Two of the many changes in the accounting profession over the past few years alters what used to be a red flag to lenders…a company that gets dumped by their CPA firm.
CHANGE ONE: Firms are crunched between a greater demand for services and a decreasing supply of professionals who can provide them.
Marc Rosenberg is a management consultant to the CPA and law professions. He says this results in firms raising rates and shedding less profitable clients.
Gerry Riskin sees an explosion of niches. Gerry is a Canadian lawyer and Business School graduate in the field of professional firm economics and marketing. He sees “big firms outsourcing specialized services, new kinds of services being demanded and offered, new disciplines combining accountancy with, say, legal counsel, IT or engineering.”
If one of your business borrowers is ‘let go’ by their CPA firm, it may not be because they’re shady…just not a good fit any longer. Don’t be too quick to hold it against them.