MNCPA sole practitioners share their most pressing concerns
Succession planning, challenging clients and tax law changes top the list
January 6, 2023 |
In the recent MNCPA Tax Survey, an annual survey of members in public practice, sole practitioners were asked what their top concerns are for the next two years. The answers offered insight into the unique opportunities and challenges they’re facing and reflected ongoing, larger scale issues that the accounting profession is up against.
Responses to the open-ended question varied but included common themes. Among the top concerns MNCPA sole practitioners shared were related to:
- Succession planning.
- Technology.
- Working with the IRS.
- Continuous tax law changes.
- Workload management, changing client needs.
Touching on several of these issues, one respondent said their biggest concerns are related to the “death of baby boomers,” and “estate issues,” as well as technology and clients. “Changing to all online software and losing face-to-face interactions decreases the chances of return clients. New clients always take more time and more of them shop around.” The member added that they have had to increase rates, which impacted the quality of their clients.
Another respondent also mentioned client-related challenges, saying they struggle with “juggling the increasing demand from clients and new clients while not having the staff for it.” And another member said, “I am aging and keeping up with the complexity is an increasing challenge.”
Comparing the results
The MNCPA survey results showed alignment with the results of the
AICPA’s 2022 PCPS CPA Firm Top Issues Survey. That survey segmented the results based on firm size into top-five lists for sole practitioners and for firms with two to five, six to 10, 11 to 20, and 21 or more professionals. Key concerns were staffing and working with the IRS. However, unlike the MNCPA survey, the AICPA survey results showed that succession planning didn’t make the top five concerns for any group, but it ranked in the top 10 for all but one group.
"And yet I receive a large volume of calls and emails from practitioners in both solo and multi-partner firms wanting to talk about strategies, market conditions and how to prepare for retirement,” said Carl Peterson, CPA, an MNCPA member and the AICPA vice president of small firm interests.
A closer look at succession planning
Highlighting results from the 19
th Annual Rosenberg Practice Management Survey, the CPA Practice Advisor
reported that among sole practitioners and smaller firms, 71.1% are older than 50. The AICPA estimated that almost 75% of the CPA workforce met the retirement age in 2020.
Given these statistics regarding CPA firm ownership and the impending “
silver tsunami,” it makes sense that a reoccurring theme from the MNCPA survey is related to the issue of succession planning. With respondents sharing that they are concerned with, “Finding a suitable person to transition my firm to,” and similarly, “Slowing down my practice over the next few years in anticipation of retirement.”
To help members, and the clients you work with, plan for the future, keep an eye out for
MNCPA articles, webinars and CPE related to this topic — and others — over the course of the next year and beyond.
Topics: Taxation-Individual, Practice Management
