Succession Timing Calculator

Content authored by Joel Sinkin and Terrence Putney, CPA of Transition Advisors LLC.

This tool will provide a means to determine when you should start to plan succession for you and the partners in your firm. It is critical to keep in mind that each accounting firm is unique and no tool will be able to take all the issues distinctive to your firm into consideration. That said there is a lot in common between accounting firms of similar size. It is likely much of what you need to know to execute succession for your firm is addressed in this tool. We trust this discussion will at least provide you a starting point.

There are two types of relationships most practitioners have with their clients. Those are:

  • Partner Loyal clients frequently look to you as their most trusted advisor and take longer to transition.
  • Brand Loyal clients are not as concerned about their relationship with a specific partner in the firm, but rather rely on several key people to provide service to them who are likely replaceable in their mind.

The overwhelming majority of a sole practitioner’s client base is Partner Loyal and for the purposes of this tool, it is assumed clients are Partner Loyal. The proper timetable for transitioning Partner Loyal clients is directly related to the frequency of direct contact a partner has with them.