bonus: four outlooks from our exclusive expert council: baker, dobek, tierney, mister. by martin bissett passport to partnership the skill in producing financial reports is limited by the quality of the information presented to the cpa by the client. motivation of the … continued
make provisions, or state partnership laws may do it for you.
by marc rosenberg
retirements & buyouts
twenty to thirty percent of all accounting firm partnership agreements have no provision for goodwill-based retirement payments to partners departing due to death, disability, retirement or withdrawal.
more on retirement: the top 10 mistakes in partner retirement plans | 20 new, essential keys for today’s partner retirement plans | you want goodwill payments? give proper retirement notice | compromise is in order for some goodwill payouts | three ways to calculate goodwill payable in partner buyouts, none of them great | the ins and outs of aav for goodwill | 5 points to consider when paying out goodwill | how to set terms and limits for goodwill payouts
they’re in for a rude surprise. read more →
competence comes first. but it’s only a prerequisite. bonus worksheets: 11 questions to plan your path to partnership by martin bissett passport to partnership staffers aspiring to be partners must learn the key characteristics of successful partners. they also must learn … continued
what we have here is a failure to communicate. editor’s note: with this article, 卡塔尔世界杯常规比赛时间 introduces a new series of articles by martin bissett reporting on the findings of his proprietary research into the keys to making partner. the research is … continued
is your firm guilty of any of these?
by marc rosenberg
mistakes abound in partner retirement plans. here are the top 10 we see:
more on retirement: are partner buyout plans just ponzi schemes? | 20 new, essential keys for today’s partner retirement plans | clawback and how to handle it | can partners compete after they leave? | how to juggle tax considerations for partner retirement benefits | retirement plan funding? what funding? | vesting can cover part-timers, too
apply this test to your firm’s succession plan.
by marc rosenberg
retirements & buyouts
most multi-partner cpa firms have partner buyout plans that enable partners who leave the firm via retirement, death, disability or withdrawal to redeem their share of the firm’s value.
more on buyouts: 20 new, essential keys for today’s partner retirement plans | clawback and how to handle it | can partners compete after they leave? | retirement plan funding? what funding? | why you’ll get less from your partners in a buyout than you might by selling the whole firm | partners may balk at guaranteeing retirement obligations
over the last 10-20 years, retirement plans have come under more scrutiny as younger partners question whether departing partners are worth the payments due them and whether the firm can afford those payments. staff with near-term partner potential also question whether to commit themselves to making these payments. both of these groups fear that the firm will not be able to survive the retirement of dynamic, rainmaking partners who have tight relationships with their clients.
a lot is changing fast. here’s what your partner agreement needs today.
by marc rosenberg
retirements & buyouts
let’s take a moment to simply summarize the many critical aspects of a well written partner retirement/buyout plan.
at first glance, those unfamiliar with how a proper plan should be written may find the 20-plus key provisions listed below to be daunting. but i would caution against such thinking. in my 20 years of consulting to cpa firms in this area, i have been asked to resolve messy disputes regarding every item listed below.
more on retirement: clawback and how to handle it | can partners compete after they leave? | disability is far more complex than death | even partner agreements must face death | 6 ways to leave a cpa firm (retirement’s just 1) | how to juggle tax considerations for partner retirement benefits | two ways to retire, and one’s not pretty | how to transition clients from retiring partners | compromise is in order for some goodwill payouts | why you’ll get less from your partners in a buyout than you might by selling the whole firm | the multiple of compensation method, fully explained
five-year adjustments may ease partners’ minds.
by marc rosenberg
retirements & buyouts
some firms struggle to agree on the details of a partner retirement plan.
more on retirement: can partners compete after they leave? | disability is far more complex than death | how to juggle tax considerations for partner retirement benefits | mandatory retirement? 4 reasons the firm comes first | you want goodwill payments? give proper retirement notice | vesting can cover part-timers, too | why you’ll get less from your partners in a buyout than you might by selling the whole firm | the multiple of compensation method, fully explained
one of the biggest items of contention is the valuation of their goodwill for internal retirement purposes. in these cases, the partners are anxious about obligating themselves to pay huge buyout benefits.
bonus: sample non-solicitation agreement.
by marc rosenberg
retirements & buyouts
a non-compete covenant prohibits departed partners from joining another cpa firm or creating their own firm within a radius of a specified number of miles from the firm, within a specified period of time after their departure.
increasingly, firms are writing and enforcing tougher and tighter non-compete clauses.
one of the key tests that courts have used in ruling on the enforceability of non-compete agreements (different from non-solicitation) is the extent to which such agreements prevent the departing partner from earning a living.
more on retirement: disability is far more complex than death | 6 ways to leave a cpa firm (retirement’s just 1) | how to juggle tax considerations for partner retirement benefits | mandatory retirement? 4 reasons the firm comes first | how to transition clients from retiring partners | retirement plan funding? what funding? | when retiring partners take a specialty with them | clients leaving? time to reduce retirement benefits | partners may balk at guaranteeing retirement obligations
the vast majority of u.s firms are local practices located in areas with many competing firms. if a partner leaves to join another firm and does not attempt to take clients, it is very difficult to claim that the departing partner will substantially and irreparably damage the interests and the value of the firm.
the willingness to return to work may outstrip ability – then what?
by marc rosenberg
retirements & buyouts
you’ve probably heard the saying “disability is worse than death.” the point is that both death and disability are horrendous, catastrophic events.
more on buyouts: even partner agreements must face death | 6 ways to leave a cpa firm (retirement’s just 1) | how to juggle tax considerations for partner retirement benefits | two ways to retire, and one’s not pretty | mandatory retirement varies by firm size | mandatory retirement? 4 reasons the firm comes first | how to transition clients from retiring partners | you want goodwill payments? give proper retirement notice | retirement plan funding? what funding? | retirement vesting: the devil’s in the details | compromise is in order for some goodwill payouts
but the handling of issues related to death – for all parties concerned – are more straightforward, both personally and financially, than in the case of a disability. read more →
the 8 critical ways cpa firm owners must manage clients. by bill reeb and dominic cingoranelli whether you simply desire to improve your firm’s operations or identify and implement a new long-term strategy, you need to be clear about the … continued
5 life insurance questions you should consider.
by marc rosenberg
retirements & buyouts
issues related to the death of a partner should be addressed in the firm’s partner agreement. consider the following:
more on retirement: 6 ways to leave a cpa firm (retirement’s just 1) | how to juggle tax considerations for partner retirement benefits | two ways to retire, and one’s not pretty | mandatory retirement? 4 reasons the firm comes first | how to transition clients from retiring partners | retirement vesting: the devil’s in the details | eat what you kill? then maybe ‘book of business’ is for you
goodwill depends on the method of departure.
by marc rosenberg
retirements & buyouts
in the literal sense, retirement is only one of six ways that partners may separate from their firm.
more on retirement: how to juggle tax considerations for partner retirement benefits | how to transition clients from retiring partners | you want goodwill payments? give proper retirement notice | retirement vesting: the devil’s in the details | compromise is in order for some goodwill payouts | three ways to calculate goodwill payable in partner buyouts, none of them great | 5 points to consider when paying out goodwill | how to set terms and limits for goodwill payouts | 4 ways to decide how to pay out capital | partners may balk at guaranteeing retirement obligations
benefits to partners are handled differently depending on which of the six ways they leave:
read more →