6 opportunities every accounting firm should consider

6 opportunities every firm should consider

March 11, 2024 6:22 PM

The burden of choice is very real for accounting firms these days.

From the constant stream of new technologies and the proliferation of new firm models, to the emerging demand for services in CAS, ESG, cannabis and beyond, one of the most critical choices firm leaders can make is which to pursue, and which to ignore.

"We are all inundated with opportunities and are having to become more selective on the opportunities we explore," said John Whybrew, managing partner of Jackson, Tennessee-based ATA CPAs.

With that in mind, we asked top executives from the members of this year's Top 100 Firms and Regional Leaders to share the biggest opportunities they see in accounting. And while many pointed to broad areas of potential like artificial intelligence, digital transformation, advisory services and new practice offerings (see our feature story), others pointed to some very specific opportunities that firms can explore, a number of which are featured below:

1. Getting picky with clients

Given strong revenues and high demand for accounting services, some leaders suggested that firms can afford to be pickier about who they work with.

"I think one of the biggest opportunities I see for accounting firms is the ability to be more selective in the clients we accept," said Jason Mills, a partner at Lanigan Ryan, in Gaithersburg, Maryland. "I say this because we are in an era of smaller candidate pools and we need to work with clients that align with our firm's vision and values so that our employees feel valued for their efforts."

Tom Sulewski, CEO and president of Bellevue, Washington-based Clark Nuber, concurred: "Deliberate efforts to align clients and service offerings with a firm's strategic plan is a significant opportunity to point resources in the right direction for growth."

2. Don't do it yourself

The staff shortages plaguing the profession are well known, and firms are pursuing a wide range of solutions.

"We're a numbers industry, and we know that the numbers of students studying accounting, professionals getting their CPA licenses, etc., are not adding up to meet the demand, now or in the future," explained Ken Wolfe, president and managing principal at Camp Hill, Pennsylvania-based Brown Plus. "It's certainly a formidable challenge, but also an opportunity to think differently on ways we can combat it. For example, we have started looking at supplementing our staffing shortages by leveraging the assistance of offshore professionals."

More and more firms are taking advantage of strong pools of talent in India, the Philippines, Mexico and elsewhere to boost their capacity, and the growing roster of providers of that extra capacity are sharpening their skills and their ability to collaborate effectively with U.S. CPA firms.

3. Hire everywhere

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Another way to mitigate the staff shortages facing accounting is to take advantage of the systems and methods that both firms and employees developed over the course of the COVID pandemic to work remotely.

The ability to work anywhere, and to work with people who are anywhere, means that there are "no geographic boundaries to hiring talent," according to Mark Kruspodin, managing partner of Woodland Hills, California-based Duffy Kruspodin.

And while hiring beyond your local area may offer opportunities for salary arbitrage, the real benefit lies in vastly expanding a firm's pool of potential job candidates.

4. Hire non-accountants

Looking for accountants across the country is great — but do you always have to hire accountants?

"We can look outside the accounting profession for talent," said Suzanne Forbes, managing partner of James Moore & Co. in Gainesville, Florida. "Prospects considering a career switch, or who offer expertise a firm doesn't have, can create new service possibilities."

Much of the work that needs doing at CPA firms — from project management to client service — doesn't actually have to be done by a CPA. And the work that does require accounting knowledge may not require a CPA, or even a college degree.

"I can envision high school graduates who are not destined for or interested in a college degree attending technical accounting programs to learn the basics of accounting, and having very rewarding careers in our accounting firms," noted Allen Carroll, CEO and managing partner of Mobile, Alabama-based Wilkins Miller.

However firms approach it, "re-imagining the traditional staffing model and supplementing the professional CPA with other support team members will be necessary," said Clark Nuber's Sulewski.

5. Charge differently — and more

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Strong demand also gives firms some degree of pricing power — or at least an opportunity to "rethink the way services are offered and billed to address a more holistic solution set for clients with better perceived value," said Jana Cinnamon, chief operating officer of Edina, Minnesota-based Abdo, which she suggested might include package pricing of service stacks that are customizable for individual client needs.

"The industry also needs to reevaluate and recalibrate the pricing of our services," said Jeffrey Weiner, chairman and CEO of New York-based Marcum. "Charging more is not just about improving our bottom line but also a reflection of the value our services offer. Elevating our fee structure will allow us to invest more in talent development, technology and other resources, further enhancing the attractiveness and sustainability of the profession."

6. Get specific

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For many of the Top 100 Firms and Regional Leaders, the future is not about being all things to all people. Just as they're going to be picky about which clients they serve, they're also going to be picky about which services they offer those clients.

"Firms need to become focused and specialized, and have one or more niches for which they are known," Jeffrey Rosen, managing partner of Towson, Maryland-based Rosen, Sapperstein & Friedlander. "This will allow for talent attraction in a hyper-competitive environment, as well as support premium pricing."

A narrow focus (or a number of narrow foci) will also be the key to success in delivering valuable advisory services to clients.

"Warren Averett's leadership sees great opportunity in industry specializations and developing experts in specific fields," said Mary Elliott, the CEO of the Birmingham, Alabama-based firm. "When our advisors are deeply knowledgeable about their clients' unique problems (in industries such as construction, manufacturing or the nonprofit sector), we can become true advisors and develop deeper, fuller relationships with our clients. We are then able to meet our clients' needs in every aspect of their businesses, not just accounting."