You wake up one morning, and everything is perfect: the weather’s gorgeous, the timing is right, and you finally have a chance to take a break from the office and do something for yourself. You sit down at your computer and book a weekend getaway at the coast. But then, one thing leads to another, and suddenly, your perfect escape turns into the Get-Away from Hell. Whether you get injured, fall ill, or, in a dramatic twist, become the victim of a zombie attack, your trip takes a turn for the worse.
Imagine this: one minute, you’re sipping coffee, planning your day, and the next minute, you’re in the hospital, surrounded by doctors who are shaking their heads, calling you a “medical mystery.” This happened to me in February 2025, and it made me wonder, what if I had waited just one more week before getting help? I might not have survived.
The scary part isn’t just that. The truly terrifying question is: What would happen to my bookkeeping firm?
As a sole member of my firm, I realized I don’t have a backup plan in place if something were to happen to me. Sure, my husband is a second signer on the bank account and is the President of the company—but that doesn’t mean he knows how to run the business or handle the day-to-day operations. That’s my job. My senior bookkeeper is my right hand, but he doesn’t have access to the firm’s bank accounts. So, if something were to happen to me, who would carry on the business or close it down?
This realization prompted a deep dive into Google, and after some research, I’ve come up with a few steps I’m going to take to ensure my firm is covered in case of a sudden, unexpected event. Here’s what I recommend you discuss with your attorney:
1. Designate a Successor or Authorized Person
Pick someone you trust to step into your shoes if you can’t manage the business. Create a Durable Power of Attorney (POA) to give that person the legal rights to act on your behalf. This could be a business partner, a senior team member, or someone close to you who’s capable of taking over in an emergency.
2. Set Up Business Continuation Provisions
Create a Will that outlines what should happen to your business if you pass away or become incapacitated. Be clear about whether you want the business sold, transferred to another person, or carried on by someone you appoint to oversee the operations and finances.
3. Operating Agreement
If you’re an LLC, make sure your Operating Agreement outlines what should happen if you can no longer manage the business. Include provisions for appointing a new manager or specifying that the business should be dissolved. You may also want to add a clause that gives someone the authority to manage the business if you become temporarily or permanently incapacitated.
4. Accountability and Access to Important Documents
Ensure that key documents (banking info, client contracts, financial records) are easily accessible by the person you designate. Leave instructions on how they should inform your clients of your situation and what will happen to their accounts.
5. Insurance
Consider taking out Key Person Insurance, which could provide the funds necessary to keep the business running while you make decisions about the next steps. It’s a safety net for your firm during a time of crisis.
6. Client Contracts
For long-term clients, make sure your contracts include provisions that allow for a smooth transfer of services if you are unable to continue. This can help ensure that your clients are taken care of without interruption.
7. Exit Strategy If Closing the Business
If you haven’t already planned your exit strategy, now’s the time to do it. In the unfortunate event that you need to close the business, you’ll need a plan for paying off debts, notifying clients, liquidating assets, and handling tax filings. Consult your attorney for advice on how to dissolve the business and ensure everything is wrapped up legally and financially.
In a Nutshell:
Life is unpredictable—one minute, you’re booking a weekend getaway, and the next minute, you could be in the middle of a zombie apocalypse, a medical mystery, or dealing with a vacation gone horribly wrong. But just because life has its twists and turns doesn’t mean you should leave your business to chance. Make sure you have a plan in place for when the unexpected happens. You never know when the sky will fall or when you’ll end up in the hospital. Plan now, and ensure your business is covered no matter what curveballs life throws at you.