According to the 2013 Private Companies Practice Section CPA Firm Top Issues Survey, succession planning is among the top five concerns for four out of five firm sizes. The 2012 PCPS Succession Survey, however, shows that only 46% of multi-owner firms have a written succession plan in place. A mere 6% of sole practitioners have a Practice Continuation Agreement with another firm.
These numbers are concerning, and the consequences are real. As CPAs, we know it’s easier (and wiser) to plan for tomorrow before tomorrow comes. In the absence of a formal succession plan, your firm’s transition could lead to confusion and oversights, resulting in the loss of time, money and clients. Firms, and especially their clients, need new leaders and a clear plan to ensure uninterrupted delivery of critical services.
Fortunately, it’s not too late. Consider these three aspects of succession planning, and help ensure your firm’s longevity:
(read more at: Succession Planning: The Talk You Need to Have – AICPA Insights.