A significant portion of accounting firms across Belgium are contemplating downsizing as their workload continues to surge, raising alarms within the sector about potential implications for small businesses and startups, L'Echo reports.
The challenges facing chartered accountants are multifaceted, with a confluence of factors contributing to their dilemma. An influx of new clients coupled with the escalating complexity of regulatory frameworks has resulted in an intensified workload per client.
A survey conducted by the Institute of Tax Consultants and Accountants (ITAA), in collaboration with data provider Wolters Kluwer, revealed that nearly half of the 600 accounting firms surveyed expressed a reluctance to expand or even consider reducing their size.
Independent accountants, in particular, are grappling with the difficulty of sourcing new employees, with over half of them expressing a preference for downsizing. The scarcity of skilled professionals is exacerbating the strain caused by burgeoning client demands.
The precarious situation facing the accounting profession has been underscored by its persistent inclusion among the top ten most short-staffed occupations for the third consecutive year. This shortage is further compounded by a generational gap, as retiring chartered accountants outnumber the incoming cohort. The inadequate enrolment in accounting courses fails to meet the escalating demand, exacerbating the scarcity of skilled professionals.
In response to these challenges, accountants are prioritising workload reduction by adopting a more selective approach towards client engagement. An anonymous accountant based in Antwerp revealed in L'Echo that their firm's decision to implement a six-month freeze on accepting new clients, citing the need to manage existing workload effectively. They emphasised the necessity of prioritising high-value clients over smaller ones, whose contributions fail to align with the resources expended.
New business registrations
Larger firms, too, are adopting a similar approach, with Konsilanto, which employs over 100 accountants, highlighting in the L'Echo report their reluctance to engage with one-man companies, self-employed individuals, or startups due to their inability to offset administrative costs.
This growing trend of selective client engagement is unfolding against the backdrop of a burgeoning startup landscape in Belgium. The surge in new business registrations underscores the critical need for accessible accounting services, a demand that is becoming increasingly challenging to fulfil.
Moreover, technological advancements are reshaping the accounting landscape, enabling businesses to manage their accounts independently through specialised software solutions. This digital shift, coupled with increasing administrative burdens, is prompting a consolidation wave within the sector, with larger firms acquiring smaller peers to streamline operations and enhance efficiency.
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The consolidation movement is evident with firms like Moore and PIA, bolstered by private equity investments, actively acquiring smaller counterparts. Similarly, SBB, an accounting firm headquartered in Leuven, has expressed its intent to pursue external growth opportunities to fortify its market position amidst evolving industry dynamics.
As the accounting profession navigates these challenges, stakeholders must remain vigilant to ensure the accessibility and affordability of accounting services for small businesses and startups, vital contributors to the nation's economic landscape.
