Office closures predicted for Top 20

THE boss of accountants Beever and Struthers predicts that a number of his rivals will be forced to close some of their swanky new offices as the recession deepens.

Managing partner Phil Roberts thinks that further redundancies are expected across the sector and while the Big Four will weather the storm, others will not be so lucky.

He said: “A number of top 20 practices have made headlines over the last 18 months having moved into larger, more expensive premises to cater for anticipated growth which will not now occur. Consolidation will be imperative in a number of cases and office closures inevitable.”

He added that this year will be worse than 2008 in terms of trading conditions, and certain mid-tier firms, as in the early 1990s, will become increasingly busy acting almost as financial directors in helping micro manage many of their SME clients through the recession.

Mr Roberts added: “The cost structure of the Big Four prevents them from providing a comparative service to the mid-tier firms in the SME market.  They are much more geared towards servicing larger clients.

“Following a period of disengagement in the SME market over the past decade the big firms can’t suddenly change tack as lack of continuity and understanding of the market place will cause them serious problems in market penetration. 

“SMEs aren’t naïve – they know that in a healthy economy they would not be the target of the Big Four’s attention.”