DELOITTE has overtaken KPMG as the third largest accounting practice in Western Australia, research for WA Business News Book of Lists has found.
DELOITTE has overtaken KPMG as the third largest accounting practice in Western Australia, research for WA Business News Book of Lists has found.
The new industry data also highlights the growth of mid-tier firms BDO and WHK Horwath, following the recruitment or acquisition of competing practices this year.
Among smaller firms, Lawrence Business Management and Bentleys, both part-owned by listed company Count Financial, are also on a growth path following acquisitions.
Ernst & Young remains the industry leader with 440 accountants, up 16 during the past year via organic growth.
PricewaterhouseCoopers continues as the number two player in WA with 410 accountants, up 35.
Its profile in the Perth market has been aided by the acquisition of management consulting firms Mainsheet Corporate in 2009 and GEM Consulting in 2007.
Deloitte has become the state’s third largest firm after luring PKF’s audit practice, comprising three partners and 29 staff, to join it last month.
That gives Deloitte a total of 370 accountants, putting it ahead of KPMG, whose headcount is largely unchanged with 339 accountants.
KPMG will get a small boost next month when former PKF partner Agnes Vacca formally joins the firm.
“I made the decision to join KPMG because of the opportunity to work at a partnership level at a Big 4 firm,” Ms Vacca told WA Business News.
She will continue to focus on private clients and high-net-worth groups in her new role.
Most of her former colleagues are heading to Subiaco to join BDO, which has recruited five PKF tax partners and about 55 staff.
That gives BDO 172 accounting staff, leaving it just behind RSM Bird Cameron but well ahead of other mid-tier practices.
Another growing firm is WHK Horwath, which bought Osborne Park practice Hayes Knight in April.
That brought four partners, 26 staff and $3.5 million in annual revenue into Horwath, which now has 94 accountants on its team and annual revenue of about $18 million.
Lawrence Business Management and Bentleys have also been acquisitive over the past two years, since Count Financial subsidiary Countplus acquired minority shareholdings.
Lawrence has made three acquisitions since July 2008. Most recently, in December 2009, it agreed to pay $2.06 million for the accounting and financial planning assets of West Perth firm Lena Hilton Pty Ltd, which had annual billings of $1.8 million.
In November 2008, LBM paid $700,000 for PG Business Services, which had annual billings of $760,000.
In both cases, most of the consideration was paid in cash up-front, with the balance payable in scrip after one year, subject to client retention provisions.
Bentleys (formerly Rix Levy Fowler) has made one acquisition, paying $550,000 in cash and scrip for sole practitioner business DF Crawley & Associates, which had annual fees of $650,000.
LBM has a total of 31 accounting staff while Bentleys has 32.