Booming tax fees push BDO towards £400m mark

Booming tax fees push BDO towards £400m mark

Tax income surges 20% as BDO reports annual revenues of £391m

A LEAP in fee income for BDO’s tax practice has pushed the top six firm towards £400m in revenues, according to its 2014/15 annual results.

The firm, which has increased revenues by 40% in the last three through the merger with PKF in 2013, said fee income grew 2% to £391m during the last year.

BDO’s tax business was a major contributor to growth with a changing regulatory environment creating increased opportunities among its mid-market and large corporate client base. Revenues increased by 20% to £119m, making BDO the fastest growing tax practice of the top ten UK accountancy firms.

Audit revenues grew by 2.5% to £132m, despite a fairly static domestic audit market. In its advisory practice, BDO’s forensics, valuations, tax investigations and global outsourcing business areas all delivered profitable growth.

Transaction services had a particularly strong year and, for the fourth year running, BDO is the leading reporting accountant for AIM IPOs.

Globally, BDO’s international network grew by nearly 9% through both organic and acquisitive growth, reporting revenues of $7.02bn (£4.6bn).

The firm has made 500 promotions internally and invested heavily in technology, including BDO InTouch – a new service underpinned by cloud accounting technology – and BDO Advantage – a data analytics tool. These investments have seen profits per partner stay in line with last year’s figure, holding steady at £280,000.

Simon Michaels, managing partner at BDO, said: “The last year has seen us focus on long-term, sustainable growth; one that sees investment in our people and technology at the very centre of our business decisions. We have a strong business strategy and vision, and the financial strength that’s needed to invest and shape our business for further growth in the future.”

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

4m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

5m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

6m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

6m

Related Articles

BDO appoints two new advisory partners

Accounting Firms BDO appoints two new advisory partners

1m Chris Jewers
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

1y Emma Smith, Managing Editor
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

2y Alia Shoaib, Reporter
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2y Alia Shoaib, Reporter
BDO promotes 1,110 people

Accounting Firms BDO promotes 1,110 people

2y Alia Shoaib, Reporter
BDO strengthens Bristol team with new audit partner

Accounting Firms BDO strengthens Bristol team with new audit partner

2y Austin Clark, Reporter
284 new trainees join BDO

Accounting Firms 284 new trainees join BDO

2y Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

2y Alia Shoaib, Reporter