ANATOMY OF A CPA STUDY

Gatto Associates, LLC

750 Washington Road

Pittsburgh PA 15228

412-344-2277

Rex Gatto, Ph.D., BCC

www.rexgatto.com

Soft Skills #1

Soft skills are personal attributes that enhance an individual's interactions, job performance and career prospects.

Unlike hard skills, which are about a person's skill set and ability to perform a certain type of task or activity, soft skills are interpersonal and broadly applicable.

Soft skills are often described by using terms often associated with personality traits, such as: optimism common sense responsibility/growth and development a sense of humor Integrity/ethics

Soft Skills #2

Abilities that can be practiced (but require the individual to genuinely like other people) such as:

Empathy Teamwork Leadership Give and receive feedback Communication Good manners/etiquette Negotiation Sociability Ability to teach.

Overview

Defining Evaluation of TalentFeedback and DevelopmentThree 360˚ Assessments

Anatomy of an Accountant Partner Manager 360˚ Evaluation Leadership 360˚

Evaluate Talent

• to organizational success is to ensure partners are in a growth and developmental process

Key

• on skills, behaviors, and needed technical knowledge

Focus

• measureable growth each year

Demonstrated

Strengths and Talents

This process outlines strengths and talents through self-assessment, upward (staff), manager, and partner reviews

Partners through this process become role models for appropriately receiving feedback and demonstrating how to effectively utilize it

Evaluation

Creates a mechanism that can support effectiveness within the firm

through evaluation of the level of skillsneeded to:

accomplish partner, niche, and firm goals

Behavior PatternsImplementing this process for partners is most effective in establishing the behavior patterns needed to sustain your firm now and in the future

List the top three characteristics for Partners (managers) in your firm.

SMART Goals

A way of evaluating the objectives or goals for an individual project/engagements.

The term is also in common usage in performance management, whereby goals and targets set for partners to staff must fulfill the criteria.

SMART Goals

Letters Definition

Specific Significant, stretch, meaningful, BHAGS

Measurable

Motivational, manageable

Attainable Actionable, aligned, achievable

Relevant Realistic, results oriented, rewarding

Time-bound

Timed, timely, time-limited

Introspection (Action Planner)

Be SMART: Specific, Measurable, Action oriented, Realistic and Time bound

SMARTER

Specific Measureable Actions Realistic Time-bound Enthusiastic Rewarded

Assessment Process

A process, involving staff and firm leaders that supports individual growth, which leads to firm growth.

Growth

We define the metrics for performance factors that create consistency through a common descriptive performance language

We can measure firm, departmental/niche, and individual performance

Partner, managers, and staff, through an assessment process:

Complete the assessment on line

Receive Feedback

Develop an Action Plan

Demonstrate how to effectively utilize feedback

Development

To create consistency

within the firm, people should have a clear

understanding as to the

motivational, behavioral

actions they will take and what level of

performance is needed.

Behaviors are discussed (debrief): highlights,

strengths, and areas for

development.

Action Plan developed and implemented

Common Language• Create a common language for development by identifying the level of functional performance

• Identify the right actions and

enhancement areas • Create firm consistency through a process that supports development.

Feedback = Growth

A process involving staff and firm leaders that supports individual growth, which leads to firm growth.

Types of Assessments

• Anatomy of a CPA• Partner/Manager

360˚ Assessment• Leadership Profile

Assessment

With The Anatomy of an CPA Inventory, you can compare the characteristics of your firm’s accountants with those of the Polaris LDP participant high performance accountants.

TOOLSAnatomy of a CPA

TOOLSSuggestion

Pre-engagement (brief meeting) Clients’ expectations Clients’ concerns Goal of the engagement Concerns What are you hoping to learn Manager/supervisor/staff expectations about the engagement

TOOLSSuggestion

Post-engagement - brief meeting:

Were client expectations met?

Were there problems? What did you learn? What will you do differently

next engagement?

Feedback

CPA Skills

Research indicates that every job function can be broken into a series of skills (dimensions) set to fulfill responsibilities

Job analysis: identifies tasks, processes, functions that makeup the job responsibilities

Job competency factors needed to be successful in a firm

Skills Factors

Client RelationshipCommunicationBusiness knowledgeProblem solvingComputer knowledgePractice developmentInterpersonalLeadershipProfessional presence

PlanningCreativityAccountabilityInitiativeTeamworkAdaptabilityIntegrityCompetence

The combination of the above skills/competencies can highlight ability.

Anatomy of a CPA Example

Anatomy of a CPA Example

17 Ways to measure a CPA

17 Ways to measure a CPA Example

Narrative Example

CPAs Do the following

Provide the advice and information to people that is needed to make important financial decisions

Help their clients make sound financial judgments by analyzing and interpreting data

Examine “what if” possibilities Explain complex laws (local, state, and

federal), rules, and regulations Help clients plan, save, and invest money

Picture of a Successful CPA

Academic, business and practical knowledge Ability to communicate and connect with

(people) clients, partners and staff Organize, write, analyze, compare, and

interpret facts and figures Understand computers and accounting

software People skills, ability to build relationships Integrity, trusted advisor

Questions

What are your top three skills?

In general what are the top three skills of your partners?

In general what do your clients want from you?

Anatomy of a CPA Study

Participants: 90CPA Feedback: 504

Anatomy of a CPA Highs

HighsParticipants: 90CPA Feedback: 504

Strongest score indicates the right areas for CPA skill set. The score focuses on two key areas, the ability to perform accounting skills at a high level, and the ability to build client relationships.

Client Relationships

Client Relationships: 88%

Demonstration of good organizational skills?

Maintain clear and organized work papers?

Meet client expectations?

Follow through with client needs?

Maintain good client working relationships?

Complete client engagements in a timely fashion?

Computer Knowledge

Computer Knowledge: 88%

You have the required proficiency to effectively use computer

hardware and software?

You maintain proficiency with updated software?

Integrity

Integrity: 89%

Demonstrate honesty and independence?

Fulfill all work-related responsibilities fully and completely?

Demonstrate trustworthiness?

Demonstrate the principles and values of the firm?

CompetenceCompetence: 88%

Demonstrate business acumen?

Have the ability to perform work-related

responsibilities ?

Produce a quality work product?

Demonstrate the ability to get the work done?

Demonstrate the ability to appropriately and

professionally relate to coworkers?

Have the ability to work as an effective team

member (or in a niche)?

Have the ability to professionally work with others?

Demonstrate the ability to address questions?

Anatomy of a CPA Lows

LowsParticipants: 90CPA Feedback: 504

Lower scores need to be enhanced even though they are moderately strong ratings. The two key areas that could be enhanced indicate the ability to build the practice creatively and to plan and take the initiative to before performing the work.

Practice Development

Practice Development: 76%

Discuss with clients other services the firm can provide?

Work with others in the firm to provide or develop new services?

Get involved in professional or community organizations?

Effectively and clearly present your ideas?

Give effective presentations to clients?

Participate as a board member in community organizations

(example: non-profits)?

Appropriately represent the firm?

Planning

Planning: 81%

Appropriately lead engagements?

Set realistic and challenging goals and objectives?

Clearly state expectations of an engagement?

Appropriately organize client work?

Check progress and adjust goals periodically?

Make effective use of billable time?

Creativity

Creativity: 80%

Creatively work with clients?

Encourage and support new ideas?

Demonstrate creativity?

Encourage creative actions by others?

Present ideas in meetings to generate business opportunities?

Initiative

Initiative: 87%

Maintain an appropriate book of business or client base?

Continually reevaluate plans to update and improve them?

Routinely assess competitive strategies, looking for new business

opportunities?

Make follow-up calls and visits designed to exceed clients’

expectations??

Display a strong personal commitment to the firm?

Effectively work independently on assignments when required?

Display common sense and practical application of accounting

knowledge and skills?

Summary

Challenge your people to become

the Best they can.