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The Australian accounting profession is in the midst of a COVID-induced identity crisis, prompting new challenges for those specialising in the space, according to an accounting firm consolidator.
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'Identity crisis' to impact Australian accountants
14 December 2021
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Speaking to Accountants Daily, Fleming Stojanovski, Chief Executive Officer at CAAA, said over the last 12 months his firm has witnessed much change impacting the profession, largely brought on by the COVID-19 pandemic creating a new way of working and responding to clients.
"The profession is in the midst of a COVID induced identity crisis, we know we need to embrace advisory and diversify our services to stay relevant. The services provided by traditional accountants are no longer as in demand, so as the market changes we need to adapt," Mr Stojanovski said.
"Emerging technology and adapting to a new way of working has been a pervasive force and contributing factor to the changes we have seen in the marketplace.
"The war for talent is being fought on a new front, it’s like an arms race to see who can be more flexible and WLB friendly. I am not sure if it’s a race to the top or the bottom?"
Despite the shake-up, Mr Stojanovski said there is a prime opportunity for practices playing out.
"It’s hard to recall another time where the demand for genuine holistic advice from clients has been so strong," he explained.
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"The opportunity to reposition our service proposition has never been greater, the conditions to diversify into wealth, finance, management advice (end to end client experience) has never been stronger.
"The crisis has shown us how technology can be a tool, the opportunity to take it further is significant. An example of this is our recent push to support our clients with cyber security, the opportunities are vast.
"Evolving work practices may aid staff productivity and retention domestically, but the push to the truly global workforce may open up supply and help manage labour cost domestically."
Another evolving opportunity could be for firms to consolidate their offering with another.
Mr Stojanovski's firm recently confirmed its first transaction was completed with the combination of Guillan Evans & Co earlier this month. The move marked the first investment of a $30 million programme to expand the CAAA network nationally in the medium term.
Commenting off the back of the transaction, Mr Stojanovski noted he envisions other players in the market to go through a period of consolidation, prompted by a need for greater resources.
"The trend to bigger firms seems evident," he said.
"The general shift to real advisory, requires resources, the combination of multiple service-lines, and; the management capacity and expertise to run it.
"Bigger firms will have the capacity to adapt to technology and compete globally for staff. The significance of this will be to drive retirement or encourage mergers, and in either case consolidation and the growth of the bigger firm is past the tipping point of no return."
On his own firm's consolidation with Guillan Evans & Co, Mr Stojanovski said: “Culture is everything. Traditional consulting focused accountants are what makes CAAA
work, so excellent professionals like Jim Guillan and Lyn Evans fit right in".
“The high net-worth & family office expertise of Guillan Evans & Co is significant; a true asset to CAAA and its clients," he added.
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