By Natalie Walters, The Dallas Morning News (TNS)

CohnReznick, the 15th largest accounting firm in the U.S. and the official accounting firm of the Dallas Cowboys, says it has “huge growth plans” for Dallas after combining with a local firm founded in 2010.

New York-based CohnReznick is combining with Dallas public accounting firm BKM Sowan Horan, as North Texas continues to attract financial services firms. Terms of the deal weren’t disclosed.

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Following the deal, which is expected to close on Nov. 1, CohnReznick will have 86 professionals in Dallas and 140 in Austin, with plans to grow its overall Texas workforce by at least 20% in the next year, said CEO David Kessler.

“We had an office in Plano and a solid client base in Dallas,” Kessler said. “[BKM Sowan Horan] enhances what we have in Dallas with it being local and tied into the community.”

BKM Sowan partner Rick Sowan said while his firm is based in Dallas, its clients are across the U.S., including some mutual clients with CohnReznick.

“Everyone has a financial interest here in Texas,” Sowan said.

CohnReznick, with about $880 million in annual revenue, reported more than 20% organic growth in 2021. The firm has offices in 25 U.S. cities and about 3,000 employees.

It also has a history in North Texas, where it first started working with Dallas Cowboys owner Jerry Jones on real estate properties and that led to further collaboration, Kessler said. He said about 12 employees work on the Cowboys account.

CohnReznick has a government advisory team in Austin and Houston that helps the state with programs such as disaster recovery and the Texas Rent Relief Program, which provides Texas residents with financial assistance for rent and utility bills.

The firm has also been expanding in other markets. Last year, it opened an office in Miami and did a business combination in Massachusetts, a deal that added 100 people to the firm and three offices. Kessler said the company typically does one merger or acquisition deal a year.

Sowan said the firm will put a heavy emphasis on attracting and retaining talent amid the competitive labor market, with competition that includes EY, Deloitte, KPMG and PwC. An important part of creating a positive work environment is taking on high-quality clients, he said.

“It’s hard to retain people in a work environment where the work is difficult when you don’t have good clients to work on,” he said.

While the public accounting sector has grown tremendously, fewer students are going into accounting, adding to hiring challenges, Kessler said. In 2019-20, American colleges produced 72,923 accounting graduates, the lowest total in a decade, according to the American Institute of CPAs.

BKM Sowan partner Mike Barber said the firm can compete with the largest accounting firms in the U.S. because it offers something different.

“Big Four has a name, but they’re typically thought of as a steppingstone,” he said. “We don’t want that.”

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