BDO profits rise as firms seek Big Four alternatives

The tax advisors of accountancy firm BDO have done a fifth more work this year, it has been reported, as a result of companies turning to alternatives to the Big Four accountancy firms.

Mid-market firms, and even a number of large listed companies, seem to have foregone Deloitte, PwC, Ernst & Young, and KPMG for non-audit related services.

BDO’s UK business is growing in the tax sector, with their revenues jumping by 20 per cent in the year to 03 July, raising it to £119 million.

The managing partner of BDO, Simon Michaels, said that this big boost came from an increasing workload from mid- and large-sized companies, not just from tax reforms.

“We’ve definitely seen a lot more large listed companies looking for advice outside of the Big Four. Some of that’s conflict of interest driven,” he said.

Despite mainly focusing on small and mid-sized companies, BDO is not being used by a large portion of FTSE 350 companies.

Companies are beginning to check elsewhere for accounting service providers and auditors, because of new EU regulations which are to come into play which state that a public interest entity cannot stay with the same auditor for more than a decade.

Whether or not this is the cause of the change to BDO’s profits or not, the accountancy firm is expanding and reaping in more profits.