Academic journal article Journal of Accountancy

Follow MAP to Better Firm

Academic journal article Journal of Accountancy

Follow MAP to Better Firm

Article excerpt

The 2012 National MAP (Management of an Accounting Practice) Survey, conducted by the AICPA Private Companies Practice Section and the Texas Society of CPAs, allows CPAs to benchmark their firms against their peers, an exercise that can identify areas--and processes--for improvement. To best use the MAP results, CPAs should do the following:

[check] Review the 2012 MAP results. Member firms that completed the survey should have received a report comparing their financial results to those of firms of similar size and located in the same geographical region. Firms that did not participate in the survey can download the national results at aicpa.org/pcps/MAP2012.

[check] Firms looking to grow their practice should compare their results to the average for firms in the next size range tracked by the survey. For example, firms with annual revenues of $1.5 million to $5 million should compare their results to those of firms in the $5 million to $10 million range and ask the following questions:

* On average, how many full-time equivalent employees does it take to manage at that level?

* What is the service mix for the average firm at that level?

* What are P&L and net fees per partner ratios at that level?

[check] Determine the financial or practice management concerns of greatest importance in your practice and look for the largest difference between your results and the comparative data.

Focus on ways to improve areas where your firm falls short. Contact practitioners at other firms in your size category or on the next rung of the ladder. Ask questions about how to boost performance. …

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