Mastering Honest Feedback in CPA Firms: Practical Tips for Growth-Oriented Leaders

Why do some CPA firms thrive while others plateau? It comes down to one deceptively simple habit: honest feedback.

In the world of accounting and professional services, feedback isn’t just part of a performance cycle, it’s a catalyst for trust, alignment, and long-term growth. When leaders give clear, timely feedback, teams learn faster, client service improves, and future leaders emerge. Yet too many managers hesitate, fearing conflict more than stagnation. The truth is, mastering honest feedback is more than a skill, it’s a mindset. And for growth-oriented leaders in CPA firms, it’s the difference between managing for today and leading for tomorrow.

Why Honest Feedback is So Difficult for Managers

1. Fear of Conflict or Emotional Fallout - Managers often worry that giving negative feedback might damage relationships, provoke defensiveness, or demotivate high-performing staff. In an industry that thrives on collaboration and client trust, interpersonal harmony is often (wrongly) prioritized over candor.

2. Empathy Paralysis and Identity Threat - Organizational behavior research shows that people avoid giving honest feedback when it might threaten another's self-image. The more empathetic the manager, the harder it can be to deliver critique without feeling guilty.

3. Lack of Structure and Confidence - Many CPA managers rise through technical excellence, not necessarily communication training. Without a clear structure, feedback becomes vague or overly cushioned, diluting its usefulness.

4. Power Dynamics - Feedback can feel like a judgment handed down from above. Managers fear being seen as overly critical or playing favorites, especially when feedback isn’t embedded in a culture of transparency.

Five Practical Strategies to Make Feedback Easier and More Effective

1. Frame Feedback as Development, Not Judgment

What to Do: Replace evaluative language with forward-looking growth terms. Focus on what can be improved and how it aligns with career goals.

How: Reflect on why giving honest feedback matters to you: Is it about growth? Integrity? Mentorship? Anchor your feedback in these values during conversations.

Example in a CPA Firm: "You’ve got strong analytical skills. With clearer client summaries, you’ll be better positioned for client-facing opportunities. Let’s work on that this quarter."

Impact: Reduces defensiveness, fosters a growth mindset, and repositions the manager as a coach.

2. Use the SBI Framework (Situation–Behavior–Impact)

What to Do: Be specific and objective: state the context, the behavior observed, and the outcome.

How: Adapt frameworks like SBI into your own words. Avoid sounding scripted—use natural, conversational language.

Example: "During the XYZ client audit (Situation), you submitted the working papers two days late without notifying me (Behavior), which delayed the manager review and pressured the final timeline (Impact)."

Impact: Removes ambiguity and emotional charge, keeping the conversation grounded in facts.

3. Build Psychological Safety Over Time

What to Do: Make feedback routine, invite upward feedback, and model vulnerability.

How: Be transparent about your own growth. Say things like, "I’m working on my delegation skills too" to normalize two-way feedback.

Example: "I noticed a few errors in your worksheet. It wasn’t anything major, but let’s go over them now while it’s fresh. Also, if I’m ever unclear with instructions  just flag it and let me know. I’m working on being more specific myself."

Impact: Encourages honest conversations and increases employee receptiveness.

4. Prepare Mentally and Emotionally

What to Do: Plan the message, rehearse the tone, and adopt a helpful mindset: "This is to support growth, not to criticize." Remember this is an opportunity for you to really help and support someone.

How: Rehearse key points in your own voice. If feedback is difficult, be honest about your discomfort: “This part of my role doesn’t come easy, but I know it’s important.”

Example Prep Approach: "This might be tough to hear, but I respect you enough to be honest. This feedback is about helping you succeed at the next level." Think about a time when someone took a real interest in your development and how it made you feel. Channel that energy into your conversation.

Impact: Boosts delivery confidence and shows respect for the employee’s potential.

5. Ask Before You Tell

What to Do: Invite self-assessment first to open the dialogue and reduce emotional resistance.

How: Start with open-ended reflection like, "How do you think it went?" and then collaborate on the next steps. Use real observations over generic performance language.

Example: "Let’s talk about last Friday’s presentation. How do you think it went?" "I agree, you had great insights, but the pacing was rushed. Next time, let’s storyboard the transitions together."

Impact: Builds ownership, softens difficult messages, and transforms feedback into collaboration.

Making It Authentic: Feedback That Sounds Like You

None of these strategies work if they don’t sound like you. Feedback isn’t a script, it’s a conversation. So how do you make it your own?

1. Align Feedback with Your Values

If you value excellence, say so. If you care about mentorship, lead with that. Let your purpose and values shine through your words. Make it more than just your managerial duty.

2. Speak in Your Own Voice

Don’t mimic. Don’t perform. Say it how you’d say it to someone you care about and respect.

3. Be Transparent

It’s okay to admit feedback is hard. That honesty builds trust. It tells the other person: “This matters. You matter.”

4. Use Specific Stories

Skip vague praise or abstract critique. Ground your feedback in real moments. People remember stories, not scores.

5. Start Small

Practice on low-stakes issues. Reflect on what worked. Iterate. Giving feedback is like refining a tax strategy; it takes thought, timing, and a long-term view.

Final Thoughts for CPA Leaders

Honest feedback is hard, but not because it’s inherently harsh. It’s hard because we care about maintaining trust, team morale, and collegiality. With the right tools and mindset, feedback becomes less about confrontation and more about co-creating excellence.

For CPA firm managers, these strategies can make performance conversations more constructive and less stressful. For Senior Associates and staff, they turn feedback into a springboard for growth.

Feedback is a skill. And like all skills in accounting, it gets sharper with practice. And if you’re reading this, you’re already on your way.