The CPA market is becoming more dynamic every day. The merger and acquisition activity is all about scaling, adding services, and creating synergies. Niche firms are growing their core and adding additional specialties. Local firms are becoming regional.
There’s good news and bad news in this trend:
- The good news is the larger firms can offer more services and capabilities to clients.
- The bad news if you are not one of these growing firms, your clients are likely at risk.
The hard truth is if you are content and happy as a niche or local firm, you may be in trouble. Firms that had no reason to contact your clients now have services and capabilities to do so. In getting larger, they just made you smaller.
So how do you fight back? Obviously you can also look to merging or acquiring but what if you are happy with where you are today? Here are some thoughts:
- Know your clients. An annual survey simply won’t get it done. Take the time to understand their business and what they really think about your services and fees. If you have a transactional relationship, your client is at risk.
- Upgrade your services. When was the last time you looked at your tax organizer or client engagement letter? You clients notice if you are not on top of things and as far as your clients are concerned perception is reality.
- Showcase your value. Don’t let them steal your lunch money. If you are strong in a niche – showcase your value and leverage it to find new clients. Success breeds success.
Competition is coming. Don’t be caught off guard.