Volume 38, Issue 5 | INSIDE Public Accounting Monthly

Accounting Firms Embrace Nonequity Partnerships

A Win-Win for Talent and Growth

BY: CHRIS CAMARA

The accounting profession is adding far more nonequity partners to its ranks than equity partners, which means power is concentrated among fewer owners but stand-out pros are getting the opportunity for more responsibility, more autonomy and more money.

It’s a trend that’s remained solid for at least the last 15 years. According to the 2023 IPA Practice Management Survey, the number of nonequity partners among the IPA 100 (excluding the Big 4) has increased by more than 320% over the last 15 years versus just 85% for equity partners. The IPA 100 in 2023 included firms above $48.8 million in net revenue. The data also shows the practice has accelerated over the last five years.

Christopher Meshginpoosh

For example, at Kreischer Miller of Horsham, Pa. (FY23 net revenue of $42.3 million), the number of nonequity partners has increased from 12% to 59% of all partners since 2019. The numbers represent a shift in thinking, says Christopher Meshginpoosh, who goes by the title of managing director because partners are called directors at his firm.

The only thing holding back some “phenomenal” performers from becoming directors was business development experience. There’s room for both. “If we can get an outstanding business developer surrounded by people who can help them on the delivery front, make them more efficient and free up time for them to go out and make it rain even more, then that's a really good answer for the firm.”

Not every director needs to excel in every aspect of the job, Kreischer Miller leaders concluded, so they spent more time looking at strengths and weaknesses of their top performers and crafting guidelines to recognize this.

Consultant Kristen Rampe of Rosenberg Associates can see few downsides to adding more nonequity partners to the mix. “By minting more partners, even if they're not owners, it allows the firm to serve more clients without having to add to the number of cooks in the kitchen of business ownership.”

At Kreischer Miller, equity directors are more involved in bringing in business than nonequity, but beyond that, there’s very little difference between the two. Both types serve clients the same way, sign reports, lead industry groups or service lines, and serve as thought leaders. Nonequity directors don’t vote, but there aren’t many issues that need to be voted on anyway, Meshginpoosh said.

He cites the following benefits of nonequity partner growth:

Higher Retention

Meshginpoosh said it “felt wrong” to let the unique skills and contributions of excellent professionals go unnoticed. Besides, competition is tough and the firm needed to avoid watching good people walk out the door for a title they could get elsewhere.

Another Rung on the Ladder

For about half the nonequity partners at Kreischer Miller, the role is a steppingstone to equity partnership while they work alongside other industry group leaders to build a niche. The other half are satisfied in the role being technicians, teaching younger professionals and serving clients without spending as much time on business development. Rampe said some firms require their equity partner candidates to spend a couple of years in the nonequity role before being offered equity partnership. “I'm in favor of that because it gives people a chance to try it — on both sides.”

Wider Market for Recruits

It doesn’t make sense for everyone to pursue equity partnership. Kreischer Miller has recruited former partners who

had hit their mandatory retirement ages, for example. For others who prefer more technical roles, equity partnership has little appeal. Rampe adds, “Some people have an inordinate anxiety around the risk of being a business owner and just want nothing to do with it.”

Meshginpoosh also offers the following potential downsides to other MPs thinking of increasing the number of nonequity partners:

Perception

“The biggest challenge I think is trying to make sure that you're not creating two different classes where one feels like they're in and one feels like they're out.” Avoid doing anything that would create tension between the two groups, he advises. Rampe adds that the role should be clear — at some firms it’s a stop on the way to equity partnership and in some firms it’s a permanent position — and firms shouldn’t differentiate between who’s an equity partner and who’s not.

Lower standards

“We don't dilute the meaning of a director in the eyes of our clients or in the eyes of our people because there is a base level of technical skill, interpersonal skills, leadership skills and client service skills that you expect to see out of anybody who has that title whether they have equity or not,” Meshginpoosh said. At the same time, the firm needs to challenge itself in considering new nonequity partners: “Do they have those traits or are we just trying to take the easy way out?” They key is to set clear standards for the role and hold people accountable to meet those standards.

In the end, it’s all about retaining high performers, Meshginpoosh concluded. “We’re committed to our independence and the way you stay independent is by doing your best to help grow that next generation of leaders.” 

Kristen Rampe

Navigating Accountants' Busy Schedules

Insights from Business Development Experts

BY: CHRIS CAMARA

When accountants have more work than time to do it — which is always — it takes some finesse to encourage them to participate in business development activities.

Two experts recently laid out their tips for working with busy professionals, serving as a coach and engaging younger staff.

A key to success as a business developer is to make sure you’re serving as a resource for the partners and making every step of the process easy for them, said Chris Fifis, director of business development at New York-based Grassi (FY22 net revenue of $116.2 million), during a during a recent freewheeling roundtable discussion hosted by the Association for Accounting Marketing

BUSINESS DEVELOPERS CAN GAIN INTEREST IF NOT ENTHUSIASM

“Accountants are extremely busy, so a good way of earning respect is making good use of their time,” Fifis said. Make sure the business development team qualifies opportunities, learns about client’s potential challenges, presents data, organizes meetings with prospects and follows up. Once the firm starts seeing the business come in, “things get fun.”

He noted that business developer can only expect buy-in from some. “Ninety percent have no interest in getting into the excitement of it,” he said, but they are motivated to improve.

Some leaders have zero interest, said co-presenter Jeff Jacobs, director of development at Mobile, Ala.-based Wilkins Miller (FY22 net revenue of $9.8 million) so focus on those who do. “You’re never going to turn a zebra into a thoroughbred.”

Fifis and Jacobs emphasized that successful business developers should be likable and interested in getting to know each partner, including what they like to do outside the office. “It’s not about you,” Jacobs said.

Ultimately, the business developer is responsible for gathering information, ensuring partners have everything they need and following up. “You have to take ownership over it,” Fifis said.

BUSINESS DEVELOPMENT TIPS FOR GETTING OVER INERTIA

Business developers can take a coaching role with professionals who may let a lack of confidence hold them back. “A lot of times they do have capacity issues, and that’s really hard to overcome, but when you dig into it a little bit more, the issue is fear,”

Jacobs said. Repetition helps. Partners who take younger staff to client meetings can demonstrate that such interactions aren’t scary and mysterious but doable.

Pursuing prospects can fall apart if busyness is constantly cited as an excuse. Embedding activities into a regular work schedule, such as writing one article per year, following an individual business development plan every week, or holding pipeline meetings every two weeks, can make participation more manageable.

BUSINESS DEVELOPMENT SUCCESS COMES FROM THE TOP

Another challenge is engaging younger professionals, who may be less eager to attend networking events and the like than their older counterparts. “We as an industry really need to think about that,” Fifis said. “There’s a generational shift in the way that we socialize, especially since COVID.” He suggested asking early-career staff to reach out to people they know on LinkedIn to get an introduction.

Start with the simple things, Jacobs said. Show them proper email etiquette, how to have a conversation during a dinner meeting, and even which fork to use. “Make them part of the process. It shows them that we are trying to grow, and growth is important. I think we can overcomplicate sales and the process.”

He added that if staff aren’t interested it’s likely because the partner above them isn’t either. Success with business development, like all initiatives, relies upon strong support from leadership. “Overall, it’s a cultural thing,” he said. “If it’s not a priority to the leadership, it will never be a priority to the staff.”

Fifis said Grassi’s CEO, Lou Grassi, sets the firm’s growthoriented tone and culture at the firm. “Lou Grassi says all the time if you’re not growing, you’re dying. In today’s business environment, you have to grow, and you have to grow exponentially. It’s just not an option.”

Chris Fifis

Jeff Jacobs

Flexibility Fuels Success for Firms with Majority of Women Partners

BY: CHRIS CAMARA

Although women make up about half of all firm employees throughout the profession, the number who become partners is not close to half.

However, the statistics have been looking a bit more promising over the years. According to the 2023 IPA Practice Management Survey, 6.5% of firms above $5 million reported that half or more of the partner groups were made up of women. This compares to a mere 2.7% in 2013.

Similarly, studies show that in 2010, only 17% of women were admitted to the partner group. Today, 39% reach that milestone, according to Cindy Stanley, executive director of the Accounting and Financial Women’s

Alliance (AFWA) , citing research by the Accounting MOVE project, which was founded in 2010 to measure the status of women in accounting and collect best practices to retain and promote women.

Cindy Stanley

“We’ve come a long way but there’s still a long way to go,”

Stanley said, adding that she’s heard “countless stories” of women who have been discriminated against and held back from promotions.

Here is a different story of two firms — both recognized by the Accounting MOVE project as 2023 Best CPA Firms for Equity Leadership — where women make up more than half the partner group. Women refer to the list when choosing a firm they’d like to work for, said Stanley, who leads 85-year-old AFWA, which offers training, leadership development, scholarships, awards and networking through 57 chapters around the country.

CLARK NUBER: PAINT YOUR OWN PICTURE

Chief Human Resources Officer Sarah Petrone acknowledges that it took her firm a while to get where it is today. In 2012, of 18 shareholders, and only one was a woman at Clark Nuber of Bellevue, Wash. (FY22 net revenue of $56.4 million). Now, 14 shareholders among 27 are women, and the leadership team of shareholders, principals and directors is comprised of 68% women.

The progress was not made by mandate or directive but in part through a flexible time off policy that respects every season of family life for all 320 staff. “We create space to allow people to be caregivers to their young children, or be caregivers to their parents, or help with transitions to college.” Flexibility in where and when staff work has become table stakes at all firms since the pandemic. Accounting MOVE’s 2023 report says 92% of firms have formally codified flexwork and 68% train managers on how to manage remote teams.

A parenting group, open to all, allows employees to discuss their issues and solutions as parents and share stories about advancement and challenges in career advancement.

Clark Nuber has five talent advisors on staff to help all

employees, from associates to principals, develop their own career path through varied work experiences and mentoring. The result of the “paint your own picture” program is professionals can take on different roles than expected early in their career. “It’s set up at the beginning so you're not pigeonholed,” Petrone says.

CJ Close, a Gen Z communications specialist, says female managers are dispersed throughout the organization, and representation of Clark Nuber’s culture on social media reflects how important diversity is to the firm, which helps recruitment.

Men are allies at Clark Nuber, Petrone said. Male shareholders make sure that clients know if women are in charge, because often the clients would look to the men for advice.

ABBOTT STRINGHAM & LYNCH (ASL): INCLUSIVENESS CAME NATURALLY

At ASL of Campbell, Calif. (FY22 net revenue of $29.6 million), 11 of 18 partners are women, including MP Deepa Bhat , who is the third woman in the role. The number of women in leadership positions grew organically from a culture of flexibility, inclusiveness and kindness, she said.

Add to that a generous time off policy of five to six weeks plus 10 to 15 holidays, about six months off for maternity leave, and flexible work arrangements the rest of the time, so the environment is welcoming for all staff regardless of gender. Women sometimes leave the workforce, or feel guilty, after a child joins the family but that hasn’t been the case at ASL, Bhat said. “We judge ourselves so harshly as women. It doesn’t help if others do it too.”

Another benefit for women, and all staff, is a one-onone coach to help develop goals to meet personalized career paths. Coaches offer feedback continuously and employee performance reviews are conducted formally

Sarah Petrone

twice a year. High-level professionals can also access external coaches to develop leadership skills, and staff are encouraged to join professional organizations in the industries they serve, state CPA societies and community organizations.

Inclusion means everyone. It’s important not only for staff to see people who look like them advancing up the ladder but to show clients the firm is representative of the business community, Bhat said.

She has a personal interest in promoting inclusivity at ASL. She was born in Mumbai and moved to the U.S. in 2002. Many firm clients are immigrants as well. “I can personally connect with a lot of them because that has been my journey also. I have a heightened sensitivity to people who haven’t grown up here,” she said. Bhat adds, “I think having a diverse workplace really helps because you learn so much from each other. It expands your horizons and makes you think differently.”

Bhat said she never felt she wasn’t heard during her formative years at the firm. “I always remember how I was treated and that’s how I want to treat others in the firm. Kindness pays you back in spades.”

SUCCESS = DIVERSITY OF THOUGHT

As these firms have shown, a clear leadership path, mentorship, leadership programs, flexible work arrangements and a strong commitment to a wide range of contributions are keys to help women achieve their full professional potential.

In fact, Stanley says firms that embrace diversity are more successful overall. “And those are the ones that don't just say they're involved in DEI, they actually have proven strategic, measurable goals.” She adds that leaders should be held accountable for tracking progress and achieving those goals.

“Women’s experiences and challenges vary based on factors such as race, ethnicity, sexual orientation or socioeconomic status, so they need to take an intersectional approach to diversity and inclusion.” 

LOOKING

Be

TO BRING MORE WOMEN TO THEIR LEADERSHIP

TEAMS

BE FLEXIBLE “ MAKE SURE YOU DON’T HAVE BLINDERS ON. ” “ PEOPLE JOIN PEOPLE,

understanding of the pressure women face in life.”

Don’t

be afraid to take a hard look at the firm and address any cultural issues you see.

Make your commitments to diversity clear. they don’t join organizations.”

DEEPA BHAT

CINDY STANLEY

SARAH PETRONE

Deepa Bhat

The Increasing Role of Offshoring in Meeting Workforce Demands Data Dive IPA

PART TWO

BY: CHELSEA SUMMERS

Continuing our detailed look at outsourcing and offshoring from the April issue, this month’s examination reveals the number of full-time equivalents (FTEs) firms are outsourcing, the countries firms are outsourcing to, and the companies they are utilizing.

According to the 2023 IPA Practice Management Survey, of the firms that engaged in outsourcing activities last year, two-thirds of them outsourced two-thirds of them outsourced FTEs, with an average of 5.7 FTEs per firm. For firms above $50 million in revenue, the number of FTEs increases to an average of 16.1.

More than half of firms that engaged in outsourcing last year, 54%, sent a portion of their tax returns to a thirdparty organization. On average, firms outsourced nearly 400 tax returns last year with the firms above $20 million outsourcing more than 600.

In the 2024 IPA Practice Management survey we’ve expanded the number and sophistication of the questions around offshoring and outsourcing. Be sure to complete the survey this year and help shape the future of the profession by including your information in the data set of over 600 firms. Contact IPA for your invitation to participate. 

IPA Profile

Carl (Skeet) Haag

Managing Partner

RBG ( Reynolds, Bone & Griesbeck)

Reynolds, Bone & Griesbeck

What is the single biggest challenge facing your firm now?

Finding the right people for the right seats has become much more difficult, especially with the decreasing college student enrollment in the accounting field. Ours is a wonderful profession, but finding the people who want to work hard and reap the benefits is challenging.

Where do you expect to be focusing most of your attention in the next two to three years?

Execution of the RBG GamePlan, which basically tells people who we are, where we are going in the next year, three years and 10 years, and how we are going to do it.

Î Succeeding in the people initiative

» Increasing employee engagement, retention and empowerment — if employees are engaged and empowered, they will serve our clients in an excellent way. This, in turn, is the best business development strategy — satisfied clients recommending your firm. 108 MEMPHIS, TENN. IN BUSINESS YEARS HEADQUARTERS

» Strategic hires — While promoting from within is always the goal, finding strategic hires from the outside who fit our culture is critical to our growth and talent goals.

» Continuing to build RBG Philippines — We have very solid core group in our Philippines office and growing that talent base helps solve the overall talent shortage.

» Increasing the outsourcing of tax returns — Our goal is to “flatten the workload compression curve” for our professional staff, which will create a better workplace environment.

Î Strategic investment in AI — We plan to capitalize on the opportunities that AI brings. We don’t fear AI, we welcome it.

Î Strategic acquisition — Finding the right strategic acquisition, whether a CPA firm or another closely aligned service firm, will help to achieve the growth and talent goals outlined in our three-year picture.

Î Significantly increase the revenues in our advisory and CAAS service lines — If we achieve most of the goals outlined in our plans, increasing revenues should follow.

What

is the biggest and sometimes missed opportunity for the profession?

A basic missed opportunity is failing to work on the culture of your firm. As Peter Drucker once famously said, “Culture eats strategy for breakfast.” That does not mean strategy is not important, but without developing a powerful and empowering culture, long-term, sustained success cannot be achieved.

Challenge the status quo by developing new services by making significant investments in time and people, investing in your superstars or making strategic hires without the fear of upsetting the apple cart. As Jim Collins says, “Good enough never is.” To be a good steward of the firm, taking calculated risks is a must — if you don’t grow, you die. However, one of the best traits of some of the most successful people I know is that they fail quite often, but when they do, they fail very quickly.

What was the best advice you received as a young up-and-comer in the profession?

Never stop learning and believe in yourself. Always challenge yourself to be better.

Don’t be afraid to ask a question. However, before you ask the question, develop what you believe to be the answer, and then discuss its merits. You may be totally off base, but at least you are training yourself to be a problem-solver and thought leader.

What advice would you offer to someone entering the accounting profession today?

Î Be passionate about whatever path you take. The most successful people are very passionate about

life in general and especially their chosen profession.

Î There is only one person responsible for your career and that is you, so make the most of it. Own it! If you are unhappy, then change it. No excuses.

Î You learn more from your mistakes and failures than you do from your successes. Learn from them. Don’t be afraid to admit you don’t know something.

Î Early is on time, and on time is late, as Vince Lombardi once said. Arrive at least five minutes early for every appointment or meeting.

Î And some advice from J.J. Watt, who most likely borrowed it from someone else: Success is not owned — it is leased. And rent is due every day. We use this quote as an illustration of our elevation core value that relates to continuous learning and elevating your game. Never settle for mediocrity in yourself.

What motivates you most as a leader?

While this may sound cliché, I am very sincere. It really gets down to why RBG exists — to challenge and inspire our people and clients to achieve their goals while creating lasting legacies. Seeing firsthand how our “why” statement comes to fruition motivates me every day.

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?

AI will no doubt play a huge part in every part of our profession — to what extent in five years, I don’t know. But if a firm does not embrace AI, they will be left behind. On the other hand, I truly believe that trusted, personal relationships will still be the driving force of a successful firm. I would also love to see the reduction in workload compression, which would certainly go a long way in reducing burnout and keeping people in our profession. Creating a solution to that issue is problematic, but AI may provide some relief.

What is a business book you'd recommend to other leaders?

Some of my favorites, and most likely read by many managing partners, are Built to Last: Successful Habits of Visionary Companies and Good to Great, both written by Jim Collins, and The 7 Habits of Highly Effective People by Stephen Covey. I refer to these books all the time. But a book that may not be widely read as a business book is The Seven Spiritual Laws of Success by Deepak Chopra, which are principles applied to create success in all areas of life but certainly apply to the business world and one’s business career. This book does not focus on spiritual success itself, but the spiritual laws of success.

What is your proudest professional achievement?

Seeing people at our firm succeed, not just financially but in life, really makes me proud.

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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Client Success Managers Can Give Firms A Leg Up in Customer Service

BY: CHRIS CAMARA

Forward-thinking accounting firms are embracing a new role — a client success manager — to lower response times, lighten the load for partners and cement strong relationships with the most important clients, who just may buy more services as a result.

Client success managers can take different forms — at LBMC they’re called client account service managers (CASMs) — but the concept is the same. Rather than a sales professional who is continually finding new clients, these managers nurture connections to existing top-tier clients by serving as the point of contact who coordinates services, in-person meetings and regular business reviews.

Many partners take on all that work themselves, but it’s not easy when there’s too much work to do and not enough people to do it. And many firms agree that it’s a good concept but they haven’t created a formal structure for the role, said Mark Burnette, chief growth officer at Brentwood, Tenn.-based LBMC (FY23 net revenue of $192.7 million).

“In today’s accounting firm, partners have so many demands on their time,” he said. “Partners are still expected to be at the top of their profession for technical expertise, so they have billable hour obligations. Partners are expected to lead teams and services, so they have people management responsibilities and they’ve got business development responsibilities.

“Almost any partner would tell you they know what they need to do to be successful, but they don’t have enough time to get it all done.” Partners tend to do what they enjoy and business development often takes a back seat.

David Toth, chief growth officer and principal at Winding River Consulting , says clients complain more about communication and responsiveness than anything else when it comes to their experience with their CPA.

He knows firms of $23 million to $250 million with client success managers who turn out to be the firm’s new secret weapon to improve client experience and personalization for top accounts. Since partners are overstretched, client success managers can respond more quickly and serve as a bridge between the client and the CPA. They can play a key part in helping firms evolve and grow their advisory practices, something all firms are looking for, he said.

Here are the activities of the CASMs at LBMC:

SERVE AS THE POINT OF CONTACT

While no one restricts a client’s access to the partners, the CASM is typically the first person the top clients call because they’re more accessible. Additionally, they’re often the first ones to know if clients are not happy and they can quickly work with the client partner to address it.

MAINTAIN STRONG RELATIONSHIPS

The CASM will ensure fast response times, serve as an advocate for the client, and understand the people and politics of the business. As a result, client retention can improve.

OFFER PROACTIVE SUPPORT

The CASM thinks ahead to what the client and the firm needs. For example, the CASM will make sure partners get in touch with new client business leaders if there’s turnover.

SCHEDULE REGULAR IN-PERSON BUSINESS REVIEWS

The meetings should have a structured agenda that includes an outline of services to be offered, feedback on past work, a discussion of outstanding services and a business update from the client, Burnette said. “The more inperson interactions we can have, the better it has been.”

COORDINATE MULTIPLE SERVICES

Business reviews can result in discussions about additional services the firm can offer. The CASM can smooth out any bumps and answer questions.

PROVIDE “NEWS YOU CAN USE”

The CASM will send clients a link to a podcast, blog or other thought leadership pieces produced by the firm and ask if they want to meet with the subject matter expert.

Considering this new role? Burnette and Toth offer some tips:

DEVELOP A STRUCTURE

Think about whether a client success manager should focus on an industry, a service line or take a broader approach. Set goals for the role.

FOCUS ON TOP-TIER CLIENTS

LBMC has three CASMs, two in the cyber practice who support between 30 and 40 clients each and one at the firm level who focuses on health care clients. All focus on the most profitable or high-potential clients, with enough clients assigned to keep them busy but not too much that they can’t offer the white-glove service expected of the role. Toth suggests the top 5% to 10% of clients.

FIND SOMEONE WHO IS ASSERTIVE YET FRIENDLY

Client success managers must be willing to ask if the client is interested in additional services or whether the firm should bid on a service. They should be organized, likeable and an excellent communicator. They need to be familiar with how the firm operates, but they don’t need to be a CPA, Toth said, adding that a CPA who wants to shift away from technical work might be a good fit.

TRACK PROGRESS

LBMC challenges account managers to sell additional work and they are incentivized to do so. “We have some pretty wild success,” Burnette said. “Our account managers who’ve been doing this for a while are getting between 30% and 40% new services sales at their assigned clients on an annual basis, which is a pretty darn good growth metric.” 

FIRMS in the news

MAXWELL LOCKE & RITTER SELLS AFFILIATE FIRM AND REVEALS BRAND UPDATE

Austin, Texas-based IPA 200 firm Maxwell Locke & Ritter (FY22 net revenue of $44.4 million) has recently finalized the strategic sale of its affiliate, ML&R Wealth Management , to Creative Planning .

The move facilitates a smooth transition for ML&R Wealth Management's clientele to a similarly peoplecentric investment firm, all while ensuring they continue to benefit from a wide array of financial services.

In addition, Maxwell Locke & Ritter also unveiled a brand update and new website. Kyle Parks , leading partner of Maxwell Locke & Ritter, said, "The website reflects our expertise, growth and evolving client needs. We eagerly anticipate this new chapter, confident that it will bolster our ability to serve existing clients, attract new ones and retain top talent as a preferred employer."

MARCUM TECHNOLOGY LAUNCHES COMMERCIAL VERSION OF ASKMARCUM.AI

New York-based Marcum Technology, an innovator in AI solutions, announces the commercial release of AskMarcum.ai . The technology is the culmination of 18 months of development within Marcum Labs, housed in Marcum (FY22 net revenue of $1.2 billIon).

Marcum Technology CEO Peter Scavuzzo said, "AskMarcum.ai began as an internal initiative to advance

the firm's operational efficiency. Its resounding success sparked interest from other organizations, leading us to realize its broader potential as a market solution." This realization spurred the commercialization of AskMarcum. ai, offering businesses across industries the opportunity to optimize workflows and make smarter decisions.

LACK OF TECH ADOPTION STILL TROUBLES ACCOUNTING PROFESSION, SURVEY SAYS

In an online survey of 493 U.S.-based accounting firms, 88% indicated that technology has a positive impact on efficiency and client service, yet 60% described their firm on the lower end of the technology maturity continuum, with “somewhat disconnected software systems, inconsistent processes and the absence of standardized workflows.”

The results come from Rightworks , which recently released findings of its inaugural 2024 Accounting Firm Technology Survey that examines the attitudes and impact of technology adoption across the accounting profession.

The survey said the profession is slow to benefit from modern technologies like AI, collaboration tools and data-driven insights, as 43% of respondents reported less than 75% of their apps and data had been migrated to the cloud.

However, those on the higher end of adoption showed

as much as 39% higher revenue per employee. “It is time to wake up the profession and get it out of the cycle of unbearable tax seasons and antiquated ways of doing business,” the study said.

CRETE PROFESSIONALS ALLIANCE ANNOUNCES LATEST PARTNERSHIP AND LEADERSHIP HIRE

Tampa, Fla.-based Crete Professionals Alliance (Crete PA) has announced its recent partnership with Reid Tax & Advisory Services and the addition of Leslie Adler to its leadership team.

Adler, formerly associated with Marcum , brings 15 years of experience to her new role as general counsel at Crete PA, which was established last year as an alliance of accounting and professional services firms. Crete PA allows firms to remain independent while offering access to its national back-office resources and financial backing.

As for the partnership with Woodbury, N.Y.-based Reid Tax & Advisory Services (Reid), CEO Jason Reid Saladino highlighted the benefits of the alliance, stating, "Crete PA’s partnership model offers significant benefits and services to our clients while also creating opportunities and providing additional resources for our team members.”

CROWE GROWS IN TEXAS AND CALIFORNIA WITH TWO ACQUISITIONS

Chicago-based IPA 100 firm Crowe (FY23 net revenue of $1.3 billion) has announced an agreement with Belt Harris Pechacek (BHP) , which has three offices in Texas, as well as a merger with Irvine, Calif.-based IPA 500 firm KMJ Corbin & Company (KMJ) (FY22 net revenue of $6.1 million).

In Texas, the BHP team will integrate into Crowe, bolstering the firm's government and public sector footprint. Robert Belt , MP of BHP, said, “Since our firm's inception, BHP's mission has been to excel in auditing local governments across Texas. Crowe's stellar reputation as a market leader means our existing clients will benefit from a broader range of professional services.”

The KMJ transaction, expected to be finalized by midMay, marks a significant milestone for Crowe as it aims to bolster its audit and tax services within the Southern California market. Wendy Cama , Crowe's audit and assurance MP, commented, "KMJ is a well-established firm with a proven track record of delivering exceptional client service through their experienced and knowledgeable staff. Our decision to welcome the KMJ team to Crowe stems not only from our desire to expand in key markets like California but also from a shared commitment to values and culture."

PEOPLE in the news

PKF O’Connor Davies Welcomes Anson Loi as Partner

New York-based IPA top 100 firm PKF O’Connor Davies (FY22 net revenue of $335 million) announces the admission of Anson Loi to the partner group. Loi will primarily focus on providing specialized tax planning for high-net-worth individuals, private equity investors and corporate entities.

Benjamin A. Beskovic , partner at PKF O’Connor Davies, commented, “Throughout his career, Anson has consistently demonstrated a deep understanding of the tax exposures of high-net-worth clients and developed strategies that help optimize their overall positions. I am confident our clients will benefit immensely from the depth and breadth of his expertise, his hands-on approach, and his commitment to results-oriented client relationships.”

Prior to joining PKF O’Connor Davies, Loi served as a partner for an international advisory and accounting firm and as a tax senior manager for a Big 4 accounting firm.

G.T. Reilly & Company Appoints Kevin J. Bonnett as Vice President and Shareholder

Milton, Mass.-based IPA top 500 firm G.T. Reilly & Company (FY23 net revenue of $7.6 million) announces Kevin Bonnett has been appointed as vice president and shareholder to the firm. Bonnett started at G.T. Reilly & Company in 2009 following his graduation from Stonehill College.

Bonnett specializes in audit, tax and consulting services to a diverse portfolio of clients, including privately held businesses including manufacturers, distributors, financial institutions and nonprofit organizations.

Kevin J. Bonnett

Anson Loi

RubinBrown Announces Megan Knoblauch as Kansas City MP Kansas City, Mo.-based IPA 100 firm RubinBrown (FY23 net revenue of $196 million) announces that Megan Knoblauch will be the new MP of its Kansas City office effective June 1, 2024. Knoblauch, who is also PIC of RubinBrown’s assurance services group in Kansas City, will be assuming the position following Todd Pleimann , who served in the MP role for 19 years.

Reflecting on Knoblauch's appointment, Pleimann commented, “Kansas City has so many opportunities for growth. Megan is the perfect fit to lead our Kansas City office into the future, and continue to inspire our team members, and provide superior quality and service to our clients, as she has done since she started at RubinBrown.”

Ashish Jalan Assumes Leadership Role at CohnReznick New York-based IPA top 100 firm CohnReznick (FY23 net revenue of $920 million) announces Ashish Jalan has been appointed president of global operations. In his newly established position, Jalan will oversee resource management, talent development, operational efficiency and client service strategies. This includes CohnReznick's teams in India and the Philippines, comprising over 850 professionals, as well as steering future global growth endeavors.

David Kessler, CEO of CohnReznick, commented on Jalan’s appointment. "As CohnReznick continues to deliver value to our clients and align with their business objectives, the expansion of our global capabilities is imperative. Ashish brings a wealth of experience in integrating domestic and offshore talent to enhance operational efficiency and client satisfaction."

Megan Knoblauch

Ashish Jalan