succession

overcoming the three biggest obstacles in succession planning at cpa firms

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hint: start linking it to compensation.

by marc rosenberg, cpa
author of “cpa firm succession planning”

it’s common sense that the key to succession planning is developing future leaders, a practice at which the vast majority of cpa firms billing under $15-million-a year struggle with.

marc rosenberg
marc rosenberg

more on cpa firm management and leadership for pro members [go pro here] :   cpa firm merger “non-negotiables”   •   the “aha moment” in cpa firm leadership   •    leadership is overrated: it’s good management that makes successful firms •  40 great ways to improve firm profitability  •  four management metrics that fool even the best-run firms  •  19 ways to improve accounting firm profitability • de-bunking the myth about niche marketing for tax and accounting firms • practice development is no longer an optional activity • 10 good ways the achieve partner accountability • pick your partners right to begin with • the first nine questions your partner team needs to embrace for optimal profitability • profitability and the value of strategic thinking • the five essential building blocks for creating a strong accounting firm • the seven signs of great leadership in a cpa firm • compensation issues for the new managing partner •

here are three tactics for developing future leaders: read more →

valuing your practice for partner retirements

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how to brace yourself for the “baby boomer bubble.”

by gary adamson, cpa

i think about the bbb a lot. no, this bbb is not the better business bureau; it is the baby boomer bubble. there is constant reference by the news media about the aging of the baby boomers but i for one did not know exactly what it meant. until i googled it.

related: how to create a no-equity partner position in your firm | what a coach can do for you – and your firm | how to balance the six jobs of managing partner | planning a partner retreat for real results | the partner compensation checklist | how cpa firms make money in turbulent times

what i found is not good news for the accounting profession. the bbb is 76 million of us born in the united states between 1946 and 1964 and we are fairly evenly spread through those 19 years. that means the oldest of this huge bubble are 4 million folks who turned 65 last year. and, we have another 18 years to go!  read more →

how a founding partner passes the baton to a new managing partner

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with 16 questions and 10 steps.

by august j. aquila

one of the most difficult events that a firm faces is the transition of power from one managing partner to another, especially when it’s the first time. knowing when to pass the baton and how to pass it are critical decisions every firm will have to make.

august j. aquila

more august aquila on 卡塔尔世界杯常规比赛时间:  six reasons not to plan for succession  |  how to apply sam walton’s 10 rules for success at your firm |   nine steps to effective succession planning for the small firm |  thinking merger? look before you leap  | four new checklists for succession planning  |   partner accountability: seven signs your firm may be in trouble | 25 ways to grow your practice  | herding cats: change management for cpa firms  | engaging partners in the firm’s future  | what it means to be a partner  | leadership at it’s strongest: what successful managing partners do | no alignment? no execution. | 12 steps to a foolproof merger  | seven steps to building a great partnership  | 5 success tips for tax season  | managing partner job #1: how to get buy-in  | the 10 basic ways to boost profits at an accounting firm | can you really change a partner?  | 11 weekly self-assessment questions for professionals  | seven keys to a successful merger |

for the managing partner who is thinking about succession, there are four primary goals that he or she should be working on during the next few years. each of these issues needs to be discussed with your founding partner: read more →

six reasons not to plan for succession

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here’s how to get started today with four questions to know when you’re ready.

by august j. aquila

it used to be that death and taxes were the only two inevitable events in life. but for owners of accounting practices there is a third – succession. there is no greater threat to the future of accounting firms than the failure to plan for succession.

august aquila

more august aquila on 卡塔尔世界杯常规比赛时间: how to apply sam walton’s 10 rules for success at your firm |   nine steps to effective succession planning for the small firm |  thinking merger? look before you leap  | four new checklists for succession planning  |   partner accountability: seven signs your firm may be in trouble |

many small and medium sized firms have no succession plan. they have their reasons: read more →

how to create a no-equity partner position in your firm

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it may be the answer to keeping talented people.

by gary adamson, cpa

most firms are faced with the dilemma of keeping long term managers who are major contributors to the firm but for whatever reason are not ready to be equity partners (or who perhaps never will have what it takes to be equity partners).

here is a seven-point outline of what the no-equity position looks like, how it differs from the normal equity partner spot and some considerations to implement it in your firm.

read more →

nine steps to effective succession planning for the small firm

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start thinking about “the fun factor.”

by august j. aquila
aquila global advisers

no heir apparent – what does the small firm do? unfortunately there is no silver bullet or magic solution to solve this problem.

august aquila

more august aquila on 卡塔尔世界杯常规比赛时间:  thinking merger? look before you leap  | four new checklists for succession planning  |   partner accountability: seven signs your firm may be in trouble |

i do, however, have some solid suggestions that may help you work through the problem. and, if you start sooner than later, you will have a better chance of successfully passing the baton to someone else.

how do i know it’s time to sell or merge? there is perhaps one key indicator that it’s time for you to move on or do something else. i call it the “fun factor.”

1. ask yourself these simple questions: read more →

four new checklists for succession planning

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start with the four goals you need to start working on today.

by august aquila
aquila global advisors

true succession planning is a really a lifelong process.

its primary purpose is to ensure the continuity of the practice from one generation of leaders to another. ultimately it’s the founder admitting and accepting that he or she won’t live forever. that’s a very difficult and emotional fact to come to accept, especially after spending a lifetime building and running a practice.

august aquila

more august aquila on 卡塔尔世界杯常规比赛时间:  partner accountability: seven signs your firm may be in trouble | 12 steps to a foolproof merger |  seven steps to building a great partnership  |  5 success tips for tax season  |  managing partner job #1: how to get buy-in  |  the 10 basic ways to boost profits at an accounting firm  |  the war for clients: aquila’s top three strategies   |  can you really change a partner?  |  11 weekly self-assessment questions for professionals  seven keys to a successful merger  – click here for the pre-merger data gathering checklist for an accounting practice (pdf, 4 pages)  |  seven steps to enforcing accountability among your firm’s partners  |  five steps to achieving partner unity  |  eight essentials for measuring client service  |  partner accountability: seven signs your firm may be in trouble  |  integration: seven keys to a successful merger  |  12 things that should not be on your partner retreat agenda  |  five ways how not to implement a system of partner accountability  |  seven reasons why it’s time to start holding the partners accountable  |  25 ways to grow your practice  |  are bad clients driving you crazy?  |  herding cats: change management for cpa firms

in this article, we’ll address four stages, each with a checklist:

  1. for the managing partner who is thinking about succession, there are four primary goals that he or she should be working on during the next few years.
  2. the next area to address is whether the current managing partner plans to remain with the firm.
  3. once you get some answers to these questions, then it’s time to start focusing on the successor and his/her goals for the future of the firm.
  4. while there are many other areas that need to be covered, let me just end by mentioning a 10-step process that you may want to consider. read more →

will today’s succession crisis create tomorrow’s buyers’ market?

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source: succession institute, aicpa

crisis? what crisis?

by rick telberg

the profession may consider cpa firm succession a crisis, but you’d hardly know it from how little cpas are doing about it.

some 79% of cpa firms surveyed say succession will be an issue for them within the next 10 years.

but only about 1 in 4 are doing anything about it.

sure, 46% of multi-partner firms now say they have a succession plan.  and that’s better than the last such study. but, says dominic cingoranelli at the succession institute, which delivers succession-planning strategies to cpa firms and authored the study, “the idea is still is not getting all that much traction.”

read more →

compensation issues for the new managing partner

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five factors to consider in their new compensation plan. and five key responsibilities for the new managing partner.

by marc rosenberg, cpa
author of how to operate a compensation committee

baby boomer partners are rapidly approaching retirement age, creating a huge demographic shift. one result of this is a dramatic increase in new managing partners at firms.

many firms are skipping a generation and turning the reins over to “younger” partners. firms are also asking their new mps to divest themselves of a significant part of their client base to enable them to focus more on managing the firm.

how should the new mp be compensated?

read more →

why accounting firm partners are “popping prozac like m&m’s”

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four reasons behind the succession crisis: the perfect storm.

by marc rosenberg
author of cpa firm succession planning: a perfect storm

let me warn you in advance – reader discretion is advised.

succession planning is a very sobering topic. during several retreats i have led, this issue has literally brought tears to partners’ eyes. they start popping prozac like m&ms. why? because succession planning forces us to confront our own mortality. this is never easy – just ask your estate planning clients.

more marc rosenberg:

the 15-item checklist for your next partner retreat
five new responsibilities for a new partner
planning a partner retreat for real results
the 10 biggest mistakes in reading map statistics
how cpa firms make money in turbulent times
re-engineering partner accountability [video]
why cpas aren’t making more money [video]
slow learners need not apply
10 to-do’s for a partner buyout

before the recession, the aicpa’s survey of firms’ top practice management issues consistently reported succession planning as the no. 1 area of concern. more recently, recession-related issues such as bringing in new clients, client retention and fee pressure have pushed succession planning back to no. 5, but most industry observers regard it as the no. 1 endemic problem in the cpa profession. and it’s going to get worse before it gets better. read more →