partnership in accountancy firms

Running Bing

Just wondering how partnership works in accountancy firms(big 4). I really want to know how long it takes to become a partner, what it entails(Im aware theres some sort of profit share), what salaries are like, do many become partners, is it pretty selective etc.. Also I read somewhere that some people cant become partners or dont want to why would this be? Thanks.

BossArky

14 years would be on the fastest possible track from new graduate to partner if you spent 2 years at each grade level in te firm I'm thinking about. Of course, some people manage to progress through a particular grade in 18 months, while some may take 30 months... so its down to the individual. Partner means you share in the profits... principal means you don't. A rough estimate would be 3/4 mil £ per year for a partner which is related to the work they sell but could go up(a lot) or down.

seamus

Plenty of people may shy away from the Partner role, as it's a bit of a change in working style (you're suddenly almost self-employed), and it's seriously hard work. That's not to say the rewards aren't worth it, but work becomes the centre of your life, particularly the higher-up partners. I do support in one of the big four, and plenty of the partners get upto 600 work related emails per day. As much as we give out about the politics surrounding partners, they are pretty much constantly on the go. That said, they are disgustingly overpaid, but it's a trade up between having a life or having money.

Running Bing

seamus wrote:

Plenty of people may shy away from the Partner role, as it's a bit of a change in working style (you're suddenly almost self-employed),

Could you elaborate please I dont quite get you. Thanks for the responses.

seamus

I'm not 100% sure myself. Afaik, you essentially become a part-owner of the company, which puts you in the firing line for any legal messes, and also has taxation implications. You don't get benefits from the company, since it's essentially your company.

chump

seamus wrote:

I'm not 100% sure myself. Afaik, you essentially become a part-owner of the company, which puts you in the firing line for any legal messes, and also has taxation implications. You don't get benefits from the company, since it's essentially your company.

Technically as a partner you're liable, unlimited company and all that, but partners all have professional indemnity insurance so as long as they aren't fraudulent it's not a worry...

I'm not sure of what exactly your role would be, but I assume it's just like being at the highest echelon of a limited company and he manages things in his department...

RainyDay

chump wrote:

Technically as a partner you're liable, unlimited company and all that, but partners all have professional indemnity insurance so as long as they aren't fraudulent it's not a worry...

You also need to worry about your partners - if one of them is fraudulent, then the other partners end up picking up the tab for his mess.

BossArky

seamus wrote:

Afaik, you essentially become a part-owner of the company, which puts you in the firing line for any legal messes, and also has taxation implications. You don't get benefits from the company, since it's essentially your company.

Basically a partner shares in the profits of the business they have sold. They are responsible for generating sales of the companies services, and thus are paid from what they bring in. As you progress in a firm organised as a partnership you more or less have to develop your sales skills as you head for the top.