This will be my last column as AICPA’s Vice President of Small Firm Interests before my retirement at the end of June. As I leave this job after nearly a dozen years, I’m happy to say that small firms are here to stay. They have come into their own and they are evolving in ways that continue to enhance their relevance to clients.
The future is bright
Small firms offer CPAs the chance to run their own shops, create their own unique culture and embrace their entrepreneurial talents.
During the pandemic, small firm owners helped their clients survive and thrive. Armed with a new perspective on all they have to offer, they are now harnessing new approaches and tools that are making them more profitable and better able to retain great people. They have made smart choices that will enhance their competitiveness, in areas that include:
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Talent and capacity. Many small firms are using outsourcing or offshoring to enhance their capabilities so that they can operate more efficiently and provide their people with a less stressful and more satisfying work environment.
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Technology. Small firm owners realize that keeping up with new and emerging technologies is a worthwhile investment. They appreciate the value that technology can offer in terms of faster and more streamlined workflows and processes and the potential to offer higher-value services. I believe that they will be at the forefront in using AI and generative AI to enable them to expand their capabilities and do what they enjoy most—provide great service to clients.
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Fee increases. Small firms recognize their size does not limit the value of the knowledge and capabilities they provide. They are increasingly charging based on access to the information, insights and analysis they can offer to clients.
Building relationships and resources
It has been exciting to be part of their journey. When I first saw the description for this job in 2014, I knew it was right for me. During my 30 years of running a six-person firm, I experienced the satisfaction of helping clients achieve their goals and the enjoyment of working with a great team, as well as some of the challenges that small firms face. I served as chair of the Minnesota Society of CPAs and was active on many of its committees. As chair of its Political Action and Legislative Affairs committees, I testified before the state legislature, so I knew how to tell our story. I was excited about the chance to leverage the experience I gained within my state to make a difference at the national level.
Looking back, I’m most proud of the many relationships I’ve built with small firm owners in this job. These connections are valuable to me and to the Association because of the insights they give us into the challenges and opportunities practitioners are facing. The same is true of the bonds I have with state society staff and leadership and the initiatives we worked on together. In my two webcasts—Small Firm Update and Small Firm Issues—I was able to share information and ideas that I learned because of those relationships.
Through its robust advocacy, the AICPA will continue to help smooth the path for small firm success. The AICPA and CPA.com are developing new solutions and guidance that support small firm interests and develop a true sense of community for them.
A strategic outlook
I believe that many new graduates and other talented CPAs will continue to relish the chance to go out on their own. Whether they are launching a firm or steering an established practice, I would advise small firm owners to think strategically about steps that will maintain their culture and vision while boosting their agility and ability to navigate the change going on around them. Adapting new processes and protocols enables small practitioners to preserve and enhance their practices. They make it possible to build a stronger firm that is better able to chart its own course going forward. I wish all of you well in your efforts!
More Small Firm Solutions here!