Comments on: Small Accounting Firms: One Myth

By: Mark Bailey

Mark Bailey — Sun, 14 Aug 2011 20:58:43 +0000

Sadly, Jim, there all too many firms that are exactly in the position you describe. They are following a business model learned 30 years ago which has gone unmodified. Their inability to keep up with the changes demanded by our technology and cultural revolutions have rendered them dinosaurs. But there are many exceptional small firms who are leading in innovation. It’s not the Big 4 or the large regionals. They are steeped in bureaucracy and while change is difficult for them, rapid change is virtually impossible. Over the past few years I’ve noted that ‘change’ is being led by the next generation – the ‘thirty somethings’.

As a Practicing Fellow of the Verasage Institute I have regular opportunity to observe the inner-workings of a variety of young, small firms. There are rock stars out their, Jim. Don’t give up. You undoubtedly have some strong feelings about how it could or should be. Find a path and make a difference. In the meantime check out Verasage.com if you haven’t already, and if you want to talk shoot me an email at markbailey@markbaileyco.com and we’ll find a time.

By: Jim

Jim — Sun, 14 Aug 2011 03:33:46 +0000

Small firms are small for reason- the reason is that they are poorly managed. I work (for now) in small firm and it is run by backwards thinking old men with coffee stains on their cheap shirts, who work arounD the clock, are very miserable AND THEY DON’T MAKE A LOT OF MONEY.

By: Kevin Wells

Kevin Wells — Sat, 09 Apr 2011 18:47:54 +0000

Surprised no one has mentioned how accounting firms have cyclical workloads. Smaller firms run out of work quicker than big firms. Every fall the axe falls on staff, suddenly you are more likely to be fired and small firms never admit to being slow; it is all your fault and your reputation suffers.

By: Jim Caruso

Jim Caruso — Thu, 17 Jul 2008 14:14:30 +0000

I agree completely that “smaller revenue” clients face complex accounting issues. In fact, we consider those types of clients to be our niche – as we like to say, companies that are “small in size, big in issues.” The capital structures of smaller public or private clients are often more complex than their larger brethren; small companies need to come up with creative structures and “kickers” to attract investors, whereas a large public company can float basic debt or equity securities. Revenue recognition and software capitalization are other issues that are frequently encountered in the emerging growth companies we serve.

In a smaller firm, staff get to wrap their arms around all of these issues for a given client, and work directly with the entrepreneur, CEO or CFO on those issues, rather than spending six weeks auditing fixed assets or filling out SOX questionnaires.

When considering a smaller firm, do look for one that has specialized practice areas (so that you won’t become a “jack of all trades, master of none” doing both audits and tax returns) and a formal, quality training program. Partners and managers that have Big Four or national firm experience can also be a plus because some of those firms’ business practices can add value in a smaller firm.