Welcome to another edition of Growth with Toth, where we explore strategies for leadership, growth, and success in the accounting world. Today, I want to tackle a question I often ask CPA firms that usually results in a familiar answer:
"What is your firm's special sauce?"
Most of the time, the responses I get fall into two categories:
Now, don’t get me wrong—people and client service are fundamental to success in any professional services firm, especially in a people-driven business like ours. But here’s the thing:
There are ~44,000 CPA firms in the U.S., and the vast majority of them give the same answer.
So if everyone’s special sauce is their people and service, are these really the factors that differentiate your firm? If everyone claims to excel in the same areas, it becomes increasingly difficult to stand out.
We’re in a time when client expectations are evolving. Sure, they want great service and knowledgeable professionals. But they’re also looking for something more. Your clients need value beyond the basics—beyond what they could expect from any other firm. So, if "our people" and "our client service" are baseline expectations, what is it that truly makes your firm different?
Here are a few ways to go beyond the generic responses and uncover your true competitive edge:
Having knowledgeable staff is one thing, but do you have a niche expertise that truly sets your firm apart? Whether it’s deep experience in a specific industry, service lines or a unique skill set in areas like ESG reporting, cyber security, wineries or AI-powered audits, firms that master a niche stand out especially in a sophisticated market.
Ask yourself: What problems do we solve that others can’t?
It’s one thing to claim you have great people. It’s another to cultivate a culture that truly attracts, retains, and inspires top talent. In today’s competitive talent market, firms that live and breathe a high-performance culture—not just talk about it—tend to outperform.
Is your culture driving exceptional outcomes?
Leveraging cutting-edge technology isn’t just about efficiency anymore. Clients expect their accountants to be ahead of the curve. Whether it’s cloud accounting, data analytics, or automated advisory services, how are you using technology to enhance your client relationships and streamline complex processes? And it's not just clients that expect it, so does your younger talent.
Is your tech strategy helping you work smarter?
Many firms provide great reactive client service. But exceptional firms go one step further—they solve problems before clients even know they exist. This anticipatory approach, combined with strong advisory services, can create deep, lasting relationships that go far beyond compliance.
How proactive is your client service?
Yes, there’s a difference. Providing great client service is essential, but designing an end-to-end client experience that exceeds expectations is what sets market leaders apart. From seamless onboarding to proactive communication and insightful reporting, the full client journey should feel effortless.
Does your firm design experiences or just deliver services?
Gary Shamis, founder of Winding River Consulting, recently published an insightful article in Accounting Today titled, "Is the Trusted Advisor a Thing of the Past?".
In it, Gary reflects on how the CPA-client relationship is evolving from a trusted, relationship-driven role to a more transactional one (primarily for larger firms), driven by industry demands and a shrinking talent pool. The focus is on getting the work done, not the relationship. However, the "Trusted Advisor" role is not dead—it's becoming a premium service, much like concierge medicine, especially for firms $5mm to ~$150mm. Firms that can continue to foster these deep relationships will remain highly valued and will likely be able to command higher fees.
Gary’s message is clear: if your firm can maintain its role as a true "Trusted Advisor," you’re sitting on an invaluable differentiator.
How does your firm ensure it remains a trusted advisor in the evolving landscape?
In today’s competitive landscape, simply relying on "our people" or "our client service" to differentiate your firm isn’t enough. The firms that succeed are the ones that take a hard look at what truly sets them apart—and then leverage that to deliver lasting value to their clients.