In this episode, I sat down with my longtime friend Michael Ly, founder and CEO of Reconciled, to reflect on where he’s come from, what he’s building, and where the accounting industry is headed. Michael’s story is unlike anyone else’s in the space — part legacy, part grit, and all heart.
But first, shrimp chips.
A Snack That Tells a Story
Michael’s favorite childhood snack? Shrimp chips — an unmistakably aromatic staple of many Asian households. They may not have had a “wasabi flavor” back in the day, but they bring him straight back to his roots.
“This was a treat in our house… something we got maybe once a month. It was one of the few snacks we could eat growing up.”
For Michael, these snacks weren’t just salty and crispy — they were symbolic of a life his parents built from scratch. And that’s exactly where his story begins.
Surviving the Killing Fields
Michael shared the harrowing story of his parents escaping the Cambodian genocide of the 1970s. His mother lost a child to illness and trekked across Cambodia on foot to reach a refugee camp in Thailand. There, she met Michael’s father. They eventually resettled in the U.S. with the help of a church in Arizona.
“We grew up with parents who created something out of nothing — learning a new language, saving for a home, raising kids in a new country. We didn’t get sit-down lessons about business — we watched it unfold in real time.”
Michael and all of his siblings went on to become entrepreneurs — no surprise given the foundation their parents laid.
Scaling Reconciled with Scrappiness and Strategy
Michael launched Reconciled nearly a decade ago and was one of the first firm owners in the space to treat growth like a SaaS business — using outbound email, sales funnels, and a repeatable lead generation strategy to grow beyond the traditional “country club” approach to referrals.
“Accounting firms were largely relationship-based. I looked at SaaS and asked, ‘What can we borrow?’ That’s how we got into outbound sales.”
Today, Reconciled serves thousands of businesses, from small scrappy startups to larger enterprises. But growth didn’t stop there.
M&A as a Tool for Legacy and Leverage
Since 2020, Michael has acquired three firms, with more on the horizon. He’s proving that M&A doesn’t have to be cutthroat — it can be a way to honor a founder’s legacy and elevate a team.
His ideal acquisition? A firm doing $1.5M+ in revenue, focused on outsourced accounting and tax, led by an owner ready to retire and pass the torch.
“We’re not flipping firms. We’re building something for the long haul — with culture, care, and consistency.”
Advice to Firm Owners on the Fence
For firms hovering around 8 to 15 employees, Michael offers clarity: define your why. Do you want to grow for profit, impact, or freedom? Each path comes with trade-offs.
“Most firm owners are still doing client work. Replacing yourself takes money, time, and intention. Whether you grow through hiring or acquisition, you need a clear reason.”
He also emphasizes that modernization is critical — not just for operations, but for creating a sellable business. Outdated processes and drop-off-the-shoebox clients aren’t easy to integrate.
What’s Next for Reconciled
Michael is pursuing more acquisitions, exploring new service lines, and investing in capital structures to make the industry more accessible. But more than that, he’s encouraging others to step into the opportunity.
“It’s never been a better time to start or grow an accounting firm — if you’re willing to solve hard people problems with heart.”
Looking for expert online bookkeeping and accounting services? Head over to reconciled.com to see how their award-winning team helps businesses stay financially healthy, organized, and ready for growth.
Want to learn more about how Karbon helps accounting firms streamline their workflow, collaborate seamlessly, and scale with confidence? Head over to karbonhq.com to explore their powerful platform and discover why firms around the world are making the switch.
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