Accounting firms in Praxity Global Alliance have achieved record combined global revenues of US$6.96 billion for the year ended 31 December 2020 – an increase of 9.1% in real terms (8.9% at constant exchange rates)
The impressive growth continues an extraordinary sequence of 14 years of consecutive record-breaking revenues, reinforcing Praxity’s position as the world’s largest alliance of independent accounting and consulting firms.
Praxity Chairman, Gordon Krater, said: “I am delighted and hugely proud that the Alliance has reached another milestone of posting its highest ever combined global revenues despite the adverse effects of the Covid-19 pandemic on accounting firms and their clients. Praxity’s strong and stable position is testament to the way in which our member firms support each other and support their clients to overcome business challenges and local and global disruption.”
Graeme Gordon, Praxity’s CEO, added: “In 2020, Praxity member firms not only achieved record combined revenues during a challenging period but this growth was mainly organic. Staffing levels increased by only 4% and there was very little change in partners, both of which suggest better use of resources and internal, organic growth rather than through mergers and acquisitions, or through the addition of new members to the Alliance.”
Praxity is an innovative, multi-award-winning association providing a platform for accounting professionals to connect and exchange expertise in 111 countries. Professionals in Praxity member firms work in multidisciplinary teams, often across multiple jurisdictions, to help clients do cross-border business more effectively. This approach has helped establish Praxity as the top Alliance in the IAB world rankings.
The results for 2020 show member firms’ combined revenues continue to grow in virtually every region and service line.
Revenues of member firms in the USA & Canada region rose 7.2% to US$3.86 billion in 2020. Europe revenues grew 10.7% to US$1.82 billion while Asia Pacific (including Australia and New Zealand) grew 13.8% to US$1.03 billion. The fastest growing region is the Middle East (23%) although revenues remain relatively small at US$62.41 million.
There was impressive growth in accounting, rising 48% to US$1.08 billion. However, audit remains the largest service line, up 3.6% on the previous year to US$2.63 billion. There was also a significant increase in tax revenues, rising 12.3% to US$1.79 billion.
The record-breaking revenues cap a highly successful year for Praxity, in which the Alliance scooped the IAB Thought Leadership Initiative of the Year in 2020, having been voted Association of the Year four times in the past six years. Judges of the Thought Leadership award praised Praxity’s detailed Covid-19 guide which provides “extensive information across G20 countries” to help businesses respond to the crisis.
Praxity’s collaborative, knowledge sharing approach has been stronger than ever during the Covid-19 crisis. Despite furloughing staff in the UK and making additional significant savings, the Praxity Executive Office launched an extensive programme of support for member firms and their clients, including a guide to government support packages in G20 countries, regular webinars and exclusive interviews with Managing Partners on their firms’ Covid-19 responses. The Alliance also delivered several virtual global conferences in 2020, attracting record audiences of accounting professionals from around the world.
Commenting on Praxity’s approach, Gordon Krater said: “By working together, Praxity member firms have maintained extremely high service levels. This relationship-based approach has enabled firms to provide seamless service and to empower business globally.”