How Small CPA Firms Can Compete and Grow
Small CPA firms face many of the same challenges as larger firms, but they don’t always have the time, staff, or resources to address them. So how can smaller practices remain competitive while providing the personal service their clients value?
In this episode of the Financially Fit Business podcast, I talk with Marjorie Natali, Senior Director of Growth and Engagement at the Florida Institute of Certified Public Accountants (FICPA), about the opportunities available to smaller accounting firms.
We discuss practical tools, professional resources, business development, client relationships, and the growing role of artificial intelligence in accounting practices.
You’ll also discover why growing a successful CPA firm doesn’t necessarily mean getting bigger. Sometimes, it means getting better at serving the clients you already have.
Listen to the Conversation
Small CPA Firms Have Different Resource Needs
Smaller accounting firms often face the same business challenges as their larger competitors. The difference is their capacity to address those challenges.
Marjorie explains that FICPA defines small firms as those with 50 or fewer employees. These firms frequently lack the time and personnel to research new software, evaluate service providers, and implement operational improvements.
To help, FICPA developed its Small Firm Suite, a collection of vetted resources designed to support smaller accounting practices.
The goal is to help practitioners spend less time searching for solutions and more time serving clients.
Growth Doesn’t Always Mean Getting Bigger
One of the most interesting points in our conversation is how smaller CPA firms define growth.
Marjorie shares that many practitioners aren’t necessarily focused on adding employees or dramatically increasing their client base. Instead, they want to strengthen their existing relationships, support their teams, and deliver better service.
That approach can also create opportunities for referrals and sustainable business growth.
When clients feel well supported, they’re more likely to recommend their accounting firm to other business owners.
Financial Advisory Services Create Opportunities
Accounting professionals have an opportunity to provide value beyond preparing financial statements and tax returns.
During our conversation, I emphasize the importance of helping business owners understand what their financial statements are telling them.
For example, what happens when a client’s profit and loss statement shows declining profitability? Or when cash flow problems are beginning to develop?
Recognizing those issues is important. Helping clients understand their significance and take appropriate action is where financial advisory services become especially valuable.
Smaller firms can differentiate themselves by having these conversations and helping clients make better financial decisions.
Practical Support Through A Practitioner’s Edge
FICPA has also introduced A Practitioner’s Edge, a podcast hosted by CPA Dan Henn that focuses on the challenges and opportunities facing smaller accounting firms.
Topics include marketing, business development, firm acquisitions, succession planning, practice management, and technology solutions.
Marjorie explains that the podcast currently features conversations about resources and service providers that support smaller firms. Future episodes are expected to incorporate practitioners who can share how they’re using these solutions in their businesses.
The podcast is available to everyone, not just FICPA members, and can be found through FICPA and major podcast platforms.
Using AI Without Losing the Human Connection
Artificial intelligence is another opportunity for smaller CPA firms to improve efficiency.
AI tools can help reduce time spent on repetitive tasks, giving practitioners more time to focus on their clients and the work that requires professional judgment.
However, AI-generated answers aren’t always consistent or accurate. Marjorie and I agree that human oversight, education, and responsible use remain essential.
The opportunity isn’t simply to use more technology. It’s to use technology in ways that strengthen the firm’s ability to serve clients.
Resources for Small CPA Firms
FICPA continues to explore additional support for smaller practices, including dedicated conference sessions, virtual peer discussions, and potentially regional roundtables.
Although these initiatives are being developed in Florida, many of the challenges and ideas discussed in this episode apply to accounting professionals throughout the country.
For more information about FICPA’s small firm resources, visit FICPA.org.
My takeaway: You don’t have to become a larger accounting firm to build a stronger one. Better resources, meaningful client conversations, and a thoughtful approach to technology can help smaller practices deliver exceptional value.
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Common Questions About Small CPA Firm Growth
How can small CPA firms compete with larger accounting firms?
Smaller CPA firms can compete by emphasizing personalized service, building strong client relationships, adopting efficient technology, and offering financial advisory services. Access to vetted resources can also help them operate more efficiently without significantly increasing staff.
What resources are available for small CPA firms?
Professional organizations such as the Florida Institute of Certified Public Accountants offer resources designed for smaller practices. FICPA’s Small Firm Suite provides access to vetted solutions, while its A Practitioner’s Edge podcast discusses practice management, technology, and business development.
Does a small CPA firm need to hire more employees to grow?
Not necessarily. Growth can come from improving service quality, increasing efficiency, strengthening existing client relationships, and generating referrals. Adding employees is only one possible growth strategy.
How can financial advisory services help smaller accounting firms?
Financial advisory services allow CPAs to help clients interpret financial statements, identify profitability and cash flow concerns, and make informed business decisions. These conversations can strengthen relationships and distinguish the firm from competitors.
How should small CPA firms approach artificial intelligence?
AI can help automate repetitive tasks, support research, and improve efficiency. However, firms should establish appropriate oversight and ensure that professionals review AI-generated information before relying on it for client decisions.