4 min read June 2023 — In an interview with Invest:, Kelly Mulhearn, Partner of Audit & Assurance at EisnerAmper LLP, discussed the firm’s significant milestones and achievements in the Philadelphia region, explained how the firm differentiates itself by offering a range of services beyond tax and assurance compliance and addressed the challenges faced by the firm and its clients, including talent acquisition and rising interest rates.
What were the significant milestones and achievements for the firm in the Philadelphia region during the past year?
In the Philadelphia region, we have achieved several milestones in the past year. Over the last couple of years, we have engaged in significant M&A activity, including the successful integration of another accounting, consulting and wealth management firm. This expansion has allowed us to grow our practice in South Jersey and open new opportunities for our Philadelphia staff. Moreover, we have experienced substantial growth in our private company industry. Last summer, we underwent a restructuring across the entire firm, consolidating various service lines that cater to similar industries and clients. This led to the formation of our Private Client Services (PCS) Group, specializing in serving closely held, family-owned businesses and high-net-worth individuals. This strategic alignment has allowed us to enhance our brand, provide holistic services, and foster better collaboration among our team members. We offer consulting, tax and assurance services under the umbrella of PCS, providing clients with a dedicated partner as their main point of contact, along with access to additional resources as needed. This initiative has yielded successful outcomes and we are proud to have attracted larger clients, witnessing substantial growth in our accounting and consulting practice and welcoming new clients from various industries into our market.
How does the firm differentiate itself in the market from other players in the region?
We pride ourselves on being more than just a firm that handles tax and assurance compliance work. We differentiate ourselves by offering a range of additional business consulting services to our clients. One notable group within our firm is the Center for Family Business Excellence, which comprises business psychologists and HR professionals. They provide valuable assistance to our clients, particularly those who operate closely held or family-owned businesses. These types of businesses often face unique challenges, such as succession planning, board development and leadership transitions. Our Center for Family Business Excellence works closely with clients to address these dynamics, going beyond mere numbers and focusing on the intricacies of running their businesses. Additionally, we have experts who specialize in areas like sustainability and environmental, social and governance (ESG) matters. They work closely with our clients to bridge the gap between their current state and their desired goals. Our ability to support clients in various aspects of business growth sets us apart, as we go beyond compliance to provide 360-degree assistance.
What are the challenges observed in the market?
There are numerous challenges currently affecting both the accounting profession and our clients, particularly in terms of people and talent. Attracting and retaining the right talent is an ongoing struggle for the profession, and our clients face similar challenges. They inquire about recruiting methods, salaries and other trends. The talent pool has shifted across all industries, necessitating adjustments in compensation, benefits and work-life balance. The pandemic has also reshaped work preferences, with hybrid work and remote options being in high demand. It’s crucial for our clients to find the right individuals who genuinely enjoy the work. Additionally, rising interest rates pose a significant concern for businesses. The increased borrowing costs have compelled many clients to slow their capital expenditures and growth plans. While rising interest rates can benefit companies with excess cash flow through additional interest income, it becomes more challenging for those in growth mode to secure capital. We have engaged in extensive conversations with our clients to explore the best strategies to help them mitigate these rising interest rates. It is a transition from the low-interest-rate environment we experienced during the pandemic, and the impact on our clients has been noticeable.
How has the company fostered a culture that promotes innovation, leadership and work-life flexibility?
The firm follows a hybrid model, allowing employees to choose where they work best. Earlier this year, we requested that employees return to the office for at least two to three days a week. We believe that working together in the same place enhances our collaborative and supportive culture, which benefits our clients. At the same time, we recognize the importance of flexibility for our workforce. Our employees desire the freedom to choose their work location based on their needs. It’s not rigidly defined; rather, we work as a team to ensure client support across all aspects of their requirements. As a client-centric organization, it’s vital for us to be together and provide comprehensive support. However, we also prioritize maintaining a healthy work-life balance for our employees.
To underscore the firm’s commitment to diversity, equity and inclusion (DE&I), we offer various Employee Resource Groups (ERGs) that employees can join, such as Women of EisnerAmper, Asian Employee Network, Latinx, LGBTQ+ and others. These offerings provide employees with a sense of belonging and opportunities for cultural learning and engagement. Our ERGs and other initiatives are under the auspices of EisnerAmper’s new Director of Global DE&I Naomi Barrett. She works with stakeholders to execute the firm-wide DE&I strategy and align the firm’s DE&I commitment to overall business plans and operating principles. Naomi will also reinforce the firm’s commitment to increasing diverse workforce representation, expanding diversity among clients and suppliers, and supporting the communities in which we serve.
How does the firm incorporate technology and innovation into its daily operations?
Technology plays a crucial role, particularly in the context of M&A activity. It serves as a driving force behind growth, talent attraction and retention. EisnerAmper prioritizes innovation and invests heavily in technology. We engage our employees through initiatives like the internal “Shark Tank Challenge,” where teams from various service lines present their innovative ideas for workflow optimization or improved client service. Additionally, we integrate third-party software to streamline tasks and enhance efficiency. For example, in our assurance and tax practices, we have leveraged software to reduce data entry, allowing our staff to focus on higher-level analysis and results interpretation. This strategic use of technology frees up our younger staff from heavily repetitive tasks for more rewarding advisory opportunities.
What is the firm’s outlook for the next five years in the Philadelphia accounting industry, and what are the key priorities moving forward?
We are currently in a growth phase, expanding our presence in key geographies. This growth is driven by a combination of organic expansion, leveraging the expertise of our existing team members, and strategic M&As. Over the past year, we have completed several mergers, allowing us to establish ourselves in desired markets and align with firms that share our values and goals. In the Philadelphia market, we remain committed to both growth and our core clients and maintaining strong connections with the local community. We actively recruit talent from universities in the Philadelphia and South Jersey areas and engage with students to emphasize the importance and opportunities within the accounting profession. We have noticed a decline in students pursuing accounting degrees, partially due to the credit hours required to obtain a CPA license. However, we are encouraged by NASBA’s recent extension of the CPA Exam period from 18 to 30 months, providing individuals with more flexibility as they balance their lives, careers and exam preparation.
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