For CPA Firms, It's Survival of the Fittest

Source: RedZone, Play of the Month

The following includes excerpts, reproduced with permission, from an article by Accountants Advisory Group.

What made your firm successful in the past may not necessarily be the same formula that will lead to success in the future. It's not the most technical accountants nor the smartest, but those partners and firms that adapt quickly to marketplace changes that will thrive and remain independent in the future.

Established firms that have had some measure of success are more likely to be in denial because the “old way of doing things” worked for them and they have difficulty making tough decisions and adapting to an ever-changing CPA firm marketplace. They have not bought into Charles Darwin's theory of survival of the fittest.

CPA firms that want to avoid merging up into larger firms need to determine their optimal strategy given their partner and staff capabilities. They also need to consider their financial resources and take into account the current and expected future CPA firm business environment. Changing with the marketplace is not an option, it's the only way to sustain success over a long period of time and create a succession plan.

For the complete article, read “Changing Your Game Plan to Play Better Offense.”

From RedZone, Play of the Month, Accountants Advisory Group, October 2012, www.AccountantsAdvisory.com.