Understanding Alternative Practice Structures

An alternative practice structure (APS) differentiates itself from traditional partnership models by separating firms into at least two entities: one providing attest services and the other offering non-attest services such as tax or consulting. This model has been around for decades, with CBiz being one of the earliest adopters in the 1990s. By creating distinct legal organizations, APS allows accounting firms to navigate regulatory complexities while also enhancing flexibility in ownership structures. This shift ultimately aims to modernize the profession and adapt to new financial landscapes, especially as more firms explore the potential for private equity investments.