It could be a global corporation putting a new director in place or Grampa Jack handing over his model boat building business to wee Davey (annual turnover £7.35).
Businesses big and small rely on succession planning for their long-term future – and an accountant’s role can be vital in this process.
Company owners often wish to retire or pursue other business interests by handing over to the next generation of the family, an experienced colleague or a new management team.
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However, such transfers rarely happen overnight, or in the short term, and so accountants can take time to create a succession structure in the build-up.
There are several key areas where accountancy skills – both technical and human – come into play.
Full Facts & Figures
There are many complex taxation and accounting issues that surround succession.
By researching, analysing and then sharing these facts and figures with their client, an accountant throws a spotlight on the realities of any future moves.
This data forms not only the building blocks, but the nuts and bolts of a succession plan, and must take into consideration the short, medium and long-term tax effects.
By making sure the process is well planned, an accountant can achieve the best possible value for a business in the least stressful way.
Effective Communication
Whenever a company decides to make major changes in staffing or to their business model, taking proper advice from a qualified accountant is paramount.
Succession can be affected by market conditions and in-house circumstances – both of which can change very quickly.
Allowing everyone involved to voice their business concerns and career aspirations helps an accountant work out the most practical solutions to allow responsibilities and roles to be passed on seamlessly when the time comes.
Ongoing Guidance
Just as companies and employees change, so do tax and accounting regulations and in this respect an accountant can act as a trusted business adviser.
Most businesses – whether sole traders, limited companies or global corporations – will meet with their accountant regularly.
However, succession planning can also be reviewed on a regular basis in order to provide not just the foundations for future decisions, but also updates on changing legislation and circumstances.
If you’d like to enter the world of numbers, check out all of the latest Accountancy vacancies on s1jobs.