Accounting Firm Value Multiple

Why Accounting Firms are Valued on a Multiple of Revenue

Why are accounting firm values based on a multiple of annual revenue instead of a multiple of annual cash flow to owner? “Accounting practices are worth x times gross revenue.” This is a belief that permeates the accounting profession as strongly as anything we have seen. This has been true for a very long time, […]

Scale Accounting Practice

Want to scale your accounting practice? Why?

Adding a healthy dose of intentionality to growth plans helps make scaling your accounting practice both more manageable and more profitable. It also helps to build a practice that you will enjoy owning and will likely help make it more salable. First of all, when we talk about scaling, we’re talking about rapid growth through […]

Cloud Based Accounting

Cloud-Based Accounting Firms vs. Traditional

What is the difference between a traditional accounting firm and a cloud-based accounting firm? When you boil it all down, the only real difference involves location. In a cloud-firm, the software, data, staff and clients can all be located “somewhere else.” That sounds simple, bu the impact is big and getting bigger over time. Salability […]

Accounting Practice Client Selection

Client Selection in a CPA Firm is Destiny

“Your firm is only as good as your best clients.” ~ A wise past client (but we cannot recall who)   Who are your clients? Periodically, it’s good to assess the state of your client list. You probably already know this, but let this column serve as a valuable reminder. A few great trigger events […]