Daren Moore FCCA, Group Chief Executive Officer of The TaxAssist Group, and former equity partner at Baker Tilly and Price Bailey, discusses issues that senior accountants and managers in practice need to consider when looking at career progression and some of the challenges inherent in the traditional partnership model.
A Changing Ambition
When we’re working our way up the ranks, I’m sure we’ve all looked at the partners at some point and thought “I’d like to be in their shoes one day”. But as we near the top, it becomes apparent that the route to partner is not without obstacles and that being sat in that chair is perhaps not all it’s cracked up to be.
My own experience in practice was fairly typical and mirrors many others I have spoken to. After qualifying, I was absolutely determined to get to partnership as quickly as possible, as I was certain practice was the right career choice for me. My initial focus was on promotion through the various levels of seniority without much consideration of exactly what partnership would mean. However, as I got closer to my goal I started to think about some of the practicalities. Would there be space around the partner table? What were the existing partners retirement plans? What was the earning potential? What did life as a partner really involve? Would I actually enjoy the role?
What I realised was that it’s often difficult to answer these questions.
I was fortunate enough to spend 15 years as a partner with two great firms, but my time in practice highlighted some of the questions that those looking at future partnership should consider.
Opportunity
Ideally partnership would be offered based on merit, but unfortunately it can be a case of right place and right time.
Many practices have limited ability to add to their partnership group and opportunities are often linked to retirements. There will also be a constant need to maintain and build on skills within practices, which means that external candidates are often prioritised over home grown talent.
So, try to understand likely time-frames for partnership opportunities. Are they going to fit with your own plans?
Risk, Reward, and Reality
The promise of significantly increased earnings is part of the appeal of partnership, but the reality is often very different. Most accountancy firms still opt for the traditional structure of a partnership or a limited liability partnership with equity and fixed share or salaried partners.
Junior partners generally start on lower levels, with the promise of promotion and offers of equity in the future. But when will that happen? Equity tends to be fiercely guarded. That’s for good reason, it’s valuable, but when will you be able to share in this?
Also consider risk – irrespective of earnings and ‘grading’ in the partnership structure, risk is generally shared equally.
The Capital Barrier
If the offer of equity does come, it almost certainly won’t be for free. The cost of buying into equity continues to rise. In an era of higher interest rates, student loan debt, and property affordability challenges, younger professionals—especially Millennials and Gen Z—may find themselves priced out of equity.
More and more prospective equity partners are turning down the opportunity as they feel the cost of equity is prohibitive.
Ownership and value
Many within practice who aspire to partnership would equate it with ownership, but is that really the case?
Partnership is really about maintaining for future generations. If you compare it to other business models, it’s more about stewardship than ownership. Practices can be very profitable and can generate significant income levels for equity partners, but where’s the opportunity to actually realise the value of the business?
Is It the Right Cultural Fit?
Partnership has to work at a personal level, so you will need to think about whether the role will be right for you. Does the business share your moral compass? Is it moving in the direction you believe to be right? The younger generation are much more aware about their impact on the environment and their social impact; having stronger ideals about work-life balance and family and views on the right cultural fit.
Technology: A Make-or-Break Factor
The pace of technological change has only accelerated. The shift to AI-driven bookkeeping, automated compliance, and real-time reporting is reshaping the accountant’s role.
Ask yourself:
- Is your firm innovating or stagnating?
- Are decision-makers embracing tech or resisting it?
- Are terms like data analytics, AI, and cloud integration part of your firm’s daily vocabulary?
Making Tax Digital (MTD) for Income Tax Self Assessment is looming. Forward-thinking firms are testing systems and training staff. Lagging behind now could mean major disruption later.
The future of the industry
All businesses should be constantly evolving and thinking about how they can provide the best service to their clients; whilst maintaining efficiencies. But how does this work in a world of digitalisation, automation, AI etc? Many commentators are suggesting a fundamental change in our sector over the coming years.
When considering partnership you need to consider how your practice will cope in this environment. As always, change will bring opportunities for those who are prepared, but huge challenges for those that are not. The expectation is that many practices simply won’t survive and that there will be significant consolidation in the sector.
What Are Your Options?
For many, partnership remains a fulfilling and financially rewarding career goal. But for others, it may not deliver the growth, purpose, or autonomy they seek.
Alternatives worth considering:
- Start your own firm: Many accountants have set up independent practices over the years as they recognise the potential to build both income and capital value.
- Join a franchise model: Franchising offers independence with the safety net of brand, systems, support and peer community.
Is partnership right for you? It might be if your firm offers the right culture, opportunity, and vision for the future. But don’t be afraid to rethink the traditional path. The profession is changing, and your career can too.
If you're ambitious, forward-thinking, and committed to adding value, you can thrive - whether that’s as a partner or business owner forging your own path.
About the author:
Daren Moore FCCA joined The TaxAssist Direct Group Board of Directors in February 2018. Daren has spent his whole career in the accountancy practice sector, having worked his way up from accounts trainee to a member of the Management Board of Price Bailey LLP, a Top 25 regional firm, where he has an outstanding track record of achievement.
Daren's role involves working alongside our award winning support team, using his 25 years of experience in practice to help our network of franchisees grow their businesses and deliver high quality compliance and advisory services to their clients.
He works to ensure that TaxAssist continues to grow, capitalising on its growing brand and reputation as a leading provider in the UK and supporting the business as it looks to mirror this success at a global level.
