3 min read January 2023 — Greater Pittsburgh’s diversified local economy is an authentic CPA firm boon. Jeff Deane, partner at FORVIS, shared why a foothold in the area is a no-brainer and a sure bet for CPA firms looking to unlock sustainable growth.
What have been some of the key FORVIS highlights since the merger?
The merger was huge — taking two firms that were ranked in the top 20 and merging them together. As a result, we are now a top 10 firm, ranked number eight in the country. Surprisingly the combining of two organizations that large has gone fairly seamlessly. The firm has done well in taking two firms, two cultures, and combining them together into what is now FORVIS, which stands for FORward VISion. We have had good success in winning new work and being exposed to opportunities that previously were outside of the big 10 we did not have access to. It has created some very good opportunities and ones in which we have had success in winning.
What is your take on the state of affairs of the accounting and advisory sector in Pittsburgh?
There was a wave of merger activity starting in 2013 that has seemed to slow down, which is consistent across the country. But due to demographics, there is still a need for that to continue. As firms are getting older and you think about the transition to the next generation, it can be difficult to find that next generation. There is a succession planning issue that can be somewhat prevalent, whether it is in Pittsburgh or other markets. We will continue to see some activity as far as mergers and acquisitions, but maybe not as much. The problem or the issue that every firm is having is talent acquisition and many firms will explore mergers and acquisitions as being a solution to the problem.
What are clients looking for when they walk through your door?
A lot of it is being a firm that can do more than just compliance. It depends on what industry they are in. In more regulatory industries, whether it is healthcare or banking, it is about providing that broad level of service that covers several different areas within the industry. If you are a commercial company, manufacturer, or family-owned business, it is providing advice, being a sounding board, bringing ideas to the table, and servicing your clients. At the end of the day, everyone assumes you know what you are doing from an audit standpoint or a tax standpoint, but are you bringing planning ideas to the table? Are you being a trusted advisor?
What strategies is the firm implementing in order to recruit and retain talent?
It starts at the college level, being active on campuses, having people that are dedicated to recruiting, being visible not just at a career fair, but being there throughout the semesters, and providing attractive benefits to come to our firm. Then, you look at providing flexibility. As a profession, we were not very flexible pre-COVID, and we have determined a couple of things — that we can be flexible and can work from home effectively. It is almost a requirement now if you are going to retain people to provide some flexibility. But at the same time, there needs to be some balance because there is a struggle of developing a corporate culture, especially with new hires if they are never in the office to experience what that culture looks like. It boils down to figuring out the right level of flexibility and what that looks like.
In which ways has technology helped the accounting industry evolve?
When we think of CPA firms, we think of audits and taxes. We have been successful in utilizing technology within these areas. As you think about having a limited resource of talent, then you are going to have to determine ways to be able to perform audits in a professional and timely manner with fewer resources. We have developed some products, including a scanning product that will take very large legal documents, scan them through the software, and give us a synopsis instead of having to read each individual contract. You train the software to know the key components, and then it provides you with a summary. It saves us a significant number of hours across the firm. Tax software has gotten to that point. We use a product called TaxCaddy where clients can upload their documents on their smartphones and it will automatically populate tax returns. Then we are able to spend more time taking a critical review as opposed to spending so much time on data entry. In addition to becoming more efficient, people’s roles and responsibilities are more meaningful than entering data into a system.
What are some of the unique aspects of doing business in the Greater Pittsburgh region?
There are several different avenues to that. One is that Pittsburgh is a smaller big city, so relationships are very important. Having a quality name is essential. Servicing your clients well is critical because word of mouth can easily get around in the business community. We also have an economy that is pretty diverse as far as industries, which is rather unique given our market size — healthcare, higher education, banking, the Shell ethylene cracker plant addition and the natural resources that are here. If you go back to the roots in Pittsburgh, to the steel industry and the 1970s, having all your eggs in one basket is not always the best thing in the world. The community here and the city is pretty well leveraged to continue to grow and do well.
What is your outlook for the near term and your top priorities?
Part of that is just continuing to grow and expand. With our merger, we have expanded our footprint and filled out the map. We still have some pockets such as the West Coast and the Northeast, which is light for us. I can see us continuing to look for opportunities to expand in those areas while continuing to grow within our existing markets. We are a highly industry-focused firm. We find industries that we feel we can have an impact and then invest time and talent into those areas. We will continue looking at industries to expand into and in tandem expanding our footprint further.
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