Smaller CPA Firms Are Facing Growing Challenges
By Joe Tarasco, CEO and Senior Consultant at Accountants Advisory Group
Smaller CPA firms are facing growing challenges including complex client needs, new regulations, staffing shortages for growth, lack of contemporary and formal advisory services, and rising technological costs.
Merging with a larger firm can unlock:
Access to deeper technical expertise
Expanded advisory and consulting services
Marketing and lead generation support
HR resources including recruiting, retention, and training
Contemporary technology and administrative infrastructure
A strategic merger can help smaller firms stay competitive, enhance client offerings, and secure long-term growth. Learn why joining forces with a larger firm might be the key to your firm’s future success.
Why Smaller CPA Firms Should Consider Merging with Larger Firms
In today’s rapidly evolving accounting industry, smaller CPA firms face increasing pressure to deliver high-quality services, maintain regulatory compliance, and meet growing client demands. While independent firms often pride themselves on personalized service and local relationships, the competitive landscape is shifting. Clients are seeking firms that offer a full spectrum of technical expertise, advisory capabilities, and technology-driven solutions. For many small and mid-sized firms, merging with a larger firm that offers greater resources is a strategic move that can secure long-term growth, stability, and client satisfaction.
Access to Greater Technical Expertise
Tax laws, accounting standards, and industry-specific regulations are more complex than ever. Larger CPA firms typically have specialized teams dedicated to areas such as international tax, state and local tax, forensic accounting, cybersecurity, and business valuations. A merger gives smaller firms access to this deep bench of technical expertise without the steep investment in hiring or training. This enhanced technical depth not only improves service quality but also opens doors to serving more sophisticated clients and industries that may have been out of reach previously.
Expanded Advisory Services for Clients
Modern clients expect more than just compliance work—they want strategic insights to grow and protect their businesses. Larger firms often have established advisory practices, offering services like outsourced CFO support, mergers and acquisitions consulting, business process optimization, and wealth management. By merging with a larger firm, smaller CPA firms can immediately offer these value-added services, strengthening client relationships and increasing revenue opportunities. This broader service portfolio can also help firms compete with non-traditional players, including financial technology providers and consulting firms entering the accounting space.
Enhanced Infrastructure and Technology
Building and maintaining a modern accounting infrastructure is both costly and time-consuming. Larger firms typically have the latest technology platforms, cloud-based accounting systems, cybersecurity protections, and process automation tools that smaller firms often struggle to implement on their own. Access to these resources through a merger can improve operational efficiency, reduce risk, and enhance client experience. Additionally, larger firms often have well-developed marketing, HR, and IT departments, allowing smaller firms to offload administrative burdens and focus more on client service and growth.
Attracting and Retaining Talent
The accounting profession is facing a significant talent shortage, and smaller firms are often at a disadvantage in recruiting and retaining top professionals. Larger firms can offer more structured career paths, continuing education programs, mentorship opportunities, and competitive compensation packages. By joining forces with a larger organization, smaller firms can provide their teams with the resources and growth opportunities they might not otherwise have access to, boosting morale and retention.
A Strategic Path to Long-Term Success
For many small CPA firms, a merger is not about losing independence but about gaining sustainability. Aligning with a larger firm can preserve client relationships, enhance service offerings, and ensure the firm thrives in an increasingly competitive market. By leveraging greater technical, advisory, and infrastructure resources, small firms position themselves to remain relevant, profitable, and forward-thinking for years to come.
In a marketplace where clients expect comprehensive solutions and innovation, merging with a larger firm can be the catalyst for growth and longevity that smaller CPA firms need to secure their future.
Contact Joe Tarasco, Senior Consultant at Accountants Advisory Group, with any questions or to schedule a meeting.