Succession planning consistently ranks among the top issues facing businesses of all sizes and types. According to a survey conducted by the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA) in 2004, 56 percent of CPA firms have at least one partner retiring in the next five years. Unfortunately, 81 percent of all CPA firms and 96 percent of firms having annual revenues of less than $150,000 do not have a written succession plan.
Over the next two months, PCPS will debut a variety of resources designed to assist CPA firms with their succession planning. The first of these new resources is the webcast âPositioning Your Firm for Successful Transitionâ scheduled for May 25, 2005. Topics to be addressed include:
- Dissecting the marketplace.
- Selecting the right organizational model.
- Identifying processes and procedures critical to the transition.
- Issues essential to partner agreements.
âFor many of these CPAs [without a succession plan], the practice they have spent years building their most valuable asset as well as their retirement vehicle,â states James Metzler, AICPA Vice President for Small Firm Interests and a member of the webcast panel. âThrough the PCPS succession initiative, we will help small firms prepare for the future and manage the transition from one generation of owners to the next.â
For more information on the webcast and CPE credits, visit the PCPS website.