Alisandy Abinader’s Post

So why does a well run accountancy practice need access to private equity and will it end in better client service? As Sovereign Capital announces that it now proposes to launch a new firm with the intent of rolling up smaller regional firms I do wonder why the partners believe that selling out to private equity is in the best interest of their staff and clients. As with most private equity driven strategies it is focussed on taking out costs including use of technology to replace employees. So staff will be encouraged to increase billable hours at the same time that the incentive of at some time being admitted to the partnership has disappeared. It seems that at last the regulators are waking up to the risks of shortcuts in the audit process but meanwhile the Institute of Chartered Accountants stands on the sidelines and says nothing. People with long memories may remember what happened when a host of smaller accountancy practices floated on the AIM stock market which for many of them did not end well.

This is an interesting article on the changes that are taking place in accounting industry at the moment, with PE firms starting to invest and often consolidating smaller businesses. What are you thoughts? Does it give the funds needed for growth and investment in technology? Or does it drive away talent due to culture clash, short termism and (an even more) high pressure emclvironement? #accountancy #PEinvestment https://lnkd.in/epeXBf76

Accounting firms are continuing the trend of creating more and more non-equity partners. They get "the opportunity for more responsibility, more autonomy and more money", but without the ownership. So far, it's led to higher retention, more room to move up, and more space for additional customers. How do you feel about making someone a non-equity partner? What's the deciding factor in the equity portion? #partners #cpa #business

🔎BILL CMO Sarah Acton asks Jason M. Blumer, CPA to discuss firm growth and share what he believes firms really need to scale successfully. As the CEO of Blumer & Associates, CPAs, PC and founder and CEO of Thriveal CPA network, Blumer has a history of applying innovative practices to drive business. 💡He provides some real-world insights in this Q&A. From CPA Practice Advisor: "In my role at BILL, I have the opportunity to talk to accounting firms from across the country about the internal and external pressures they face. Increasingly, I’m hearing from firms that are leaning into growth areas and innovation opportunities to help set themselves apart from the competition. With a solid plan in place, firm growth can become less daunting and instead be a viable part of a successful business strategy.” Read the full article here: https://lnkd.in/g9KpHzQm #CPA #Accountant #TaxPros #Tax #Taxes #Accounting #Accountancy #Bookkeeping #Finance #Advisory #Growth #GrowthMindset #Scale #Innovation #Strategic #Strategy #Training #Insights

This is a shot across the bows of private equity in the UK, as it expands its ownership of the accounting sector. The head of the Financial Reporting Council there says it wants to know in advance if a firm is considering a selling to PE, and it will be examining "economic substance" as well as legal form when it comes to judging if the audit business remains accountant-controlled, as required. This interview, by Simon Foy and Michael O'Dwyer, published on FT.com just as the US Public Company Accounting Oversight Board (PCAOB)'s investor advisory group was meeting in Washington to discuss risks associated with PE ownership of audit firms. Some panellists expressed concern that the structure of many of these deals is opaque. This is an issue that will only become more pressing as the deals keep coming. #privateequity #audit #accounting https://lnkd.in/eK-t7vXn

Discover how private equity-backed CPA firms are reshaping the accounting industry with rapid growth and innovation! Learn key insights that could drive your business forward. #ATHENA #privateequity #CPAfirms #accountingtransformation #businesstrends

Two common pitfalls in accounting firms that we're addressing at MBS: 1) Not being built for continuity 2) Not being intentional about company culture Here is why these matter and what we're learning at MBS Accountancy Corporation: 1) Continuity ensures you can deliver to clients through good and bad weather Hard times happen to all businesses and also to the people who work there. When a key person isn't available, does your firm stall? That makes you a liability for clients. We're working on addressing this by mapping smart processes using Karbon, Loom, and other tools. This lets us delegate at scale with the same outcomes. 2) Culture is more than a buzzword. It can be a business advantage. Think about it. Happy staff do great work because a) they're happy to be there b) they do their best for their clients so they can stay there c) they are supported and heard by leadership If you're an accounting firm, I encourage you to invest in continuity and culture. If you're a client, I recommend working with a firm that is built to last and does its best to delight its staff. If you can't find one, try MBS Accountancy Corporation 😉

Remember my poll from a couple weeks ago about if a firm will still exists? I think we are asking the wrong question. How do we protect the CPA profession? See my Accounting Today article - What do you think? We're witnessing the evolution of the "new firm." First, these aren't audit firms. They are their own unique beast and don't fit into this new firm model. They are firms: ➡ Where professional services and technology have merged together with a significant investment from venture capital or other outside capital.  ➡ That are merging up into a firm with private equity. They will eventually become public companies when PE won't be able to get their money out, forcing an IPO. What do these new firms have in common? They focus on those services that don't really need a CPA credential. Things like general accounting and tax, controller services, CAS, etc., can be done by anyone; a CPA is only needed to conduct a public company audit.  Sound scary? Not really — if we as CPAs are willing to own that space in the marketplace. The CPA brand is significant and something worth having. But what happens when this influx of capital is commonplace and things change? How do we focus on protecting the profession and not the firm? This is key to our future! #radicalcpa #accountingandaccountants #cpafirm #tax https://lnkd.in/dvDzG3WG

Private equity isn't a silver bullet PE brings a lot to accounting, but it's not for everyone, say experts at Accounting Today's PE Summit. #privateequity #accounting #PESummit #cpafirm #cpapartnersllc

The collaboration will see Thayer's audit partners join HTL, along with professionals from its audit group. For daily news and analysis subscribe to the https://lnkd.in/gNfm9wi3 newsletter. #Accounting #Finance #Business