WholeReach · industry directory

Accounting Firms

The companies that define the accounting firms industry, each read on the same nine-check website rubric — a 0–100 score with the exact fixes — alongside the concepts, the developments and the questions that shape the field.

See the directoryGet your free score

The companies

24 companies in the accounting firms industry, each graded on the nine things that decide whether a buyer or an AI assistant can find and trust them online. Open any name for the full write-up and the specific fixes.

70+ solid   45–69 gaps   under 45 costing customers

Sites we couldn’t reach

10 businesses whose website blocked our scanner — common when a site filters datacenter traffic, and not a sign the site is broken. A blocked site is never scored zero.

Who defines the accounting firms market

The firms, funds and institutions that set the terms in accounting firms — context, not local listings; never scored.

Accounting Firms guides

Concepts

Attest vs non-attest services

Attest work (audits, reviews, examinations, agreed-upon procedures) results in a report expressing or disclaiming assurance and requires independence from the client. Non-attest work — tax, bookkeeping, consulting — does not, but performing too much of it for an attest client can destroy independence.

Audit

The highest level of assurance on financial statements: the auditor gathers evidence, tests controls and balances, and issues an opinion on whether the statements are fairly presented in all material respects. Reasonable, not absolute, assurance — an audit is not a fraud guarantee.

Review engagement

Limited assurance based mainly on analytical procedures and inquiry, with no requirement to test internal control or verify balances. The accountant states that they are not aware of material modifications needed. Common when a lender wants comfort without paying for an audit.

Compilation and preparation engagements

A compilation presents management's information in financial-statement form with no assurance expressed; a preparation engagement produces statements as a bookkeeping service, with each page marked to say no assurance is provided. Independence may be lacking in a compilation if disclosed.

Agreed-upon procedures (AUP)

The accountant performs specific procedures the parties define and reports the findings without an opinion or conclusion. Used for royalty audits, grant compliance, closing statements and covenant checks where a full audit is unnecessary.

SOC 1

A report on a service organization's controls relevant to its clients' internal control over financial reporting — payroll processors, claims administrators, loan servicers. Demanded by the client's auditors, not by its customers.

SOC 2

A report on controls against the Trust Services Criteria — security, availability, processing integrity, confidentiality and privacy. Type I tests design at a point in time; Type II tests operating effectiveness over a period, usually three to twelve months. Now a routine enterprise-sales prerequisite for software companies.

Peer review

Mandatory external inspection of a firm's accounting and auditing practice, generally every three years, administered through the AICPA Peer Review Program and required for firm licensing in most states including Texas. Reports and ratings are publicly checkable and a legitimate selection criterion.

Independence and the self-review threat

An attest firm must be independent in fact and appearance. The self-review threat arises when the firm audits the output of its own non-attest work — for example auditing statements it also prepared — and is managed through client acceptance of management responsibility, safeguards, or declining one of the two engagements.

AICPA Code of Professional Conduct

The profession's ethics framework: integrity, objectivity, independence, due care, confidentiality, and the conceptual framework for evaluating threats and safeguards. It governs advertising, solicitation, firm names and fee arrangements, and state boards including Texas incorporate equivalent rules into enforceable law.

Commissions and contingent fees

A CPA generally may not accept a commission or a contingent fee from a client for whom the firm performs an audit, a review, or a compilation expected to be used by third parties, and may not charge a contingent fee for preparing an original tax return. Disclosure rules apply where commissions are permitted.

CPA mobility / practice privilege

A CPA licensed in one state may generally practice across state lines without a second license under substantial-equivalency rules. The privilege carries consent to the other state's jurisdiction, and firm registration may still be required — a live issue as states adopt differing licensure pathways.

PTIN and preparer credentials

Anyone paid to prepare federal returns must hold a Preparer Tax Identification Number, renewed annually. Unlimited representation rights before the IRS belong to CPAs, attorneys and enrolled agents; other preparers have limited rights. Credential, not software, determines who can argue an audit.

Enrolled Agent (EA)

A federally licensed tax practitioner credentialed by the IRS through examination or qualifying service, with unlimited practice rights before the agency. EAs specialize in tax and representation but cannot perform attest work, which requires a CPA license.

Engagement letter

The contract defining scope, deliverables, responsibilities, fees, deadlines and limitations for each engagement. The single most effective malpractice defense in the profession and the document that decides who owns the consequences of missing information.

Management representation letter

A letter signed by management at the end of an audit or review confirming responsibility for the statements, completeness of information, disclosure of fraud and litigation, and subsequent events. The auditor cannot issue the report without it.

Materiality

The threshold above which a misstatement or omission could change a reasonable user's decision. It is set by judgment at planning, drives sample sizes and testing scope, and explains why an audit does not examine every transaction.

Internal control

The processes and segregation of duties that make financial reporting reliable and safeguard assets — commonly framed by the COSO components. Small organizations rarely achieve full segregation, so compensating owner-level review controls are the practical answer.

Significant deficiency vs material weakness

A significant deficiency is a control shortcoming important enough to merit the attention of those charged with governance; a material weakness creates a reasonable possibility that a material misstatement would not be prevented or detected in time. Both are communicated in writing; only the second is normally disclosed publicly in a single audit or SEC context.

GAAP vs IFRS

US Generally Accepted Accounting Principles, set by the FASB and codified in the ASC, is rule-rich and required for SEC filers; IFRS, set by the IASB, is more principle-based and used by most of the rest of the world. Differences in inventory, development costs, leases and impairment matter to any company with a foreign parent or buyer.

Accrual vs cash basis and special-purpose frameworks

Accrual records revenue when earned and expenses when incurred and is what GAAP requires; cash basis records them when money moves and is permitted for tax purposes below gross-receipts thresholds that are indexed for inflation. Statements can also be issued on the income-tax basis, cash basis, modified cash basis or a contractual basis — cheaper and often sufficient for lenders and owners, provided the report and statement titles make the framework explicit.

ASC 606 revenue recognition

The five-step model — identify the contract, identify performance obligations, determine the transaction price, allocate it, recognize revenue as obligations are satisfied. It is what forces software, services and construction companies to defer revenue, split bundles and document their contract analysis.

ASC 842 leases

Requires lessees to put nearly all leases on the balance sheet as a right-of-use asset and a lease liability, with operating and finance leases still expensed differently. Adoption reshaped private-company balance sheets and can trip debt covenants that were written before it.

CECL

Current Expected Credit Losses (ASC 326) — reserves are recorded for expected lifetime losses at origination rather than only when a loss is probable. Chiefly a bank and lender issue but it also applies to trade receivables and contract assets at ordinary companies.

Going concern

Management must evaluate whether there is substantial doubt about the entity's ability to continue for one year after the statements are issued, and disclose it. The auditor evaluates that conclusion and may add an emphasis paragraph — an event with immediate consequences for lenders and investors.

Deferred revenue

Cash collected before the performance obligation is satisfied, carried as a liability until earned. The core working-capital metric for subscription businesses and a standard diligence adjustment in an acquisition.

Work in process (WIP)

Costs incurred on unfinished jobs, and for contractors the schedule reconciling costs, billings and estimated profit. Over- and under-billings on the WIP schedule are what sureties and lenders read first in a construction audit.

Percentage of completion / over-time recognition

Recognizing contract revenue as work progresses, usually measured by cost-to-cost input methods, rather than at completion. Under ASC 606 it applies where control transfers over time, and it makes estimate accuracy a direct driver of reported profit.

Cost segregation

An engineering-based study that reclassifies parts of a building into shorter-lived asset classes so depreciation is accelerated. It creates a large early deduction — subject to passive-activity limits, depreciation recapture on sale, and whatever bonus-depreciation percentage current law allows.

R&D tax credit (Section 41)

A credit for qualified research expenses meeting the four-part test, claimed on Form 6765 with contemporaneous documentation. Qualified small businesses may elect to apply a portion against payroll taxes, which is why pre-revenue startups can still monetize it. Claim-substantiation requirements have tightened.

Section 174 research capitalization

The 2017 tax act required specified research and experimental expenditures to be capitalized and amortized starting in 2022 — five years domestic, fifteen years foreign — which created large phantom taxable income for software companies. Legislation enacted in 2025 restored immediate expensing for domestic research with transition relief; treatment of foreign research and the mechanics of catching up prior years are guidance-dependent, so confirm the current rule before advising.

Bonus depreciation and Section 179

Two ways to accelerate the deduction for equipment and qualifying property. Bonus depreciation applies automatically by class with no income limit; Section 179 is elective, capped in dollars and phased out above a spending threshold, and cannot create a loss. Both percentages and caps have changed repeatedly — check the current year.

QBI deduction (Section 199A)

A deduction of up to 20% of qualified business income for owners of pass-through entities, limited above income thresholds by W-2 wages and property, and restricted for specified service trades and businesses including accounting, law and health. Its interaction with reasonable compensation drives real planning decisions.

S corp reasonable compensation

A shareholder-employee must be paid reasonable wages for services before distributions, because wages carry employment tax and distributions do not. The IRS challenges low salaries; defensible positions rest on comparable market data and documented duties, not a formulaic percentage.

Entity selection

Choosing among sole proprietorship, partnership, LLC, S corp and C corp based on employment tax, QBI eligibility, state franchise tax, investor expectations, fringe benefits, basis rules and exit plans. Venture investors typically require a Delaware C corp regardless of the tax math.

Schedule K-1

The statement reporting each partner's or shareholder's share of income, deductions, credits and distributions from a pass-through entity. Late K-1s are the most common reason owners extend their personal returns.

Estimated payments and safe harbor

Taxes are pay-as-you-go through quarterly estimates or withholding. Underpayment penalties are generally avoided by paying a set percentage of the current year's tax or of the prior year's tax, with a higher prior-year percentage for taxpayers above an income threshold. An extension extends time to file, never time to pay.

Texas franchise (margin) tax

Texas has no personal income tax but levies a franchise tax on taxable entities computed on margin — total revenue less the greatest of cost of goods sold, compensation, 30% of revenue, or a fixed dollar amount — apportioned to Texas and taxed at a rate that differs for retail and wholesale. Entities below the no-tax-due threshold owe nothing, and the threshold is adjusted periodically, so verify the current figure and the current report requirements with the Comptroller.

Sales and use tax nexus (Wayfair)

Since South Dakota v. Wayfair (2018), a state may require sales-tax collection based on economic activity alone, with each state setting its own dollar or transaction thresholds. Texas taxes many services and data-processing and information services at a partial exemption, so SaaS taxability is a live and easily mishandled question.

Transfer pricing

Pricing of transactions between related entities across tax jurisdictions, which must meet the arm's-length standard and be supported by contemporaneous documentation to avoid penalties. Relevant to any Austin company with a development subsidiary abroad or a foreign parent.

BOI reporting / Corporate Transparency Act

The CTA required many companies to report beneficial-ownership information to FinCEN. After litigation and rulemaking in 2025 the scope was narrowed substantially, with domestic entities exempted under an interim final rule and reporting focused on foreign entities registered to do business in the US. Deadlines and scope have moved repeatedly — check FinCEN before relying on any statement about who must file.

1099 reporting and worker classification

Payments to non-corporate service providers are reported on Form 1099-NEC and other 1099 series, with dollar thresholds subject to legislative change and e-filing required above a low return count. Misclassifying an employee as a contractor exposes the payer to back employment taxes and penalties under both IRS and Texas Workforce Commission tests.

Employee Retention Credit (ERC)

A pandemic-era refundable payroll credit that generated widespread aggressive and fraudulent claims. The IRS imposed a processing moratorium, opened withdrawal and settlement routes, and moved to disallowances, examinations and preparer penalties. Any claim now requires eligibility documentation on suspension or gross-receipts grounds and an amended income-tax return for the wage-deduction offset.

IRS notice and audit representation

Handling correspondence audits, CP-series notices, field examinations, appeals and collection matters under a Form 2848 power of attorney, with Circular 230 governing practitioner conduct. Response deadlines are strict and missing one converts a negotiable issue into an assessment.

Realization and utilization

Realization is the percentage of standard fees actually collected; utilization is the share of available hours that are chargeable. Together they are how traditional firms measure profitability — and the reason a fixed-fee or subscription model requires a completely different scorecard.

Billable hour vs value pricing

Hourly billing prices inputs and penalizes efficiency; value or fixed pricing quotes an agreed scope in advance and lets automation improve margin. Value pricing demands disciplined scoping, change orders and clear engagement letters, which is why many firms adopt it partially.

Busy season capacity

The structural bottleneck of a tax and audit practice: fixed statutory deadlines concentrating work into a few months. Capacity is managed with extensions, client-readiness deadlines, staggered year-ends, offshore and seasonal staffing, and declining or repricing marginal work.

Client accounting services (CAS)

Outsourced bookkeeping, close, payables, payroll coordination, controller review and fractional CFO work delivered on a recurring monthly fee. It replaces a client's internal accounting hires, produces predictable non-seasonal revenue, and now often out-grows compliance work inside a firm.

What’s happening

• Private equity has moved into public accounting at scale. TowerBrook's 2021 investment in EisnerAmper opened the route, followed by Parthenon and Cherry Bekaert, Hellman & Friedman and Valeas with Baker Tilly, Charlesbank with Aprio, New Mountain Capital's investment in Grant Thornton's US business, and Blackstone's investment in Citrin Cooperman. Nearly all use an alternative practice structure: the licensed CPA firm keeps the attest practice and CPA ownership, while a separate advisory entity takes the capital. For buyers this means faster technology investment and more aggressive acquisition, and a real question to ask about partner tenure and who actually owns the relationship. 2026-08 source ↗
• Consolidation reshaped the firm rankings in a single 24-month stretch: FORVIS and Mazars USA combined as Forvis Mazars in 2024, CBIZ acquired Marcum in late 2024 in the largest deal in the profession's history, and Baker Tilly and Moss Adams combined in 2025 to form one of the largest US advisory CPA firms. In Texas specifically, Cherry Bekaert acquired Houston- and Austin-based Calvetti Ferguson, giving a national platform an immediate Central Texas footprint. Any content naming a firm should verify the current entity first. 2026-08 source ↗
• The CPA pipeline shortage is the profession's defining constraint — accounting graduates and CPA exam candidates fell for years while a large share of partners approach retirement. In response the AICPA and NASBA amended the Uniform Accountancy Act in 2025 to add a licensure pathway based on a bachelor's degree plus two years of experience alongside the traditional 150-hour route, and a majority of states including Texas have enacted alternative-pathway legislation. Requirements now vary by state, so candidates and firms should confirm the current rule with their own board rather than assume the 150-hour rule still governs everywhere. 2026-08 source ↗
• Offshoring and outsourced staffing went mainstream. Firms of every size now use teams in India and the Philippines — through providers such as TOA Global or captive centers — for tax preparation, bookkeeping and audit support, driven by domestic hiring shortages rather than pure cost arbitrage. It carries obligations most clients never hear about: Section 7216 consent is required before disclosing return information to an offshore preparer, and the firm remains responsible for data security and review. 2026-08 source ↗
• AI reached production use in tax research and workpaper preparation. Thomson Reuters embedded generative research assistance in Checkpoint, Wolters Kluwer and Intuit shipped comparable features, and venture-backed tools such as Fieldguide, Basis and Karbon's AI features target audit workpapers, document review and practice workflow. The realistic 2026 position: AI drafts, summarizes and ties out; a licensed professional still owns the conclusion, the documentation standard and the signature. 2026-08
• Client accounting and advisory services now grow faster than compliance work in most firms that offer it, and CAS practices have consistently outpaced the rest of the firm in the AICPA and CPA.com benchmark surveys. The strategic consequence is a shift from an annual transaction to a monthly subscription relationship, which changes staffing, technology and how a firm is valued when it sells. 2026-08 source ↗
• Value and fixed pricing continue to displace the billable hour, accelerated by automation that makes time a worse and worse proxy for value delivered. Firms adopting it publish scoped packages and use change orders instead of surprise invoices; the transition typically fails where engagement letters and scope discipline are weak, not where clients object to the price. 2026-08
• Section 174 research capitalization was the most damaging tax change of the decade for technology companies, producing taxable income and cash tax bills at pre-profit startups from 2022 onward. Legislation enacted in 2025 restored immediate expensing for domestic research and provided transition relief allowing many taxpayers to recover previously capitalized amounts, while foreign research remains on a longer amortization period. Implementation mechanics depend on IRS guidance and taxpayer size, so any advice here should be dated and sourced. 2026-08 source ↗
• Corporate Transparency Act reporting whipsawed filers. After injunctions, stays and reversals through 2024 and early 2025, FinCEN issued an interim final rule narrowing the beneficial-ownership requirement so that domestic companies are exempt and the obligation falls on foreign entities registered to do business in the US. Firms that spent 2024 telling clients to file spent 2025 telling them to wait — the practical lesson is to point clients to FinCEN's current guidance rather than to any snapshot of the rule. 2026-08 source ↗
• ERC enforcement became the profession's biggest cleanup. The IRS moratorium on new claims, the withdrawal and voluntary-disclosure programs, mass disallowance letters, extended assessment periods and criminal cases against promoters left many businesses holding credits they cannot substantiate and amended income-tax returns they never filed. Legitimate claims still exist; documentation of the suspension or gross-receipts test is now the whole ballgame, and preparers face penalty exposure for claims they signed. 2026-08 source ↗
• Cybersecurity became a licensing-level obligation for tax practitioners. The FTC Safeguards Rule applies to tax preparers as financial institutions, the IRS requires a Written Information Security Plan and reinforces it at PTIN renewal, and IRS Publications 4557 and 5708 supply the checklist and template. Client data breaches at firms are frequent enough that WISP status, multi-factor authentication and secure portals are now fair questions for a prospective client to ask. 2026-08 source ↗
• Texas franchise tax rules eased for small entities: legislation effective for 2024 raised the no-tax-due revenue threshold to $2.47 million and eliminated the requirement to file a No Tax Due report for entities below it, though Public Information Reports are still required. The threshold is adjusted for inflation on a two-year cycle, so the current-year figure and filing requirements should be confirmed with the Texas Comptroller before any client relies on them. 2026-08 source ↗
• Audit regulation tightened even as the PCAOB's own future was debated. The Board's new quality control standard, QC 1000, requires registered firms to design and operate a risk-based quality-management system with annual evaluation and reporting, and enforcement penalties reached record levels in recent years. A 2025 legislative proposal to fold the PCAOB into the SEC was ultimately dropped, leaving the Board in place but under continuing political pressure — relevant to any firm with public-company or broker-dealer audit clients. 2026-08 source ↗
• Central Texas is being contested by national platforms. Weaver, CLA, Armanino, Baker Tilly, Forvis Mazars and Cherry Bekaert all built or bought Austin-area presence while independents such as Maxwell Locke & Ritter, Atchley & Associates and PMB Helin Donovan hold the owner-managed and closely held market. The client mix — venture-backed software with SOC 2, R&D credit and equity-comp needs, plus real estate, construction and nonprofits — rewards firms that can speak to both a first audit and a Texas franchise tax return, and makes experienced staff the scarcest input in the market. 2026-08

Questions people ask

What does a CPA actually do that a bookkeeper cannot?

draw the line at licensure and attest work: only a licensed CPA firm can issue an audit, review or compilation report, and only a credentialed preparer can represent you before the IRS

What is the difference between an audit, a review and a compilation?

explain them as three levels of assurance -- opinion, limited assurance, no assurance -- and say who usually demands each one

What is a SOC 2 report and why is my enterprise customer asking for one?

define it as an independent report on controls at a service organization, distinguish Type I from Type II, and say it is bought because a customer's vendor-risk process requires it

What is an engagement letter and why does my accountant insist on one before starting?

describe it as the contract that defines scope, responsibilities and what is not included -- the document that decides who is right when scope is disputed

What is a Schedule K-1 and what am I supposed to do with it?

explain that a pass-through entity reports each owner's share of income on a K-1 and the owner reports it on a personal return; do not state deadlines without citing the current IRS instructions

What is the Texas franchise tax and does my LLC have to file it?

explain that it is a margin tax on entities doing business in Texas and that a revenue threshold determines whether tax is owed, but send the reader to the Texas Comptroller for the current-year threshold and report requirements rather than quoting a number

Do I still have to file a BOI report under the Corporate Transparency Act?

say plainly that this requirement has changed more than once through litigation and rulemaking, describe the current shape at a high level, and link FinCEN's own BOI page as the authority rather than asserting a settled answer

What is an enrolled agent and is that the same thing as a CPA?

contrast a federally credentialed tax specialist with a state-licensed CPA, and note that only a CPA firm can perform attest work

What is Section 174 and why did my startup owe tax in a year it lost money?

explain the mechanism -- research costs had to be capitalized and amortized rather than deducted, which creates taxable income without cash profit -- and note the rules changed in 2025; cite current IRS guidance for how it applies now

What does auditor independence mean, and why can my auditor not also do my bookkeeping?

explain the self-review threat in plain terms: you cannot audit your own work, so the same firm cannot both prepare and opine on the same numbers

What is a material weakness and how worried should I be if my auditor reports one?

distinguish a deficiency, a significant deficiency and a material weakness by the likelihood and size of a misstatement that could go undetected

What is cost segregation and who is it actually worth doing for?

explain the mechanism of reclassifying building components to shorter recovery periods; the benefit depends entirely on the property and the owner's tax position, so do not imply a typical result

What is peer review, and how do I check whether a CPA firm has passed one?

describe peer review as the profession's own quality check on firms that perform attest work, and point to the public peer review database rather than characterising a specific firm

Is there a Texas state income tax on my S corp distributions?

Texas has no personal income tax, but say clearly that the entity may still owe franchise tax and the owner still owes federal tax -- the common mistake is assuming 'no income tax' means 'no state filing'

Should I be an S corp?

explain what the election changes -- payroll, reasonable compensation, self-employment tax, filing burden -- and say the answer depends on the owner's own profit and payroll numbers, which the reader has and you do not

How much salary do I have to pay myself as an S corp owner?

answer the standard, which is reasonable compensation for services actually performed, and describe the factors the IRS weighs; never publish a percentage or a dollar rule of thumb

Watch

Run a accounting firms company?

Get your free website score and the exact list of what to fix — no charge, no pitch. Claim your listing or ask for the full report.