Accountants do more than annual tax filings; they are business
advisors that help you reach your goals. Consider where your
practice is headed and your exit, and an accountant can help design
and implement your succession plan. Here are two common
Transitioning your practice to an associate, junior partner or
If you are considering transitioning your business to someone
within your practice, assess the qualifications and business acumen
of the purchaser. How are their skills in...?
Ability to lead team members
Ability to continue the
These are important questions if you want to retain the
integrity of the practice as you exit. OD's can forget these
important business skills when evaluating a successor in favour of
technical abilities. Your practice is a business where its leader
needs to work "on the business" not just "in the
This is especially important if you are transitioning your
practice to a family member; don't skip these steps! In our
experience, it is critical to have proper assistance when family is
Sale of the practice to another optometrist (outside your
practice), medical clinic or other party
If there are no imminent successors working with you in the
practice, it may be advantageous to solicit third party purchasers
that include large corporate buying groups of similar practices,
large OD practices or other integrated health networks. Choosing
this route could mean receiving a higher value for the practice,
potential to continue working comfortably with less financial risk
and being able to work more flexible hours. To be attractive to
these potential investors, the business should be set up in a
professional manner including strong OD assistants, administrative
staff, systems and processes where the practice can continue to
operate smoothly upon your exit.
When you are moving down the line with a succession plan, your
accountant can be your strategic advisor and assist with the
purchase and sale agreement. Key components of the agreement
include: purchase price, term, retention payouts and financing.
Accountants also perform financial modelling and tax planning to
ensure the deal makes sense and you will be paid out in a
reasonable timeline. For example, one of the most beneficial tax
advantages is to use the capital gains exemption on the sale of a
corporation. This will save you approximately $200,000 of tax if
planned properly. Overall, the goal is to maximize the amount of
after-tax money that you will receive.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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