Accountants are officially recovering from the recession: new accountancy firm start-ups are outnumbering company closures for the first time since 2008, according to Bloomsbury Professional.
At the start of 2013, the number of accountancy firms in the UK had increased by 830. This follows a loss of 360 firms in the preceding two years, according to Bloomsbury Professional’s research. The number of start-ups was also 14% higher in 2012 than in 2009 while firm closures were down by 16% over the same period – from 3,985 to 3,360.
Martin Casimir, Managing Director at Bloomsbury professional commented: ‘The market has stabilised as the economy has started to recover from recession. New firms are joining the market, clients are now willing to increase their spend on finance and accountancy advice, while the firms that survived the recession are financially tougher and less likely to fail.’
As a profession, accounting is a comparatively stable one. Casimir stated: ‘Accountancy firms endured a tough recession during which a lot of the weaker firms were forced out of the market. Many firms struggled to retain existing clients or attract new ones without being forced to drop fees.’