Practice Continuation Agreements for Small Firms

Practice Continuation Agreement (PCA)

A practice continuation agreement (PCA) is a plan set in place that authorizes another person to take on the responsibilities of an accounting firm under extreme circumstances. Circumstances that may cause the plan to go into effect are disability, ongoing illness, family emergencies and more. Having a PCA in place before an extenuating circumstance is ideal to prevent lawsuits, and to prevent negative impacts on your clients’ business.

How can you protect yourself as a CPA?

Gathering important documents and contacts is the first step to protecting yourself. The next important step is researching the three basic continuation plans. It is important to confirm you pick the plan that is necessary to fit you and your business needs.In doing this, you must identify what firms you would like to partner with, and consult with them to land an agreement. Consulting an attorney is necessary while taking it to the last step, implementing the plan.

In conclusion, the best time is now!

Overall, having a plan that you are able to lean on in a time of crisis is extremely important to maintain business and avoid problems. Keeping clients happy must be a priority, and making sure they’re in safe hands, if they can’t be in yours, is crucial. No one expects the sudden changes that can present themselves.  By following these steps you can protect yourself and your business now.

There are other ways to plan for continuation, such as a Buy-Sell Agreement.  Ask your business insurance broker how today!