This paper reports the results of a study aimed at understanding and characterising IT management sophistication in small businesses. A multiple-case study approach was therefore used to explore the IT management practices of small businesses. Data collection involved four small-medium chartered accountancy (CA) firms and three IT firms closely associated with the CA industry. The case results combined with past research suggested 30 individual indicators of IT management sophistication. Further investigation of these 30 indicators yielded five underlying factors characterising IT management sophistication, namely planning, controlling, organising, leading and external expertise. The results provided a useful foundation for examining the impact of IT management sophistication on organisational performance and developing appropriate improvement strategies. Directions for future research are also discussed