The Advantages Smaller Accounting Businesses Have Over ‘Big Four’ Firms

By Dean Bassal

If you operate a smaller-sized accounting firm, it’s easy to be awed by the major players in the industry. Accountancy and consulting firms like the “Big Four”–Deloitte, PwC, Ernst & Young, and KPMG–are generally considered to be market leaders in the field, and they have the illustrious client lists to match.

You might feel like you’re living in the shadow of these giants, so to speak, and nobody would blame you. How could a smaller firm such as yours ever compete with these bigger, more prestigious names?

While there’s no doubt that the Big Four have the advantage of a global network, an extensive portfolio, and a huge number of employees at their disposal, bigger isn’t always better, especially when it comes to a service-based industry such as accounting.

Don’t believe us? Read on to find out the advantages of small accounting businesses, and how they can have an edge over bigger competitors.

1. Be interested in building genuine relationships with your clients.

A client wants to know that their accountant is someone who will not only take the time to properly understand their business or financial situation, but who is also interested in building a genuine and ongoing professional relationship with them.

A bigger, more prestigious firm might have more experience and a list of impressive clients, but remember that for every impressive client, there are also lots of clients that might be from smaller companies. It is these smaller companies that you can attract, simply by offering better and more personalized service.

Due to the large number of employees a Big Four accounting firm has, smaller clients might find themselves dealing with different people each time as their file gets shared. In fact, some clients may never get to know their accountants. Also, turnover at the big firms is often high, and that really nice accountant you liked last week might not be there next time you call.

For smaller companies that may not make the “prestigious” client list of a Big Four firm, choosing a small accounting firm that offers high-quality services and a genuine interest in their business is often a better bet, not to mention better value for their money.

Takeaway: If you’re a smaller accounting firm, make sure you’re able to provide your clients with excellent service and high-quality expertise, and then work on really getting to know your clients and taking a genuine interest in their businesses.

2. Be flexible.

One of the great benefits of being a smaller accounting firm is the autonomy you have when it comes to dealing with clients. Does a client need to discuss payment? Big firms have certain policies and practices in place that every employee needs to follow; however, you have the flexibility of offering a service rate and payment plan that both you and the client are happy with.

Does the client only require some services and not others? Instead of being forced to choose the accounting package that is closest to their needs, clients who choose a smaller accounting firm are more likely to get an individually tailored range of services, which in turn might even save them from spending extra on “included services” that they don't need.

As a smaller firm, you would also have the opportunity to undertake a much wider range of accounting work, which can be a real advantage to clients that are looking to discuss more than one area of their business and finances.

Instead of getting passed around from one department to another and having to meet several different representatives that might not even understand their business well, clients that choose smaller accounting firms often benefit from a “one-stop shop” of sorts. Plus, because you already have a genuine relationship with the client, your client is more likely to discuss other aspects of their company with you and seek your advice.

Takeaway: Be flexible with your service options; rather than come up with a “one size fits all” solution that you try to use for every client, take the time and effort to understand each client’s business and finances, and offer them accounting services that are tailored to their unique and specific requirements.

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3. Offer a better work environment to attract top talent.

Time is money, there’s no doubt about that, and whether you’re a Big Four firm or a smaller accounting practice, you need to ensure that you’re making a profit. However, it is widely recognized that employees at Big Four firms put in much longer hours than those at smaller companies, not to mention there are a whole host of other (not always positive) issues that are associated with working in a major firm.

As a smaller accounting firm, the quality of your work is very important, and the best way to make sure that you are providing your clients with high-quality work is to hire only high-quality employees. While many accountants, particularly those that are seen as “more ambitious,” choose major firms for their prestige and high-flying career opportunities, you need to know your advantages as a smaller firm and capitalize on those to attract great talent.

Here are advantages you can offer employees:

• Better exposure. By virtue of their having fewer people, smaller firms are able to give their employees better exposure and a more well-rounded accountancy experience.
• Work-life flexibility. Smaller firms are able to offer more flexibility in terms of work-life balance, working arrangements, and work hours.
• A welcoming environment. Smaller firms generally have a cozier, warmer, and friendlier atmosphere, which makes for a more personal and more welcoming environment to work in.
• Hands-on experience. At a smaller firm, employees can enjoy a more hands-on experience, and a chance to really get to know their clients. Employees at smaller firms are also more likely to feel that they are serving their community in a more personalized way.
• 'Ownership' in the business. Even as a partner in a big firm, an individual is still one of many partners, and can sometimes feel like just another cog in a big machine; in a smaller firm, it’s much easier for partners to take ownership of the business, which translates to them being more invested in the growth of the company.

Takeaway: Make the most of your status as a smaller firm and create the best work environment that you possibly can. Not only will this help you to attract top talent who are perhaps wanting to travel less, a pleasant place to work, and better work/life balance, it will also boost the morale of all your other employees–and it will show! A company where its employees are being treated well and everyone is happy is a company that is attractive to prospective clients, so it’s a win-win for everybody.

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