The Difference Between Accounting Firms and How to Choose the Right Accountant for You

30th July 2025
Stephen Ryan

According to Stats NZ, in 2024 there were 5,778 accounting firms in New Zealand ranging from global giants to solo operators. With so much choice, how do you know which accountant is right for you?

I can’t answer that definitively, but I can help you understand the landscape and narrow your search to the type of firm that fits your needs. As a director of a boutique accounting firm - Step Ahead Accounting - I’ll freely admit my own bias, but I’ve done my best here to lay out the pros and cons of each type of accounting service as best I can.

The Big 4

Deloitte, EY, PwC, and KPMG make up what’s known as the Big 4. Each office is an individual member of a global network, giving them extraordinary resources and access to expertise. However, that scale and brand power come at a cost, both in terms of fees (often well into the five-figure range) and client experience. Smaller clients are often handed off to junior staff, and much of the work is outsourced to low-cost offshore teams in India or the Philippines. These firms are best suited to listed companies, multinationals, and government projects.

Mid-Tier Firms

Firms like RSM, BDO, and Baker Tilly Staples Rodway offer a scaled-down version of Big 4 services for less complex clients. The workload is generally more manageable, giving accountants a wider breadth of experience across more clients. These firms strike a good balance for companies that are on the smaller side of large, typically with $33m+ in revenue. However, personalisation can still be inconsistent depending on who’s assigned to your account.

Regional Firms

Regional firms are common outside the major centres and provide a wide range of services for SMEs. Quality varies between offices and individual accountants, and many practitioners here lean toward work-life balance over technical specialisation. These firms are often geared toward high-volume compliance and are ideal for clients who just need tax returns done without too much strategy. The spread in pricing, service levels, and quality can be significant, though they generally do most things to a good standard.

Boutique Firms

Boutique firms - like Step Ahead Accounting - are purpose-built for specific client niches. They typically prioritise fewer, higher-value relationships and clients get direct access to senior practitioners. Often founded by high performers who’ve left larger firms to focus on what they do best, these practices offer deep expertise, especially for business owners and investors. Clients in their sweet spot benefit from proactive advice and peace of mind knowing their work is either completed or closely reviewed by an expert. 

DIY

Platforms like Xero, MYOB, and Hnry have democratised accounting and are aimed at empowering sole traders, freelancers, contractors, and side hustles earning under $100k per year. These tools offer solid support for invoicing, GST, and receipts, and they’re great for keeping costs down at the early stages of business. However, they lack the strategic insight of a real accountant. 

Being an effective business owner is about capitalising on your strengths and outsourcing your weaknesses. It's not about trying to do everything as cheaply as you possibly can. DIY is very cheap, but unless you know what you're doing, it'll cost you much more than hiring an accountant. 

Hiring an In-House Accountant

For companies in the $2m–$5m range, hiring an admin or finance support person who also handles basic bookkeeping is common. Employing a full-time in-house accountant dedicated to financial reporting only starts to make sense once your business is large enough, or has complex financial operations. Even then, external advisors are still needed for structuring, strategy, and IRD-facing matters. Once a company reaches the $33m revenue or $66m asset threshold (the statutory definition of a “large company”), it’s often time to reconsider your entire finance function - including likely hiring someone senior in-house.

Cost vs. Quality

It’s easy to assume that more expensive means better, but in accounting, that’s not always the case. Outsourcing is common across the industry, and it’s not limited to the Big 4. Many people are unknowingly paying $200–$500 per hour for work completed by someone earning less than a 3rd of New Zealand’s minimum wage.

That’s why it’s important to ask who will actually be doing your work and who your main point of contact will be. Try to meet the people working on your file, even if it’s a virtual meeting.

Ultimately, accounting is a service industry. The person doing your work matters more than the logo on the letterhead.

Would we be a good match?

I don't know you yet! Contact info@stepaheadaccounting.co.nz today to see if we're taking on new clients, and if so, if we'd be a good match.