The increasing amount of investment from private equity firms in the accounting profession is transforming the ways accountants pursue their careers, according to a new report.

The Accounting MOVE Project, which is affiliated with Accounting & Financial Women’s Alliance, released a report Tuesday on the impact of the PE industry on CPA firms, while also releasing its lists of the Best CPA Firms for Women and Best CPA Firms for Equity Leadership. The report was co-sponsored by AFWA and accounting firm Moss Adams.

“While the influx of cash is grabbing headlines, we believe the real story is how this new structure will transform firm dynamics and career opportunities for its team members, particularly women and people of color,” said Accounting MOVE Project president Bonnie Buol Ruszczyk in a statement.

The report pointed out that the partnership structure of most traditional accounting and advisory firms is only a “speed bump for return-hungry external investors.”

Outsiders such as private equity investors buy with the intention of restructuring the linear career paths that characterize firms, offering “incremental opportunities for rising talent to cash in or pivot to new career paths within the firm,” said the report. “The energy and expanded opportunities  — consulting, insurance, wealth management and more — afforded by outside investors have the potential to polish the profession’s appeal to ambitious Gen Z and younger millennials, women and ethnic minorities.”

For the report, the Accounting MOVE Project talked with industry leaders such as Allan Koltin of the Koltin Consulting Group, Bob Lewis of the Visionary Group and Terry Putney of Whitman Transition Advisors. 

Firms considering outside investment should closely evaluate the potential for synergy over conflict and look for private equity firms that prioritize diversity, equity and inclusion, suggested the report. “Partnering with a PE firm that embeds DEI into its core strategy will help firms drive greater innovation, where diversity initiatives become powerful catalysts for sustainable growth,” said the report.

“This is a conversation we need to have,” said Tricia Bencich, inclusion and social responsibility associate director at Moss Adams, in a statement. “Private equity investment has created a seismic shift in the accounting profession. While external investment enables firms to invest in infrastructure and growth, it is equally important to remain focused on the people who deliver the services and care for clients.”

The report also discusses the backlash against DEI and how DEI leaders can work to overcome skepticism and maintain momentum. MOVE Project firms are pursuing strategies to defy the opposition to DEI and cultivating a more engaged, better retained and thriving workforce.

The Accounting MOVE Project released its lists Tuesday of the Best CPA Firms for Women and Best CPA Firms for Equity Leadership.

The Best CPA Firms for Women, in alphabetical order, are:

• Abbott, Stringham & Lynch
• Armanino
• BeachFleischman PLLC
• BerryDunn
• Bland & Associates, P.C.
• The Bonadio Group
• BPM LLP
• Clark Nuber
• Eide Bailly
• Frazier & Deeter
• James Moore & Co.
• Moss Adams
• Rehmann LLC
• Schellman

The Best CPA Firms for Equity Leadership, in descending order of percentage of women partners and principals, among firms where women comprise at least 31% of a firm’s partners and principals, are :

• 71%    KWC Certified Public Accountants
• 64%    Clark Nuber
• 58%    Abbott, Stringham & Lynch
• 57%    BeachFleischman PLLC
• 55%    Bland & Associates, P.C.
• 53%    Kerkering, Barberio & Co.
• 50%     James Moore & Co.
• 47%    Jones & Roth
• 46%    HBE LLP
• 40%    Councilor Buchanan & Mitchell, PC
• 40%    BerryDunn
• 39%    The Bonadio Group
• 39%    Frazier & Deeter
• 36%    Rehmann LLC
• 33%    BPM LLP
• 33%    Armanino
• 31%    Eide Bailly