BDO strengthened its market leadership in Accounting Services in 2010, reporting above-average revenue growth of 5.6 per cent and contributing CHF 52.2 million, about one third, of total income.
Although the 1.3 per cent growth in Auditing was less impressive than in Accounting, it remains the company’s strongest pillar with revenue of CHF 57.8 million. About half of this income was generated from limited audits, where BDO is Switzerland’s market leader. BDO was able to consolidate its market position with regard to regular audits, above all in the medium-sized enterprise segment. Pension funds, not-for-profit organisations and the public sector were another area where BDO increased market share.
Still on track for success
Financial Services increased its revenue by 1.5 per cent to CHF 8.4 million, which was somewhat less growth than in previous years. This can be attributed to adverse conditions in the financial sector, with increasing consolidation evident in the banking sector. However, new financial services providers have been appearing on the market recently, leading us to expect renewed higher growth rates in future. BDO is one of the few companies to have all the necessary permits for conducting audits in the financial services industry.
The positive trend of recent years in the company’s Tax and Legal Advice area continued, with revenue once again growing significantly by 4.9 per cent.
Innovation as growth driver
Combined revenue from management consulting and IT services increased by 7.6 per cent to CHF 16.3 million, with the Corporate Finance and ABACUS service groups contributing a significant share of this satisfying result. The expansion of the “ABACUS Software as a Service” offering has considerable future potential as it will enable SMEs to use ABACUS via cloud computing, thereby saving them the expense of their own installations while not having to forego the support of BDO's accountants.
On track for global growth
The international BDO network benefited from the global economic recovery in 2010. Its revenue rose by over 5 per cent to USD 5.3 billion and its total workforce grew to 46,930. The number of countries with a BDO presence also increased from 115 to 119. The BRIC countries (Brazil, Russia, India and China) were once again the primary growth drivers. In China it was possible to successfully merge the various BDO companies to create a single, powerful unit.
Advocation of sensible regulatory conditions
The regulatory environment became more complex for the economy as a whole in 2010 and further regulatory steps are on the horizon. New requirements that are actually aimed at big business often also have an impact on small and medium-sized enterprises, who often do not have the personnel and financial resources to keep track of and adapt to all the new laws and requirements.
Many political promises to support SMEs remain little more than lip service. However, the increase in the threshold values for limited audits, a measure that BDO lobbied for, should certainly be seen as a positive development. SMEs have to constantly remind politicians of their specific needs. The new CEO Werner Schiesser considers it BDO's duty to exert an influence on economic policy decisions within the profession and in the political process with a view to preserving the success factors of the Swiss economy. These include flexibility, a reasonable tax burden and a government administration that retains a sense of proportion and pragmatism.
With 31 branches and more than 780 full-time employees, BDO Ltd, a limited company under Swiss law, incorporated in Zurich, is Switzerland's leading address for small and medium-sized enterprises, public authorities and not-for-profit organisations. It offers services in the following divisions: Audit, Financial Services, Accounting, Management Consulting, IT, Tax and Legal Advice, and Real Estate.
For more information:
BDO Ltd
Head Office Switzerland | Media Office
Biberiststrasse 16 | 4501 Solothurn
Switzerland
Phone: +41 32 624 66 99 | Fax: +41 32 624 62 26
[email protected]