Douglas Farrington, Office Managing Partner, Boston, Marcum LLP
In an interview with Invest:, Douglas Farrington, Boston office managing partner at national accounting and advisory firm Marcum LLP, discussed how transaction and advisory services have become more active. He shared why dedication to community involvement is a core aspect of the firm, and discussed strategies for acquiring the right talent amid labor challenges.
What have been some major highlights for the firm over the past 12 months?
It has been a great year for us, not just here in Boston but also across the entire firm. We’ve successfully completed a lot of strategic expansions and have been actively pursuing mergers and acquisitions, which has helped drive our significant growth. Our operations in New England, in particular, have experienced remarkable development. We have successfully executed three major transactions, merging in three distinct firms. The most recent deals, concluded in February, involved firms based in Boston, New Hampshire, and Connecticut. Consequently, the New England division of Marcum has once again seen substantial growth. Our main focus continues to revolve around diversifying industries and offering a wide range of expertise. We aim to become true subject matter experts in the industries we work with. Our expansion through M&A activity is designed to help make that reach broader and deeper.
What are some of the unique aspects of doing business in the Greater Boston region more broadly?
Boston is a center of innovation and a financial hub, so those are two industries that we really focus on in this Boston market. Innovation is certainly something that is driving the economy and the landscape of the economy, and we want to be at the forefront of that. One of the most significant aspects of innovation for us as a firm is our movement into the world of AI. We internally developed a tool for our folks to leverage AI, making us more efficient and providing another resource. The success of that tool prompted us to take a product to market for public use: AskMarcum.ai. We need to continue using technology as effectively as possible, and finding the right way to use AI has been a big part of that for us during the past year.
What are some of the key challenges that you are facing and how are you addressing them?
One of the most significant challenges for business in general these days, and certainly the accounting industry is no exception, is workforce management. Having the people necessary to do the work is crucial. Finding the resources to do that continues to be a challenge, not only for us but across our industry and many businesses. The supply of folks going into the accounting profession, particularly public accounting, has been declining. I think it’s because people are looking in other directions, and technology is part of the reason for that. People are pursuing technological opportunities, which presents some challenges for us in the workforce. The way we have dealt with that challenge is to scale up our presence on campuses and schools, recruiting and finding some of the best and brightest talent there. We are constantly looking in and around the Greater Boston area and elsewhere to find people with the talent and skills we need to bring services to our clients.
How has the recent office redesign aimed at inspiring the workforce affected the productivity and culture of your team?
The Boston office was laid out initially as the Marcum office of the future. When we did the redesign, it was meant to be the first of its kind. What we meant by that is we were the first to adopt a very open concept. It’s bright with lots of glass, letting in plenty of sunlight into the core of the building. Since implementing this design, every other design across the firm has been built off of it. It is a concept that has rolled out across the country. We found it to be really beneficial for our team. It provides opportunities for collaboration, team building, and productivity. Overall, the space has worked well for us.
Given the economic climate, what growth opportunities do you see for advisory and public accounting firms in the region, and how are you capitalizing on them?
The compliance aspect of what we do is necessary, and it will always be necessary. However, finding ways to do that more efficiently enables us to free up our folks to deliver our consultative services. One way we use technology is to handle basic core compliance tasks more effectively, allowing our people to focus on developing advisory work. The key for us and anyone in our business is to be proactive. It is about working closely with our clients and communicating constantly, not just once a year. On the tax side, we are facing a major tax matter at the end of 2026 when certain provisions are set to sunset. While it has been on the horizon for a while, it is now imminent. We are spending a lot of time on proactive planning and advisory work, being creative, and helping clients navigate what’s ahead.
How are you adjusting your strategies to mitigate risk in the ever-evolving landscape of technology innovation, cybersecurity, and data compliance?
It has been Marcum’s commitment for many years to constantly challenge things technologically. We have a tremendous team nationally dedicated to information security and ensuring that our client data and all our data are properly secured and protected. That’s always the priority. Our safeguards have been built into the system, and our team works diligently every day to ensure our data and our client’s data are secure. One of the things I am most proud of is that we have created groups within the firm whose sole focus is to manage certain functions. As a certified public accountant (CPA) and tax professional, I am not spending my time trying to figure out how to secure our data because that is not my expertise. Instead, we have committed resources to have the right people handling that every day, making sure the data is protected. That is what sets us apart from some other organizations.
How is Marcum involved in community initiatives through the Marcum Foundation?
“Community” is one of our core values, and we strive to exemplify it by being active in community initiatives. Our firm is committed to working with St. Jude Children’s Hospital on a national basis. The Boston office, in particular, has shown remarkable dedication. For the past two years, we have ranked second in the annual St. Jude walk/run among all our offices nationwide. While we aim to take the top spot this year, I am incredibly proud of the Boston team’s commitment to such initiatives. During a recent office town hall meeting, we discussed upcoming activities and the importance of individual involvement. Another aspect that sets us apart is our firm-wide commitment to community service. Every year, on the Wednesday before Thanksgiving, we shut down the firm and everyone volunteers. It is a day dedicated to giving back, and it fosters a strong sense of camaraderie and goodwill among our team.
What is your outlook for the next two to three years and what are your top priorities within this time frame, especially in Boston?
The priority is straightforward. We want to continue to grow and foster an environment that allows our people to grow and creates opportunities for them. There’s tremendous opportunity in the market, and we want to capitalize on that. We aim to be an employer that attracts talent and provides ample learning and growth opportunities. As I mentioned, there is a war for talent in our industry. To win that war, we need to be the place where people want to come and stay. That is a real focus for us in the years to come. It is about growth and seizing opportunities, as well as being proactive with clients, which will greatly contribute to our success.
