Why Firm Culture Matters More than You Think (And How to Fix It)

When I started in public accounting, I believed success was all about technical skills, billable hours, and client service. But over time, I realized something else had an even bigger impact on my career - firm culture.

I've worked in a company where the culture thrived, where leadership valued employees, and where collaboration made even the busiest seasons manageable. And I've worked in a firm where burnout was the norm, turnover was constant, and the unspoken rule was "just put in the hours and don't ask questions."

The truth? Firm culture shapes everything - your job satisfaction, stress levels, career growth, and even your long-term success as a CPA. Whether you're running your own firm, managing a team, or considering a job change, understanding firm culture is critical.

Let's break down why it matters and what to do if it's broken.

What is Firm Culture (And Why Should CPAs Care)?

Firm culture isn’t just about free coffee in the breakroom or occasional team lunches. It’s the unspoken (and spoken) values, behaviors, and expectations that define how a firm operates.

A healthy firm culture looks like:

✅ Leadership that values employees and supports professional growth

✅ Reasonable workloads with respect for work-life balance

✅ Open communication and transparency in decision-making

✅ A collaborative environment where team members help each other

A toxic firm culture, on the other hand, often includes:

🚫 Long hours and burnout being seen as a badge of honor

🚫 High turnover because employees feel undervalued

🚫 A lack of leadership support or career development

🚫 Poor communication, leading to confusion and frustration

When firm culture is strong, employees thrive. When it’s toxic, even the best CPAs struggle to stay motivated and engaged.

How Firm Culture Impacts Productivity & Retention

If you’ve ever worked in a firm with high turnover, you already know how exhausting it is. Every few months, someone leaves, and the workload gets dumped on the remaining staff—until they eventually follow the same path out the door.

🚨 Here’s what poor firm culture really costs firms:

Contrast that with a firm where culture prioritizes people:

✔ Employees stay longer, reducing hiring and training costs.

✔ Productivity increases because people work smarter, not just longer.

✔ Client relationships are stronger because teams are stable.

Firms often underestimate how much firm culture directly affects their bottom line. Happy employees are more engaged, and engaged employees do better work—simple as that.

How to Fix a Toxic Firm Culture

If you’re in a leadership position (or planning to build your own firm), creating a positive firm culture should be a top priority. Here’s how to start:

1. Set the Tone from the Top

Firm leaders shape culture—whether they realize it or not. If leadership glorifies overwork, employees will feel pressured to do the same. If leaders value work-life balance, employees will follow suit.

Fix: Be intentional about setting expectations. Encourage reasonable workloads, recognize employees for their contributions, and lead by example.

2. Improve Communication & Transparency

One of the biggest complaints in toxic firm environments is poor communication. Employees feel left in the dark about key decisions, leading to frustration and disengagement.

Fix: Foster open communication. Hold regular team check-ins, be transparent about firm goals, and create a space where employees feel comfortable voicing concerns.

3. Recognize & Reward Good Work

Many firms expect employees to work long hours without extra pay, bonuses, or even a simple “thank you.” Over time, this breeds resentment.

Fix: Show appreciation for employees’ efforts. Bonuses, extra time off, or even public recognition can go a long way in building morale.

4. Offer Professional Growth Opportunities

Employees leave when they feel stagnant. A firm that doesn’t invest in its people will constantly struggle with turnover.

Fix: Provide mentorship, training programs, and clear paths for career advancement. Make sure employees know what they’re working toward.

5. Prioritize Work-Life Balance

If employees are burning out, firm culture is broken—period. No amount of team-building activities will fix a firm that expects 80-hour weeks.

Fix: Set realistic expectations for workloads. Encourage time off. Allow flexible schedules where possible. Employees who have a life outside of work will perform better when they’re at work.

How to Tell If You're in the Wrong Firm Culture

Not every firm culture can be fixed, and sometimes, the best move is to leave. If you find yourself experiencing these red flags, it might be time to look elsewhere—or start your own firm.

🚩 You feel pressured to work extreme hours with no reward.

🚩 Turnover is high, and leadership doesn’t seem to care.

🚩 There’s no clear path for career growth or development.

🚩 Communication is poor, and you never know where you stand.

🚩 You constantly feel undervalued and overworked.

If you’re in a firm where culture is toxic and leadership won’t change, it’s okay to walk away. The best firms don’t just prioritize clients—they prioritize their people, too.

Culture is the Foundation of a Great CPA Firm

If you’re a CPA considering starting your own firm, this is your chance to build a workplace that works for people, not against them. The best firms don’t just focus on revenue—they invest in their team, create a positive work environment, and recognize that firm culture is a competitive advantage.

If you’re an employee in a firm with a poor culture, know this: you don’t have to settle. There are better workplaces out there—or you can create one yourself.

Because at the end of the day, skills matter, clients matter—but firm culture determines whether a CPA firm thrives or burns out.