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18 May 2015 09:17am

Accountancy firms to increase fees

Almost a quarter of accountancy firms are planning to increase their fees in line with the economic recovery, according to research by tax and accounting information specialists Bloomsbury Professional

As the recession moves into memory, 24% of accountancy firms say they will take advantage of the new economic climate and increase client fees in the next year to boost profitability.

Representing a 7% increase on last year’s figures, Bloomsbury Professional says the boost indicates a growing confidence in the sector, which was hit but a period of lengthy stagnation.

Martin Casimir, managing director of Bloomsbury Professional, said that with many firms forced to freeze fees during the recession, signs now show a change in attitudes.

“The threat of corporate cost cutting and concern that clients would be unwilling to accept fee increases had previously discouraged firms – this now appears to be changing,” Casimir said.

“The prospect of fee rises suggests that there is less intense competition among firms; the improved health of the economy means more new businesses, more investment, more deals and so more work.

“However, there are still a large number of accountancy firms that are quite tentative about raising rates and a majority of firms are still looking at trimming unprofitable areas of their work.”

Similarly, 96% of respondents said they were unlikely to make redundancies this year, compared to last year when 17% of firms said that redundancies were likely.

Casimir said, “As business activity picks up, firms need to ensure they have the capacity to meet clients’ needs – thankfully that means that the threat of redundancies at all but a small minority of firms has disappeared over the horizon.”

Oliver Griffin

 

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