James C. Metzler, AICPA vice president, small firm interests, says that small firms inherently possess strengths not found in larger firms—in recruiting, retention, serving clients, and managing. The AICPA is working on projects that will help small firms capitalize on these advantages.

Here are some specific examples of these strengths:

Recruiting:

• Staff members may prefer a “family atmosphere.”
• Small firms can use staff members to address specific concerns (e.g., flex time) of candidates.

Retention:

• Small firms can more easily make staff feel they are important. Partners have more personal interaction with staff. They attend staff members’ family events.
• Partners more often help staff in the field.
• Staff members get better understandings of client business operations by being involved in most aspects of the engagements.
• It is easier to identify special strengths of staff, allowing them to be important contributors even if they are not on a path to partnership.
• Many staff members prefer small firms because there is less travel required.

Roles of women:

• Women advance more easily in small firms.
• Women represent a larger percentage of the professional staff at small firms as compared to large firms.

Serving clients:

• Clients almost always have a partner involved in serving them.
• Clients of small firms generally rely more on their accountants for advice and decisions that are made quickly.

Management:

• At small firms partners really feel like owners, whereas at large firms they tend to feel like employees.
• Staff can get answers to questions quickly.
• Changes can be made more easily and quickly.
• In small firms, management can more easily determine whether staff are productive and can help them when they need to be more productive.
• One person can handle marketing and recruiting.
• The managing partner can meet all new clients.

The following questionnaire can be given to staff and partners to help identify your small firm strengths:

What makes you proud to be a member of the firm?
What should candidates for employment understand about the firm?
What should prospective clients understand about the firm?
What makes the firm a great place to work?
What do clients especially like about the firm?

From Journal of Accountancy, June 2006. For the complete article, click on the following link: http://www.aicpa.org/pubs/jofa/jul2006/metzler.htm.