Research Challenges Assumptions About Successful Accounting Firms

Findings suggest advisory services may not be critical to firm fulfillment. 

The Center for Accounting Transformation has released the Advisory 360 Research Report, offering a comprehensive look into what drives success for accounting firms. The study, sponsored by Avalara and performed in collaboration with CPA Trendlines, challenges conventional narratives, revealing that both advisory- and compliance-focused firms can achieve success when supported by strong foundational practices. 

Key Finding: Balance Over Exclusivity
The study reveals that firms blending compliance and advisory services perceive themselves as more successful than those with a single focus. Successful firms reported an average of 5.67 on a scale from 1 (compliance-only) to 10 (advisory-only), emphasizing the value of balance rather than exclusivity in service offerings. 

“The Advisory 360 Research Report is more than just a study. It’s a blueprint for growth and innovation in accounting.”   

“Strong compliance foundations enable accurate and effective advisory work,” said Donny Shimamoto, CPA, CITP, CGMA, the founder and managing director of IntrapriseTechKnowlogies and the founder and inspiration architect of the Center for Accounting Transformation. “The notion that advisory-focused firms inherently perform better isn’t supported by our data. Instead, balanced firms shine.” 

Additional Findings 

• Defining Success Holistically: Highly successful firms prioritize continuous learning, technology use, and fostering distinct organizational cultures. These practices lead to faster growth and higher employee satisfaction. 

• Specialization Isn’t Mandatory: While specialization (both vertical and horizontal) correlates with success, non-specialized firms also perform well, broadening pathways to growth. 

• Employee Advocacy: Accounting firms recorded an average Employee Net Promoter Score (eNPS) of 57, considered excellent. Respondents—primarily made up of firm owners—cited team-centric practices and opportunities for growth as key factors in their own satisfaction, contributing to the prevailing belief that business culture drives employee satisfaction, performance, and retention. 

The research highlights the evolving role of accountants, who stepped into advisory roles during the pandemic, providing critical guidance for businesses navigating unprecedented challenges. It also debunks the belief that advisory services are inherently superior, affirming the value of both compliance and advisory work. 

The Advisory 360 Research Report is now available for download at improvetheworld.net and is considered an essential resource for accounting firm leaders seeking actionable insights to refine their strategies and enhance team success. 

“The Advisory 360 Research Report is more than just a study,” said Rick Telberg, CEO and publisher of CPA Trendlines, “It’s a blueprint for growth and innovation in accounting.”   

Get the report now.