5 Checkpoints for CPA Firms Before Entering Into A Business Partnership

CPA firms in a growth phase face numerous challenges such as new business development, service line expansion, manpower shortages, and infrastructure scalability. Although growth is exciting, it can be fraught with trials, including budget constraints.

One solution for addressing many of these challenges is identifying a strategic partner who can provide assistance with these issues. The right partnership can be an invaluable asset to a CPA firm.

The Potential of Business Partnerships

When executed correctly, a business partnership for your CPA firm can help you focus on business development and revenue generating activities while simultaneously assisting with your firm’s client commitments.

What Do You Need From The Partnership?

Before finalizing a business partnership for your CPA firm, here are a few things to consider:

1. Reliability and Proven Capabilities

Can a potential partner provide your business with critical support when needed and do they possess the expertise that your firm could leverage effectively? Research the partner’s capabilities, service offerings, expertise and experience within the industry your firm operates, the partnership should enable your firm to:

• Delegate time-consuming back office tasks so you can gain time for vital activities such as business development and revenue generating activities.
• Leverage their capabilities so that you can enhance offerings to your own clients. Evaluate them for capabilities like automation and cloud technology which can help to streamline your own firm’s processes.

2. Transparency in Accessibility of Information

Partnerships require information sharing, so prior to finalizing any agreements evaluate how information will be shared. Tools such as reliable dashboards or interactive platforms that provide access to clients’ data and electronic document sharing can be beneficial. Also assess their reporting capabilities and the ways in which they streamline data, including clients’ information.

A partner with a robust infrastructure can help you stay on top of your clients’ data at all times, ensuring trust and transparency.

3. Private Labeling Options

Some partners will offer the option of private labeling engagements where your logo will be placed on all client deliverables you obtain from your partner. There are other partnership engagement models as well, so decide with your partner which is the best option. In a collaborative engagement model, you remain your clients’ point of contact, but your client is aware of the partnership and how you are leveraging specific expertise and services from the partner.

In a direct client engagement, your partner works directly with your clients while you consult from time to time, ensuring that the arrangement remains in sync with your clients’ expectations.

4. The Possibility of Referrals

It is likely that if your potential partner can provide the capabilities outlined above, then they have an established client base who can could benefit from your capabilities. As a CPA firm, you bring accounting expertise to the partnership which they could pass on to their clients.

Similarly, you save on the time, costs, and efforts associated with pursuing new business development. The hassle associated with bringing in new business can also eat away at your peace of mind as a business owner. Your partners’ list of established clients should help you bypass this effort.

5. Data Security

Data security will cover all aspects of data sharing and information access within the partnership. This includes clients’ information, as well.

What is the level of data security offered in the partnership? Are there any standards established? What about industry-specific compliance requirements? Factors such as authorized access and ISO standards matter and can help you decide whether or not to finalize a partnership.

Choose Professionals for Partnerships

Analytix Solutions has strategically helped to guide small businesses across diverse industries in managing their financial functions. Our experience spans more than a decade, and we have developed customized solutions for CPA firms, CFOs, accounting firms, etc. Our solutions have helped firms gain a competitive advantage in their target markets.

If you’re considering a business partnership, call us at 781.503.9002 or email us sales@analytix.com to learn more about how our partner solutions can put your CPA firm on the fast track to growth.

Written by

Analytix Editorial Team