Mid-tiers v the big 4: Bridging the diversity gap

A recent study has highlighted that mid-tier accountancy firms in the UK are catching up with the Big Four when it comes to diversifying away from audit work. Amongst mid-tiers, non-audit work rose to 55% in 2015, from 50% in 2014 and 48% in 2013 and this upward curve is set to continue.

Despite low profit margins, higher legal risks and slower growth rates, audit has predominantly been the bread and butter for many firms whose clients breach the ever increasing audit threshold. However, the rise in said threshold has been fundamental to accountancy practices varying their offering and has enabled entire workforces to gain broader experience and more confidently climb the career ladder.

The emphasis on an employee’s softer skills has become more and more important throughout practice and this has led to more of a focus on advisory, as opposed to purely carrying out an audit and performing a tick box exercise. The rise of the cloud within integrated IT packages such as Xero, Receipt Bank and Sage Live has also led to significant development in outsourcing, management accounts and bookkeeping services over the last three years.

I sincerely believe that the broader services that mid-tier firms now offer is behind more and more audit & accounts professionals opting for roles in a mid-tier as opposed to the Big Four. Along with a varied role, mid-tiers provide a better work-life balance, excellent personal recognition & reward as well as career development that can rival larger firms. There is also the consideration that in providing a more wide-ranging service, employees in practice are becoming true business partners to a range of clients across a multitude of sectors, helping these clients navigate a plethora of issues and supplementing their sustained growth.

Many practices are also taking advantage of national and international accounting networks (HAT Group, Prime Global and HLB International to name but a few), which is allowing firms to transfer knowledge on best practice and non-audit services and essentially helping them to expand at a steeper rate.

With the diversity gap evidently shrinking, but the focus on staff retention and personal and professional development continuing to improve, I would love to speak to anyone who is considering broad and fulfilling roles within a mid-tier firm.