logo
spacer
spacer

 eWombat Search 
>
spacer spacer spacer
Latest Accounting News
Hot Issues
Business confidence hits 5-month high: NAB
Caution advised on best interests duty with cryptocurrencies
$20,000 asset write-off renewed for another financial year.
SMSF compliance traps with bitcoin
Where Australia is at. Our leading indicators.
Foreign resident CGT withholding: early recognition of tax credit
ATO set to doorknock as 60% of cash-heavy businesses caught
New downsizing cap available
Capital Gains and Renounceable Rights
Treasury finds Australia 'increasingly uncompetitive' as US moves on tax plans
Australia's vital statistics
Our Advent calendar for 2017
SMSFs warned on ‘ticking time bomb’ with outdated deeds
Taxation ruling on commercial website deductibility
68% of SMEs ‘significantly stressed,’ 85% rely on accountants
Statutory wills are underutilised in estate planning
Small business slips on lodgement deadlines
Articles archive
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2016
Articles
Big-ticket tax set for government review
FBT – Christmas Parties and Taxi Fares
Unclaimed Monies - Christmas Project?
Employee Christmas Parties and Gifts – Any FBT?
‘Beware the tax man’ eyeing holiday period activity
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
Research reveals key to ‘high-performing’ firms
Late payments hitting SMEs hard
Estate planning issues flagged with $1.6m pension transfer cap
Travel to a workplace: What’s in, what’s out
New fleet “safe harbour” approach for car fringe benefits
Struggling Business Turnarounds
SMSF practitioners told to urgently address TRIS issues
$20,000 write off is only available for small business, right? Well…
Do you need an Employment Agreement?
What does the new withholding tax mean for your clients?
Is there a problem with using your company’s assets for yourself?
Domestic (non-marital) Relationships
SMEs at risk of ‘falling foul’ of ATO
Scams, fraudsters and viruses
Got your car log book ready?
Research reveals key to ‘high-performing’ firms

 

New research from Macquarie, surveying hundreds of small to mid-tier accounting firms, has identified the points of difference of firms effectively driving growth and profitability.



       


 


The Accounting and Financial Services Benchmarking Report looked specifically at the key trends among firms earning above average profits, and at how they approach their business. 


Importantly, the report found that high-performing firms are “significantly more effective” at driving growth and profitability through leveraging the capabilities within their business, and value-adding with existing clients.


“Nearly 80 per cent of high-performing businesses say adding value to their existing client base is the most effective profitability lever they have in the current market. In comparison, firms achieving below average profit are most likely to look outside their business for profitability growth, with 50 per cent reporting new client acquisition as a key profitability driver, compared to 32 per cent of high performers,” said David Clatworthy, division director for Macquarie Wealth Management.


“By doing more with the resources and client base they already have inside their business for growth, high-performing firms are focusing on creating value that will both drive referrals from existing clients and grow revenue per client. These practices have spent more time understanding their clients’ needs and in turn have introduced additional services, resulting in a higher proportion of multidisciplinary clients,” he said.


“This ultimately means high performers are leveraging the factors they have greater control over, allowing them to provide better value to clients and flexibility to adapt to and make the most of market conditions,” he said.


High performers also differentiate themselves by their focus on improving the technologies they use and retaining quality staff.


Fifty-seven per cent of high-profit firms rate retaining quality staff as one of their key strategies for profit performance, compared to 35 per cent of businesses with below average profit.


While all firms reported that the service and expertise they deliver are what clients value most, higher-performing businesses believe their clients are also likely to focus on the expertise and capability side of the equation.


“In an evolving industry, it will be critical for businesses of all shapes and sizes to position themselves strongly for growth. Accounting and financial services firms need to look at ways to ensure they are continuously innovating to meet the opportunities and challenges ahead,” Mr Clatworthy said.



KATARINA TAURIAN
Thursday, 20 October 2016
accountantsdaily.com.au




12th-December-2016