Accounting firms’ merger creates area’s third largest

Following the
national trend of consolidation in its field, the accountant firm of
Kahn, Litwin & Co. Ltd. of Providence recently merged with Cranston’s
John S. Renza, Jr., CPA, forming one of the state’s largest regional
accounting firms.
The company’s new name will be Kahn, Litwin, Renza & Co., Ltd. effective
on Jan. 1.
“Clients are demanding more and more from their accountant and that is
what this merger will provide,” said partner Lawrence I. Kahn, CPA. “The
merger of our practices will mutually benefit both firms by
significantly expanding our service offerings to existing and potential
clients.”
The new firm will be the third largest regional firm in Providence with
30 CPAs – 20 from Kahn and Litwin and 10 from Renza’s staff. The new
firm is just behind Sullivan & Company, Inc. and Lefkowitz, Garfinkel,
Champi & DeRienzo as well as three of the top national accounting
companies with offices in Providence.
Kahn and Alan H. Litwin, CPA, have been working together since 1981 at
321 Hope Street.
They also own an abutting building, which will eventually house the
additional staff members from Renza as well as Envision Associates, a
technologies consultant in which the accounting firm has financial
interests. Renza said his clients and employees are excited about the
move, because it is expected to provide greater services. He added that
no one has expressed concern about his firm leaving its office at 1220
Pontiac Ave.
“We didn’t get one negative response to it. Clients really don’t care
about your location as long as you are providing the services. In this
case, the move will give them even more resources,” said Renza.
The partners estimated that they will have a combined 1,200 individual
clients and from 500 to 600 corporate clients.
It was Kahn who approached Renza, both of whom worked together at the
national accounting giant KPMG Peat Marwick in the 1970s. Both realized
the benefits the firms would reap by working together.
“It’s about client satisfaction,” said Litwin. “We bring more depth to
the table. Clients want their accountants to do much more for themlike
financial planning.”
Renza said his firm, which was half the size of Kahn, Litwin & Co., now
has the financial ability to grow.
“It’s much more difficult to reinvest in a smaller company, particularly
in the area of technology,” he said.
He pointed to Envision Associates as a service the firm can provide to
their clients to meet computer needs.
Renza added that it is easier to attract talented accountants to a
larger firm, where there is the potential to work with a variety of
clients in different industries.
Raymond C. Church, executive director of the Rhode Island Society of
Certified Public Accountants, said the merger reflects what has been
happening nationally for years.
“Some years ago there was the big eight national accounting firms, then
it was the big six and now it’s down to five. Similarly, consolidation
is happening locally,” said Church.
The changes have been made to meet greater demands of clients looking to
get more than auditing, accounting and tax services. Today, they want
management consulting, personal financial and estate planning, personnel
services and litigation support.
“The market is looking for CPA firms to provide a wide breadth of
services. I think firms complementing each others’ talents permit that
to happen,” he said.