The accounting profession is undergoing a shift, moving from a strictly compliance-based model to one that is more consultative or holistic in its approach.
Compliance services include things like filing tax returns or audits of financial statements.
By definition, holistic relates “to or concerned with complete systems rather than with individual parts.”
Holistic accounting goes beyond just compliance service and supports clients in multiple areas including finance, operations, talent, technology and strategy, according to Mike De Stefano, CEO-elect of professional services firm RKL LLP.
“It turns into all the other things a business needs, that can range from succession planning, or dealing with margin progression, and regulatory uncertainty,” De Stefano said during a recent interview. “So having the holistic services that we do to service our clients — we can meet them where their real business needs are.”
Mike De Stefano (Courtesy RKL)
De Stefano was named CEO-elect in September and will assume the CEO position this September, upon the retirement of current CEO Ed Monborne.
RKL is headquartered in Lancaster and has offices in Spring Township, Berks County, and Uwchlan Township, Chester County. Under Monborne’s leadership over the past 15 years, the firm has been enhancing its services beyond traditional CPA offerings to include more holistic options.
The firm has expanded to include outsourced accounting, HR outsourcing and consulting, technology, wealth management, cyber security and transaction advisory services. In addition, RKL is focused on industry specialization, including manufacturing and distribution, commercial real estate, senior living, not-for-profit, and financial services.
“Compliance is foundational in these industries, but we go deeper with specialized offerings that meet the unique financial, operational, strategic and talent needs of those clients,” the company said in a response.
What’s driving the shift?
The rise of the holistic approach in the accounting profession is driven by a mix of increased business complexity, economic uncertainty, regulatory changes, technology and changes within the profession itself, the company said.
According to De Stefano, there have been fewer people entering the profession, and as the workforce ages, fewer people staying in it.
For a company, he said if they didn’t add to staff, or someone left and wasn’t replaced, the company either made it through with the staff they had or turned to other sources.
Clients, according to RKL, are looking for advisers who can help them understand the broader picture rather than just handling a single filing or compliance requirements.
How has RKL responded?
De Stefano said Monborne, who he calls an “outside-the-box thinker,” has been positioning the firm during his tenure to be able to pivot into areas that go beyond traditional CPA firms.
“It’s almost like an entrepreneurial spirit inside of a professional services firm,” De Stefano said. “One of the things that stands out about him is his ability to make that leap into an area that will be emerging and do it in a timely fashion so we’re well positioned when that time comes.”
These additional resources, knowledge and technical abilities support RKL’s clients, supplement their teams or help them face the challenges they have in their business, De Stefano added.
RKL LLP has expanded its CPA support to clients to include more holistic options. In this photo are members of RKL’s International Tax Team, from left to right: Daniel Schellhamer, Kirsten Deeds and Eric Wenger (Courtesy RKL)
What’s next?
De Stefano said the firm recently completed its strategic planning and while he couldn’t provide specific details of upcoming initiatives, he said RKL will be focusing on its industry specialization.
“We realize that is an important aspect clients are looking for — breadth and depth of experience in certain industries,” he said.
De Stefano said the firm’s relationship with its clients will continue to go beyond just reacting when there is a need or crisis but to also be there with them to anticipate all their business needs.
“That comes through building meaningful relationships, it comes with a lot of active listening, and an education process where we understand their business and they understand the services we have,” he added. “They may not need them today, but there’s an awareness of the depth and breadth of skillsets and talent we have at RKL.”
Mike De Stefano
De Stefano started his public accounting career at RKL in 1995. In 2009 he left the firm to join a Central Pennsylvania-based petroleum and logistics company. He returned to RKL in 2019 as the firm’s CFO. In 2022 he was named COO, leading RKL’s administrative functions including people operations, finance, IT, business assets and administrative services. He was named CEO-elect in September, beginning a year-long transition.
De Stefano said several factors brought him back to the firm: Monborne’s leadership, the role and the evolution of the company in the 10 years he was gone.
“I love the fact we have four businesses, service multiple industries and have 700-ish people,” he said. “That’s the sandbox I want to play in. We exist to service our clients. Having grown up in the firm professionally I never lost that, and I was drawn back to RKL because they never lost that either.”
As for the future, De Stefano said RKL is committed to staying independent as a firm.
“That independence allows us to live our mission in the best way, which allows us to enrich the lives of our clients, team and community,” he said. “We feel really good about how we go to market and how we service our clients.”
RKL is comprised of four companies: RKL LLP, its CPA and advisory firm; RKL Virtual Management Solutions, its outsourced accounting and financial management and workforce strategies firm; RKL eSolutions, its IT consulting firm; and RKL Wealth Management, its investment advisory firm. Nearly 700 employees serve U.S. and international clients from 10 Pennsylvania offices and one office in California.
The RKL office, 1330 Meridian Blvd., Spring Township, Berks County. (DONNA ROVINS – MEDIANEWS GROUP PHOTO)