“We need to move on from referring to us as an accounting firm.”
Thus said KPMG Australia chairman Peter Nash. He stressed how accounting services today only plays a small part of what the professional services giant do as advisory services now account for 49 percent of its income.
“Those who would pigeon-hole us as an accounting firm [do so] to avoid competition, not recognising the broader threat we pose to the professional services industry because of the scope available to us,” he added.
KPMG is a global network of professional firms providing audit, advisory and tax services, and one of the largest professional services companies in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY) and PricewaterhouseCoopers (PwC). Growth in the firm’s advisory services increased sales to 8 percent to $1.2 billion, for the 12 months to June 30.
On the other hand, the other Big Four firms are also experiencing revenue boost for the year. Sales at Deloitte rose 15 percent to $1.3 billion for the year to May 31 and its consulting business continues to grow far faster than its core accounting business. EY underwent a 14 percent rise in reported income to $1.29 billion for the months to June 30 with its advisory division as the outperformer, accounting for roughly a third of its total income. PwC’s full-year revenue has risen 10 percent to $1.7 billion, for the 12 months to June 30 as the demand for advisory services became stronger.
Although KPMG’s growth rate is slightly lower than its peers, chief executive Gary Wingrove believed that the firm has “very good momentum” and that the rate represents a “sustainable trajectory” and a “significant increase on where we were a year ago” as it improved through a combination of cost control and revenue growth finding its way to the bottom line.
KPMG Advisory’s trusted professionals work with the world’s organisations to cut through the complexity of today’s rapidly changing marketplace. The firm leverages the knowledge and skills across its global network of firms to develop practical recommendations designed to help their clients work smarter, grow faster and compete stronger.
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