Is it a new golden age of  ’small’ CPA firms?

Everyone is taking note of the consolidation of the CPA profession into megafirms as we see major mergers of equals (e.g. Reznick-Cohn, Clifton-Larson). The AICPA showed a decrease in the number CPA firms over the past five years from 47,000 to 43,000.

See also - 21st Century Practice Strategies

But might there be a counter-trend reversing that tide, hidden by the retirement of the baby boomers who own many of those small firms?

Futurists often say that for every major trend, there is often a series of counter trends that move in the opposite direction. We may be seeing that right now in the CPA profession.  Tom Hood executive director and CEO of the Maryland Association of CPAs (MACPA)  thinks so -

From Tom Hood’s CPA Success Blog –

Here are three reasons I think we are entering the age of the small CPA firm:

1. Fallout from merger mania as large firms and small practices without succession plans are merging at an ever increasing rate and often starting back up as small firms.

2. Layoffs in the corporate (or business and industry sector) due to the extended recession, which is creating a new small practice focused on providing CFO-for-hire services to small business as former CFOs and controllers are offering their expertise to small businesses instead of just working for one employer.

3. The emergence of small practices with technology-savvy professionals who work anywhere, anytime and are focused on providing higher value to their small to mid-size business clients. The technology is leveling the playing field for small practices.

What do you think? Are we experiencing the age of the small CPA firm?

Incoming search terms:

• small accounting firms (7)
• small vs big accounting firms (5)
• small cpa firm (5)
• small cpa firms (2)
• small vs large cpa firm (2)
• big 4 vs small firm (2)
• U S ACCOUNTING TODAY accounting firms corporatization (1)
• small vs large cpa (1)
• valuing small accounting firms (1)
• welcome to the new era of small cpa practices (1)
• small public accounting firms vs large accounting firms (1)
• small public accounting firms in the us (1)
• small cpa firms verses larger cpa firms (1)
• big 4 accounting firms vs small firms (1)
• small cpa firms information (1)
• small cpa firm vs large accounting firms (1)
• big 4 vs small accounting firms (1)
• big-4 CPA firms cloud computing benefits (1)
• how big is a small accounting firm (1)
• ken pun cpa (1)