Latest Research – Accounting Industry Risk Profile ImprovingCreative Curiosity
Latest Research – Accounting Industry Risk Profile Improving
The latest SV Partners Commercial Risk Outlook Report was released in August and we’ve taken the opportunity to again complete a specific snapshot on the Australian Accounting Industry. What we love about this analysis is that its real data, not a survey or series of questions designed to steer a conclusion. (healthy cynicism of course).
The analysis indicates that the accounting industry is continuing to strengthen and it’s clear that the bigger end of town is performing well.
This isn’t a time to rest on any laurels through. Automation, in particular, continues to present a significant threat to the industry as well as open up opportunities for firms to enhance their engagement and solutions for their clients. The challenge for many firms ahead will be identifying the right partners for their “tech stack” to maximise the benefits of automation.
Right now the topic of succession and staff retention is a high priority for many firms and this was evident during the recent Accountants Big Day Out roadshow where I saw firsthand, some significant conversations and interest in these topics from the audience. With over 86% of firms generating revenues of less than $10M and means that the Accounting industry looks much like the general SME landscape, and as they do for their client’s accountants must plan ahead to their succession and exit. There’s a rapid realisation that traditional exit models (and valuations) less achievable today.
I think the stand out insight though is the percentage and number of firms that are operating with revenues less than $1M. These firms are the key to the success for many of Australia’s SMEs – and a segment of the industry that continues to need support and guidance for their peers, their industry bodies, software providers and regulators/legislators.
To view the Australian Accounting Industry Commercial Risk Snapshot follow the link