Sarah Speer
Sarah Speer
Sarah Speer
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Sarah Speer
The Importance of Succession Planning

The Importance of Succession Planning

If there is one thing that COVID-19 has reminded us of, it is that uncertainty is something that businesses everywhere are always facing. One of the most important resources that your business possesses is your employees; especially your key employees that have impactful roles in your organization. Unfortunately, the hard truth is that these people also carry with them some uncertainties. However, there are ways that you can prepare ahead of time for their departure, whether that be a planned retirement, a better opportunity, or something not so predictable. These things can be a tough subject at times, but to preserve the company that you and your employees have worked so hard to build and maintain, you should begin developing a succession plan.

Every key role in your organization will eventually have a successor, including yours. The way to begin preparing for this is to first get to know your employees, whether that is directly or indirectly through management. Find out how they view their future with your company and which employees possess the qualities you want to see in someone who holds a key role. You can then begin the process of speaking with those employees and evaluating their interest in their potential future roles. It is important to reiterate that this type of planning is not indicative of anyone leaving, but just a more formal type of planning for the future. You don’t want your key employees to feel that they might be replaced or the potential successors to draw any immediate conclusions about the future.

An effective way to begin preparing your selected employees for their potential key role is to assign them to assist with projects or daily tasks within that role. Cross training is an especially essential element in your organization and is not only useful in succession planning, but also promotions, vacations, and maternity/paternity leave. Cross training is a wonderful way to boost your employee morale and show your employees the value that they bring to your organization. This is also a fantastic opportunity to demonstrate the potential career advancement available in your organization and prevents your employees from feeling stagnant.

We understand how important your business is to you and your family, financially and emotionally. Here at ADKF we can help you plan the continuation of your business. There are several ways that CPAs can assist you in this process. During discussions of succession, questions may arise regarding changes of financial positions or ownership. We will be able to answer these questions including any tax implications associated.

Ask ADKF how we can help you plan for the future of your business!


ADKF
is the largest, locally owned public accounting firm in San Antonio, Texas, with branch offices in Boerne and New Braunfels. We have been serving our community since 1991. We are a full-service CPA firm dedicated to providing a broad range of tax, audit, bookkeeping, tax controversy, and consulting services with superior customer service to help our clients meet their goals and objectives. Please click here to set an appointment with us.

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