CommBank Accounting Market Pulse. COMMBANK ACCOUNTING MARKET PULSE – JULY 2015 Diana Mousina Associate Director Economics Commonwealth Bank Over the past six months, domestic economic

CommBank Accounting Market Pulse.Conducted by Beaton Research + Consulting

December 2015 (Wave 1 FY16)

1

COMMBANK ACCOUNTING MARKET PULSE – DECEMBER 2015

Contents

Foreword 2

Economic outlook 3

Snapshot of survey findings 5

Business conditions

Perceived performance of the Australian economy 7

Perceived performance of the Australian economy by segment 7

Perception of business conditions – present to 2017 8

Perception of business conditions by area – present to 2017 8

Perception of business conditions by area and firm type 9

Business priorities

Market entry planning and growth 11

Revenue predictions

Changes in revenue from FY14 to FY15 12

Changes in revenue by location over the next 6 months 13

Changes in revenue by service line over the next 6 months 13

Realised rates

Expected changes in realised rates over the next 6 and 12 months 15

Expense and profitability predictions

Changes in total expenses from FY14 to FY15 16

Changes in expenses over the next 6 months 16

Changes in expenses by segment over the next 6 months 17

Changes in staffing by segment over the next 6 months 18

Change in operating margins for the next 6 months 19

Adoption of technology

Adoption and implementation of new technology – all firms 20

Return on investment from new technology 21

Plans to change the investment in new technology 21

Provision of non-accounting services

Provision of non-accounting services 22

Revenue from non-accounting services 22

Changes in revenue from non-accounting services 23

Outsourcing and marketing

Frequency of outsourcing to lower cost providers 24

Outsourcing work over the next 12 months 24

Frequency of outsourcing to lower cost providers 25

Is marketing on social media vital to the success of accounting firms? 25

2


Marc Totaro National Manager, Professional Services Commonwealth Bank

I am delighted to present the first-half edition of the CommBank Accounting Market Pulse for the 2015/16 financial year, conducted in partnership with Beaton Research + Consulting.

This survey, which captures a cross-section of accounting and restructuring firms revealed a marked improvement in overall business sentiment. Perceptions of current business conditions have picked up materially, with the positive uplift reflecting broader economic conditions.

Digging deeper, firms in New South Wales, the ACT and the Northern Territory are the most optimistic about revenue growth in the coming 12 months.

It is also noteworthy that the larger accounting firms have the most positive perception about both their business and broader economic conditions. That may partly be a function of their continued successful diversification beyond traditional accounting and advisory services. They are giving considerable thought to where they will find their growth, be it in technology advisory, management consulting or broader business advisory.

It is great to see that the top three challenges are no longer seen to be so daunting. Previously those industry challenges were rated between 50 and 60 per cent but that has fallen sharply to around 30 per cent.

Taken together, these two metrics indicate confidence has returned to the industry.

“ Nevertheless, our discussion with key industry players reveal the ongoing concerns with respect to traditional accounting and tax-based work becoming ever more commoditised and price driven.”

As the managing partner of one mid-sized firm responded in the survey, accountants need to think differently going forward if they are to maintain revenue and margin.

Firms are tackling the issue in various ways. There is a constant challenge to cross-sell higher margin services as a way to maintain revenue and remain profitable. Firms are also exploring new revenue streams, with the larger firms leading the way in expanding into non-traditional areas like legal services, recruitment and digital services.

“Most firms continue to look for cost reduction strategies to protect margins.”

For example, the trend to outsource and/or offshore compliance-based or shared services work to lower-cost providers continues apace.

In this regard, the key areas for increased investment in the next six months are staff training and IT hardware and software to support their strategy to become more efficient.

CommBank’s Accounting Market Pulse captures the industry’s latest trends and nuances so it serves as a tool for business planning and benchmarking. We value the opportunity to monitor key financial and operational performance indicators and share the resulting insights with you.

Email: [email protected] Tel : +61 2 9303 1940

Confidence returns as firms tackle longer-term challenges

3

COMMBANK ACCOUNTING MARKET PULSE – JULY 2015

Diana Mousina Associate Director Economics Commonwealth Bank

Over the past six months, domestic economic conditions have strengthened. Employment growth has exceeded expectations, with the unemployment rate falling to 5.9%, down from 6.4% in early 2015. Jobs growth has been concentrated in service sectors like healthcare, accommodation, education and professional services. As a result, consumer confidence has slowly improved, with the average household now optimistic about the economy and its own financial position. Business conditions have also increased leading to higher business confidence.

A stronger labour market is not only a plus for consumer confidence, it also encourages income growth and consumer spending. While consumer spending growth is still slightly below its long-run average, it has unquestionably improved, helping to create better conditions for Australian businesses. That, in turn, has given businesses a renewed sense of confidence — something very much reflected in this CommBank Accounting Market Pulse.

“Our latest survey reveals an upsurge in optimism among accounting firms across the country. For accountants, the outlook for the next two years is increasingly positive. Yet there is still plenty of room for improvement.”

Our survey shows that, despite growing confidence about business conditions, Australian accounting firms still hold a negative view of the Australian economy. Part of this negativity is the uncertainty over Australia’s ability to transition from mining to non-mining led growth. Yet that transition has already progressed further than many realise — with the decline in mining capex now around 50% complete. And despite the significant drag that the decline has produced, the economy has continued to grow, albeit below trend.

Business surveys often cite the need for stronger consumer demand to drive business investment. Non-mining investment has been low for some time, especially during the period when mining expenditure was crowding out activity in other sectors. That period has passed, consumer spending has now begun to pick up and interest rates are at record lows— yet non-mining business investment has yet to recover. This lack of spending by non-mining businesses is a key cause of uncertainty in Australia, particularly as mining capex is declining.

“Looking ahead, a falling Australian dollar will aid the transition. The dollar’s value is now nearly 20% lower than a year ago, and CommBank expects it to fall further when the US raises interest rates. An Australian dollar valued between 65 and 70 US cents looks likely for 2016.”

The good news is that a lower Australian dollar makes our exports more competitive internationally, and also helps Australian businesses that compete with imports. On the services side, a weaker dollar attracts foreign tourism, while also encouraging Australians to travel domestically, rather than overseas. As a result, tourism-related spending is lifting in Australia and will be a key driver of growth in the broad retail and accommodation industries.

Offshore growth trends are also important. Growth is expected to be slightly below the decade average for Australia’s major trading partners over the next two years. This is largely due to slower growth in China, as the Chinese economy rebalances towards service-orientated growth.

Economic outlook


Real GDP (annual % change)

6

4

2

0

-2Sep-89 Sep-95

Early ’90s recession

Sep-01 Sep-07 Sep-13

Net

%

Trend

Labour Market Trends

Trend

6.5

5.9

5.3

4.7

4.1

3.5

40

30

20

10

0

-10Jul-05 Jul-07 Jul-09 Jul-11 Jul-13 Jul-15

Une

mpl

oym

ent r

ate

Employm

ent growth ('000)

4

While Chinese growth is slowing, the urbanisation process remains in full swing. The middle income population in China is lifting as a result. This shift also offers opportunities for Australia, given our strong trade ties with Asia. Industries that will benefit from Asia’s rising middle class include agriculture, education and tourism.

Inflationary pressures in Australia are subdued, although a lower Australian dollar means import

prices will rise in 2016. However, spare capacity in the economy is likely to keep domestic price growth low over the near term. As a result, Inflation is expected to stay within the Reserve Bank of Australia’s (RBA) 2%–3% target band, and low inflation gives the RBA room to keep interest rates low as well. At this stage, we do not expect the RBA to cut the cash rate from the current level of 2%, but another rate cut still remains a possibility, particularly if growth weakens and unemployment rises.

5


Perception of business conditions

Net % (positive - negative)

In 2 years

W2 FY15 W1 FY16

56%55%

In 12 months

W2 FY15 W1 FY16

36%35%

At the moment

W2 FY15 W1 FY16

25%10%

Snapshot of survey findings

Revenue from non-accounting services

Geographic areas with highest revenue growth expectations

Top service lines to enter and grow in the next 12 to 18 months

New South Wales 68%

Northern Territory 67%

Australian Capital Territory 60%

Net % (increasing-decreasing)

Management consulting services 60%Large

firms

Business advisory services 33%Restructuring firms

Business advisory services, Management

consulting services 71%Mid-sized

firms

Business advisory services 62%Other firms

Top 3 challenges for accounting firms

“Significant difficulty in passing on cost increases to clients and charging for compliance work”

Net % (challenging - easy) % of respondents

33%Negotiating price with

clients

31%Keeping

quality staff

31%Finding

quality staff

5

Have 10% or more of firm revenue derived from non-accounting services

75% of Large firms

29% of Mid-sized firms

33% of Restructuring firms

65% of Other firms

6


Outsourcing of work over the next 12 months

Level of investment in new technologies

The majority of accounting firms believe the pace of adoption of new technologies in Australia is either faster or on par with overseas markets

Top 3 areas of increased expenses over the next 6 months

Staff numbers



• Junior to mid-level accountants

• Equity partners

• Directors / Managers

• Fixed share / salary partners

• Shared service staff

• Secretarial and administration staff

54%Staff training and

development

51%IT hardware and

software

51%Marketing

and business development

Large firms

In the next 6 months In the next 12 months

Mid-sized firms

Other firms

Restructuring firms

Operating margins forecast

Net % (increasing-decreasing)% who think it will increase

6

40%

40% 60% 0% 0% 0% 14% 14% 29%

57% 33%

-67%

Large firms

Large firms

Mid-sized firms

Mid-sized firms

Other firms

Other firms

Restructuring firms

Restructuring firms

100%Large firms

57%Mid-sized

firms

67%Restructuring

firms

47%Otherfirms

7


Business conditions

Perceived performance of the Australian economy

The perceived performance of the Australian economy remains slightly negative among accounting firms.

-100

-80

-60

-40

-20

0

20

40

60

80

100

Net %

15 17

60

-8-10

58

-25 -25

Wave 2 FY15 Wave 1 FY16

Net

% (

posi

tive

-neg

ativ

e)

Positive Negative Neutral

Perceived performance of the Australian economy by segment

Of the four segments, leaders of other firms are the least optimistic about the Australian economy’s performance

100

0

29

42

-29

0

20

60

-20

0

100

0

-100

-80

-60

-40

-20

0

20

40

60

80

100

Wave 2 FY15

Mid-sized�rms

Restructuring�rms

Other �rmsLarge �rms Mid-sized�rms

Restructuring�rms

Other �rmsLarge �rms

Wave 1 FY16

Net

%

Net %Positive Negative Neutral

20

60

-20

20

8014

53

-33

13

49

-38

0

-25 -19

20

8


Perception of business conditions for Australian accounting firms – present to 2017

Accounting firm leaders are more optimistic about current business conditions compared to six months ago, and they remain confident across the long-term.

0

10

20

30

40

50

60

70

80

90

100

10

35 36

55 56

Wave 2 FY15 Wave 1 FY16 Wave 2 FY15 Wave 1 FY16 Wave 2 FY15

Likely to be in 2 years’ timeLikely to be in 12 months’ timeAt the moment

Wave 1 FY16

Net

%

25

Perception of business conditions by area

Price negotiation, staff acquisition and retention are considered to be the primary challenges faced by accounting firms.

-60

-80

-100

-40

-20

0

20

40

60

Net

% (

easy

-cha

lleng

ing)

47

-20-30

-55 -60

-40 -35 -35

-75

5

39

11 8

-22 -25 -31 -31 -33

Keeping stafffully utilised

Accessingcapital

Keeping expenses

under control

Competingwith

other �rms

Winning newbusiness

Collectinginvoices

Findingquality staff

Keepingquality staff

Negotiatingprice with

clients


9


Perception of business conditions by area and firm type

Large and restructuring firms are finding it more challenging across most areas compared to mid-sized and other firms.

-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

easy

-cha

lleng

ing)

Wave 2 FY15

Wave 1 FY16

Keeping staff fully utilised

Wave 2 FY15

Wave 1 FY16

Accessing capital

Wave 2 FY15

Wave 1 FY16

Keeping expenses under control

-20 -20

-50

-25-33

86

62

40

60

40

57

38

20

86

-50-60

-50-40

0 0 0 0 0 0

Large �rms Restructuring �rmsMid-size �rms Other �rms

-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

easy

-cha

lleng

ing)

Wave 2 FY15

Wave 1 FY16

Competing with other �rms

Wave 2 FY15

Wave 1 FY16

Winning new business

Wave 2 FY15

Wave 1 FY16

Collecting invoices

-80

-50-60 -60

-80

-5

-75

-50

-20-29

-67

-33

140 0 0

29


-20

-60-50-50

-40

-100 -100

10


-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

easy

-cha

lleng

ing)

Wave 2 FY15

Wave 1 FY16

Finding quality staff

Wave 2 FY15

Wave 1 FY16

Keeping quality staff

Wave 2 FY15

Wave 1 FY16

Negotiating price with clients

-20-29

-38

-20

-100

-63

-20-29

-75-80

-100

-19

0 0 0 0

-40


-57 -60

-43-50-40

-100 -100

-33

11


Business priorities

Market entry planning and growth

Business advisory, management consulting, superannuation, wealth management and tax consulting remain the primary areas of market growth over the next 12 to 18 months.

0

10

20

30

40

50

60

70

100

80

90

565547

30

44

20

44

25

3930

1920 1715 1715 17

5

Business advisory service

Managementconsulting

service

Wealthmanagement

& �nancialplanning

Taxconsulting

Taxcompliance

Corporate�nance

(including M&A)

External / statutory audit

Internal auditSuperannuation

%


0

10

20

30

40

50

60

70

100

80

90

1017 1415

8106 6 65

1450 00

30

Risk management

Propertyadvisory

Business recovery& insolvency

Forensic & fraudaccounting

Private equity

Sustainability / climate change

Economic andsocial policy

advice

Other

%


12


Revenue predictions

Changes in revenue from FY14 to FY15

At the end of FY15, all firm types other than restructuring firms were in a better revenue position compared to FY14.

Restructuring �rmsMid-sized �rms

15

71

6.334

-33

-33

-7.8

-100

-80

-60

-40

-20

0

20

40

60

80

100

Large �rms Other �rms

Net

%

Stayed about the same

Decreased by 2-10%

Decreased by >10%

Increased by 2-10%

Increased by >10%

Mean

2038

48

-5

60

2097.4

9.214

13


Changes in revenue by location over the next 6 months

Net forecast for total revenue has increased across all Australian states except for Victoria, down 11%, and the Northern Territory which remained the same.

-20

0

20

40

80

60

100

Net

%

New South Wales

NorthernTerritory

AustralianCapital Territory

Victoria Queensland Tasmania New Zealand South Australia

WesternAustralia

50

68 67 67 6760

56 5350 50 50

10

42

20

-8

47

0

43

Wave 1 FY16Wave 2 FY15

Changes in revenue by service line over the next 6 months

Large firm leaders are less optimistic about revenue across corporate finance, risk management and property advisory service lines. However large firm leaders did forecast greater revenue in sustainability/climate change service lines.

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

%

Wave 2 FY15

Wave 1 FY16

Economic and social policy advice

Wave 2 FY15

Wave 1 FY16

Wealth managementand �nancial planning

Wave 2 FY15

Wave 1 FY16

Superannuation

Wave 2 FY15

Wave 1 FY16

Business advisory services

100 100

75 8071

94

6750

0 0 0 0 0 0 0 0 0 0

50 5040

100 100 100 100 100 100 100

Large �rms Restructuring �rmsMid-sized �rms Other �rms

50

29

57

86

14


-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

%

Wave 2 FY15

Wave 1 FY16

Tax consulting

Wave 2 FY15

Wave 1 FY16

Management consulting services

Wave 2 FY15

Wave 1 FY16

Private equity

Wave 2 FY15

Wave 1 FY16

Property advisory

8075

40

7180 80

50 57

8976

67 67676750

33

100 100 100


50

25

80

33

0 0 0 0 0 0 0 0 0

67

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

%

Wave 2 FY15

Wave 1 FY16

Corporate �nance (including M&A)

Wave 2 FY15

Wave 1 FY16

Tax compliance

Wave 2 FY15

Wave 1 FY16

External / statutory audit

Wave 2 FY15

Wave 1 FY16

Forensic & fraud accounting

100

75

5040

6043

58 6067

4260

50

100

40 40

60 60

33


-50

80

50

0 0 0 0 0 00 0 0 0

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

%

Wave 2 FY15

Wave 1 FY16

Risk management

Wave 2 FY15

Wave 1 FY16

Sustainability/climate change

Wave 2 FY15

Wave 1 FY16

Internal audit

Wave 2 FY15

Wave 1 FY16

Business recovery & insolvency

67

25

67

25

67 67

3350

75

20 20

-25 -20

75

20 25


100

-17

-67

0 0 0 0 0 0 00 0 0 0 00

15


Realised rates

Expected changes in realised rates over the next 6 and 12 months

All firm types except restructuring firms now have a more optimistic view on realised rates, compared to results

in our previous report.

2.52.5

-4.0

-2.0

0.0

2.0

4.0

6.0

Mea

n %

1.02.0

-1.6

1.52.5

2.01.5

2.53.6

-0.9-1.3

3.4

0.5

Wave 2 FY15 Wave 1 FY16 Wave 2 FY15 Wave 1 FY16

In the next 6 months (compared to the last 6 months) In the next 12 months (compared to the last 6 months)


1.3

16


Expense and profitability predictions

Changes in total expenses from FY14 to FY15

Only restructuring firms had a net decrease in total expenses in FY15 compared to FY14.

34

-33

-33

-7.8

57

14

-29

1.6

-100

-80

-60

-40

-20

0

20

40

60

80

100

Mid-sized �rms Restructuring �rmsLarge �rms Other �rms

Net

%

Decrease by >10% Stayed about the same Increased by >10%

Decrease by 2-10% Increased by 2-10% Mean %

23

14-10

10

66

-31

-8

-35

-10

6.5 4.3

20

60

20

Changes in expenses over the next 6 months

Accounting firm leaders realise the challenge of retaining existing staff, as well as acquiring new staff, and are anticipating an increased investment in staff training and development as a result.

45

55

35

45

10 11

-5

54 51 51

41

23

35

Net

% (

incr

easi

ng-d

ecre

asin

g)

Wave 1 FY16Wave 2 FY15

0

-10

10

20

30

40

50

60

IT hardware and software

Knowledge management

Staff training anddevelopment

Marketingand businessdevelopment

Professionalindemnity insurance

TelecommunicationsOccupancy

17


Changes in expenses by segment over the next 6 months

The increased forecast in staff training and development expenses are being driven by large and other firms. Mid-sized firms are controlling expenses across most areas resulting in a lower net increase in expense compared to the previous report.

3340 40

6075

60 65

2014

38 43

20

80

50

71

4560 60 60

80 80

5065

43

-50-33

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

%

Wave 2 FY15

Wave 1 FY16

Wave 2 FY15

Wave 1 FY16

Wave 2 FY15

Wave 1 FY16

Wave 2 FY15

Wave 1 FY16


IT hardware and software Knowledge managementStaff training and development Marketing and businessdevelopment

0 0 0 0 0 0

40 38 40

20 20 20 20 2540

-40

-67

-29

15

-14-25

-50-33

-20

-100

40

-100

-80

-60

-40

-20

0

20

40

80

60

Net

%

Wave 2 FY15

Wave 1 FY16

Professional indemnity insurance

Wave 2 FY15

Wave 1 FY16

Occupancy

Wave 2 FY15

Wave 1 FY16

Telecommunications


0 0 0 0

18


Changes in staffing by segment over the next 6 monthsA higher proportion of large firms expect fee-earning staff numbers to increase, compared to the previous report.

80

43

20 2029 33

50

25 25

75

1726 20 13

60

33 33

-50

-100 -100

100

-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

incr

easi

ng-d

ecre

asin

g)

Wave 2 FY15 Wave 1 FY16 Wave 2 FY15 Wave 1 FY16 Wave 2 FY15 Wave 1 FY16

Equity partner numbers Fixed share / salary partner numbers Director / manager numbers


0 0 0

4025

6067

29

-33-20 -20-14 -14 -14

14 14

-20 -20

-50-50 -50

60

-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

incr

easi

ng-d

ecre

asin

g)

Wave 2 FY16 Wave 1 FY16 Wave 2 FY16 Wave 1 FY16 Wave 2 FY15 Wave 1 FY16

Junior to mid-level accountant numbers Shared service staf numbers (e.g. Marketing, IT, Finance, HR)

Secretarial and admin staff numbers


0 0 0 0 0

19


Change in operating margins for the next 6 months

All firm types except restructuring firms are forecasting an increase in operating margins over the next 6 months.

10080

40 4057

33

-13

-67

Wave 2 FY15 Wave 1 FY16-120

-100

-80

-60

-40

-20

0

20

40

80

60

100

Net

% (

incr

easi

ng-d

ecre

asin

g)


20


Adoption of technology

Adoption and implementation of new technology – all firms Mobile and document automation solutions have the highest adoption levels. Web based CRM software and enterprise social media platforms are the least likely technology solutions to be implemented in accounting firms.

0

10

20

30

40

50

60

70

80

90

100

%

Mobilesolutions

Web based CRMsoftware

Documentautomation

Cloud-basedcomputing / storage

Collaborationsoftware

Data analyticssoftware

Enterprise socialmedia platforms

Not implemented Looking to implement Currently implementing

Implemented but seldom use Implemented and frequently use

53 50

6

30

14

28

8

26

19

19

31

6

29

17

17

28

25

5

17

25

53

6

16

17

8

14310

31

42

8

6

33

21


Return on investment from new technology

Of the accounting firms who have adopted new technology, mid-sized and other firms have seen the highest return on investment.

75

25

7

36

36

1470

40

60

80

20

10

30

50

70

90

100

Net

%

Large �rm

67

33

Restructuring �rm

17

17

49

17

Mid-sized �rm Other �rm

No return on investment Low return on investment Moderate return on investment

High return on investment Very high return on investment

Plans to change the investment in new technology

Large firms are most likely to invest in new technology over the next 6 and 12 months.

14

40

60

14

29

0 0 025

0

40

60

20

10

30

50

70

Net

% (

incr

easi

ng -

dec

reas

ing)

Large �rm Mid-sized �rm Restructuring �rm

Other �rm Large �rm Mid-sized �rm Restructuring �rm

Other �rm

Level on investment in new information and communicationstechnologies in the next 6 months

Level on investment in new information and communicationstechnologies in the next 12 months

22


Provision of non-accounting services

Provision of non-accounting services All large, restructuring and mid-sized firms currently provide non-accounting services.

Mid-sized�rms

80

0

10

20

30

40

50

60

70

80

90

100

% Y

es

Large �rms Others�rms


100

Restructuring�rms

100 100

Restructuring�rms

100

Mid-sized�rms

100

8175


Revenue from non-accounting services Large and other firms have the highest percentage of revenue from non-accounting services, compared to the last report.

29

42

29

Mid-sized�rms

Restructuring�rms

100

0

10

20

30

40

50

60

70

80

90

100

% Y

es


Less than 5% 5-10% More than 10%

80

Mid-sized�rms

75

25

75

2517

33

50

12

24

64

20

Wave 2 FY15

Large �rms

33

34

33

Restructuring�rms

Others�rms

Wave 1 FY16

23


Changes in revenue from non-accounting services The majority of firms expect revenue from non-accounting services to increase, especially in the longer term.

67

0

10

20

30

40

50

60

70

80

90

100

%

100

7165

88

67

100 100

Over the next 12 months Over the next 2 years


24


Outsourcing and marketing

Frequency of outsourcing to lower cost providers Large and mid-sized firms are more likely to outsource their work to lower cost providers than restructuring and other firms.

20

40

40

0

40

60

80

20

10

30

50

70

90

100

%

Large �rm Other �rm

Never Almost never Rarely Somewhat frequently Very frequently

105

28

24

33

Mid-sized �rm

14

29

43

14

Restructuring �rm

33

34

33

Outsourcing work over the next 12 months

All large firm leaders forecast an increase in outsourcing work to lower cost providers over the next 12 months.

20

80

41

6

53

0

40

60

80

20

10

30

50

70

90

100

Net

%

Large �rm

67

33

Restructuring �rm

57

29

14


Decrease signi�cantly Decrease About the same Increase Increase signi�cantly

25


Frequency of outsourcing to lower cost providers Large and mid-sized firms are more likely to outsource their work overseas, whereas restructuring and other firms are more likely to outsource their work domestically.

100

33

67

33

14

53

0

40

60

80

20

10

30

50

70

90

100

Net

%

Large �rm Restructuring �rm

71

29


In Australia Overseas Both in Australia and overseas

Is marketing on social media vital to the success of accounting firms? Over half of accounting firm leaders across large and restructuring firms agree that marketing on social media is crucial to their firm’s success.

60

20

20

514

47

24

100

40

60

80

20

10

30

50

70

90

100

Net

%

Large �rm

67

33

Restructuring �rm

29

29

42


Strongly disagree Disagree Neutral Agree Strongly agree

26


Notes:

27


Further information

For further insights or information, please contact:

Marc Totaro, National Manager Professional Services

Mobile: 0477 739 315 Phone: +61 2 9303 1940 Email: [email protected] Web: commbank.com.au/accountingmarketpulse

For media inquiries, please contact:

Nichole Willson Phone: +61 2 9117 2947 Email: [email protected]

Things to know before you Can: This report is published solely for information purposes. As this report has been prepared without considering your objectives, financial situation or needs you should consider the appropriateness to your circumstances and, if necessary, seek appropriate professional advice. This biannual report has been prepared independently by Beaton Research + Consulting and is commissioned by Commonwealth Bank. The confidential online survey used to prepare this report was undertaken by Beaton Research + Consulting in September and October 2015. The report is based on the views of 36 accounting firms across Australia with combined revenue of approximately $5.7B. Any opinions, conclusions or recommendations are reasonably held or made based on the information available at the time of its compilation. No representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made in this report. The project was undertaken in compliance with the requirements of ISO 20252. Commonwealth Bank of Australia ABN 48 123 123 124.

About Beaton Research + Consulting

Beaton Research + Consulting is a full-service research firm which offers a full range of solutions for professional services firms, financial services firms and associations. Their expertise includes benchmarking, thought leadership, brand solutions, customised solutions and client satisfaction.

Documents

CommBank Accounting Market Pulse. COMMBANK ACCOUNTING MARKET PULSE – JULY 2015 Diana Mousina Associate Director Economics Commonwealth Bank Over the past six months, domestic economic