PracticeConsultingTop 50 – Audit and tax hold their own

Top 50 - Audit and tax hold their own

E-commerce and the internet dominate the publicity sent out by accountancy firms, but the traditional lines of audit, tax, corporate finance and insolvency are still their dominant source of income.

Even among the smaller firms audit remains the largest earner. James & Cowper, for instance had total fee income of £6.1m and more than half of that came from audit work.

However, one major difference with last year is that a small number of firms saw their audit income actually fall, MacIntyre Hudson saw its audit income fall by 13% while Hays Allan saw a reduction equal to a fifth of its audit fees.

This may be an indication that the market for audit work is becoming more competitive, but it is also partly a reflection of a deliberate policy by some firms of focusing on newer, growing and more lucrative sources of income.

Tax work mostly saw fee income increases in the main of between 10% and 20%, with Cooper Lancaster Brewers recording a hike of 28%.

Fee increases for insolvency work were even bigger. KPMG lists a 34% hike, while Kingston Smith has obviously been working overtime to produce an increase of 53.4% – the second year the firm has seen an increase in its insolvency work by more than half.

In corporate finance, among the Big Five at least, there has been healthy growth with firms recording improvements of more than 20%. This may be as a direct result of the increase in the number of mergers and acquisitions in an economy which has seen much consolidation.

While consultancy, fashionable and lucrative as it is, appears to be grabbing an increasingly bigger share of the work, the traditional disciplines are holding their own and, in the main, producing more income for the profession year on year.

Other Top 50 stories

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer