Profit per partner increases prompts optimism in accountancy sector

News Article - 02 January 2007
Category: Business

Senior Scottish accountants are optimistic about their profession's future in 2007 after an increase of one-fifth in profit per partner at most of the big four firms, according to one publication.

Profit per partner has now reached more than £600,000 for each senior accountant, states the Herald, with most of the nation's large accountancy firms seeing rises in both profits and revenue of 15 to 20 per cent.

Levels of growth for 2007 are set to mimic the previous year's rises, Craig Anderson, head of audit firm KPMG in Scotland, told the publication.

However, more trained accountants are needed in the industry as a shortage of skills in the sector is becoming noticeable, the Herald states.

It adds that the skills shortage can be attributed in part to external businesses wanting qualified chartered accountants on the payroll, for which they are prepared to offer high salaries.

Ralph Adams, financial advisory company Deloitte's senior partner, told the publication: "We could double in size in four years, however, that forecast is based on a number of assumptions.

"The biggest 'if' is the supply of quality people to deliver the services our clients want."

He added that there "aren't enough people in Scotland to do all the work".

A recent survey by the Confederation of British Industry showed that migrant workers are now filling gaps in the skills system in London, with almost half of all the capital's companies relying on foreign workers from the European Union.

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