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TAX PRACTICE MANAGEMENT

Time for retirement
In an ideal world, There can be a great amount of hesita-
tion and fear from the retiring partner
the incoming partner or staff about announcing they are stepping
should be involved with the retiring back and/or retiring. However, most
partner’s key clients for the two will find that their clients are not only
understanding of the fact that the retir-
to three years leading up to ing partner is stepping back, but they
the retiring partner’s final year. encourage it. From the authors’ personal
experience, most of the time, the mes-
sage from the client to the retiring
partner is something along the lines of:
“Congratulations. Your retirement is well
firm’s relationship with that client. The a short list of longtime deserved.” With proper planning and
retiring partner can communicate to the clients who may not respond to some upfront work by the retiring part-
client that they are scaling back over the younger staff as favorably? It is ner, the transition can be smooth and
next few years. This makes the transition probably not a good idea to allow this largely successful for all involved. The
more natural and seamless. This will not to continue with key clients because retiring partner can walk away knowing
work if a retiring partner does not give the transition to the new trusted that clients will be taken care of and
sufficient advance notice or has a shorter adviser may never occur. Also, clients with a feeling of a job well done. ■
retirement plan. may talk to each other — how will
A one-year transition is somewhat this look if the retiring partner kept
abrupt. Some clients may need more the relationship with client A but not
time to feel comfortable with the in- client B?
coming partner or staff. The authors How do you deal with a retir-
would not recommend a shorter hand- ing partner (particularly a lega-
off for any key clients. It would be best cy partner) who will not stay out
for the retiring partner to identify, well of the firm’s business? This can
in advance of their actual retirement, best be addressed in firm policies and
which clients may need a longer transi- best practices. Are retiring partners
tion period. still part of key meetings? Who is
running the meetings? Can retiring Contributors
Problem-solving for likely issues partners make any key decisions? If
J. Raleigh Cutrer, CPA/PFS/ABV,
The following questions are likely to the succession planning process is
is a shareholder with Matthews,
arise over the course of the transition: working properly, retiring partners
How do you handle a client have time to mentor and coach the Cutrer and Lindsay PA in Ridgeland,
who keeps asking for the retiring generations coming up behind them. Miss. Teela McCullar, CPA, is direc-
partner? The retiring partner should There should be trust and confidence tor, Barnard, Vogler & Co. in Reno,
clearly communicate the transition plan in those generations to let them make Nev. April Walker, CPA, CGMA, is
and then must stick to that plan. If a their own decisions with their new lead manager–Tax Practice & Eth-
client calls asking for the retiring part- clients. The retiring partner should be ics, Public Accounting for AICPA &
ner, they should not jump in there to guide, not direct them. CIMA, together as the Association
immediately. Communication from the What should be done where of International Certified Professional
retiring partner should focus on the a retiring partner may be get- Accountants. Cutrer and McCullar are
qualifications and competencies ting pushed out earlier than
of the incoming partner or staff planned, refuses to transition members, and Walker is staff liaison,
and convey the trust that has been clients, or remains involved in of the AICPA Tax Practice Manage-
placed in their hands. A longer the firm’s business? These issues ment Committee. For more informa-
transition usually helps with this issue. should be addressed in the firm’s code tion about this column, contact
Should a retiring partner be of conduct and possibly also in the thetaxadviser@aicpa.org.
allowed to continue to work with partner’s retirement agreement.

52 March 2023 The Tax Adviser