Latest news with #accountancy
Yahoo
4 days ago
- Business
- Yahoo
Is private equity's pushback on the CPA credential a regulatory issue?
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Amid the growing influence of private equity across business — particularly in public accounting — a quiet but consequential trend is beginning to ripple through the profession. Licensed CPAs who don't work in audit or attest roles are being told to remove CPA from their email signatures, business cards and LinkedIn profiles. In some cases, the directive is not coming from private equity owners, but from state boards of accountancy. It's the regulators who are pressing firms to limit the use of the CPA title among licensed professionals in non-attest roles. State boards have expressed concern that CPAs in advisory or consulting positions may inadvertently mislead clients by signaling regulatory oversight where none applies. Regulators worry the public may assume anyone using the CPA title is providing services under the oversight and standards of a licensed audit practice, even when that's not the case. These interventions are often prompting firms, particularly those with private equity structures, to adopt dual-entity models that separate audit and non-audit functions, thus stripping CPA titles from certain professionals accordingly. Firm leaders often cite regulatory caution and legal risk as justification, concerned that clients may assume all services are being performed by professionals working under the CPA license. But the move is sparking backlash among some accounting leaders and raising broader questions about the long-term value of the CPA designation itself. Many CFOs already feel the CPA has been devalued, whether due to burdensome licensure requirements, changes to the exam structure or the limited appeal of public accounting careers for young talent. Now, the rise of private equity ownership and intensifying regulatory scrutiny is introducing a new layer of complexity for CPAs inside firms and for the finance leaders who rely on them. The practice of splitting CPA firms into the dual entity model — one that performs audit work and another that handles advisory or consulting services — is not new, especially among firms with private equity backing. This structure allows firms to navigate ownership rules that prohibit non-CPAs from owning audit practices. However, according to commentary shared on an Accounting Podcast episode from early last month, at least one state board of accountancy has begun pressuring firms to prevent licensed CPAs on the non-attest side from using the 'CPA' title publicly. Blake Oliver, co-host of the podcast, said a listener of the podcast who works at a private equity-backed firm confirmed the decision to restrict CPA usage came in response to this regulatory scrutiny. State boards, the listener told Oliver, are concerned the public could be misled if credentialed staff appear to be offering services under the CPA umbrella when they are technically working outside the regulated audit entity. Oliver also included a statement from AICPA CEO Mark Koziel, who defended the value of the credential and expressed concern over firms limiting its use. 'We support the use of CPA to everyone who has gone through the process of becoming licensed. As I've heard in my listening tour, the passion behind CPA is evident,' said Koziel. 'The CPA and what goes with it — integrity, accountability, objectivity, competence — is the value that we bring to the market, to our clients and to communities. It's what creates trust in firms of all business models, including alternative practice structures.' Oliver said the decision to have non-audit CPAs drop the title may be a countermove from firms against regulation. 'Private equity is calling [the regulators'] bluff,' he said on the episode. 'Private equity is saying, 'well fine, you give us a hassle, we're just not going to call ourselves CPAs period'.' The implications of this challenge have the potential to go beyond firm branding or regulatory semantics. In a recent op-ed in the Journal of Accountancy, AICPA public accounting CEO Susan Coffey warned that the move could undercut recruiting efforts and damage the pipeline. She delivered a message to private equity-backed accounting firms who are limiting the use of "CPA" saying it sends the wrong message to the next generation of accountants. 'This isn't just an issue for current CPAs,' wrote Coffey. 'There could be unintended consequences for our future talent.' Coffey cited a 2023 study by the Center for Audit Quality that found 82% of accounting majors view the CPA license as extremely or very valuable to their career goals. 'Why would a young professional work hard to acquire the CPA, only to have their employer tell them they can't use it?' she wrote. That disconnect between what firms expect of their staff and how they represent them risks weakening one of the profession's fundamentally vital recruitment and skill-building tools. Not only do many CFOs credit their time in public accounting to learning the intangibles of the job, but for many students and early-career accountants, the license is more than a regulatory hurdle. It can be a symbol of credibility, achievement and long-term opportunity. If firms appear to undervalue the credential, some, like Coffey, worry that fewer students will choose accounting in the first place. And while private equity backers may be focused on risk mitigation and compliance, the oversight leaders say the shift could inadvertently damage the profession's public standing. 'We work with market permission,' Coffey wrote. 'CPA licensure helped build that market permission. And that permission equates to tremendous value for us as individuals, for the businesses we work in and serve clients in and for the CPA profession.' This story is ongoing, and we will publish additional findings as we continue to reach out to CPA society leaders for their input. Recommended Reading How CPA licensure changes are affecting CFOs and accounting talent Connectez-vous pour accéder à votre portefeuille
Yahoo
26-05-2025
- Business
- Yahoo
Accountancy firm Torr Waterfield to merge with Duncan & Toplis
Torr Waterfield, a Leicester-based accountancy firm, is set to merge operations with Duncan & Toplis, a UK-based accountancy and business advisory group. Founded in 2000, the Leicester-based firm offers comprehensive accountancy, tax, and business advisory services to a broad range of clients. In a statement, Torr Waterfield said the move is part of its strategic growth plan to enhance its client offering and regional presence. The merger, which is awaiting regulatory approval, will see Torr Waterfield rebrand under the Duncan & Toplis name. All 60 team members of Torr Waterfield, including directors and co-founders Mark Torr and Mike Waterfield will remain in roles following integration. Mark Torr said: 'We're proud of everything we've built over the past 25 years. Joining Duncan & Toplis enables us to further build on that foundation while creating space to grow. 'We're confident this will be a smooth transition, and we look forward to continuing to support clients with the same service they know and trust, now with the backing of a respected and established national group.' Furthermore, the current Torr Waterfield office on Clarence Street will become part of Duncan & Toplis's network. Duncan & Toplis, operating since 1925, has 13 offices across the Midlands and London. Duncan & Toplis CEO Damon Brain said: 'Leicester is a key strategic location for us, and this move strengthens our regional presence while adding great people and experience to our team. This partnership is not just about growth – it's about alignment. 'Mark, Mike, and their team have built a people-focused firm that puts clients first, which reflects our own values. We're excited to support them as we move forward together.' In February this year, Duncan & Toplis acquired North London-based ALG for an undisclosed sum. "Accountancy firm Torr Waterfield to merge with Duncan & Toplis" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
22-05-2025
- Business
- Finextra
Digital pensions fintech Penfold raises £3.9 million
Digital pension provider Penfold has raised £3.9 million in a funding round led by Gresham House Ventures. 0 Penfold offers a digital workplace pension via a proprietary platform, which enables businesses to sign up or switch their pension in minutes. The number of employers using Penfold's workplace pension have tripled since the start of 2024 - from 1,200 to over 4,000, Assets under administration have grown by 91% to nearly £700 million by the end of Q1 2025. The company last raised £7 million in Series A funding in 2022 and in February it drummed up just over £1 million via an over-subscribed crowdfund campaign. Rohit Mathur, investment partner at Gresham House Ventures, says: 'We have been impressed with Penfold's commercial traction as it leads the charge in disrupting the pensions industry. With significant potential to further boost its customer base and bolster its digital offering over the coming years, we are excited to support Penfold's continued progress as it enters the next phase of its growth.' Penfold says the fresh funds will boost its drive to reach profitability, by growing its presence across the UK SME and accountancy markets and accelerating the development of its pension app with new features for savers and businesses.
Telegraph
21-05-2025
- Business
- Telegraph
Deloitte to slash bonuses and scale back hiring as profits slump
Deloitte has warned staff that it will slash bonuses and scale back hiring in response to a slowdown in profits this year. The accountancy giant unveiled the cost-cutting plan in an email to UK staff on Tuesday, as bosses said they were responding to an underwhelming performance across its audit and consulting business. Richard Houston, senior partner at Deloitte's UK business, told staff that the firm's consulting arm had 'faced a particularly challenging year', which led to a 'worse-than-expected' performance. Staff in Deloitte's consulting business will see their bonuses cut by 20pc after the unit 'fell materially short of its performance goals,' Mr Houston's email said. He also confirmed that Deloitte will limit promotions to 5,500 this year, with the firm having previously handed out 6,800 promotions in 2024 and 7,000 the year prior. Deloitte's partners, who took away payouts worth more than £1m in 2024, will also see their pay affected. Mr Houston said: 'At the start of FY25, we expected greater economic stability and a gradual return of growth opportunities. But an early election, geopolitical complexity and unexpected economic headwinds – like changes in trade policies – have continued to cause market uncertainty.' In addition to slashing its consultants' bonuses, Deloitte's cost-saving measures will see the firm limit pay rises for all UK employees to 2.9pc in 2025, compared to the 5pc increases handed out last year. Mr Houston added that Deloitte's UK firm will be overhauling its bonus structure to pay out higher bonuses to employees in more profitable segments 'to reflect the variations in performance across our businesses'. Meanwhile, employees in Deloitte's tax and legal business will be paid full bonuses after a better-than-expected financial performance. The cuts come as other 'big four' accountancy firms have struggled to navigate a recent slump in activity post-Covid, which has led to layoffs across the industry. A Deloitte spokesman said: 'Amid ongoing market uncertainty, we are pleased to be able recognise our people for their hard work with salary increases, bonuses and promotions this year. 'This is alongside other benefits such as fully funded private medical insurance, recently enhanced family policies, and our commitment to offering flexibility and choice in our ways of working.'
Yahoo
17-05-2025
- Business
- Yahoo
Accountants pursue entrepreneurial goals: ACCA
More than half (52%) of finance professionals have ambitions to become entrepreneurs, according to a recent study by the Association of Chartered Certified Accountants (ACCA). Furthermore, 62% of those surveyed expect to change jobs within the next two years, indicating a notable transformation in career aspirations. The ACCA's annual Global Talent Trends Survey 2025 sheds light on the changing attitudes of professionals in accountancy and finance. This year's survey, now in its third year, captures the views of over 10,000 individuals from 175 nations regarding their work experiences and future goals. Many respondents perceive accountancy as a route to entrepreneurial pursuits, with a significant number considering it a launchpad for establishing their own enterprises. This trend could be advantageous for employers, as there is a rising demand for accountants with entrepreneurial capabilities in various finance and business positions. The survey also highlighted that 67% of participants are keen on pursuing accountancy careers centred around sustainability. This indicates an increasing recognition of environmental concerns and the role finance professionals play in tackling these issues. Confidence in employability remains robust, with 62% of respondents anticipating a shift to new roles in the next two years. However, 51% of participants are still engaged in full-time office work, despite a strong inclination for hybrid working arrangements expressed by over 76% of those surveyed. Concerns regarding diversity were emphasised, with 45% of respondents noting that their organisations focus more on specific aspects of diversity than others. The acknowledgment of older employees emerged as a significant issue in this regard. The ongoing cost-of-living crisis is a primary worry, with 41% of respondents expecting a salary increase of at least 11% in the upcoming year. Additionally, half of the participants feel they are not developing the essential skills needed for future workplace requirements. While indicators of mental health show slight improvement, challenges remain, with 52% agreeing that work-related pressures adversely affect their mental health. The trend of 'side hustles' is becoming more prevalent, with 43% of Gen Z respondents and 39% across all age groups involved in supplementary employment. Finally, accountancy is still regarded as a valuable entry point to global career prospects, with 72% of Gen Z and 52% of Gen Y respondents expressing a desire to seek job opportunities abroad. ACCA Skills, Sectors and Technology global head Jamie Lyon said: 'Our 2025 data continues to show a workplace in transition, but one of the exciting themes emerging this year is how accountancy training can be a brilliant early career pathway for building entrepreneurial skills. 'There's no doubt this in part reflects how career ambitions continue to transform at work.' "Accountants pursue entrepreneurial goals: ACCA" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
