Has Accounting Lost Its Way?

Reprinted with permission from Accounting Today.

I recently found myself reflecting on the state of our profession while reading about today's most pressing issues: private equity, capital needs, workforce shortages, the 150-hour requirement, and growth strategies, among other industry concerns.

It brought to mind an article that I co-authored with Jay Nisberg over a decade ago titled "Metric of Greatness" in The Journal of Accountancy. Back then, greatness in our field was largely equated to size: Top 100, Best of the Best, Top 500, Fastest Growing. But it begs the question, does size alone define a firm's greatness?

The Trusted Advisor and the Meaning of Greatness

Accounting is not just an industry; it's a profession. By definition, a profession is "a principal calling requiring specialized knowledge and commitment." Personally, after almost 50 years in the field, I've come to truly embrace my professional role as a "trusted advisor." This calling transcends mere technical expertise—it's about serving as a steadfast, trustworthy confidant and guide. Though I haven't directly served clients in two decades, many still call, valuing our relationship and seeking my advice.

So what does true greatness in our profession look like? In today's landscape, it seems that those who sell out to the highest bidder are in the lead. My own firm sold 10 years ago for a lucrative offer, a majority decision I candidly voted against. Reflecting now, I wonder whether we made a strategic error or simply gave in to market pressures. Perhaps this is an opportune time to reassess our purpose as a profession.

The Core Elements of a Great Firm

At our proprietary conference MPB | Leadership Accelerated (Managing Partner Bootcamp), we dedicate significant time to client service and discuss the core expectations that clients have of our profession and us as professionals. To me, a truly great firm places client service at its core and is committed to fostering a first-class client experience.

Great firms also grow their people, creating learning environments that foster exceptional talent. This is not just a "nice-to-have" but a necessity, given that more than 70% of our workforce comprises millennials and Gen Xers who prioritize professional development. Investing in people and technology is equally critical for long-term success. Without these investments, a firm may meet short-term profitability targets but risk stalling its future growth and relevance.

Talent acquisition should be based on availability, not just current need. I've learned over the years that having the right people in place is often the solution to nearly every challenge. Additionally, great firms plan strategically for the future despite the unpredictability of change. Without a forward-looking strategy, firms risk losing control of their own destinies.

The Role of Leadership and Community in Long-Term Success

Moreover, great firms play a vital role in their communities, often serving as pillars of charitable engagement. However, I've observed that after acquisition, many firms abandon their community involvement as larger firms tend to reallocate these resources.

Finally, great firms cultivate strong leadership, nurturing current leaders and preparing the next generation. Leadership has never been more essential in navigating the fast-paced changes and complexities facing our profession. Our leaders must be able to communicate effectively, think creatively, and adapt quickly.

Redefining Greatness in the Accounting Profession

Yes, our profession is evolving and consolidating rapidly, but amid this change, let's not forget who we are and why we do what we do. Let's redefine greatness—not solely by size but by the depth of our commitment to clients, employees, communities, and the future of our profession.