This study investigates the differences in financial performance of small- and medium-sized accounting practices (SMPs). SMPs are small firms that offer accounting services to their clients, which are small and medium-sized entities (SMEs), in order for the SMEs to comply with statutory services, such as financial statement preparation. Moreover, customized business advice is provided by the SMPs. However, SMPs are business as well and face many of the same challenges as their clients. Hence, based on the resource-based theory, factors driving the financial performance of SMPs will be examined. A survey was sent to Belgian heads of SMPs, asking about personal characteristics regarding education and experience (representing human capital resources), firm size, service types provided, cooperation, and communication (representing organisational capital resources).

Results show that additional specialisation degrees, more experience, and more continuing professional development are linked with higher sales per employee. However, the advantage of additional specialisation degrees diminishes as experience increases. Cooperating with other service providers and using the phone as preferred communication method were also linked to higher financial performance. Finally, male-headed SMPs had higher sales per employee than female-headed ones. Female accountants focused more on their educational role, spending more time explaining the figures to clients. The results demonstrate practitioners how to efficiently allocate their scarce resources to increase their accounting firms’ performance. Additionally, the study’s insights are another reason for including communications, teamwork, and lifelong learning skills in the education of future accountants.