To better understand this issue of how can an accounting firm help you with succession planning for your family business, you first have to know what succession planning is. It is a plan for your company to embrace the change and become stronger. Your family business must be strong because there are many factors to look after, and assistance from an accounting firm can help you. But the question is how?
Change Happens
More than one company comes to mind that no longer exists. Reason? They didn’t adapt to the change. Big companies evolve with time, and the main reason behind it is that they have proper guidance of the market and all the changes that can come their way. Unless you have a crystal ball, you cannot precisely know all the impending changes that await. Predicting can never give you the result you need for your company, part of the succession planning involves probabilities for all the occurrence and their solution.An accounting firm can advise you on your succession plan by properly assisting your past and future by knowing your business financial status. Their analysis patterns determine your income and expense and warn you earlier of all the necessary changes.
Plan to Protect Your Company
A succession plan should protect all the shareholders of the involved corporations, especially those in which all your controlling interests are present. The plan must identify who gets to keep the shares if something unexpected happens to you? How will shares be valued if your corporation is not publicly traded? It needs to identify the taxes on inheritance from the crippling cash flow, and an accounting firm can help you do that.
What Will Happen If You Are Gone?
One of the largest parts of your succession plan will likely be centred on the employees. If your succession plan is strong, you may expect a better transition of the employees turnover. Still, to do that, you need a short-term plan prepared for any inevitable emergency occurrence. What if you died? Would there be someone to step up and keep the company running smoothly? Would it be a viable option? If there are partners, how will they fill the role? And what will happen to all the heirs?
Accounting Firms - An Essential Role in Succession Planning
A professional accounting firm can help you with a succession plan which has multiple professional disciplines, including
- Law
- Accounting
- Tax
- Strategic planning
- Management facilitation
- Family facilitation
- Financial planning
- Wealth management
- Life insurance
- Training
- Operational coaching
- Mentoring
It is not hard to pick an accounting firm with a team that can help you. Succession planning with the help of a qualified accountant is an exercise that can take your company to levels you had never thought of.
Final Words
Finding a qualified accounting firm for your succession plan is as important as having the idea of a succession plan. Without the help of accountants, your succession plan might not be that strong as it should be. If you want to know more, feel free to contact us, and we would be happy to assist you.