Growing demand from New Zealand firms for quality accounting advice in wake of credit crunch

The tight lending market and pressure on cash flows in the wake of the global credit crunch has seen a marked increase in the number of New Zealand businesses seeking quality accountancy advice.

Nigel Arkell, Director of The Business Advisory Group – which specialises in accountancy advisory services – says firms big and small have been looking for support in better managing cash flows, budgeting processes and their banking relationships.

“We’re seeing a lot of smaller and regional businesses wanting better accountancy advice and a greater depth of experience. With the tough economic conditions and tight lending criteria, in some cases the right advice can be the difference in whether you survive – and come out strongly when the recovery kicks in.”

To meet the growing demand for quality accountancy services and taxation advice, Mr Arkell says The Business Advisory Group has appointed James McQuaid to the role of Associate Director to support Directors, Nigel Arkell and Carol Campbell. James was Manager, Accounting Services Group at Ernst & Young prior to joining The Business Advisory Group in 2006.

Joint owners of The Business Advisory Group, Nigel Arkell and Carol Campbell who were both partners of more than 25 years each with Ernst & Young, decided that what clients are looking for is cost-effective accountancy and business advice, that is both practical and tailored to their business needs.

Mr Arkell says there has also been a growing trend of large businesses scrutinising the value and cost-effectiveness of their accountancy services.

“In many cases, they’re wanting a closer relationship with their advisors, and a more tailored service where they can manage their accountancy costs and still get the practical advice and support they need.”

He says one of the impacts in New Zealand of the global recession is that businesses have become more acutely aware of the benefits of good cash flow management.

“We have also seen a fundamental change in banking relationships, where lenders have been restricting access to credit and putting real constraints on business borrowing. As a result firms want good independent advice about how to fund their businesses and manage their balance sheets.”

Mr Arkell says while New Zealand businesses have been able to re-finance and benefit from the current lower borrowing rates, as the world economy recovers and the demand for capital increases so will the cost of this borrowing.

“The servicing of this debt will increase pressure on profits, and the need for quality accountancy and financial management advice. That’s what’s behind this trend which is growing demand for our services,” he says.

About The Business Advisory Group
The Business Advisory Group delivers cost-effective accountancy advisory and taxation support to private and family-owned businesses. We also provide a comprehensive company secretarial and support service to overseas companies doing business in New Zealand.

We are a group of qualified and experienced accountants who ensure that our clients are put first at all times. We have combined experience in advising a wide and diverse range of industry sectors, and will tailor our service to meet your business needs.