Tax practice management: more than just words.

• Author: Cheslowitz, Scott M.

Any CPA reading this column knows that tax practice management is either put in place by a firm or is thrust upon it as issues arise. Most would likely agree that it is better to be proactive rather than reactive when it comes to managing a tax practice.

Competent practitioners should already know what it takes to have a successful accounting firm or to be a part of one. Financial capital, strong client relationships, and technical know-how are all key; however, other aspects must be consistendy considered. This column provides a sampling of those areas and ideas.

1. Getting Out There

   Even before a practice opens its doors, management has been hard at work. Several behind-the-scenes decisions must be made before a practitioner can hang a shingle. These include choice of entity, location, computer hardware and software, office furniture, staffing, insurance, and office policies, among other things. Fortunately, most often, CPAs do not just wake up one day and decide to open a firm specializing in taxes. Some may be lucky enough to have had a family member pave the way for them; others may have worked for firms with established connections in their chosen niche. Typically, some sort of foundation is in place moving forward.

   CPAs should envision what their brand will be and what they want the firm to look like. This works to practitioners' benefit as they build a practice they can and will be proud of down the road. This vision should guide the firm as it grows and establishes itself in its marketplace.

2. Operationally Speaking

   To build a successful practice, it is essential--from Day One--to have proper policies and procedures in place and, further, to build upon them every day--whether the practice is just starting out or has been in business for many years.

   What may seem simple on the surface--e.g., the CPA's mindset toward hiring or establishing a culture--will be essential to success. Careful thought needs to be given to every aspect of the business. The practice must hire individuals who properly represent the firm's mission and how it wants to present itself to the community at large. Hiring the right people and properly training them is critical to the firm's survival in a competitive market. Hiring smart individuals is vitally important, as is hiring individuals of good character. Firms should look for employees who will be loyal to the firm and its clients. They should have professional demeanors and--quite simply--care about the work they do and the clients they serve.

3. Creating and...