Accounting firms broaden their focus to stay relevant

The trend for accounting firms to venture beyond their traditional areas of service has been highlighted by Ballards LLP's recent acquisition of one of their clients, Northampton-based creative design agency, CreativeFolks.

The aim of the agency acquisition was to provide a more comprehensive suite of services to clients, who are increasingly seeking a holistic approach to addressing their business needs. The acquisition enables Ballards to offer brand, digital design, web and social media solutions, complementing its existing accountancy and business advisory services.

CreativeFolks boasts an impressive client roster including Disney, Harley-Davidson, and the NHS, as well as offering services for owner-managed businesses and start-ups. CreativeFolks will join Ballards' other secondary business units, which encompass recruitment through Four Squared Recruitment, wealth management via Ballards FS and the firm's IT & Digital Transformation consultancy.

James Syree, Chief Executive at Ballards LLP, stated, "While accountancy and taxation services remain our primary focus, we believe that adding creative design services will enable us to more effectively address our clients' evolving needs and deliver increased value."

Jon Clough, Managing Director at CreativeFolks, expressed enthusiasm for the partnership, noting, "There are great synergies between the two businesses, and we are excited by the recent development. It demonstrates our commitment to providing the best possible service to clients and our ability to evolve and adapt to meet their changing needs."

While the demand for standard accounting services including bookkeeping and auditing may not be disappearing entirely, it’s not growing either, and more importantly, the nature of the work and the expectations of clients are changing.

Many routine tasks in bookkeeping and auditing are being automated through software solutions, making these tasks more efficient and less time-consuming. This has led to a reduction in demand for manual processing of transactions and data entry.

As automation and smart technology takes over repetitive tasks, the role of accountants is evolving. Clients are increasingly seeking value-added services such as strategic financial advice, risk management and business consulting, in addition to traditional accounting services.

But growing an accountancy business organically into areas like wealth management and M&A advisory is a very slow process, made even harder by the acute shortage of qualified talent.

As a result we are seeing an uptick in acquisitions by the more dynamic accounting firms into these areas and into the digital and design space.

The larger accountancy firms have been acquiring web and design agencies for some time now. Five years ago, Deloitte bought the Stockholm-based design agency Acne so that it could offer clients a full range of digital and creative services, saying that their customers were increasingly looking for a partner with multidisciplinary skills – especially a combination of data analysis and creativity. All the major accounting firms have made significant investments into these areas.

Smaller accounting firms, generally those that have already moved into ancillary advisory services, have also begun scouting for digital and creative agencies.

There are five key reasons why pursuing this strategy makes commercial sense:

• Diversification of services: By acquiring web and design agencies, accounting firms can expand their range of services beyond traditional accounting and financial services. This helps them create new revenue streams and become a one-stop solution for clients seeking multiple services like accounting, web design and digital marketing.


• Digital transformation: The business landscape is rapidly evolving, with an increasing reliance on digital platforms and online presence. Acquiring web and design agencies allows accounting firms to embrace digital transformation and enhance their online presence to stay competitive in the market.


• Enhancing client experience: A strong online presence and well-designed digital platforms can significantly improve client experience. By offering visually appealing and user-friendly websites, mobile applications, or client portals, accounting firms can attract and retain more clients.


• Cross-selling opportunities: With the addition of web and design services, accounting firms can cross-sell these services to their existing client base, providing added value and strengthening client relationships.


• In-house expertise: By acquiring web and design agencies, accounting firms gain access to skilled professionals with expertise in web design, development, and digital marketing. This in-house talent can help improve the firm's digital strategy and online presence.

Most tax & accounting firms are now offering more services to their current clients and as a way to attract new business. Even so, many struggle to scale their business organically.

Acquiring creative agencies is the fastest, most effective way to break the gap between thinking of office services in isolation, marketing in isolation sales in isolation and strategy in isolation. Truly bridging that capability is something many forward-thinking accounting firms aspire to.

Advertising and media businesses for sale

Also read: What’s behind the growing M&A market for UK professional services firms?



Share this article

Latest Businesses for Sale

View more businesses for sale