Leaders must empower others, share leadership, and foster an inclusive culture to ensure long-term success.
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Gear Up for Growth
With Jean Caragher
For CPA Trendlines
In a rapidly evolving profession where mergers, acquisitions, and private equity investments dominate headlines, many CPA firms face a critical choice: sell, merge, or remain independent. For firms determined to chart their own course, leadership is the key to survival and success.
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Sarah Elliott, co-founder and principal of Intend2Lead LLC, joins Jean Caragher on the “Gear Up for Growth” podcast to discuss how conscious leadership can help CPA firms maintain independence, foster innovation, and develop future leaders. Her insights underscore a fundamental shift in leadership—one that requires vision, empowerment, and adaptability.
According to Elliott, firms that want to remain independent need to cultivate three critical leadership qualities:
- A Big-Picture Vision: Leading with Purpose: Leadership begins with a clear mission, vision, and values that define the firm’s identity and direction. Elliott emphasizes that firms must answer fundamental questions: Why are we here? Where are we going? What do we stand for? “When firms can clearly articulate their purpose and direction, they create alignment, excitement, and buy-in from employees, clients, and stakeholders,” Elliott explains. “People want to be part of something bigger than themselves. A strong vision fosters belonging and commitment.” Yet, many firms dismiss mission and vision as mere marketing fluff. Elliott and Caragher both agree that such perspectives are shortsighted. In reality, a firm’s mission serves as its North Star, guiding decision-making, strategic investments, and long-term growth. Without it, firms risk becoming reactive rather than proactive, vulnerable to external pressures that may lead to acquisition.
- Developing Leaders at Every Level: One of the most common reasons firms struggle to maintain independence is a lack of leadership succession. Too often, firm owners focus on short-term operational tasks rather than cultivating the next generation of leaders. “A firm’s sustainability depends on developing leaders, not just workers,” Elliott says. “We must invest in our people, empower them, and create a culture where they feel valued and connected.” True leadership development means moving beyond traditional hierarchical models where decision-making power is concentrated at the top. Instead, firms must foster a culture of shared leadership, where employees are encouraged to take initiative, contribute ideas, and grow into leadership roles. This requires intentional mentorship, open communication, and a willingness to listen to employees’ individual aspirations and motivations. “A lot of leaders assume they know what their people want,” Elliott adds. “But are they actually asking? Are they engaging employees in shaping the firm’s future? If firms want to retain talent and maintain independence, they need to shift from a ‘power over’ model to a ‘power with’ model.”
- Embracing a Growth Mindset and Adaptability: In an era of rapid change, firms that cling to outdated processes and rigid mindsets risk obsolescence. Elliott stresses the importance of adopting a growth mindset—a term coined by psychologist Carol Dweck—which encourages continuous learning, resilience, and innovation. “We have to move beyond the ‘this is how we’ve always done it’ mentality,” Elliott says. “Growth requires experimentation, failure, and iteration. If firms aren’t willing to try new approaches, they’ll stagnate.” A growth mindset also fosters adaptability—an essential trait in today’s dynamic accounting landscape. Whether navigating technological advancements, evolving client expectations, or industry disruptions, firms must be agile and open to change. Leaders who model this mindset create a culture where employees feel safe to take risks, challenge the status quo, and contribute innovative solutions.
The Leadership Blind Spots That Lead to Acquisition
Despite their best intentions, many firms inadvertently set themselves up for acquisition due to critical leadership blind spots. Elliott identifies two primary issues:
- Short-Term Thinking: Many firms become so entrenched in meeting deadlines and executing daily tasks that they neglect long-term strategy. Without a clear roadmap for the future, they lack the foundation necessary to sustain independence.
- Burnout Culture: Overworked, exhausted leaders set a dangerous precedent. If young professionals see firm leadership struggling under unsustainable workloads, they will seek opportunities elsewhere. A firm that cannot attract and retain talent is more likely to merge or sell.
“The firms that survive and thrive are the ones that prioritize leadership development, strategic vision, and well-being,” Elliott states. “It’s about creating a culture that people want to be a part of.”
As CPA firms grapple with the decision to sell, merge, or remain independent, Elliott’s message is clear: Independence isn’t about resisting change—it’s about embracing it with intention. Firms that cultivate conscious leadership, invest in their people, and commit to a shared vision will not only survive but thrive.
“Leadership starts within,” Elliott concludes. “It’s about shifting our mindset, thinking differently, and making intentional choices every day that align with our long-term goals. When we do that, independence isn’t just possible—it’s inevitable.”
More About Sarah Elliott
Sarah Elliott is a co-founder and principal of Intend2Lead LLC, a leadership development firm that coaches CPAs to access the Dimension of Possible, an elevated place where fear is no longer the enemy and love reigns.