Related Posts
Hi fishes, good day to everyone
Need your inputs about the company Redington india ltd.
Position offered is cloud solution architect on AWS.
Please let me know how is the company in terms of job security, work culture, hikes etc.
Your inputs would help me understand more abour the company.
Thanks in advance
Redington India Limited
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
If firms leverage up or bring in outside ownership that is going to greatly dilute profits and reduce what's available for those working in the business. If current comp is decreased and more and more is put in deferred comp that makes this industry even less desirable than it already is. I think with technology firms should be able to operate more lean than historically they have. So maybe we can get back with less future partners.
Correct me if I'm wrong, but even with PE investment, you're still going to need a partnership structure on the audit side. Non-CPA ownership isn't allowed, and incorporating is not allowed for independence reasons.
They’re doing doc in the box structures now for the audit (partner ownership) issue.
Capital investment to build new technologies has traditionally been undertaken outside of CPA firms, with firms then licensing the technology that best fits their needs. Why would CPA firms now need to take that investment internally? The lack of interest in becoming a partner, in my opinion, is not a generational issue, but an individual issue. There are plenty of young CPAs that are smart and ambitious. It is our job to show them the benefits of becoming partners.
Principal 1 is right. A bunch of nebulous ‘help’ without REAL help, and no one truly being an advocate for your career. PE metrics imposed on you. Raise caps where I’m at. If you’re given an opportunity to shine you can, but those opportunities are indeed few.
I am certainly watching to see how things play out for firms that have taken PE funds so far…
Yup.
20 years to partnership is beyond ridiculous. 15 years is pushing it and can’t be the norm.
Partners in the smaller firms are all looking for paydays. Selling out is their meal ticket.
Or 10-15 years to partnership but then 15-20 years to earn pension is ridiculous too.
I think that is the current million dollar question. You raise great points. Imo the biggest being what does the younger generation want and will they commit to a long term partnership model or not. Personally I don't think they will. It's for this reason a number of firms are exploring PE investments and ESOP like BDO. I think you will eventually see stock options and rsu's in public accounting firms. You will always need partners for the audit side of the house.
I don't think any firm knows for sure but they have thier beliefs.
Billion dollar question
Agree, a more defined and organized approach for the path to partner with clear objectives and skills development required to advance through each level might speed up the process for those who want the partner title. The past two decades have made the path more vague and based on conditions outside of an individual’s control. We as partners have often been distracted from the goal of pulling people up and pushing our managers to realize their potential beyond servicing our projects. Big law seems to have been successful at turning top associates into partners within 7-9 years. Have misaligned incentive structures in public accounting caused the longer and longer timeline or is the willingness to give so many hours to speed up career advancement disappearing?
Outside the big 4, what firms would never go PE? RSM, Forvis Mazars, Crowe, Plante, Withum? Maybe those will have to join forces to compete?