Accounting sector reaches record confidence following rocky 2020

According to CommBank’s latest Accounting Market Pulse report – an annual analysis of the accounting sector – more than 80 per cent of accounting firms reported stable or growing profits as competition among new service providers and disruptors eased. 

As such, confidence has reached its highest level recorded in the survey’s six-year history. 

Commonwealth Bank executive manager of professional services, Belinda Hegarty, stressed the vital role accounting firms continue to play in helping businesses navigate operating conditions as Australia emerges from the pandemic.

"This is fuelling strong demand which in turn has underpinned a dramatic rebound in confidence," Ms Hegarty said. 

“Firms are fast-tracking their plans for growth to meet this demand and this is contributing to expectations of industry diversification, as well as acquisitions, as firms look to build capability and staff numbers.”

The report found more than 70 per cent of firms will be putting greater emphasis on diversifying their offering beyond traditional accounting services as they prepare for increased activity in tax consulting and compliance, as well as property advisory and cyber security consulting.

But, despite improved business conditions, firms continue to face challenges in finding and retaining strong talent, CommBank stressed.

As a result, more than three-quarters of leading firms indicated plans to acquire other firms to grow their capability or staff in the next two years.

“We’re seeing mid-size firms make acquisitions that will broaden their geographic footprint. Meanwhile, large firms see acquisitions as an opportunity to expand their offering while also increasing their staff numbers,” said Ms Hegarty.