Today, we’d like to introduce MaloneBailey.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
After nearly fifteen years as a solo practitioner, John Malone merged his practice with that of Sterling L. Bailey in 1996. Both John and Sterling had general practices including a mix of audit, tax, bookkeeping and consulting services – the standard ‘full service’ mix that the majority of local CPA firm practices have today. In 1996, we had two public company clients. Today we have close to 200 public company clients, which puts us in exclusive company as one of only ten firms worldwide to represent over 100 public company clients. Among this top ten group are the Big 6 plus a couple of other national firms and we are proud to hold steady as #7 among this group of ten in terms of the number of public company clients served. We serve clients in 30 different states and ten different countries and operate not just from our Houston headquarters but also from our offices in Beijing and Shenzhen, China.
Overall, has it been relatively smooth? If not, what were some of the struggles along the way?
Of course there have been bumps along the way. We have grown quite a bit over the past couple of decades and naturally, there are challenges that come with growth. In addition, the road to competing with large national and regional firms in the public company audit space has been full of challenges. Smaller firms have fewer resources in dealing with regulators like Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB). Smaller firms have bigger challenges when it comes to recruiting and retaining top talent. And so, in response, we have met these challenges with new initiatives to make our approach to projects comply with regulatory requirements and the overall work experience at MaloneBailey fulfilling, productive and rewarding.
Alright – so let’s talk business. Tell us about MaloneBailey – what should we know?
With more than 100 registrants as clients, including NYSE, NASDAQ, NYSE MKT (fka AMEX) and OTC listed companies, we specialize in providing audit services to small public companies. Our clients come from a variety of industries, including oil & gas, manufacturing, real estate, biotechnology and much more. We also provide audit, tax, accounting and consulting services to privately-held companies. Above all, we are known for our audit services in the public company space. As mentioned previously, we hold the #7 spot in the world for number of public company clients served.
If I were to highlight something that I am most proud of, it would most definitely be the overall experience we are able to provide to members of this firm. And it’s the overall experience that also sets us apart. One thing that is central to our approach here at MB is the utilization of technology and the fact that most of our audits are paperless and can be done remotely in many cases. We’re proud to have been a pioneer in our space to implement this approach, much earlier than many of our peer firms. Today, it’s an approach that works well and is well-liked. Staff like it because it affords them the opportunity travel less for work and be able to go home to their own beds at night versus a hotel room. This plays into a better work life balance. And clients like it because it eliminates the out of pocket travel costs for an audit and they do not have to have the burden of their auditor on site for the entire audit. Now, I will note that this is not the case across the board for our clients and client trips are certainly necessary for some cases. But the majority of what we do, around 85%, is done from our Houston headquarters. Staff enjoy large desks in spacious offices with comfortable chairs and FOUR monitors per desk. When we built out the office space, it was designed with teamwork and collaboration top of mind.
Most importantly, the remote approach offers staff the opportunity to develop relationships with their co-workers, work on many different engagement teams, serve clients from a variety of different industry lines, enjoy easy access to their mentors and members of the management team and also to participate in all facets of the firm and affect change – committees (NextGen, fun, community outreach, training, etc.), social events, in-house lunches, a robust training program and much more. Staff at MB have a unique opportunity to be plugged in and have a voice – this is due to the fact that our staff spend the majority of their time in the office and everyone else is here too.
Did I mention Dunkapalooza? MaloneBailey hosts an annual team building day called Dunkapalooza – the name comes from the most anticipated part of the day: the dunking booth for partners. Dunkapalooza is held at an offsite location and the firm is split into different teams. Teams are asked to come up with their own name and theme for the day, which becomes part of the Spirit Contest that kicks off Dunkapalooza each year. All activities are designed to be highly interactive and focused on team building, communication, problem solving and strategy. Events include paintball, a grand relay consisting of a blind-folded maze, Pictionary, scooter races and tug-of-war, a game of kickball, and of course the partner dunking booth. The grand prize for the team with the most points is extra paid time off! Competition is fierce with weeks of planning and strategy meetings, but it culminates in a fun-filled day outdoors that is highly anticipated by all members of the MaloneBailey team.
Where do you see your industry going over the next 5-10 years? Any big shifts, changes, trends, etc?
I believe technology will continue to have a big impact on our industry over the next 5-10 years. Technology will continue to impact the way audits are performed. A remote audit approach and the use of technology like drones, satellite imagery and video calls to perform existence testing could become more commonplace. Cloud computing will continue to eliminate the need for substantial fieldwork being performed at the client’s offices allowing for reduced travel and greater efficiencies.
I believe we will see audits become more paperless and firms will rely more on technology to do an audit whether performed remotely or onsite. With so many touch screen applications in our everyday lives, it is inevitable that similar technology will find its way into the audit function. Auditors will be forced to keep up with technological changes because companies are utilizing more technology for their record keeping and accounting and in more advanced ways.
Contact Info:
- Address: 9801 Westheimer Road, Suite 1100
Houston, Texas 77042 - Website: www.malonebailey.com
- Phone: 713.343.4286
- Email: crosen@malonebailey.com
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