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PROFESSIONAL DEVELOPMENT
Making the

partnership decision

Ask yourself — and your firm’s leaders — these essential questions.

By Cheryl Meyer

D about the hefty required partner buy-in, which About the
eciding whether to pursue partnership in
a CPA firm — a goal of many account-
would have given him just a 5% stake.
author
“Instead of taking on that debt, I figured I
ing graduates — can be an endeavor that
requires much soul-searching. Young CPAs work could invest that into my own firm and have a Cheryl Meyer
for years and move up the ranks, inching toward 50% ownership stake,” Alexander said. While the is a freelance
their desired goal midcareer. Being a partner brings transition was tough, he founded his own Dallas- writer based in
prestige, often financial gain, and the opportunity based firm that same month and later took on a Minnesota.
to have a major impact on the firm’s future. But it partner, recently renaming his firm to Alexander &
has its downsides as well. Williams LLC and accepting the title of “partner”
As CPAs get closer to becoming a partner — as well.
particularly an equity partner — tough questions Some CPAs decide not to become equity part-
can surface. Should they spend much of their ners and instead choose to stay in their current roles
savings on a partner buy-in? How many hours will or transition into other nonequity positions within
they be expected to work? Can they envision being their firm. For instance, Diane Brewer, CPA, senior
in business with the leadership currently at their manager at HeimLantz in Annapolis, Md., heads
firm? Do they want to be committed to the same up the estate and trust department at the firm.
firm for the foreseeable future? And if they decide She was offered the post as an owner but chose to
not to become a partner, what’s next? remain in her current role for personal and family
For Chris Wittich, CPA, the decision was reasons. “It was an easy decision for me,” she said.
straightforward. He chose to become a partner at “I feel very comfortable in the firm, am respected,
Boyum Barenscheer, near Minneapolis, in January have acquired a good salary, and feel [my current
2020 because he wanted to have more of a say in role] wasn’t prohibiting me from succeeding in what
the direction his firm was taking. I want to do.”
“I crave control and a voice in what’s going on,” At many firms, CPAs who aren’t sure whether
Wittich said. “I have a lot of ideas about better ways they want to become a full equity partner can take
to serve our clients or more efficient ways to operate on a transitional role. Many firms give CPAs an
the firm or better ways to manage a process.” For option to accept a role as a nonequity partner — a
him, becoming partner would give him a greater role that may have the title of “principal,” “director,”
opportunity to put those ideas into practice. “shareholder,” “income partner,” or even “partner”
But the financial commitment required to — or a partial equity owner. These roles can allow
become an equity partner can cause some to decide CPAs to get a glimpse of what it is like to be a
against the role. Josh Alexander, CPA, left a job at full-blown owner, even though everything about
a Dallas-based firm because he was apprehensive the firm’s operations may not be fully disclosed to

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