Why small accounting firms matter

How they can save you money in the current economic downturn.

With the current economic slowdown, mid-sized companies need to overcome their bias towards the larger professional firms and become more discerning buyers of audit, accounting and legal services in pursuit of better value for money and greater efficiencies.

Smaller and medium-sized legal and accounting firms have built up their specialist services, their teams and their broad capabilities and have shown that they can compete with the much larger firms at a much lower price.

In addition, the draft Companies Bill exemption of small businesses from rigorous financial reporting requirements and audits has acted as a catalyst for a change in buying behaviour.

The Companies Bill is good for South Africa's accountancy profession as smaller companies will be drawn to those firms that are focused on providing non-audit services that are better suited to their requirements.

The new legislation will not kill off the livelihood of the smaller accountancy firms but that they will need to redefine their roles and rethink their structures.

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