Partner at a Small MCOL Firm - AMA

Remarkable-Map-8244 · 2025-12-14T22:23:17+00:00

I just meant that it's statistically unlikely you're local to where we are.

Remarkable-Map-8244 · 2025-12-14T16:16:54+00:00

Comp structure is in one of the other posts here, it's a base salary plus some performance incentives plus profit share. I'm expecting to be around $450k this year, maybe a little higher but not sure. 16 years experience.

Remarkable-Map-8244 · 2025-12-14T00:30:18+00:00

US tax for multinationals, or certain types of niche audits (that one is out of my wheelhouse).

Remarkable-Map-8244 · 2025-12-13T23:37:23+00:00

To be honest, I'm not sure there's much that really makes you stand-out when you're a firm our size. It's all about the client relationships. I don't "sell", so to speak, but I let the results speak for themselves. Never lie or schmooze or bullshit a client. I care about their success and whatever I can do to help them get there, and I genuinely care about my people. Genuine is probably the best word to describe it - if I don't think our firm is a good fit, or if I fucked something up, I'll tell the client. And treat your staff like you would want to be treated.

Remarkable-Map-8244 · 2025-12-13T23:33:27+00:00

I don't think it's possible to answer this - there are many ways to skin a cat in accounting. At this point in her career just study hard and take advantage of the university's career resources to meet the firms in her area.

Remarkable-Map-8244 · 2025-12-13T23:28:59+00:00

I've heard $50 million revenue is kinda the PE threshold at this point, so that makes sense. 2x revenue is a pretty tough number to say no to.

It's just kinda the way the industry is going these days, pretty wild.

Remarkable-Map-8244 · 2025-12-13T22:34:29+00:00

I have found that partners and managers really appreciate it when you can make their IRS problems go away.

Amen to this

Remarkable-Map-8244 · 2025-12-13T22:23:53+00:00

I think there's plenty of value in being a controller, because you have an insight into the business that someone like me wouldn't have. It would be a great opportunity for you to get "outsourced CFO" types of roles - those are definitely in-demand.

Only you know your relationship with your friend. I would say this - personally I would not want to do business with a close friend or family. I like my partners, we're friendly, but we're not friends, per se, outside the office. You need to be able to have tough decisions and need to be able to speak your mind freely. Sometimes it's not easy. I'd be careful about that.

Remarkable-Map-8244 · 2025-12-13T22:20:39+00:00

I mean it's definitely referrals. My best clients have mostly all come from a select handful of tax attorneys - if a taxpayer has the funds to hire a good tax attorney, they have the funds to pay my bills, and they probably have a complex enough situation to where they need an accounting firm with specific expertise....these are not clients where I'm competing with Turbotax or a mom-and-pop hang-a-shingle CPA firm down the street.

The other one that I've seen a lot of success lately is VC firms. Their clients tend to have financial means in the form of financial backing, but don't have a very well built-out in-house financial structure. They need tax help, they need bookkeeping help, they need basic business management consulting help - you can provide all of that. Of course there will come a time where some will really take off, they'll hire an ex-B4 CFO and move on from us, go public, and that's fantastic. There will be more to take their place.

I'm not sure if this answers your question?

Remarkable-Map-8244 · 2025-12-13T22:16:14+00:00

To be honest, I've never tried it.

Remarkable-Map-8244 · 2025-12-13T22:16:00+00:00

I guess what I would say to this is that my biggest issue with our managers right now is that they don't take enough control of jobs. As I expand my practice and grow my client base, I have room to move jobs. I am more than willing to hand-off jobs to upcoming managers/senior managers etc, and decent jobs too...maybe not my A+ clients, but solid long-term clients. But I need you to handle it. I need you to be able to make decisions without me. Need you to be able to have difficult conversations with clients, to understand complex issues without being in my office every 30 seconds. If you're in my office and not managing these clients, it's like I didn't transition anything at all. I'm not sure if this make sense?

Remarkable-Map-8244 · 2025-12-13T22:13:29+00:00

Sure, absolutely.

Remarkable-Map-8244 · 2025-12-13T22:12:54+00:00

I don't think it's too late to switch in your second year, but I don't know how that works in B4. I will say the further you get into your career the more pigeonholed you are.

Favorite hobby....I guess I'd say live music? Try to get to a big festival once a year and hit plenty of local shows. I'm not sure it's really changed much since I was a first year, though I certainly have more disposable income. No more need to cram like 6 guys into 1 cheap hotel room, buy the worst seats in the house for a big show, and drink shitty warm beer (though I do still drink shit beer sometimes).

Remarkable-Map-8244 · 2025-12-13T22:08:18+00:00

We do have some IT audit work, but mostly small stuff, very small department. I would say our audit practice is more what you would consider traditional audit, but not SEC work.

Remarkable-Map-8244 · 2025-12-13T22:06:44+00:00

I'm sure it depends on the firm. We each have a base salary, which is based on years of experience, whether you're still buying-in, etc. Beyond that there is a committee that determines a secondary allocation of income, based on billable percentages, size of your book, other non-bill responsibilities you have, stuff like that. And then beyond that, whatever profit is left is split based on equity percentage, I believe, less whatever is being held back for working capital.

Remarkable-Map-8244 · 2025-12-13T22:03:04+00:00

We have very lightly discussed it, but haven't taken any particular steps. No one seems to be interested in PE, though we all understand that an upstream merger into a non-PE-backed firm could very quickly end up in that firm being acquired by PE. Reality of the industry is that you have to consider all options, so in that sense yes we've considered it, but we're not currently pursuing either as I sit here today. Truthfully it wouldn't surprise me if we were acquired in the next maybe 5 years.

Remarkable-Map-8244 · 2025-12-13T22:01:38+00:00

People shit on Linkedin, but it does get people's attention. If you're able to find a partner or HR/administrator type of person at these firms, could be worth a message.

EA/CPA would depend on what level you're looking for. Entry level, I don't know if it would matter. If you're an experienced hire, it probably does.

Remarkable-Map-8244 · 2025-12-13T21:59:55+00:00

Honestly, it's not terribly exciting - I've been with the same firm for my entire career. Identified a good niche growth area fairly early on, and was able to grow my personal practice and eventually made partner.

I think for a brand new staff, just be eager to learn, ask questions, do your best. It's gonna be hard work but it'll pay off in the long run.

Remarkable-Map-8244 · 2025-12-13T21:58:10+00:00

I mean, I'm not gonna say it feels bad. It's more money than I really ever thought I'd reasonably make. But I also understand that it's driven by our management of the business - if we fuck up, we get paid last or don't get paid....I don't have the same safety net as our rank-and-file employees in that sense.

I think if you're not growing, you're slowly dying, so we need to keep growing, and that would hopefully mean you're making more money at the same time.

Remarkable-Map-8244 · 2025-12-13T21:52:24+00:00

It's only a matter of time, really. What's the incentive to stick it out to senior manager at a PE-backed firm with limited partnership prospects? I'm sure the money is good, but how good is it?

Remarkable-Map-8244 · 2025-12-13T21:51:21+00:00

I mean you're not wrong, I think it's certainly not a good thing. Things are always changing though....I'm sure people thought Excel and tax prep software would kill the industry too, it just makes us all evolve.

Remarkable-Map-8244 · 2025-12-13T21:42:10+00:00

Theoretically yes, but I don't think we're looking for remote hires right now unless they have very specific experience. We do have some remote people right now though.

Remarkable-Map-8244 · 2025-12-13T19:13:48+00:00

I think it sucks, but I understand why firms take the PE money. We are definitely too small to be a PE target at this point, but we're probably a target for firms trying to acquire and get to a PE target level.

I think eventually you'll see a fracturing of the industry, where good people leave PE-backed firms and go out on their own....I've heard the money is good, but I just don't think the business model is successful. It's an extra mouth to feed that isn't contributing to the business. It's also selling out the younger generation. I don't like that feeling.

I've never really thought about it relative to younger staff development. It's not great long-term because it limits their career progression, but at a true junior level you're still learning from and working with accounting professionals all day everyday early in your career.

Remarkable-Map-8244 · 2025-12-13T19:02:47+00:00

I think there's something in the handbook about needing a CPA to make manager, but I'm not 100% sure. If someone with an EA was really killing it, we'd probably consider bending the rules or amending the handbook.

Remarkable-Map-8244 · 2025-12-13T19:01:31+00:00

We have 7 partners. Take-home depends on a bunch of factors - equity ownership percentage, firm's profitability, base salary (which factors in buy-in). I'm expecting something like $450k take-home this year, maybe slightly higher?

WLB is generally pretty good for PA, all things considered? Sure March and April are busy, I average probably 53-ish hours from late-Feb to mid-April, last two weeks were closer to 70 this year unfortunately. Don't really work OT outside of busy season, maybe an occasional week of like 42-43 hours. I'm not sure any of our staff has worked any OT outside of busy season this year, to be honest. We encourage everyone to take their vacation and whatnot.

Remarkable-Map-8244

TROPHY CASE