Small vs. Large Accounting Firms: Which One to Hire?

Working with an accounting firm gives chief financial officers (CFOs) an added capacity to handle the finance and accounting needs of their organization. But which one is the better option, a small accounting firm or a large accounting firm?

Let’s explore the differences between the two in terms of their service offerings, service quality, client relationships, and pricing.

As a CFO, hiring more accountants can ease your growing regulatory responsibilities.

However, as the one in charge of overseeing cost controls in your organization, you know better than anyone that hiring another in-house accountant can increase your department’s overhead costs. Even if you have the necessary budget, finding qualified talents can be your next challenge amid the ongoing decline of professional accountants.

Working with accounting firms can resolve these concerns. Aside from receiving the actual services you need to complete specific finance and accounting functions; you can also take advantage of their existing resources. It can be their technology, expertise, and professional network, specifically those with a multinational presence.

However, the quality and cost of service you can receive still vary on which type of firm you choose to work with.

So how should you choose an accounting firm, especially when you’re torn between large and small accounting firms?

A quick comparison between small accounting firms vs large accounting firms

Below is a more detailed comparison between small accounting firms vs. the Big 4 — and other large accounting firms in general.

Small accounting firms

Small accounting firms are local and regional firms with a few employees. Their usual clients are businesses that are also near their size which include: 

• private companies,  
• small businesses, 
• sole traders, 
• not-for-profits, 
• startups,  
• entrepreneurs, and  
• family businesses. 

You can classify them between two major categories, full-service firms and specialty firms.  

Full-service firms offer all types of accounting and bookkeeping services. Specialty firms, meanwhile, have at least one specialized service. The common examples are bookkeeping firms, tax firms, and audit firms. 

Here's what you can expect from small accounting firms in terms of service quality, types of services, client relationships, and costs.

Service quality

The service quality differs per firm. Some firms, though small, can provide excellent accounting support at par with the ones you can avail of from a large firm. Other firms, on the other hand, may fall beyond your expectations. 

To guarantee excellent service, make sure to perform due diligence on your shortlisted firms. Always do your research to minimize risks. 

Customized and scalable services

One of the main benefits of working with a small firm is that you can get customized services based on your specific needs. Rather than choosing a package that’s closest to your needs, you can select which service and number of hours will work best for you. This can save you more because you only pay for the services you use. 

They’re also more flexible and scalable. You can easily upgrade or downgrade your account without going through a lengthy process.  

However, there can be limitations in availing of another service, especially if the firm you chose to work with doesn’t specialize in that particular area. 

Client relationships 

Another advantage of working with a smaller firm is its friendly atmosphere.  

Because they have fewer employees and cater to a smaller client base, small firms are more invested in building genuine relationships with their clients. 

Maintaining close communication with a small firm is also easier and more personal.

Service costs

The cost of accounting services in small accounting firms is lower than that of a large firm. For a more accurate price quote, it’s best to contact your prospective firm. 

Meanwhile, if you’re interested in higher cost savings, you can opt for an offshore option instead. 

Large accounting firms 

Large CPA firms are composed of the Big 4 and other well-known national and international entities. Their typical clients include multinational corporations, large companies, large banks, and high-net-worth individuals. Here's what you can expect by working with large accounting firms.

Service quality

Given their long years of experience, they have more expertise and resources than their smaller counterparts. They’re also the top choice of the top certified public accountants (CPAs), thanks to the quality of training, experience, and compensation they provide. You have a higher chance of receiving the best advice and service if you choose to work with a large firm. 

Service costs

However, their services also come with a high price tag. Working with them may not be a feasible option if you have a limited budget. 

Client relationships

Client relationships at large accounting firms tend to be more transactional than personal.  

Despite having thousands of employees, they also have a huge pool of clients. They may not be able to adapt themselves to your specific needs.  

If you prefer receiving personalized accounting support — or you want to work closely with your accountant — working with big firms may not be an ideal option. 

Which one should you hire?

Look from the inside out.

When making crucial business decisions, this should be the aphorism you should adhere to. Remember that not all trends are worth chasing after, and not all popular accounting firms can be a suitable choice for your organization. But it doesn’t mean they should be disregarded either.

To make data-backed decisions, we recommend doing the following:

Understand your accounting needs

Your outsourcing strategy must be built around your organization’s internal strengths, culture, resources, expertise, and limitations in relation to your finance and accounting processes.

Identifying the type and level of support you need is equally important. Does your organization need help with a specific accounting function? Are you looking to build a long-term engagement or only for a limited time?

Assess your business size and complexity

Your organization’s size and operational complexity can also affect the type of accounting firm you need.

As such, consider factors like the number of transactions you process, the size of your finance team, the number of entities or locations you manage, and the range of accounting services you require.

For instance, if you have straightforward processes, working with a small accounting firm may be the better (and more cost-effective) option.

Meanwhile, if you’re operating across several markets or managing more complex reporting and compliance requirements, it may be smarter to hire a larger accounting firm. Aside from having more established processes, they may have better resources and infrastructure.

Compare service quality and specialization

Both small and large firms can provide reliable support, but their experience, service approach, and areas of expertise may differ.

During your discovery calls, make sure to ask the firm about their qualifications, industry experience, quality controls, technology, and ability to meet deadlines. You must also determine whether the firm has the right knowledge for the services you need, especially if your organization operates in a highly regulated industry or requires specialized accounting support.

Some firms may also offer a broad range of services, while others may focus on specific industries or accounting functions. A wider service offering can be useful when you need support across several areas. However, a more specialized firm may provide deeper knowledge for a particular requirement.

Rather than comparing firms based only on their size, assess the quality and relevance of the support they can provide. The right choice is the firm whose experience, standards, and capabilities match your organization’s needs.

Consider communication and client relationship

Apart from their technical expertise, a professional services firm must also excel in client communication. Before choosing a firm, consider how they communicate with their existing clients, respond to concerns, provide updates, and handles changes in requirements.

Ask who will manage your account, how often you will receive updates, and how quickly the firm responds to questions or urgent requests. It's also good to know how they handle staff changes, service issues, and feedback.

Evaluate cost and long-term value

The lowest fee may not always provide the best value.

With this in mind, make sure to compare each firm’s pricing structure, the services included, and any additional charges that may apply as your requirements change.

Small and large accounting firms may have different cost structures. A smaller firm may offer more flexible pricing for focused or limited requirements, while a larger firm may charge more because of its wider resources, technology, and range of services. However, pricing can vary greatly from one firm to another, regardless of size.

Look beyond the initial cost and consider the long-term value of the engagement. This includes service quality, accuracy, responsiveness, continuity, and the firm’s ability to support your organization as it grows. Poor service, missed deadlines, and frequent errors may lead to additional costs over time.

The right choice is the firm that can provide the level of support you need at a reasonable and transparent cost. Its fees must reflect the quality, reliability, and overall value of the services provided.

Check scalability and flexibility

Your accounting needs may change as your business grows, enters new markets, introduces new services, or experiences seasonal increases in workload. Thus, you must choose a firm that can adjust their level of support as these changes occur.

Find out a firm’s standard practices for adding resources, expanding their services, or responding to unexpected changes in demand. You must also understand whether they can reduce support when needed without causing major disruptions or unnecessary costs.

Review technology, processes, and reporting standards

Check whether the firm can work with your accounting software and reporting tools. Try to understand their internal controls, review procedures, data security measures, and reporting schedules. The reports it provides should be accurate, easy to understand, and suitable for your organization’s compliance and decision-making needs.

Work with D&V Philippines

Is working with large accounting firms not an option for you? Work with D&V Philippines instead.  

Part of our onboarding process is a discovery call where we have an extensive discussion about your business needs and expectations, your processes, and how we can streamline your accounting using cloud technology.  

We also provide our accountants with a work-life balance because we believe they can provide the best client experience if they are happy at work. 

If you wish to learn more about our accounting and financial services, contact our team today or download our Premium Solutions whitepaper. 

This article was first published on 22 November 2021 and has been updated since then for relevancy and comprehensiveness.

Last edited and updated on 11 August 2026

Edited by: Mary Milorrie Campos