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Succession planning: a vital issue for CPA firms.(Practice Management)
- Article from:
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Leader's Edge
- Article date:
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March 1, 2006
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Copyright informationCOPYRIGHT 2006 Michigan Association of CPAs. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The numbers are shocking! An AICPA Private Companies Practice Section (PCPS) study shows that 60 percent of the CPA firms surveyed have owners between ages 55 and 62. In addition, 74 percent of these practices predicted that at least one of their staff members will retire in the next five years, according to the 2004 study. This study from PCPS, the AICPA's alliance for firms, surveyed nearly 500 practices to understand how they're handling succession planning.
Here, though, is the real shocker: 81 percent of the firms said they had no documented succession plan in writing. A worrisome figure, considering that the expected massive transfer of management could profoundly ...
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