Positive outlook for Accounting? What lessons we can learn from leading firms?

The latest edition of the CommBank Accounting Market Pulse report in Australia reveals an industry that is undergoing significant change, with shifts in both outlook and how the work is done. A quantitative survey of CEOs, managing partners and other senior leaders in Australia shows some fascinating insights.?

Plunging perceptions of business conditions last year have rebounded dramatically. A net 68% of firms have a positive perception of business conditions compared to a net minus 18% in May 2020. That said, markets are dynamic and evolving, client and employee needs and expectations keep rising and this is presenting both opportunities and challenges for firms.

?This year’s report separates firms that are leading the recovery of the pandemic to understand what sets them apart and what lessons can be learned. We defined leading firms as those with positive or stable financial, workforce and operational performance in the face of the pandemic across five criteria (see image). We found that 50% of firms met all five criteria and we compared these ‘leading firms’ against ‘lagging firms’.

Key insights from the report include:

• 83% of all firms are planning to increase at least 1 level of staff in the next 12 months to cope with increased demand.
• Retaining and attracting talent is critical, with many firms providing engagement initiatives for staff in the battle for talent and developing the skills that meet their clients’ needs.
• Leading firms are more likely than lagging firms to report increased efforts to:

1. improve access to technology and IP,
2. expand expertise in niche areas,
3. deliver faster service,
4. invest in L+D and mentoring, and

• A net 40% of firms expect M&A activity to pick up in the coming year. Leading firms will drive this agenda, with 76% reporting interest in acquisitions to grow capability and / or staff compared to 28% of lagging firms.

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All of this and more can be found in the full report