Date posted: 27/06/2018 3 min read

Succession Planning Guide

A guide to succession planning for accountants who run public practices

In brief

  • Practitioners in Australia must now have a documented succession plan as part of their risk management framework
  • A new guide for accountants planning succession for their public practice has been created by CA ANZ
  • The guide includes tools and templates to help plan long-term personal and professional goals, and how to plot a path to achieve those goals

Succession planning is now mandatory in Australia

A new guide to succession planning has been published for CA ANZ members who run public practices in Australia and New Zealand.  

APES 325 Risk Management For Firms recently made it mandatory for public practices to document a succession plan as part of their risk management framework.  

The new requirement became effective from 1 April 2018 and applies to all CA ANZ members who manage public practices in Australia. While a documented succession plan is not yet mandatory for public practices in New Zealand, it is strongly recommended that they put one in place.

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Accountants benefit from succession planning

A good succession plan helps practitioners to maximise the value of their practice, to provide security and peace of mind for family and colleagues, to achieve tax efficiencies, to retain staff, and to ensure the business is prepared for all eventualities.  

The CA ANZ Succession Planning Guide was put together with assistance from experienced public practitioners. CA ANZ members have been quick to praise the guide. Ron Louis FCA, former partner Butler Settineri in Western Australia said: “This is an important document that could affect the future a lot when one retires. You have to get it right.”  

Linda Gray FCA from Naylor Lawrence & Associates in New Zealand said: “The succession guide is great. We are going through succession planning at the moment and are using the guide as a basis to prepare the succession plan. All four directors have reviewed the guide and felt it was excellent in terms of getting their thinking in the direction it needed to be. “Most of all, any plan must be formally documented. In essence it has formalised both need and process around succession for our firm.”

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