What’s the most difficult part of running a business? People!
Clients who won’t pay their bills and employees who constantly ignore company policy are examples of individuals who can be two of the biggest culprits that can make running an accounting practice occasionally stressful.
Businesses would be so easy to run if owners didn’t have to deal with any, actual, human beings!
For the rest of us who know that managing people is a necessity in the real world of business, clients and employees can definitely be an occasional source of headaches. But if managed properly, people can also be a business’s biggest strength.
“Maximize Proceeds In Accounting Firm Sales”
Read our featured article, “Maximize Proceeds In Accounting Firm Sales” in the Journal of Accountancy.READ HERE
If you have a tax or accounting practice for sale, having good, reliable employees is definitely a selling point to discuss with potential buyers.
Accounting practice sales can be dramatically affected by the employees that are hired by the owner. If you have an accounting practice for sale, here are three ways that your employees can add tremendous value to your firm’s selling price:
Employees can take care of day-to-day administration of your firm
Owners of accounting practices are the ultimate driver of profitability for their firms. From finding and servicing high-value clients to hiring and retaining qualified employees, owners set the pace at the top of their organizations.
Every minute that an owner of an accounting practice has to spend answering phone calls, scrolling through e-mails, printing invoices, taking out the trash or tending to other administrative jobs, however, is another minute that the owner isn’t out generating new business.
If you have an employee who can run the day-to-day office operations of your firm, the owner is free to tend to higher-value activities. A new owner can step in to continue performing the higher-value activities while the employee tends to the day-to-day tasks.
Another goal that the owner of a CPA firm can have for his employees is being able to run the office for short periods of time in the owner’s absence. Can the owner step away from the business for a week or two and be confident that the tax and accounting work will still get done, bills will get paid and clients will get taken care of?
Consider further training for employees if your firm currently can’t survive for more than a day or two without the owner.
Employees can be the point person for clients
The first person clients are most likely to speak with when calling your firm is someone other than the owner.
Employees who consistently express a positive demeanor with clients can increase the value of your firm.
Even though the owner still has the primary relationship with clients, employees can also develop a bond and rapport with clients through different interactions throughout the year – helping a client work through a project, providing customer service if a problem arises and answering any billing questions are examples of how employees can keep clients happy if done with a positive attitude.
A stable client base is one of the most important selling criteria in accounting practice sales. Employees can play a big role to ensure that a practice’s clients are satisfied with the service they receive and may ultimately remain with the firm after the sale.
One way for accounting firm owners to get employees more involved with clients is to have them attend client meetings. There are several ways to involve an employee in these meetings with clients:
a.) The employee can be an active participant, actively listening and asking questions directly with the client;
b.) The employee can be a secondary participant by having a list of pre-written questions to ask the client; or
c.) The employee can attend the meeting strictly for learning purposes or if the employee is prepared, the meeting could be a hand-off to start handling the account.
Employees can be a trusted advisor for the owner
Being an accounting firm owner can sometimes be a lonely job. Many times an owner doesn’t have anyone to bounce ideas off of or let off some steam to. Good employees can act as a sort of trusted advisor for an accounting firm owner – especially with clients they have interaction with.
To help your employees become trusted advisors, encourage them to ask questions as often as possible to learn how the firm is run. After learning about every area of your firm, employees may come up with creative solutions to problems you may encounter.
An accounting practice sale can be made easier if you spend the time to hire and train the right employees for your firm. These employees can potentially affect the value of your firm if they can help the owner run the day-to-day administration of the firm, be one of the primary contacts for clients and act as an advisor for the owner.
Our brokerage firm can help you navigate the process of selling your firm
Most sellers do not have the time, the patience, or the M&A skills necessary to navigate the process of selling a tax or accounting practice. This is the best reason to hire an exceptional brokerage. A seller wants to be assured they will attain the maximum value for their CPA practice for sale in order to get the most cash at closing. If you are a seller considering engaging a broker, please bear in mind – not all brokers are created equally. No business brokerage understands the value of accountancy practices the way we do. Why? We are the only firm of our type in the nation where 100% of the business brokers are CPAs with significant “Big Four” M&A experience.
We have the largest national database of qualified legitimate buyers for accounting firms. We can guarantee that the buyers in our massive buyer pool are not only actively looking to acquire an accounting firm – they are also willing to compete for your practice.
We have promoted and negotiated hundreds of deals, involving many millions of dollars in value for sole practitioners, small partnerships, and larger firms. Through our proven methods, we consistently achieve significantly higher sales prices and cash at closing for accounting practices than any of our competitors in the nation.
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