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SME law and accounting firms need to work together
Boutique law firms need to explore partnerships with local accounting firms to create a strategic position in offering SME clients a diverse range of professional services.
Imogen Wilson
Mid-size accounting firms are known to opt for mergers when looking to remain competitive and relevant on a national scale. However, if boutique law firms look to partner with local accounting firms, a range of advantages will benefit both parties.
“In challenging economic times, there is a flight to quality. Clients tend to want to work with people they know and trust, and this is where smaller SME specialist law and accounting firms have a distinct advantage,” he said.
Michaels argued that legal and risk is a significant area that accounting firm clients have issues with, adding to the proposed benefits behind partnering with boutique law firms.
He also outlined the fact that many commercial lawyers hold accounting degrees, facilitating a natural synergy within the partnership.
“Many small to mid-size accounting firms in Australia are wanting to take on the bigger end of town and are chasing more than just tax returns.
“However, if you want to work on succession and estate planning with family businesses, governance of larger SMSFs, business sales, or are looking to help a client grow in the building and construction industry, you need to understand there is an increasing amount of regulation and compliance issues,” he said.
Michaels believes partnerships between SME law firms, accounting and advisory firms is the way forward to establish a smarter and more efficient way of providing advisory services to clients.
“Small law firms face many of the same challenges in terms of being eclipsed by frequent M&As at the big end of town,” he said.
“Forming close bonds with other local advisory firms works because it allows us to take a growing SME client where they need to go more efficiently, and we are all on the same page.”
Instead of SME accounting practices looking to merge with other accounting firms to gain an advantage, a partnership with boutique law firms will provide a similar, if not better, “one-stop shop” for services.
The two industries share a similar culture, which will lend to a successful and beneficial collaboration.
“A collaboration approach means the work can stay local and can lead to better growth opportunities for both law and accounting practices,” he said.
Michaels said that such mergers will not only be an easy and worthwhile transition but also a cost-effective one.
