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Over the past few months, we have noticed a significant decrease in practice transitions. In talking to some practitioners that are ready to retire, the common theme was that they don't know what to do. The concern is that the sale will be done at discount due to the unknown effect of COVID on the future billings. With this being said, it appears to be a seller's market, as virtually no practice is moving right now but there are a lot of inquiries from prospective buyers.

On the other hand, financing has become quite tight. I met some of the commercial bankers from RBC and Scotiabank and their qualification criteria seems to change by the day. I recommend you review your budget, talk to your banker and find out what you need in order to qualify for the practice loan. As the concerns over COVID will ease up and practices for sale will become available, CPAs that have financing lined up will fare much better. We expect that in the near future, the average practice will sell with multiple offers on the table.

Should you need a referral to a commercial banker that is dealing with accounting practices, please drop us a line. We are more than happy to send an introductory email.

Starting this fall, we will offer practice transition courses through some of the Provincial CPA Institutes. The offerings will be communicated by your CPA Institute as part of the 2020/2021 professional development program.

Practice Tips

Tax Aide Subscription

Our friend Kim Moody from Moodys Tax has started an on-demand tax guidance service. Their tax expertise is second to none and I encourage you to check out their website.

Practice Management

FreshBooks is an all-in-one invoicing solution for accountants. One of the flagship features is the recurring billing that can be set on auto-pilot for your clients. You have the option to send automatic payment reminders for the clients through the portal or have their credit card information saved and charged automatically against their invoices. The credit card processing fees are as low as 2.5% per transaction. We have learned their customer service is very responsive and willing to spend the time in order to ensure 100% customer satisfaction. For more info, please visit their website.