The Accounting industry as we know is continually evolving, what we are seeing at the moment with the many firms we are working with is that costs vs. income are forever increasing and some firms are finding this difficult to deal with.

Some common factors we have noticed are:

1. Due to increased competition, firms are reluctant to increase their fees in case clients decide to move elsewhere; this causes the average fee to remain consistent.
2. Many clients are misinformed about a chartered accounting firm and a tax agency!
3. Client bases are steady with minimal increases, some due to less productive staff or not embracing technology
4. Employees at managerial are looking at better opportunities, especially if they have hit a ceiling!
5. Profits per firm based on what we are seeing have not increased much!

Why to part 5?

• Overheads or expenses are far greater than income for the firm
• Debtors’ ledger not monitored consistently
• Client quality? Is it worth the time focusing on smaller or high end accountants etc.?
• Employees could be complacent in their current roles and not as productive!
• Employees still trained in the “Old school model of Accounting” which is 100% compliance based specialists as opposed to advisory/consulting skills or mix!

There is nothing wrong with compliance only based Accountants, however this could result in missed opportunities or business coming through via networking etc.

Where to from here?

As we both know, some firms are seriously looking if they have not already the use of “outsourcing” compliance work or working closely with financial palnners. This improves time efficiency, but the effect is that it causes insecurity amongst “real people/staff”.

Technology/Accounting software and improved systems have made a huge difference to the way a firm runs.

If you are needing sound and expertise advice, give the expert a call at Accounting Practices. We specialise in buy sell merge of accounting practices. We also provide sound advice when it comes to your firm moving forward.

Are you looking to SELL/BUY OR MERGE? OR JUST NEEDING ADVICE?

The Brokering market is very BUSY!!

There are more vendors looking at options than we have had in recent months! We also enjoy giving out advice and going on that journey with you to ensure a smooth transition!!

RECRUITMENT

If you need sound and expertise advice on your market worth, then talk to the EXPERTS at Accounting Practices. Our expertise in this space spans on 10 years, with one of our current Director setting up 2x Australian based multinational firms in NZ.

We are also glad to introduce Phillip Renton as part of our executive recruitment search team. Phillip comes from a prestigious school, Auckland Boys Grammar, he is well educated with a major in Property. He is NZ born and just enjoys building long term business relationships with people at all levels!!

If you want a career path in CA, then let’s talk today.

Talk to the CA experts TODAY!

09 363 9584 OR admin@accountingpractices.co.nz