The Accounting Industry’s Consolidation Conundrum: A Look at SoFla Prime Consulting and Douglas Kohn, MBA, CPA

The accounting industry is at a crossroads. With mass retirements of Certified Public Accountants (CPAs) and a shrinking pipeline of new accounting graduates, the profession is undergoing a seismic shift. Firms like SoFla Prime Consulting, led by professionals such as Douglas Kohn, MBA, CPA, are navigating this turbulent landscape. Based in South Florida, SoFla Prime Consulting offers a range of services—tax planning, business consulting, and financial strategy—positioning itself as a boutique alternative in an era increasingly dominated by consolidation. As private equity firms swoop in to buy up practices, the promise of efficiency often comes with hidden costs: higher fees, questionable professionalism, and an overreliance on AI and technology. Here’s why businesses might want to rethink jumping on the consolidation bandwagon and consider smaller upstarts instead.

The CPA Retirement Wave and Graduate Shortage

The numbers paint a stark picture. The American Institute of CPAs (AICPA) has long warned that roughly 75% of its members were nearing retirement age by 2020, a trend that’s now hitting full force in 2025. Meanwhile, the pipeline of new talent is drying up. According to the AICPA’s 2021 Trends Report, first-time CPA exam candidates dropped from 48,004 in 2016 to 32,188 in 2021—a 33% decline—and the downward trajectory has continued. Fewer students are choosing accounting majors, deterred by the 150-hour education requirement, perceptions of low starting salaries (median around $79,880 per the U.S. Bureau of Labor Statistics), and the allure of tech or finance careers with better work-life balance.

This twin crisis—mass retirements and a dwindling talent pool—has left firms scrambling. Smaller practices, unable to sustain succession plans, are prime targets for consolidation. Enter private equity (PE), which sees a fragmented industry ripe for roll-ups. But what does this mean for clients?

Private Equity’s Play: Higher Fees, Not Higher Standards

Private equity’s entry into accounting isn’t new, but it’s accelerating. Firms like BDO USA and Aprio have seen PE-backed deals reshape their structures, as noted in a Forbes panel discussion from January 2025. The pitch is simple: consolidate firms, pool resources, and leverage economies of scale. Yet, the reality is less rosy. Consolidation often leads to increased fees as PE firms prioritize profit margins over client value. A 2023 Wall Street Journal report highlighted accounting entry-level pay surging 21% in early 2023 to offset shortages, a cost ultimately passed to clients. With PE’s deep pockets, firms can hike fees further, banking on brand recognition rather than service quality.

Does this mean increased professionalism? Not necessarily. PE-backed firms may tout streamlined operations, but their focus on revenue can dilute the personalized, trust-based relationships that define accounting. Smaller firms like SoFla Prime Consulting, under leaders like Douglas Kohn, emphasize tailored service—something harder to maintain in a corporate behemoth. Kohn, with his dual MBA and CPA credentials, brings a strategic, client-centric approach that contrasts with the one-size-fits-all model of consolidated giants.

The AI and Tech Trap

To fill staffing gaps, many consolidated firms lean heavily on artificial intelligence (AI) and automation—think tools for tax prep, audits, or data analysis. A 2024 CPA Practice Advisor survey found 80% of firms expect to ramp up AI use within five years. While AI can crunch numbers fast, it’s not flawless. UCLA Anderson Review’s 2024 study on accounting tech suggests overreliance on software may paradoxically worsen shortages by deterring students who see their roles as replaceable. Worse, AI lacks the nuanced judgment CPAs like Kohn bring to complex tax strategies or advisory roles—areas where human insight trumps algorithms.

Flaws abound: AI can misinterpret context, fail on edge cases, or raise ethical concerns (e.g., data privacy). Firms plastering “AI-driven” on their marketing may impress clients but risk overselling capabilities. Smaller outfits, less beholden to tech hype, often blend technology with human expertise more judiciously, avoiding the pitfalls of an all-in bet on machines.

Why Smaller Upstarts Shine

So why skip the PE-backed giants and turn to firms like SoFla Prime Consulting? First, cost. Boutique firms aren’t saddled with PE’s profit mandates, keeping fees competitive. Second, agility. Leaders like Kohn can pivot quickly, offering bespoke solutions—say, navigating South Florida’s real estate tax quirks—without corporate red tape. Third, trust. Smaller teams foster deeper client relationships, a stark contrast to the faceless efficiency of consolidated firms.

The data backs this up. The 2023 NYSSCPA-Rosenberg Survey noted that small and solo practitioners are gaining ground by culling low-value clients and focusing on high-quality, high-fee relationships—something PE firms, obsessed with volume, often neglect. Upstarts also dodge the burnout plaguing big firms, where short-staffed teams juggle relentless workloads (Accounting Today, November 2024).

A Call to Action

Businesses shouldn’t blindly trust the consolidation hype. Private equity may promise stability, but it often delivers higher costs and tech-heavy solutions that fall short of true professionalism. Firms like SoFla Prime Consulting, led by seasoned pros like Douglas Kohn, MBA, CPA, offer a compelling alternative: affordable, personalized service grounded in expertise, not algorithms. As the accounting industry consolidates, the smart move is to bet on the nimble upstarts who still put clients first.

Citations:

• AICPA 2021 Trends Report

• Wall Street Journal, “Accountants’ Pay Jumps as Firms Fight Shortage,” 2023

• Forbes, “Accounting in 2025: 5 Key Issues for CPAs,” January 17, 2025

• CPA Practice Advisor, “Survey Results: Charting the Future of Accounting,” September 15, 2024

• Accounting Today, “Why Accounting Firms Are Bleeding Talent,” November 4, 2024

• 2023 NYSSCPA-Rosenberg Survey

• UCLA Anderson Review, “Technology’s Hidden Role in the Accountant Shortage,” March 27, 2024