By Michael B. Ceschini, Managing Member, Ceschini CPAs Tax & Advisory
Let’s face it, accounting is no longer a one-size-fits-all profession. With the increasing complexity of the work needed by many industries, a broad-brush approach to our work is no longer sufficient. Knowing your strengths – and just as importantly, your limitations – can make all the difference.
In my experience, teaming up with other firms with specialized knowledge isn’t just a nice-to-have; it’s a must-have. By partnering with specialized firms, we can provide better service, keep our clients happy, and uphold the reputation of our profession as one that prioritizes client needs above all. Think of accounting like cooking: Just because you can make a mean burger doesn’t mean you can (or should) serve homemade sushi at your next gathering. Straying too far from your expertise can lead to slip-ups, particularly in industry-specific work where details really matter.
For example, I spend most of my time working with construction industry clients. Without a deep understanding of the nuances impacting these businesses, it can be easy to misclassify costs, misunderstand contract terms or miscalculate tax liabilities. These easy-to-make mistakes aren’t just embarrassing; they’re costly and can lead to compliance issues.
If a client’s needs go beyond your expertise, it’s not a failure, it’s an opportunity. If you’re fumbling through industry-specific issues, most clients would completely understand – and even appreciate – if you told them you were bringing in an expert in their field. In fact, clients tend to stay loyal and make more referrals when they see you’re committed to meeting their needs.
It is best to connect to colleagues with specific industry expertise before you need it, since we all know that issues never arise with warning or time to casually address them. Look for firms with a proven track record in the relevant area with the goal of finding someone who complements, rather than competes with, your skills.
Collaboration also means you can offer services that might otherwise be out of reach for your firm, making you more versatile and appealing to a broader range of clients. For example, many RFPs now want a portion of the work to be assigned to a Minority/Women-owned Business Enterprise (M/WBE). By partnering with smaller M/WBE firms, you may be able to bid on previously unattainable work and create a lasting relationship that is mutually beneficial for years to come.
How you approach it depends on the needs of both firms and their clients:
- Formal partnerships are more structured and involve an ongoing agreement to work together on certain types of projects or clients.
- Ad-hoc project collaborations are less formal, allowing firms to work together on a case-by-case basis when specific expertise is needed.
Each model has its own benefits and considerations, so it’s important to choose a method that aligns with your firm’s goals and client needs. But most importantly, clear communication is critical. Discuss up front how your collaboration will work, including how you will pay each other and agree not to poach each other’s clients. The last thing you want is for ambiguity at the beginning to lead to misunderstandings down the road.
Collaboration isn’t just beneficial – it’s becoming necessary in today’s specialized market. By recognizing your firm’s strengths and partnering with specialists, you can provide better service, reduce client turnover, and uphold the reputation of the accounting profession.
