Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Accounting Partner profits decreasing

FOR IMMEDIATE RELEASE

Accounting Partner profits decreasing

The Proactive Accountants Network (PAN), an Australasian-wide coaching and consulting firm to the Accounting Profession has today released its annual Accountants Benchmarking Report.

In line with general economic trends the report shows a decline in revenues and profits for non-PAN members across the whole of Australia and New Zealand. This year the average of the firms included in the report is $293,058 profit per Partner (last year $322,694 profit per Partner) - versus Proactive Accountants Network (PAN) member firms at $380,655 per Partner. A 30% differential.

CEO, Rob Nixon said: “The savvy firms are doing more than historical checking and lodging services which is normally called compliance. Historical report writing offers little value to the client and, as new technology creates the commoditisation of compliance, this service will continue to face price pressure. Declining profits will continue unless Accountants add more value to what they are doing. Services that help the business owner interpret data, explain what is happening and then help to change the financial performance of the client will be the services of the future. To remain relevant and survive Accountants will have to offer more than they currently do”.

The study also reports on Accounting specific KPI’s such as directors productivity, lock-up and write-ons. Write ons are achieved when the accountant charges a value or project based fee for work completed, rather than using an hourly rate, which simply rewards a firm for taking longer than it should or for being inefficient. Both businesses and accountants benefit from a fixed rate on services and this report shows that increasingly firms are ditching the average hourly rate (AHR) model. Victorian firms have the highest example for percentage of write ons at 59% while Tasmanian accountants have Nil% as a "best result".

Highlights from the 2012 Accountants Benchmark Report include:
• How profit per Partner is down this year; the average of the firms included in the report is $293,058 per Partner (last year $322,694 profit per Partner) - versus Proactive Accountants Network (PAN) member firms at $380,655 per Partner
• The highest performer was $2.5 million in profit per Partner - versus last year's performance of $2.7 million in profit per Partner
• The highest level of revenue per director in this year's report was $5.9 million
• This year's report shows a "best result" of revenue per full-time equivalent (incl. Directors) of $405,437
• Average hourly rate averaged at $166 and a high of $721
• The lock up (WIP and debtors combined) averaged 85 days - versus PAN firms average results of 61 days, whereas the best report firm was -31 compared with PAN firms' best result of -109 days.
For further information and to view the report please visit www.proactiveaccountants.net/abr,
________________________________________



© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news