Accountancy firm openings outstrip closures

by Richard Crump

More from this author

10 Feb 2014

  • Comments
openforbusiness

ACCOUNTANCY firm openings are outstripping closures, suggesting the sector is bouncing back from the recession, according to Bloomsbury Professional, a tax and accounting information group.

The number of firms opening in 2012 increased by 9% to 4,500, while 3,700 accountancy firms closed in the same year - a net gain of 800 more new firms, the research found.

Compared to 2010, the low point for the creation of new accountancy firms, there has been a 30% increase in the number of start-up accountancy firms.

"The fact that openings are now outpacing closures is an optimistic sign for the future," said Martin Casimir, managing director at Bloomsbury Professional.

"However, even now the number of closures is still quite high, which suggests that profitability is still a big issue in the sector with continued downward pressure on fees and competition between rival firms."

According to Casimir, demand for accountants may be recovering as a result of HMRC's well-publicised campaigns that it is getting tougher on tax returns and tax evasion.

"Sole practitioners or small businesses who may have once filled out their returns themselves are aware that the penalties for failing to submit forms on time or incorrectly could cost them heavily, and are now choosing to pay for the services of an accountant to avoid being caught out by the revenue," Casimir said.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit

conservatoire-for-dance-and-drama

Finance-Director-part-time

Conservatoire for Dance and Drama, London, Permanent, Part Time, £60,000 pro rata

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.