A helpful and thorough article about what needs to be considered when closing down your accounting business.
While many firm owners are struggling with the complexities of sales, mergers or internal succession, many have quietly decided that they’re simply going to wind down their practices and turn off the lights for good at some point.
It’s easy to understand the appeal, but what should those practitioners do in regard to clients, insurance, and other firm aspects when they decide it’s closing time? We asked a number of experts.
First things first
When deciding to close one’s practice for good, our experts offer a range of necessary steps.
Terry Putney, CEO at M&A consultancy firm Transition Advisors, believes that the level of control one will have over their closing is key. “I think the most important factor is whether [the owner] is going to manage the process,” he said. “You have to ask, ‘Am I going to manage this process, or am I going to let it happen on its own?’ The firm is going to contract: Your staff and your clients will look at you, and if you’re 75, they’ll say, ‘This isn’t going to go on forever.’ If you’re going to let it happen on its own, you can’t control when people leave or really how it happens.”
“One key thing to consider is that you are not leaving any clients in limbo for work that is uncompleted or about to be due unless you have arranged for someone to assume these tasks,” urged Joel Sinkin, president at Transition Advisors. “The main thing is leaving the clients either in someone’s hands or providing them enough notice to find a replacement. (This is one of the reasons most firms elect to sell or merge their firm, instead of walking away.)”
Read Article: http://www.accountingtoday.com/news/lights-out-shutting-down-a-firm-is-harder-than-it-looks?brief=00000158-6edb-da3c-af5a-ffff76ed0000