Mark Alaimo, Managing Shareholder, LCW CPAs
Invest: sat down with Mark J. Alaimo, managing shareholder at LCW CPAs, to discuss the firm’s recent milestones, challenges, and growth strategies, covering key topics such as the impact of joining the XLNC Network, the launch of an offshore office in the Dominican Republic, and the firm’s approach to navigating the evolving landscape of tax legislation and client services.
What have been the main highlights and key milestones for LCW CPAs in Boston in the last year?
In terms of milestones, our focus this past year has been on digesting the rapid growth we have experienced over a few years. It hasn’t been a standout year in terms of tremendous new client growth or anything sensational but has been an opportunity for us to adjust our systems to maintain and enhance the service experience we provide to our clients. We feel that there’s a time to push forward and a time to take stock of what we’ve gained to ensure we lock them in for the future. That said, our ongoing communication efforts and community engagement have continued to yield benefits as we remain a strong community partner for our clients.
How has joining the XLNC Network of Global Accounting Firms impacted your ability to serve international clients?
XLNC has been a great partner for us. As a locally owned CPA firm, we recognized our limitations when it comes to serving our clients’ needs nationally and internationally at times. We can only do so much internally, even though we are organically multicultural — our team speaks seven languages natively, in addition to English. We have a significant number of clients in Latin America and other Spanish-speaking countries, so joining XLNC added credibility and provided additional resources for us to serve them better, and for us to serve the clients of other XLNC member firms globally. It helps us compete for their business and retain it moving forward.
We opened an office in the Dominican Republic this past year. This office handles much of the CAS and bookkeeping work we perform for our clients. Unlike many other firms, our company is wholly owned by our firm, so we control all aspects of the office, and the employees are our employees. This has allowed us to secure additional needed resources to serve our clients effectively while staying within a similar time zone and just a short flight away.
What makes Boston and Massachusetts an ideal location for LCW?
Boston, and New England more broadly, is authentically an immigrant and diverse community. Our university system and the industrial revolution have made this region attractive for business expansion, as “the bones” of our infrastructure are ripe for redevelopment. We’re seeing more businesses repurposing old textile mills for logistics centers and lofts and former corporate campuses once occupied by the companies of prior decades into new live/work/place communities. The national political environment, with incentives for domestic production, only strengthens this appeal. Also, the fact that Moderna was founded in Cambridge and was so integral in the nation’s fight against COVID – certainly didn’t hurt the region’s reputation for innovation.
Which sectors have shown the most opportunities for growth at LCW?
Real estate has always been a major area for us given our location in a city that once was one of the largest textile producing cities in the world. Skilled manufacturing and logistics related companies continue to grow and reinvest. Hospitality and tourism are rebounding, too, but the landscape is always evolving. We pride ourselves on not overly specializing in any one industry, which helps us adapt to changes in the economy and other challenges.
What are the primary challenges for an accounting firm like LCW operating in Boston?
Attracting and retaining talent remains our biggest challenge, as it is for many public accounting firms in the area. Pricing inconsistency is also a significant issue, as many legacy providers still skew market pricing downward. Clients often don’t realize what they’re missing until they reach a growth point that outgrows their existing provider. We’re focusing on creating an authentic work culture. For example, while we’re not a remote-work firm, we offer flexibility, such as allowing our team to work four 10-hour shifts outside of the busy season so they can enjoy one weekday off per week. We try to accommodate individual needs while keeping our team engaged in the office.
Considering the growing complexity of tax legislation, how is LCW adapting its strategy to advise clients, particularly with new regulations like the Corporate Transparency Act?
This is part of a larger trend that began with the Affordable Care Act, which shifted the role of accountants from simply preparing tax returns to acting as a policing agent for the U.S. government. Whether it’s stimulus payments or the latest regulations, such as the Corporate Transparency Act (BOI), we’re offering services that help clients meet their obligations without stepping into the practice of law. By partnering with service providers, we ensure our clients comply with new regulations, similar to how we assisted them with PPP loans or ERC applications. Adapting to new market opportunities is key to thriving in this industry.
What emerging trends in the New England metro area do you see as opportunities for LCW to capitalize on?
One of the main trends is the need for greater efficiency. We need to continuously assess and improve our technology stack to make sure it’s optimized to deliver the best client experience. While clients want to interact with people, technology should handle the rest, allowing us to focus on building relationships. Our new office in Santiago, Dominican Republic, also supports this by increasing capacity while staying under our direct control and aligned with our firm’s ethos.
What are LCW’s top priorities for the next two to three years?
Our top priority is replacing the firm’s staff as they reach retirement. We also plan to broaden our service offerings in complementary areas, particularly in the M&A space for deals under $2 million. This is a segment that’s often overlooked but holds significant potential. We’ll explore wealth management on a smaller scale within our existing clientele. Our goal is to offer an extensive range of services, allowing us to support our clients throughout their entire financial life cycle.
