Despite many accountancy firms coming to the rescue of a great deal of businesses, giving them crucial financial advice which has helped them navigate the last few perilous months, news comes to us that the number of accountants has actually declined over the past 2 years of so.
Some Smaller Accountancy Firms Have Perished
Statistics recently published stated that between 2017 to 2019 the UK had a net loss of 490 accountancy firms. The larger firms seemed to have flourished but quite a few of the smaller ones have perished.
But it is good to see that the trend has been bucked in Northern Ireland where there was an increase of 15 over the same 2 year period.
Helping Struggling Businesses Stay Afloat
Colin Hewitt, CEO of cash flow company Float, is quoted on the Daily Business Group website as saying:
“Accounting firms have demonstrated their immense value during the COVID-19 pandemic, helping struggling businesses stay afloat and informing them of their financial options. Which is why many will be concerned to see the number of UK accounting firms in decline.
“However, it’s important to note that a lack of growth does not necessarily mean the industry is in poor health.
“The UK accounting industry now has a smaller number of more profitable accounting firms, following years of growth at the lower end of the market.
“We witnessed a great accounting boom in the UK this decade, with it being easier than ever to set up and run a new firm. This appears to have tailed off more recently, as we also saw increased market consolidation over the last two years which has contributed to a net reduction in firms.”
He added: “While accounting firms have seen a net decrease, bookkeepers remain in an accelerated growth phase. I’m not surprised since solid, regular bookkeeping is the cornerstone of any business’ financial data.
“We’re also in the middle of a technological revolution that represents an incredible opportunity for bookkeepers. Cloud accounting services, smartphones and the introduction of Open Banking mean bookkeepers can scale up like never before.
An Experienced Accountants By Your Side
It stands to reason that an experienced accountancy firm can make a huge difference to any businesses` bottom line,which is what we at WHR Accountants have been doing for our clients for many years. If you need an experienced accountants by your side to partner you give our offices a call on 028 3752 2909.