{"id":100984,"date":"2022-10-13t13:20:45","date_gmt":"2022-10-13t17:20:45","guid":{"rendered":"\/\/www.g005e.com\/?p=100984"},"modified":"2024-08-07t23:10:25","modified_gmt":"2024-08-08t03:10:25","slug":"why-solos-need-pcas","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/10\/13\/why-solos-need-pcas\/","title":{"rendered":"the abc’s of pcas for cpas"},"content":{"rendered":"

\"overhead<\/a>it\u2019s a favor. treat it like one.<\/strong><\/p>\n

by marc rosenberg<\/i>
\ncpa firm mergers: your complete guide<\/i><\/a><\/p>\n

a practice continuation agreement (pca) is a written contract between a sole practitioner and another firm for the latter to take over the solo\u2019s practice, either permanently or temporarily, in the event of a sudden, unexpected event (most commonly a health issue) that prevents the solo from working.<\/p>\n

more: <\/b>where mergers go wrong<\/a> | twelve tips for negotiating mergers<\/a> | buying a solo<\/a> | why merging in smaller firms is fabulous<\/a> | 13 reasons to merge up<\/a> | thinking merger? first ask why.<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

logically, it would make total sense for every one of the 30,000 sole practitioners in the u.s. to have a pca in place. after all, solos have no partners to take their place, and in the vast majority of cases, their staff doesn\u2019t have the skill level or the certifications needed to run the practice in the absence of the owner.
\n
\nbut very few sole practitioners have a pca agreement with another firm, and very few firms have pca agreements with smaller firms.<\/p>\n

why do we see so few pcas?<\/strong><\/p>\n

what may seem like a simple, logical, win-win arrangement between two firms is, in fact, very complicated. in some ways, a pca is more difficult to negotiate than a merger.<\/p>\n

a life insurance policy is a boilerplate document you sign, pay the premiums for and tuck away in your file cabinet, knowing that it never has to be looked at except in the unfortunate event that it is invoked, at which time it can be effortlessly implemented.<\/p>\n

some people see pca agreements in a similar light, but in fact pcas are a totally different animal.<\/p>\n

here are several factors that make pca agreements so rare:<\/p>\n

    \n
  1. the effort to negotiate and agree on pca terms is at least equal to the effort and complication of buying or selling a firm. several key provisions have to be negotiated:<\/li>\n<\/ol>\n