• ACH payments, royalties from related programmes and financial services resulting from recommendations or practical cooperation must be defined and arranged for prosecution. To help you, I have prepared a toolkit for the implementation agreement that you can download for free by clicking here or by sending me an email to GoodiesFromEd@withum.com. To date, more than 12,000 accountants have received this information, and I hope many have followed it. Happy New Year too. It`s a good way to start the year – execute this agreement to ensure the value and cash flow of your practice for yourself if you`re disabled, or for your family if you die prematurely. • The family of the deceased accountant will always think that the practice is worth much more than you offer, no matter what you offer. All the accountants I know and interagulate with are kind and caring people, and I like them. However, there is one area in which I think they are short-sighted and careless – if they have not made arrangements to continue and sell their practice, they should suddenly be hindered or die prematurely. Edward Mendlowitz, CPA, is associated with WithumSmith+Brown, PC, CPAs. It is on the Accounting Today Top 100 Influential People List. He is the author of 24 books, including “How to Review Tax Returns,” which he wrote with Andrew D. Mendlowitz, and “Managing Your Tax Season, Third Edition.” Ed also writes a blog twice a week about issues faced by customers in www.partners-network.com.
Ed is an Associate Professor in the MBA program at Fairleigh Dickinson University, which teaches the final applications of degrees. Art of Accounting is an ongoing series in which Ed shares autobiographical experiences with advice he hopes to be able to take up by his colleagues. Ed welcomes questions related to practice management and can be reached at (732) 964-9329 or email@example.com. I get a lot of calls from colleagues, most of whom don`t even know. A theme at the head of the most frequently asked questions is by practitioners with the possibility of acquiring a practice from the widow of a deceased individual practitioner, or worse, from the surviving partner of a practice of two people who did not have a buy-sell agreement. My advice is for individual practitioners to execute a practice agreement (see the end of the column for a link) and for partners to get a buy-sell agreement (not covered here). If you don`t take precautions, you`re burdening your family with getting something for your practice, to make sure your family receives much less than they could. You hook your customers to dry, you worry unnecessarily about your employees, and you can hold your family back with potential commitments for improper maintenance of your customers` files and possible abuse claims that may arise. My advice is to implement a contract to maintain the practice. If you are told about buying a practice from someone who has died, I suggest you pass it on. Here are some reasons why: • decisions must be made regarding the premises and whether the lease should be accepted even temporarily.
Note: As skeptical as I may seem, I know of a lot of successful transactions, even if their process wasn`t much different from what I`ve described here. • If there are collaborators, they should be interviewed and reassured about their work. . . .