This study developed an instrument to measure IT management sophistication in small firms. Multiple-case studies were used to explore the concept of IT management sophistication in small firms and provide a pool of indicators representing IT management sophistication. Small chartered accountancy firms in New Zealand were surveyed and the data was analysed using PLS. The final model of IT management sophistication included three dimensions: IT planning, IT controlling and IT leading. The validity and reliability of the measurement instrument was examined thoroughly. The results provide a significant foundation for researchers of IT management in small firms.