This Static Spot is open for sponsor

Click Here to Sponsor MCT Eric Post in Full Page

Article Navigation Back To Main Page   Click Here for more articles

Is It Worth Becoming a Partner? by: Thomas Johansmeyer It’s a fact of life in the Big Four :you are there to become a partner. This expectation may not be explicit in Big Four culture, but the undercurrent is undeniable. If your every decision is not focused on becoming a “member of the firm”, your career is in perpetual jeopardy. The whole reason for your being is to attain that status. The mystique of the partnership is evaporating, and it could change the character and composition of the Big Four fundamentally. Yes, Mr. Dylan, the times, they are a-changin’. Anecdotally, more and more senior managers talk quietly – never publicly – about what their next moves would be. Those illicit conversations occurred in hushed tones away from the office – often emerging from frank advice offered to more junior staff members. But, where do you go? Many senior managers are considering VP and C-level positions instead of shooting for the partnership. Citing lifestyle desires (i.e. getting off the road), earning potential, and less politically charged environments, even top-performing senior managers are exploring careers outside the Big Four. Aside from these internal pressures, up-and-comers clearly have concerns about the resilience – and costs – of the partnership structure. Once upon a time, the partnership buy-in was considered a pristine investment opportunity. The past few years, though, have called this perception into question. It all started with Enron. Many of the consultants and accountants in our community are still in pain from the collapse of Andersen – especially the ex-Andersen folks who have sought refuge at the remaining Big Four. Professionals who worked at Andersen, especially former partners, are acutely aware of the risks inherent in buying into the partnership. New partners, with fewer than five years as members of Andersen, were brutalized financially. Their buy-in loans were collateralized with their partnership units. The collapse of Andersen led to a negative equity situation for them; partners owed hundreds of thousands of dollars and could not divest their units to repay the loans. A similar fear rippled through KPMG, recently. Under investigation for selling abusive tax shelters, KPMG settled with the Justice Department. The settlement included a fine of $456 million. While KPMG avoided the fate of Andersen, the resulting fine equates to around $300 thousand for each of KPMG’s 1,600 partners. The declining interest in firm membership is supported by potential changes in firm organization. Accenture and BearingPoint have forsaken the partnership model, and both now trade on public markets. Doubts as to the protections of the limited liability partnership model are causing the Big Four to consider incorporation – instead of partnership. Once recognized as an elite club in the accounting and consulting industries, the major partnerships are losing their mystique. The firms themselves continue to provide the best services available on the market, but the firms themselves are undergoing a fundamental shift. Every associate used to hope to grow up to become a partner. Senior managers could taste it – and would think of nothing else. The Big Four’s preferred structure is under attack from the outside. Once considered an almost risk-free investment, we have learned from Andersen and KPMG the contrary. This investment risk is magnified by the erosion of protections offered by the LLP structure. Greener pastures lure talent from the partnership while the legal system lays siege to this venerable institution. About the author: Hi! I am Thomas Johansmeyer. I am an article writer with http://www.big4.com If you have any questions mail me at webmaster@big4.com Circulated by Article Emporium

---

©2005 - All Rights Reserved

This Static Spot is open for sponsor

Read Articles: More eBooks Posts Pages More YouTube Posts Pages More Article Pages Tranlate From English: 1-English -  The Following are Bi Languor 2- Chinese (Simplified) 简体中文  Surprise! Accounting is the Hot New Major  HOW TO STAY FOCUSSED AND BUILD YOUR BUSINESS  Do You Need Accounting Software For Your Small ...  How to Choose the Right Accounting Software for...  After the latest and accurate help in relation ...  Asset and liability basics  7 Things to Consider Before Buying Small Busine...  Accounting Methods – Cash and Accrual  Non-Profit Organizations - What Are They?  Press ReleaseUCLA Alumni Association Retains th...  How to Stop Waste, Fraud and Abuse  Internal Control: A Preventive Maintenance Pr...  What Software Do You Need For Your Small Business  Explode Your Consulting Income  Understanding Depreciation: It May Be More Sim...  3 Essential Tools for Starting and Maintaining ...  Outside The Box  HOW TO STAY FOCUSSED AND BUILD YOUR BUSINESS  mmaterial Values in Business Management  Top 7 Strategies for Writing Accounting Procedures  Taxing Overseas Firms for SOX Compliance  9 things you must do to maximize your chances o...  Starting An Online Business From Home  Why Online Presence Is Essential For Small Busi...  Bottleneck-oriented Business Management  An introduction to point of sale software  10 Amazing Ways To Jump Start Your Sales  Company/Employee Handbook as Organisational Imp...  Resume Writing and Preparation is Free Online   Here is the latest and accurate assistanc...  Is Your Business Profitable?  Small Business 101: Deadly Ignorance  How to Start an Investment Club - Business Model  Resume Outline - Add Structure & Flow to Your R...  Issuing Warrants to Investors  Can You Play the Drums?  Policies and Procedures Used as Management Key  How Nov. 15, 2004 Deadline for Sarbanes Oxley 4...  The Fun Of Starting A New Business  Managing Your Home Based Online Business – 2  Do you think that your workload is hampering yo...   How To Write A Quick & Relatively Painless Busi…  Outsourcing Is Picking Pace  Is It Worth Becoming a Partner?  What it Takes to Succeed in Business!  What’s the difference between successful busine…  Five Reasons to Incorporate a Company Offshore  Is It Necessary To Have a Business Plan?  Recruiters: The Challenges of Executive Head Hu…  Five Leadership Secrets for Challenging Times  Childcare Management & Daycare Software  MORAL ARMOR’S Economic Warning for Americans  Is Incorporating Your Small Business Best For You?  FOUR SIMPLE STEPS TO BETTER RESULTS WITH YOUR R…  Pay Your Children to Work for You with the Bles…  You May Have A Successful Small Business Idea  Thinks You Should Know Before You Bid On A Busi…  Business laws basics  9 Strategies for Writing Accounts Payable Proce…  Choosing A Business Tax Service  Recruiting Excellent Job Candidates:  Networking  How to Quit Your Job  The Top 10 Reasons Your Staff Wants to Quit More Article Pages Tranlate From English: 1-English -  The Following are Bi Languor 2- Chinese (Simplified) 简体中文 More eBooks Posts Pages More YouTube Posts Pages

Sponsor Professnal Advise  by: Sponsor Company Name This Static Spot is open for sponsor Click Here to View Following Sponsor Post in Full Page Sponsor MCT Blogger... or Click Here to View Sponsor Post in Full Page...

JV Blogs Visit