You have worked hard to build your accounting practice and legacy. However, there comes a time when every entrepreneur, including accountants like you, needs to plan ahead to maximize their business value, decrease the risk of unexpected events and manage their wealth to secure a prosperous future. That’s where succession planning comes in.
Succession planning helps business owners like you take control of your eventual exit so you don’t risk settling for less than you deserve.
Since most accounting practitioners eventually retire, you will need to decide how – and when – you will smoothly transition from full-time work to retirement.
Your succession plan options include:
• Find a partner and merge your practice. Team up with a knowledgeable chartered accountant or CPA firm in Toronto whose skills complement your own.
• Groom an employee to take over your role. The internal staff member should possess the skills, knowledge and desire to fill your key leadership role
• Sell your practice and receive value for your legacy. Plan a way to maximize your business value so you can exit at the top and optimize your earnings
Knowing your possibilities and strategically developing a succession plan can give you time to attract high-quality accounts and hire professional accountants with the talent and business savvy for success.
Regardless of when and how you exit your accounting firm, use these succession planning best practices:
• Involve loved ones: Consider your goals – and those of your spouse and children – and create a plan to achieve common goals, such spending more time with family or securing a certain amount of wealth for retirement
• Give others a heads-up: As far in advance of your exit as possible, and even before you reduce the time you dedicate to your practice, you should prepare your clients, staff and successor for the transition
• Attract and retain top talent: Recruit, train and mentor the right team members to take over your role and accounts. Retain key employees through the use of bonuses and non-compete agreements.
• Stay relevant: Constantly develop services that clients really want to maximize the value of your business
• Formalize processes: Create a formal business development program to encourage growth and business continuity. Standardize your operational processes so you can easily delegate them and maintain quality.
• Think bigger: Shift from an independent practice mindset to a firm mindset with a larger team to whom you can delegate tasks.
For chartered professional accountants in Toronto, Sloan Partners offers trusted advice and experience to help you develop a succession plan that fits your personal and professional goals. Choose our trusted team to seamlessly manage your succession plan – contact us today.