your thoughts and insights in an IPA Profile, let us know at ccamara@ipainsider.com.
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How Many Hours is Too Many? Staff Can Choose No More than 40 at Whalen BY: CHRIS CAMARA
It’s difficult to sell public accounting as a rewarding career when job candidates fear the busy season.
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“I’m a realist,” said Lisa Shuneson, MP of Whalen & Company CPAs, a $7.1 million-firm in Worthington, Ohio. “I feel like you have to address the issues that you get when you try to recruit someone into public accounting, and most of the time the issue is hours.”
Lisa Shuneson
The solution, she believes, is empowering all 35 staff to decide how many hours they want to work, which could be no more than 40 a week. Those staff would still receive the market rate as an annual salary, but they would be paid their hourly compensation for each hour they work over 40.
While some firm leaders say working a lot of hours is unavoidable – it’s called busy season for a reason – finding ways to lessen the load is critical when fewer college students are choosing public accounting. An overload of work and too many hours to complete it is one reason why recruits shy away from the profession and staff quit. Some leave after one punishing busy season, vowing never again, said Tamera Loerzel, partner with ConvergenceCoaching. Next-gen professionals believe firms should change the business model, and focus on the services provided and not the hours. “They hear partners say things like, ‘This is the worst busy season in 34 years,’ and they’re like, ‘You haven’t fixed it in 34 years and you want me to stay in public accounting because why? What?’ ” Higher turnover isn’t relegated to younger professionals alone, she adds. Senior managers, directors and even new partners are leaving. “We’ve never seen that before.” Two years ago, Whalen introduced its own remedy. First, everyone got a raise of about 15%, which was paid for by a 10% increase in accounting fees and 15% in tax, which makes up about 60% of the firm’s business. Every October, staff can choose their “all-in” total hours, say 2,200 to 2,400, with varying percentages marked as billable based on their skills and preferences. Tamera Loerzel
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Shuneson said staff were ecstatic about the change
and she expected them to opt for fewer hours. After all, they would be making the same amount of money as they did in previous years, when they were working more than 40. “They didn’t. They took the money.” One person went down 100 hours; another went up 100 hours in the first year. The same thing happened in year two. “People now feel in control of it so they don’t dread it. They’ve decided to do it. Also, they know if life situations change they can opt to change up or down.” Gary Thomson, founder of Thomson Consulting, says every firm is trying to find the silver bullet for a complicated problem. “The approaches are as varied as the firms.” Here are some ideas:
PICK A TARGET
Thomson suggests making the conundrum more manageable by picking the number of hours you want your staff to work, say no more than 50 hours a week during tax season. If a firm wants 30 staff to work 10 fewer hours, the firm can find a way to make up the 3,000 hours. For example, a firm could outsource, shift low-profit work to the off-season, automate processes to improve efficiency or cull clients. Another idea is to stipulate to new clients that the firm can’t work on their projects until after busy season unless they pay a premium.
GIVE STAFF FRIDAYS OFF AND ELIMINATE MANDATORY SATURDAYS
A 2022 ConvergenceCoaching survey shows real progress in cutting out mandatory Saturdays – 73% of 216 participants made Saturdays optional, compared to 41% from 2014. One popular solution for staff who work many hours in the compressed busy season, whether it’s in the fall or spring, is to give them Fridays off when work slows down. At Austin, Texas-based IPA 200 firm Maxwell Locke and Ritter, for example, weekends are not Amy Gates mandatory and staff typically do not work more than 50-55 hours a week during busy season. “If someone exceeds that number, a partner will reach out to determine how to lighten the team member’s load,” said Amy Gates, talent and culture coordinator.
ELEVATE ADMINISTRATIVE STAFF
Loerzel suggests bringing administrative employees into client service roles or hiring new staff, perhaps by looking to the mortgage or insurance industries. They can review engagement letters, conduct onboarding for new clients or train them on using the portal.
CREATE DASHBOARDS
Giving staff the ability to see their progress toward their chargeable hour goals through dashboards can be valuable, as well as a clear description of what nonchargeable hours look like. “It gives people the ability to have more ownership and autonomy, which is really what we as humans all want,” said Alice Grey Harrison, founder of AGH Consulting.
‘GET REAL’ ON BUDGETS
It’s not uncommon for firms to underestimate the amount of time it will take to provide a service, Loerzel said. “And then we wonder why we’re 20 hours short, and I do that for 20 audits, and we wonder why we feel like we don’t have enough resources and people feel out of control, and we get a bad image about hours in the accounting profession.”
MAKE A DECISION AND COMMUNICATE IT
Partners are also frustrated by the hours issue because they end up working more to make up the slack, and they can speak out of both sides of their mouths. They say they don’t want staff to work Saturdays, but partners show up at the office and send emails all weekend, Thomson said. Stress is high because expectations aren’t precise. “Partners need to be vocal advocates and be really clear with the staff. And what we measure needs to be measured in alignment with what we’ve articulated and not old-school principles.” For example, don’t motivate and compensate employees as if they work 1,700 chargeable hours while saying they should only work 1,500. Thomson says, “There’s this feeling as we get the fourth generation into Alice Grey Harrison our firms that what they value is different, and so we have to be conscious of that – whether we fully believe or buy into it is one thing – but we know there’s a business imperative that says for the most part, we have to do things differently.”
According to the 2023 Rosenberg Survey, the average percentage of firmwide charge hours between January and April was 44.1% for all nearly 300 participating firms. In 2019, this number was 46.2%.
44.1%
PERCENTAGE OF TOTAL CHARGE HOURS BETWEEN JANUARY AND APRIL IN 2023
46.2%
PERCENTAGE OF TOTAL CHARGE HOURS BETWEEN JANUARY AND APRIL IN 2019
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FIRMS
in the news
PKF O’CONNOR DAVIES WELCOMES ROBERT PHILIPSON & COMPANY
New York-based IPA 100 firm PKF O’Connor Davies (FY22 net revenue of $335 million) has announced the addition of Robert Philipson & Company, effective Jan. 1. Established in 1925, Robert Philipson & Company of Silver Spring, Md., is an accounting, tax and management advisory firm that specializes in serving private clients through sophisticated tax services. MP Richard Philipson, and partners Samuel Philipson and Diane Porter, along with the firm’s employees, remain in their Silver Spring office. “Robert Philipson & Company, like PKF O’Connor Davies, is a well-established firm whose longevity has solidified its reputation for superior expertise and unparalleled client service,” said Kevin Keane, executive chairman at PKF O’Connor Davies. MARCUM LLP EXPANDS REACH WITH ACQUISITION OF FEDERMAN LALLY & REMIS LLC
New York-based IPA 100 firm Marcum (FY22 net revenue of $1.2 billion) has announced that Federman Lally & Remis (FLR) of Farmington, Conn., has joined the firm, effective Jan. 1. This merger strengthens Marcum’s team in New England’s automotive, and food and beverage sectors, adding five partners and 12 associates. Furthermore, FLR brings invaluable experience to Marcum’s tax and assurance divisions.
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Founded in 1991, FLR has distinguished itself as a comprehensive tax and accounting firm, catering to a diverse array of industries, including automotive, real estate, food and beverage, retail, manufacturing and non-profits. Jeffrey Weiner, chairman and CEO of Marcum, remarked, “The alignment between Marcum and FLR is clear. FLR’s unwavering commitment to addressing intricate business challenges with tailored solutions mirrors our process at Marcum. Their well-regarded reputation and adept problemsolving capabilities make them an excellent fit for us.” CITRIN COOPERMAN CONTINUES GEOGRAPHIC EXPANSION WITH ACQUISITION OF COLEMAN HUNTOON & BROWN
New York-based IPA 100 firm Citrin Cooperman (FY22 net revenue of $432.4 million) has announced the acquisition of Coleman Huntoon & Brown (CH&B) of Chapel Hill, N.C. CH&B joins Citrin Cooperman with over 20 employees and more than $7 million in revenue, and their Chapel Hill office establishes Citrin Cooperman’s first location in the Carolinas. “From our very first meeting, we found the CHB partners to be perfectly aligned with us. We share the same values, and the same dedication to high quality, timely client service. Combining with CHB will provide us with the opportunity to work together to grow our firm and our service offerings in North Carolina and beyond,” said Citrin Cooperman
Executive Chairman Joel Cooperman and CEO Alan Badey in a joint statement.
the Northeast through the combination of Paresky Flitt & Company of Wayland, Mass.
BARATZ & ASSOCIATES EXPANDS PRESENCE WITH ACQUISITION OF RENZI BERNARDI SUAREZ & CO.
The combination of firms brings Paresky Flitt’s deep history in Massachusetts to UHY’s existing presence spanning 10 Northeast U.S. locations in New York, Connecticut and New Hampshire. Nationally, UHY employs over 1,600 professionals in 38 U.S. offices.
Marlton, N.J.-based Baratz & Associates (FY22 net revenue of $10.2 million) has announced the strategic acquisition of Cherry Hill, N.J.-based Renzi Bernardi Suarez & Co. The addition of Renzi Bernardi Suarez & Co., led by Phil Bernardi and Ed Suarez, brings a wealth of experience and expertise to complement Baratz & Associates’ comprehensive service offerings. The merger, effective immediately, is a testament to Baratz & Associates’ strategic growth plan and successful track record of expanding its reach, the firm announced. “We are pleased to continue our growth plan and add Phil, Ed and their team to our New Jersey base,” remarked MP Raymond Giunta. “The shared commitment to client satisfaction and similar cultures between our firms creates a strong foundation for a successful collaboration. Our combined synergies in non-profit audit, tax and consulting services will further elevate our client experience.” PARESKY FLITT JOINS UHY
Farmington Hills, Mich.-based IPA 100 firm UHY LLP (FY22 net revenue of $298.1 million) is expanding its presence in
This combination will allow Paresky Flitt to offer a wider array of services and subject matter expertise to their valued clients and prospective clients. David Lorenzi and Mike Okenquist will continue as MPs of the Wayland office and all 25 Paresky Flitt employees will be employed by UHY. PLANTE MORAN CELEBRATES 100TH ANNIVERSARY
Southfield, Mich.-based IPA 100 firm Plante Moran (FY23 net revenue of $1.01 billion) is celebrating 100 years in business. Since its founding in 1924, the firm has grown from a sole accounting practitioner in a Detroit office to a billion-dollar audit, tax, consulting and wealth management firm with more than 3,800 professionals serving clients around the globe. When asked the secret to the firm’s success, MP Jim Proppe answered the question with one word: culture.
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PEOPLE
in the news
Abdo COO Named Chair of CPA Firm Management Association
Edina, Minn.-based IPA 200 firm Abdo LLP (FY22 net revenue of $33.6 million) has announced that its COO and partner, Jana Cinnamon, has been named chair of the CPA Firm Management Association (CPAFMA), effective Jan. 1. In this role, Cinnamon will guide the national organization that supports leaders in CPA firm operations. CPAFMA was established 40 years ago with the mission to facilitate communication among accounting firm managers and to leverage collective experiences in the evolving profession. She served as the organization’s vice chair in 2023. Jana Cinnamon
During her 11 years at Abdo, Cinnamon has been instrumental in managing key operational areas and demonstrating a comprehensive approach to leadership. Her strategic insight and dedication to maintaining a positive culture have significantly contributed to the firm’s overall growth and success. She became the firm’s first non-CPA partner in 2022.
WilkinGuttenplan Promotes Dan Fiorentino to Firm Leadership
East Brunswick, N.J.-based WilkinGuttenplan (FY22 net revenue of $33.2 million) has announced the appointment of Dan Fiorentino as the new managing shareholder, effective Jan. 1. This transition marks a significant milestone in the firm’s history and reflects the firm’s commitment to the continued growth of employees and excellence in serving our clients, the firm announced. Ed Guttenplan, managing shareholder emeritus, served for 40 years and will remain an integral member of the leadership team. Fiorentino has been with the firm since 2006, after an internship in 2005. He specializes in providing consulting services to clients in all business cycle phases, from operational improvements, tax planning and compliance in the early stages to succession planning and due diligence work in the later phases.
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Dan Fiorentino
Laura Sprouse Tapped as New CEO of Brown Edwards
Roanoke, Va.-based IPA 100 firm Brown Edwards & Company (FY22 net revenue of $67.6 million) announced a change in its leadership effective June 1, 2024. CEO Jason Hartman will retire after 38 years, leaving behind a legacy of exceptional leadership and growth. Laura Sprouse, the firm's COO, will become CEO. Sprouse has been with the firm for 25 years and led the firm’s accounting information systems group before becoming the firm’s COO. Laura Sprouse
"I am committed to building upon Jason’s remarkable legacy and steering our firm toward a future of continued growth, innovation and client-focused excellence,” Sprouse said. “Along with our exceptional team, we will uphold our core values and remain a trusted partner for all our clients' financial needs."
Maner Costerisan Announces Principal Admissions, Addition to Board
Lansing, Mich.-based IPA 200 firm Maner Costerisan (FY22 net revenue of $34.8 million) has announced that five team members have been admitted as principals and Katie Hamilton has been appointed to the board of directors, effective Jan. 1.
Hamilton oversees Maner’s tax department and is responsible for the firm’s tax growth strategy and client service. Additionally, she provides expert counsel on income, estate, and gift tax planning for the firm’s wealth management clients. Hamilton joined Maner in 2019 and, one year later, was instrumental in launching Maner Wealth, the firm’s wealth management service. The admissions of Jessica Fleet, Joel Korson, Nick Kossaras, Stephanie Kossaras and Clayton Stiffler to principal reflect their professional expertise, leadership qualities and the confidence earned by the firm and its clients, as well as the next phase of leadership for the award-winning firm.
Katie Hamilton
Stacey Schell Joins CohnReznick as Assurance Partner
New York-based IPA 100 firm CohnReznick (FY23 net revenue of $920 million) announced that Stacey Schell has joined the firm as an assurance partner in its expanding financial sponsors and financial services practice. Based in New York, Schell has more than 25 years of experience providing technical services to a range of asset management clients including alternative investment funds under various investment trading strategies and complex capital structures. Stacey Schell
Schell is well versed in generally accepted accounting practices (GAAP) and generally accepted auditing standards (GAAS), advising C-suite and governing boards, along with other business stakeholders, on a range of compliance risks, accounting pronouncements, audit observations, and technology and process automation.
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Centri Names Jaime Krug COO
Philadelphia-based Centri Business Consulting announces the promotion of Jaime Krug to the position of COO. In this role, Krug will be responsible for oversight of all client service activities and operations, as well as providing the strategic and technical development of processes to ensure the firm’s quality and client experience.
Jaime Krug
Krug has been with Centri for over 10 years and has been an integral part of the team as a leader at the firm. During this time, she has demonstrated exceptional leadership skills and has made significant contributions to the growth and success of Centri in many roles, including partner, chief quality officer and now as COO.
Lavine Lofgren Morris & Engelberg Names Brian Surratt as MP
Lavine Lofgren Morris & Engelberg (LLME) of La Jolla, Calif., has elected Brian Surratt as MP. Surratt, a leader in tax and accounting, assumed the leadership role Jan. 1.
“Brian’s business acumen and expertise in working with small businesses were crucial to our firm’s ability to successfully guide our smaller, regionally based clients through the tumultuous seasons of recent years,” said LLME’s former MP Scott Jablow. “His knowledge and ongoing leadership assure that LLME will navigate unforeseen events, strengthen our commitment to excellence and drive sustained success in the ever-evolving landscape of tax and accounting.” Surratt has more than 25 years of tax and accounting experience, primarily serving small businesses across Southern California in various industries such as construction, service, technology and start-ups, as well as professionals and high-net-worth individuals. He joined LLME in 2003 and dedicated 10 years to serving the firm’s clients before venturing out to establish Aztec Accountancy Group, a small accounting firm focused on providing tax services. He returned to LLME in 2019 as a tax partner.
Brian Surratt
BeachFleischman Names George Henderson as President Tucson, Ariz.-based IPA 200 firm BeachFleischman PLLC (FY22 net revenue of $37.8 million) has appointed principal George Henderson as president, effective Jan. 1. Henderson succeeds firm co-founder David Cohen, who has served in the role since 2016. Henderson will report to CEO Eric Majchrzak and continue his duties as COO of finance and accounting and acting liaison to firm subsidiary companies. He remains a member of the management, merger and acquisition, and strategic planning committees. George Henderson
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Henderson joined BeachFleischman in 1991 as an audit professional.
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