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TAX PRACTICE MANAGEMENT
From Boomers to Zoomers:
Transitioning clients
for retirement
According to the Retirement Industry
Editor: Trust Association (RITA), approxi-
April Walker, CPA, CGMA mately 10,000 Baby Boomers turn 65 If possible,
each day. Forty-seven percent of Baby transitioning a client’s
Authors: Boomers have already retired. Almost relationship to
J. Raleigh Cutrer, CPA/PFS/ABV 75% of the CPA workforce had reached
Teela McCullar, CPA retirement age in 2020. The number of someone they
are familiar with
Baby Boomers in the profession who are
retiring is certainly set to increase in the will help facilitate
next few years, with changing staffing
the change.
models and rapidly changing technology
and tax legislation.
Succession planning is difficult.
Firms should have Transitioning work to others is hard. But
orderly processes for it can and must be done. This column even better if this can be done gradually.
Consider also the client’s compatibility
provides insight into the pitfalls that
transitioning partners can occur during the transition but also, with the next generation and how the
into retirement more importantly, the opportunities client likes to communicate. Matching
to maintain the and solutions to help alleviate some of up similar communication preferences
the heartburn.
will help ease the transition.
confidence of clients Think about what technical skills are
and the trusted Retiring partner’s to-do list needed. This includes considering spe-
cialty areas — a tax-exempt entity and a
A retiring partner has much to do before
advisers who will making a final curtain call. At the top restaurant client would likely need dif-
continue to serve of the list is determining the “who” and ferent staff to handle their unique issues.
Does the client need someone with an
the “how”: Who will now be the cli-
them. ent’s partner or team? How will this be estate planning background? Does the
communicated? How will the transition client need financial statements or have
actually happen? This process involves other specialized needs such as business
several steps. The to-do list and selection valuations? What is the client’s experi-
process for a successor partner/staff may ence with technology? Consider also the
include the following: personality type of the client as well as
that of the potential successor. PHOTO BY LEEYIUTUNG/ISTOCK/THINKSTOCK
Considerations for best fit
for successor partner/staff Considering client termination
If possible, transitioning a client’s rela- Should some clients be terminated upon
tionship to someone they are familiar the partner’s retirement? All partners,
with will help facilitate the change. It is not just those who are retiring, have
50 March 2023 The Tax Adviser
