Is your firm ready to execute a succession plan? Is the practice one you would want to buy or is it too much of a uphill battle to make it what you would want to work in?

1. AUG. 6 – 9, 2014
THE RITZ-CARLTON, NEW ORLEANS
Session 9 – Getting Yourself Ready for Succession Planning
August 7, 2014 – 2:20 – 3:10pm
Jason Deshayes, CPA, CGMA
Michael Elliott, CPA

2. WHO ARE THESE
GUYS?
Speaker Bios

3. #AICPA_EDGE
Jason Deshayes, CPA, CGMA
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Vice President – Butler and
Company CPAs, PC
Serving clients since 2003,
providing advice to individuals and
closely-held businesses, with a
focus on professional services,
medical and veterinary practices,
individual taxation and business
start-ups.
Honored in 2011 as one of New
Mexico’s
“40 Under Forty” by NM Business
Weekly
PCPS Executive Committee – 2012 –
present
2010 AICPA Leadership Academy
Graduate
Was a Seattle Seahawks fan WAY
before they won the Super Bowl
@taxguyjase

4. #AICPA_EDGE
Michael Elliott, CPA
Principal, Dittrick & Associates, Inc.
Serving in public practice since
2007 to a wide variety of individuals
and privately held businesses.
Ohio Society of CPAs – YCPA
Planning Committee, Public
Relations Advisory Council
Treasurer, Agape Christian
Academy, Inc.
2012 AICPA Leadership Academy
Graduate
Cleveland Sports Fan – WAY before
they ever won anything!
4@GeaugaCPA

5. SUCCESSION
Shouldn’t be a four letter
word

6. #AICPA_EDGE
How to Succeed in Succession
Skills
Transitioning Clients
Firm Processes
Internal Decision / Culture Hand Off
Branding
Start a Firm vs. Succeed in an Established Firm
Training Yourself to Run a Business
Ensuring Success by Using the Right Tools
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Today’s Topics:

7. SKILLS
Do I have the right mix?

8. #AICPA_EDGE
Getting the Right Skill Set
Technical is important – but easy to obtain
• Expert versus Generalist
Business know-how – or “soft” skills are important
• People – employees and clients
• Practice administration
Practice Development – Is it the “hidden” skill?
• Mentoring
• Being the Expert
• Building A Network
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9. MOVING CLIENTS
Transitioning to the
next generation

10. #AICPA_EDGE
Transitioning the Clients
SLOW DOWN: Take the time to do it right
Don’t need to rip the “band aid” off of the
relationship
Some clients may resist….
• But others may thrive with a new relationship
Lots of “touches”
• Recent AICPA JoA article says that it takes 3-5 “touches” to
successfully transition a client
• Early and often are key to success
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11. PROCESSES
How do firm processes
impact succession?

12. #AICPA_EDGE
What is your process?
Process uniformity is important
• Firms should always put out quality work
• All staff should understand importance of processes
Documentation in case of emergency
• Do you have plans in place in case of loss of staff?
• Could someone come in and run your firm by looking at your
process documentation?
• Do you know what your partners do? Do they?
Are your processes up to date with technology?
When should you begin to redefine firm processes?
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13. DECISION
MAKING
Handing over the
culture

14. #AICPA_EDGE
Who is calling the shots?
Number one challenge in transition!
Current partners may feel a loss of control of “their
baby”
How do you become a part of leadership prior to
ownership?
Have an (open) discussion on culture
• People
• Finances
• Firm Identity
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15. BRANDING
You look good!

16. #AICPA_EDGE
Recent rebrand
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17. #AICPA_EDGE
(Re) Branding
How does a new look help facilitate ownership
change?
Important to marry the “old” brand with the “new”
brand!
Think about owner names when rebranding.
Have fun and look at your competitors’ brand
*(Good artists copy, great artists steal) – Austin
Kleon
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18. NEW VS.
ESTABLISHED
Picking the right path –
More than one option!

19. #AICPA_EDGE
Completely your own
thing
Can always buy other
firms
Less “compromise”
on vision
Barriers to entry low
Easy to brand “on the
cheap”
May have no clients for
a while
Who is your backup?
Are you smart enough
to not screw up the tax
return?
You will likely be doing
ALL of the work
Should I Build a Firm?
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20. #AICPA_EDGE
Plug into a firm you may
already be a part of
You have backup!
Risk is lower (but not
gone all the way)
Capitalize on internal
built in value
Built in client base
More time necessary to
transition vision and
culture
Still costly (buy out of
previous owner)
Potential internal
culture difficulties
Next Gen in Established Firm
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21. RUN A BUSINESS
You will be a business
owner too

22. #AICPA_EDGE
Run your firm like a Business
Firm ownership isn’t about just being a great CPA
Be thoughtful (and show it!) about…
• Cash flow
• Technology investments
• Payroll
• Caring about the clients
Be an example to your team
It’s not all about the firm, it’s about business:
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23. #AICPA_EDGE
5 Points on Success in
Business
1. Work with Amazing People
2. Take on Big Challenges
3. Focus
4. Take Care of Yourself
5. Love those Close to You
https://medium.com/leadership-journal/formula-for-
entrepreneurial-success-ea0b02c504cd
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24. TOOLS
What do you need to
succeed?

25. #AICPA_EDGE
Available Tools
Get to know other CPAs, especially those outside
your local area
Find mentors – which doesn’t need to be only “old
gray hairs” (but those don’t hurt to have either!)
AICPA resources
• PCPS (Private Company Practice Section)
• Young CPA Initiatives
• Leadership Academy
State societies and CPA networks
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26. #AICPA_EDGE
Take a minute and jot down 3 things:
1.) Are you in the right place for succession?
2.) What tools do you need to take advantage of?
3.) Who can we put you in touch with to help you?
Call to Action
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27. #AICPA_EDGE
Questions – give us a shout!
Jason Deshayes, CPA
jason@butlercpa.com
505-821-0893
@taxguyjase
Michael Elliott, CPA
michael@dittrickcpa.com
440-834-9686
@GeaugaCPA
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28. Thank You
Copyright © 2014 American Institute of CPAs. All rights reserved.
Thank You
Copyright © 2014 American Institute of CPAs. All rights reserved.