The future sustainability of your accounting practice very much depends on how you plan for the succession of leadership for when you decide to retire or leave the business. Succession planning focuses on leadership continuity to secure a future for your firm which is why you need to start planning today.
Succession planning details the process of a change in ownership of the accounting practice. When the owner of the firm decides to retire or when critical management responsibilities become too demanding and unmanageable, the importance of leadership continuity becomes a key concern.
Three reasons to put a succession plan in place
The importance of succession planning is often downplayed and thus overlooked. No business owner wants to think of the day when they will have to hand over the reins of their accounting practice, but it is important to prepare it for the following reasons:
It may take time to appoint the best leader
Your leadership continuity decision will need to be based on objective criteria such as the characteristic of a person and their proven success at leadership and positive decision making. Your advisory team will also have to give their approval of your candidate.
Avoid a potential dissolution
With a proper succession plan in place, you will avoid putting your business at risk of dissolution. Having already set out directives for a future successor helps avoid a potential dissolution for when you are no longer around to take charge.
Honour your hard work
The growth of your accounting practice was not without hard work or the innumerable sacrifices you’ve had to make. Preparing for the long-term value of your firm is a worthy way of valuing the investment of time and energy you have devoted to it.
Don’t leave succession planning to the last minute. Secure a solid foundation for your accounting firm’s future, and the legacy you created, for when you retire. DMY & Associates can help you establish a strategic succession plan for a smooth transition phase. Give us a call to find out more.
Related Tag: Business Exit Strategies for Accounting Firms