Continuing or Selling a CA firm whose partner expired

This query is : Resolved

DIVYESH JAIN (Querist)
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09 January 2020 Hello,

I need some advice from the real life experiences i am facing.

My dad had a proprietory firm from 30 years. I am an MBA by qualification and I was working with my dad from the past 15 years. We both were handling the firm very well. But suddenly last year in April my dad expired due to cardiac arrest and the entire office work load came on me.

I tied up with a CA who is well known to me and we made an arrangement in which all the audit work in which signature of CA is required will be done by him. The sharing is 50% in this and the staff employed will be mine. All the audits got completed in time and returns were filed timely. Some of the existing clients went away as they had more trust on my dad since he was a CA.

Now at present there is less work for me and the 2 staff employed with me, I feel the need of only one. But if I remove one of them then next year audit will get into problem as 1 staff cannot handle everything.

My problem is after sharing the audit fees with the CA and after deducting other expenses like salary, electricity, office expenses there is not much left for me in Profit incase of running the firm.

I also have a Payroll Outsourcing business in which 2 of my clients also do tax audit with me. In payroll work my profit is taken in different entity and this work is done entirely by myself and there is no sharing of this work with CA but if I sell the firm I fear the client might go from me.

Can anyone here suggest me what course of action I must take now. Whether to sell the firm or keep on running like this with not much margin in audit work. I want to think on long term basis as I am only 35 now. My only interest is in Individual returns and Payroll work as CA sign is not required.

Thanks,