By: Team TMG On: August 18, 2015 In: Uncategorized Comments: 0

Succession Planning CPA Firms

One of the vital elements for a business to succeed is the employees or the top people who make the big decisions. These top people direct which way the company will go and can greatly influence your company’s success.

That said, we should always be prepared to have someone to take responsibility and take key positions in any case we might need a replacement. Regardless how competitive your current executives are, they can’t stay forever within the organization. Their retirement days will come, or they might go to a different company. So the best thing to do is know who will replace the position if they leave.

Being unable to identify, or not having, a certain person who can take place immediately can put the future of the business on a big risk. This is where Succession Planning comes in; this is the formal process of selecting internal employees that will fill the vital positions in the business. Here are the reasons why we should do these.

Credibility of the Candidate

Succession planning includes thorough employee background check, the people involved in doing these will check the credentials, achievements,, specialties, the person’s strength and weakness and other traits that will make them credible in filling up the key position. In this way we are sure that the candidates are not just “some guys “we know they’re worth it. This will save the company time and effort in developing the right person.

 

Ensuring the Future of the Business

It’s seldom that there is a person in the company that is perfect for the vacant position, but a lot of times most of them have great potentials. If we apply early planning, we could develop these candidates early on. We could train them to work on their weaknesses, educate them, and give them leadership trainings so they will be ready once the position is vacant.

 

Avoiding Loss of Good Employees

If a good employee stays in a company for a longtime but is not expecting a career growth, there is a big chance that they might go. It’s a big loss for the company in the future if they keep losing this kind of people. But If we give these people a clear plan for their career this would create loyalty and give them more motivation to do their best. A person would rather stay in a company where they have a good and clear future rather than going to another place and start again.

 

Focus on Present Business Development

Business planning is a lot of work and will cost you financially. But you don’t have to do the job yourself or ask one of your HR personnel to do these. There are trusted business advisors like Paramount Business Advisors that can handle this future investment for you. As a business owner, if you know that the future of your business is being taken care of, you will have a peace of mind and focus more on the present development.

Saves Time and Money

Developing an internal person can save a business much more than employing new ones. There are also loyalty issues involved and we are not sure if the people we get outside are that competitive. Some of the leader aspects cannot be seen on paper but rather on personal observation. If the people we hire outside fail we have to repeat the same process of employment.

Terry Kime Certified Public Accountant Alpharetta GA

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