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Source: Partner’s Report—the Monthly Update for CPA Firm Owners
Alliances among CPA firms are becoming creative. Here are some illustrations:
v Ullmann & Co. PC, Phoenix (Peggy Ullmann, [email protected]), belongs to an alliance of seven local small firms (two to 12 people). The members help each other by sharing technical information, training, and staff. They cooperate in group functions such as staff satisfaction surveys and strategic planning sessions using one facilitator for the group. They have a formal practice continuation agreement, informal discussion groups, monthly meetings, periodic updates from outside speakers, and an annual retreat.
Competition is not an issue in the group. The group is kept intentionally small to maximize communication and sharing.
v Pirolli, Deller & Conaty PC, Warwick RI ([email protected]) maintains multiple alliances. The firm’s offices are located within the offices of a larger firm. It shares resources and the two firms send referrals to each other. Pirolli, which has other alliances as well, no longer does “certified audits” and nonprofits. These are referred to other firms. It refers client work to other firms while retaining the clients, acting like a general practitioner physician. Loss of clients is not a fear because the firm has built a relationship of trust and loyalty with its clients. There is a formal letter of understanding with the larger firm. The result is better service for the clients. Pirolli generally attends all meetings between the clients and other CPAs. Sometimes there are referral fees.
There are also benefits for larger firms—the small firms can provide clients for the niches developed by the larger firms.
Pirolli foresees a time when firms that prepare financial statements will be limited with respect to other services. Alliances in which work is referred to alliance members will help deal with this problem.
To find alliance partners, the best place to start is at the state CPA society. Find firms that are different from yours to maximize the opportunity to leverage your client base.
From Partner’s Report—the Monthly Update for CPA Firm Owners, July 2005, p. 1. For the complete article click here. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $329. 212-244-0360, [email protected]. | 
