The Value of Independent Accountant Firms in a Consolidating Market
Across the UK, Ireland and the US, the headlines are dominated by a trend of consolidations and buy outs of independent accountants by larger firms.
This year already, Xeinadin acquired Irish accountancy firm KBG Accountants – a move they said would allow them to “access to the tools, technologies, and resources of the wider Xeinadin organisation.”
CavanaghKelly, where our founder, Seán Cavanagh previously worked between 2002 and 2017, and founded by Seán’s uncle, was recently acquired by Cooper Parry. Another move that establishes a new foothold for the larger firm in Ireland.
Similarly, Inspired Corporate Advisory, a specialist tax practice co-founded by Seán Cavanagh (SCC Chartered Accountants founder) and his brother Colm Cavanagh, was also acquired by Ryan this year. Its acquisition by a global tax services provider like Ryan is a clear indicator of the value and talent that was originally cultivated within the firm as an independent.
However, in this landscape of mergers and acquisitions, the role and benefits of the independent accounting firm becomes even more pronounced. At SCC Chartered Accountants, we believe in the power of independence and the unique value and opportunity it brings to our clients.
According to Accounting Today “a whole cohort of firms would answer the same way, continuing to grow their practices organically and through strategic acquisitions while opting out of the capital offered by private equity or larger firms seeking their own buying opportunities”.
What are Independent Accountants?
An independent accounting firm is a practice that is not owned by or affiliated with a larger national or international network. It is typically owned and operated by its partners, who have a direct stake in the firm’s success and a deep connection to the local community and clients they serve. The same strong relationships, local knowledge, and a commitment to a tailored personalised service is retained in growth rather than adopting a generic approach of the networks. Being nimble and agile with our thinking, decision making and AI adoption creates greater opportunities for our clients to succeed.
The Benefits of an Independent Accounting Firm
Whilst services offered look the same, how the service is applied and delivered becomes the differentiating factor. As an independent firm our team only has loyalty and commitment to our clients. Our owners are the people offering the advice and that warm connection and accountability to the business owners means the interests of our clients are paramount and whatever we need to do to achieve our client goals is our priority, rather than an internal KPI.
Choosing independent accountants like SCC Chartered Accountants can offer several distinct advantages:
- Personalised, Relationship-Driven Service – the future of SCC depends on the success of our client relationships. We are part of our clients teams and we understand that a win for our clients is a win for us. Our key value is ‘achieving more’ with our clients.
- No conflicts or restrictions – networked accountancy practices have pre-existing relationships and restrictions meaning they have to use certain channels for IT, AI and wider services such as international planning but Independents can form new relationships at any time, meaning we challenge all relationships constantly to reach the best outcomes for our clients.
- Decisions are made locally, and quickly – At SCC our decisions are taken locally, in real time. Networks use rigid, corporate pre-descriptive guides with decision makers based internationally meaning a delay and restriction with truly understanding business owners and their immediate needs there and then without the need for higher approval.
- Focused on Client Success, Not Shareholder Value – Our primary focus is on the success of our clients. We are not driven by the need to meet quarterly targets or deliver returns to distant shareholders. Our success is directly tied to the success of the businesses and individuals we serve. This alignment of interests ensures that our advice is always impartial and focused on what is best for you.‘We have always made it clear to our clients that we should be judged by our impact on them and their business. If we improve our clients’ business and returns, we also win. Our client successes are the reason we are the fastest growing practice across the UK and Ireland. We celebrate our client wins everyday and this personal approach will never change’. (Seán Cavanagh, Managing Partner.)
- More Accessibility with Independent Accountants – our team bond is reflected with our client relationships. Our team is a reflection of our practice values. We’re responsive, accessible and accountable to our clients. If our clients need us, we’re there no matter what.
- Embrace & Deploy New Technologies – Being independent means we can explore and invest in new technologies in a fast moving environment rather than waiting on higher level approvals and multi-national rollouts. At SCC, we have built AI enabled platforms for our clients benefit and we have top AI firms reviewing systems for ourselves and our clients ensuring we are always using the best available technology to constantly improve. SCC has developed a comprehensive client ERP platform called ‘SuCCess’. This is available for all our clients to use and ensures full transparency between ourselves and our clients. Powered by cutting edge AI, deadlines, live project status updates and information sharing ensures the best possible client experience and no unexpected surprises. We also use the bespoke software for news updates, added-value opportunities and creating a business network between our clients so that they can offer each other business opportunities.
- Proactive Business Advisors – Unlike multi-layered firms, we are not constrained by rigid corporate policies or a one-size-fits-all service model. This freedom allows us to be more nimble and responsive to our clients’ unique needs. We are able to anticipate challenges and opportunities, offering strategic advice before it’s requested.
- We treat our clients’ businesses as our own because of the close connection and accountability we have to them. Our team doesn’t have KPI reporting constraints and as such are allowed as much time as necessary to get to the bottom of issues and offer solutions rather than worrying about a timesheet loss or a schedule adjustment. Our team has complete autonomy to be flexible and ensure a successful outcome for every project.
- We invest in our future – Stresses about succession planning is often cited as a reason to merge companies.
At SCC we back the quality of our team and the culture and enthusiasm constantly encourages the next wave of advisors. Recruitment has been our strength with some of the best talent across the UK and Ireland joining our team. Our growth has been backboned by a unique ‘SuCCess’ training programme we developed which allows our team to constantly improve and become the best advisors possible. SCC has also added new divisions. Internal Auditing and Insolvency were added in 2023, while in 2024, we opened our Sustainability, Internal Audit and Tax incentives divisions. This development means we don’t have to rely on outside expertise, instead having the resources and skilled team members who can deal with complex tax and accounting regulations.
Keeping Pace with Strategic Acquisitions
As part of our offering as independent accountants have also recently launched a wealth management team, SuCCess Wealth Management Ltd. Both of these expansions, we believe have strengthened the offering our clients need. It also keeps our expertise in house and helps us to remain independent.
By connecting our client’s tax, accounting, and wealth management planning this new integrated approach means clients can now benefit from:
- Seamless connection between tax strategy and wealth planning. This means that we can ensure client’s investments and financial plans are optimised from a tax perspective, helping you keep more of what our clients earn and grow our wealth more efficiently.
- By operating as one team we can focus on our clients’ individual, business, and family goals Our integrated team will have a holistic view of our client’s entire financial picture, ensuring all components work together cohesively to achieve their goals
- By integrating our expertise across tax, accounting, and wealth management, we can identify new strategies to safeguard client’s assets, build lasting prosperity, and prepare their finances for the future.
Our increased specialisms and offices mean we can attract and retain the best talent.
The Future is Independent
The consolidation in the accounting sector is a clear sign of a changing market. While larger firms offer bigger staff pools in non-local locations, we believe that there is a real need for personalised, expert, and locally-focused warm and accountable advice that independent accountants excel in..
At SCC Chartered Accountants, we are proud to be a strong mid-tier, evolving team of independent accountants. We know that our independence allows us to build stronger relationships, provide more tailored advice, and offer a level of service that is increasingly rare in today’s market. Our success is linked to our client businesses success and that gives us a purpose to ensure we offer the best advice.
We are committed to helping our clients navigate the complexities of their financial lives with integrity, expertise, and a personal touch.
If you are looking for a trusted partner who understands your business and your community, why not get in touch with us to see what a difference an independent accounting firm can make.
