PracticeConsultingSuccession fears at independent firms

Succession fears at independent firms

Independent accountancy firms are facing an age crisis as retirement approaches and partners fear they will be unable to find adequate successors for their practices.

The survey, conducted by KATO Consultancy last week revealed a majority of respondents, who were over 46, wish to remain independent and over 85% wish to recruit within their firms.

But firms are also experiencing difficulties in recruiting appropriate professional staff.

The second most popular alternative means of recruitment was merging or acquiring another firm, with recruitment from another practice or industry and commerce viewed as other options.

Phil Shohet, managing director of KATO, said the issues of succession and constant demands from clients must be resolved quickly because many practices wish to remain independent.

He said: ‘The accountancy profession, because of age difficulties, is at a crossroads at the moment.’

Shohet added that although many firms wish to remain independent, ‘some will be driven into the arms of other firms because they cannot cater to their top end clients.’

The survey also showed a majority of respondents are also concerned about funding partners’ retirements.

The survey was conducted during a conference on retirement and succession organised by the ICAEW’s Accountancy Business Group and KATO.

Links

Succession in the independent firm

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

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

11m 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

12m Kevin Reed, 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

12m 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

12m 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

1y 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

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer