083. ARE Technical: Top 5 Tips for Practice Management (PcM)

In Episode 83 of the ARE Podcast, David and Eric break down the five most important strategies for passing the Practice Management (PcM) division. We begin with a critical mindset shift: PcM is not about thinking like an employee. It’s about thinking like a principal. Many candidates miss questions because they answer from their personal job experience rather than from the perspective of a firm owner making business decisions. On this exam, you have to think like the boss. Listen to the Audio Show Notes We also address a common mistake — relying too heavily on personal experience. The ARE tests the standard of care and textbook principles, not how your specific firm happens to operate. Experience can actually hurt you if it introduces bias. Another key clarification: you are not supposed to memorize the Architect’s Handbook of Professional Practice. It is a reference guide, not a traditional textbook. The exam tests judgment and understanding, especially in areas like accounting and firm management. Accounting fundamentals are a major focus of this episode. Understanding credits, debits, and the accrual method is essential for PcM. These questions are often more straightforward than candidates expect once the concepts are clear. We also break down corporate legal structures — including sole proprietorships, LLCs, S Corps, C Corps, and professional corporations (PCs). The correct answer on the exam depends on tax liability, ownership requirements, flexibility, and state-specific rules — not personal preference. Finally, we recommend using the Wiley guide to the Architect’s Handbook as a tool to quickly locate relevant topics. It’s not about memorizing the Handbook. It’s about knowing how to navigate it efficiently. If you’re starting with PcM or struggling to pass it, this episode provides strategic clarity on what actually matters — and what doesn’t. Please Subscribe Receive automatic updates when you subscribe below! Please rate us on iTunes! If you enjoyed the show, please rate it on iTunes and write a review. It would really help us spread the word about the ARE Podcast. Thanks!