By Jeremy Clopton
If you’ve spent any time paying attention to the headlines in the accounting profession, it’s easy to conclude that there is only one path forward.
Every week — sometimes every day — seems to bring news of another merger, another private equity investment, or another firm pursuing a new ownership structure. The conversation increasingly centers on scale, growth, profitability and enterprise value. As a result, many leaders of independent accounting firms find themselves wondering whether they can still compete or whether independence is becoming a thing of the past.
From my perspective, that conclusion is premature.
The Path for Independence
There is still a path for independent accounting firms. That doesn’t mean independence is the right answer for every firm. Some will thrive through mergers, outside investment or different ownership models. The point isn’t choosing the “right” path for the profession. It’s choosing the right path for your firm.
There is more than one way to win.
The most successful independent firms I work with have one thing in common: they know who they want to be. They have a clear vision for the future of their firm. They know who they serve, what they stand for and what they are trying to create. Because of that clarity, they don’t allow industry trends or marketplace pressure to dictate every decision. Instead, they filter strategic choices through the lens of their vision.
That doesn’t mean they ignore change. In fact, the opposite is true.
Building a Business Through Adaptability
The best independent firms are remarkably adaptable. They recognize that the future will require different approaches to talent, technology, client experience and service delivery. They understand that the “how” must evolve with the times. What remains constant is the core of who they are and the future they are trying to build.
These firms also recognize an important reality: they are running a business.
That sounds obvious, but it requires leaders to make difficult decisions. They understand that leadership is often uncomfortable. They are willing to address underperformance, invest in the future, challenge outdated practices and make decisions that may not be universally popular. They embrace the discomfort because they understand that meaningful results require meaningful leadership.
The Meaning of Success
One assumption I struggle with in today’s environment is that there is only one definition of success.
Many conversations across the profession imply that firms are leaving money on the table if they aren’t pursuing maximum growth, profitability or firm value. Could some firms be bigger? Certainly. Could they grow faster? Probably.
But that doesn’t necessarily mean they should.
The reality is that different firms have different definitions of success. Some leaders want to build the largest firm possible. Others want to create exceptional careers for their people, serve a specific client niche, maintain a particular culture or achieve profitability levels that support their goals without sacrificing what matters most to them.
Successful independent firms understand what “enough” looks like. They define success intentionally and then build their business to achieve it.
Choosing Your Own Path
As firm leaders, there’s tremendous pressure to pay attention to what everyone else is doing. The profession is full of opinions, predictions and success stories. There is value in learning from those experiences. We should absolutely remain curious and open-minded.
At the same time, we must remember that other firms’ decisions aren’t our strategy.
As a leader, you are the steward of your firm’s future, not theirs. Your responsibility isn’t to replicate someone else’s vision. It’s to create and achieve your own.
The future of accounting firms will not be defined by a single ownership structure or growth strategy. There will be firms that thrive through mergers. There will be firms that thrive with private equity investment. And there will be firms that continue to thrive independently.
How To Win
What will separate successful firms from struggling firms is not the path they choose. It will be the clarity, conviction and discipline with which they pursue it.
In a profession filled with noise, perhaps the most important leadership question is not, “What is everyone else doing?” but “What are we trying to create?”
Because there is still more than one way to win.
