Is Your CPA Firm Too Dependent on You?

If you are a CPA or accountant in PA working independently, you are naturally wearing all hats in your firm. But if you have grown your practice to include employees, you may find yourself still holding onto most of the core responsibilities: networking, sales, client work, finances, reporting, and more. This is not an ideal business structure, because if something happened to you, your business could collapse. And if you’re still putting all the pressure on yourself even as your company grows, you could collapse. For your own sake and the firm’s, start delegating.

As a firm grows, the founder should be able to step into a CEO role, setting the strategic goals and overseeing the firm’s growth. You may not be at that point yet for your firm, or you may want to keep your hand in the client work on a few key clients, but it’s time to delegate client relationships and business responsibilities.

Some benefits of delegating are obvious, but others may be more subtle. Consider these:

• The firm would still run efficiently if you went on vacation.

• The firm would still run efficiently if you or a loved one had a health crisis that needed attention.

• Your team members would feel more appreciated and empowered if they are entrusted with work you used to do.

• Improved morale and potential upward mobility in the firm may help you retain good talent.

• Delegating and creating backup support develops a healthy leadership structure within the firm.

• If you have other staff members with key responsibilities, providing backup for them can help them feel supported if they need a vacation or face a health crisis, thereby reducing stress.

• Having more than one person able to perform the same functions also enables team accountability and oversight and reduces the risk of errors or fraud.

• Delegating responsibilities and mentoring team members as backup can be a starting point for a crisis management or continuity plan, which every company should have in case of natural disaster, fire, cyberattack, etc.

• It can also be a first step towards a succession plan, should you be considering retirement.

• Mentoring another young accountant is emotionally satisfying for any professional.

Take this one step at a time; you don’t have to delegate all at once. As your firm grows, you may need to evaluate yearly or quarterly and decide what other changes you’re ready to make. But here are some starting points:

1. Ask yourself: What aspects of my work do I really enjoy and not want to let go of just yet? What aspects can be most easily delegated to free up some time? What are some activities I could do if I had more time? (ex: strategic planning, developing strategic partnerships, service expansion, much-needed vacation)

2. Decide who on your team you could mentor for each of these tasks. Be sure to schedule time into your busy schedule to give your staff member the support he or she needs to learn the task from you and perform it well.

3. Decide which clients you can hand off to a team member and document your client knowledge thoroughly. Make a plan to introduce your replacement to the client and walk with the new person as he or she begins working with the client.

4. In addition to delegating duties and mentoring team members to take on some of your client work, choose people who can be trained to perform your duties and those of your essential employees in the event of an emergency. Create policies and procedures for core aspects of the business and train your team members on these duties.

Start with one or two duties and gradually increase as you are able. As your firm grows and changes, so should your position within it. If you need ideas for implementing these steps in your particular niche or business situation, reach out to our members on the PSTAP membership portal, PSTAPexchange. They are always happy to help.