Strategic Use of Leverage in CPA Portfolios
Imagine moving a massive ship singlehandedly. Sounds far-fetched, but ancient accounts say the Greek mathematician Archimedes did just that using a clever system of levers and pulleys eurovps.com. He famously boasted, “Give me a place to stand and a lever long enough, and I shall move the world.” That story illustrates the core idea of […]
Blended Families and CPA Practices: Navigating Estate Planning
Imagine spending thirty years building a thriving CPA practice, carefully nurturing client relationships, and gradually expanding your service offerings. Your child has worked in the practice for nearly a decade, effectively managing key accounts and earning the trust of long-term clients. Now, as you consider your second marriage, you face a critical challenge: how do […]
How to Monetize Illiquid Assets as a CPA Practice Owner
As a CPA practice owner, you’ve devoted years to building your business. But have you considered how that business will fund your retirement? To exit on your terms with a comfortable retirement, you need a plan to turn your illiquid business into reliable retirement income. Your practice is likely one of your largest assets, yet […]
Can Your Estate Pay Its Bills? Why Liquidity Matters
As a CPA practice owner, you know numbers—but have you run the numbers on your own estate liquidity? A lack of liquid assets could leave your heirs and executor scrambling to cover estate taxes, business expenses, and probate costs. Without careful planning, the IRS and creditors may get paid before your loved ones do. That’s […]
Strategic Exit Planning for CPA Practice Owners: Maximizing Practice Value
As a CPA, you’ve probably seen your share of business transitions – some smooth, some… not so much. But when it comes to planning your own practice exit, the stakes feel different, don’t they? Unlike selling a retail store or manufacturing business, your practice’s value isn’t sitting on shelves or spinning on factory floors. It’s […]
How to Save in Taxes When Selling Your Practice via QSBS Exclusions
CPA firm owners know the drill: when you sell your practice, you’re looking at a tax bill. But there’s a special provision in the tax code that could change your entire exit strategy: Qualified Small Business Stock (QSBS). Here’s how it works: If you structure your practice as a C corporation and meet certain requirements, […]
Is Your CPA Practice Ready for Financial Emergencies?
In our last article, we discussed how much cash reserves you should keep as an individual investor and retirement planner. However, if you possess your own CPA practice, you’ll also want to consider how much cash your business should keep in reserves. In fact, failing to keep sufficient cash on hand can mean the difference […]
Are You Holding Enough Cash Reserves?
If you’re focused on building as much wealth as possible, it can be tempting to stay fully invested, especially when the stock market has historically offered such strong long-term returns and you begin to experience compound gains. However, staying completely invested is risky, and can potentially lead to significant damage to your portfolio, which is […]
Safeguarding Your CPA Partnership with a Buy-Sell Agreement
With over 4.4 million partnerships in the U.S. alone (and $3.9 trillion in income passed through to partners in 2021), it’s clear that a multitude of businesses have plenty on the line when it comes to their inevitable transitions and dissolutions, including CPA firms like your own. In our last article, we showcased how key-person […]
The HSA vs the HRA: Which is Best for Your CPA Practice?
Health insurance is a big deal. About 50% of employees say that health insurance is the main reason they stick around at their job, and 45% say it’s a top factor when deciding whether to take a job in the first place. If that’s not enough, there’s also a pretty solid financial incentive for business owners […]
