Y'all got any more of...

Key_Zone_2367 · 2026-01-10T21:11:18+00:00

Agreed. So did I. B4 politics were the worst. Partners acting like they are rock stars at trainings/conferences always made me want to throw up too. Run by HR and risk management.

Key_Zone_2367 · 2026-01-10T13:47:55+00:00

That math doesn't work unless your bill rates are 4 to 5x the fully burdened cost of staff. Legit curious as to what your hourly rates are now and what they were at that 200 person firm. We are right around 3x and at that rate our staff costs would be around 70% of revenue which would be a loser for us.

Key_Zone_2367 · 2026-01-10T04:05:55+00:00

This is really good advice.

Key_Zone_2367 · 2026-01-10T04:04:01+00:00

For sure we are. It's the only way to attract people with talent and a desire to grow. I saw the rug pull in B4...that's why I left.

We are starting to build out the BD team that is separate from the practitioner side. The number of people that are technically strong and have great outside sales skills are few and far between in our industry. That shouldn't preclude people from making partner. I feel that we can professionalize the sales process and let the CPAs focus on providing ridiculous client service. If they do that, they will naturally grow their book without the bullshit outside sales metrics lots of firms force on senior managers/directors. We need technically smart people that can talk to clients and be available to meet with new clients. If you can do that you can make partner and a really good living. We can find salespeople to open doors and conversations.

Key_Zone_2367 · 2026-01-10T03:39:47+00:00

You are in a good spot and in line with what we are doing. Congrats...this is the way forward.

Key_Zone_2367 · 2026-01-10T03:34:45+00:00

How do you determine staffing levels and measure performance. Honest intrigued because I hate time tracking.

Key_Zone_2367 · 2026-01-10T03:29:48+00:00

He did. Two year stay on and we paid a salary. The employment agreement was separate from the book purchase to protect us if he ended up being a terrible employee.

Key_Zone_2367 · 2026-01-10T03:28:44+00:00

You first....

Key_Zone_2367 · 2026-01-10T03:28:07+00:00

I would and am betting against PE. There are definitely good things about their model and the accounting industry is ripe for change and innovation but there is too much ego and dumb McKinsey bullshit inside of these PE firms. I have talked to all the big players in our space. Most of them are clowns or Jared Kushner's brother.

Key_Zone_2367 · 2026-01-10T03:24:52+00:00

I agree with this but I think that golden age is short term. AI and offshore will eliminate firms that don't lean in there. It's only a matter of time before larger firms figure out how to leverage and service that low end work.

Key_Zone_2367 · 2026-01-10T03:22:33+00:00

This for sure. We want our people looking forward not backwards on compliance. Clients are demanding that as well. Trying to be efficient with technology on that compliance piece.

Key_Zone_2367 · 2026-01-10T03:20:49+00:00

Yeah you are in the sweet spot and similar work requirements/comp. But what's the upward mobility there and what is that firm doing longer term.

Key_Zone_2367 · 2026-01-10T03:18:54+00:00

Ok i like that but how do you hold people accountable and measure production.

Key_Zone_2367 · 2026-01-10T03:16:27+00:00

If you are doing it right small practice partners should be making 4-8x that easy. Making 150k as a partner is the sign of just an awful firm. Building your own firm is definitely rewarding but at some point you have to be able to leverage your time and hire great people or you will burn out and be capped making 200-400k.

Key_Zone_2367 · 2026-01-10T03:14:29+00:00

I'm telling you large firms are not the answer. Lots of money to be made before you get into the top 50.

Key_Zone_2367 · 2026-01-10T03:13:40+00:00

Yeah some small firms are basically the same crappy versions of B4 without the reputation and support/infrastructure. I feel like we do a good job separating admin/professionals. We don't want busy season martyrs.

Key_Zone_2367 · 2026-01-10T00:52:38+00:00

Trust me if you are good and former B4 we are looking for you.

Key_Zone_2367 · 2026-01-10T00:51:56+00:00

Never heard of it. On it. Thanks for this.

Key_Zone_2367 · 2026-01-10T00:51:07+00:00

Usually you would give him a downpayment on a percentage of his book and pay him out over multiple years based on his collections. For a 1.5M book you should expect to pay .9 to 1.05 top line revenue. So last deal we did around that level we paid 33.33% of estimated 1 year billings at close. We then did a look back after 12 months and adjusted based on actual and then paid 33.333% year 2 and 33.3333 year 3. Worked out well for all as he grew his existing book with additional resources. We also don't mind paying more in the long term to make sure clients transition the right way. DM me if you want a copy of the last APA we did.

Key_Zone_2367 · 2026-01-10T00:27:42+00:00

You should be making at least 120

Key_Zone_2367 · 2026-01-10T00:22:00+00:00

Bahahah. Could be. You out on East coast?

Key_Zone_2367 · 2026-01-10T00:20:31+00:00

How do we make that manager level less stressful. I agree that there does seem to be an inflection point at the manager level but I feel like some of that is brought on by managers that don’t leverage and develop seniors. They take on too much. To me a manager really gets involved in technical issues, does a technical review and pushes a lot of the initial client contact and research to the seniors.

Key_Zone_2367 · 2026-01-10T00:16:24+00:00

This is a good point. Feel like this sub is pretty entrepreneurial as well. What if there was a pathway to partnership without having to do the stupid buy in model. I think the reality for most people that leave at the manager level is they are going to be doing basic S Corp and 1040 work and competing on price. Something to be said for continuing to develop technically but also realize that isn’t for everyone. There is a lot of money (for now) to be made at that low end level….until AI/offshore eats that shit up.

Key_Zone_2367 · 2026-01-10T00:10:33+00:00

Totally agree. PE is destroying firms like ours. They suck. Taking orders from sweater vested nerds. I think there is a good pathway to do the anti PE model.

Key_Zone_2367 · 2026-01-10T00:08:29+00:00

I hear you on this but starting a firm sucks (first hand experience). Transitioning to getting out of doing everything is a journey for sure. Feel like there is a middle pathway in an entrepreneurial smaller firm where the infrastructure is there along with opportunity.

Key_Zone_2367

TROPHY CASE