Topic: partner

Why 30% of CPA Firm Retirement Plans Are Defective

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 […]

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Sailing Through the Seven C’s to Partnership

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 how to develop their own personal plans to achieve partnership. Firms and staffers alike need a clear set of procedures, processes and milestones for turning top talent into the next generation of firm leadership. There are seven critically important criteria by which partners assess partners-to-be. I call them: The Seven C’s

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Passport to Partnership: New Research Shows Wide Gap between Partners and Partners-To-Be

What we have here is a failure to communicate. Editor’s Note: With this article, CPA Trendlines 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 based on hundreds of interviews with partners and practitioners at more than 30 firms in the U.S. and the U.K., dozens of experts and advisors, and his own 20 years of experience in the field. In his research, Bissett uncovered a wide gap between what partners say they seek in a staffer yearning to be partner and what they actually do and say to train and nurture the staffer. His work in Passport to Partnership is dedicated to bridging that gap, […]

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The Top 10 Mistakes in Partner Retirement Plans

Is your firm guilty of any of these? By Marc Rosenberg Retirements & Buyouts 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

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Are Partner Buyout Plans Just Ponzi Schemes?

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 […]

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20 New, Essential Keys for Today’s Partner Retirement Plans

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 […]

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Clawback and How to Handle It

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 […]

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Can Partners Compete After They Leave? Maybe.

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 […]

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Disability Is Far More Complex Than Death

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 […]

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