Short Assessment: Are There More US Tax Firms Than Ever Being Setup?

Short Assessment: Are There More US Tax Firms Than Ever Being Setup?

Short Assessment: Are There More US Tax Firms Than Ever Being Setup?

Last year, more Americans than ever apparently started their own businesses and the same went for Public Accountants.

With 2022 looking to break that record again, it's been interesting reflecting on the number of new UK/US tax firms appearing on the other side of the pond, here in London. Whilst there are no official figures, I can name a handful already making a name in the UK market. Most notably, several US tax Directors and Partners moving away from Big 4 firms, running already established new businesses.

The reasons for doing so of course, are varied and personal. The pandemic offers the 'classic' push reasons; mostly people assessing what's important in their professional lives - i.e. not wanting to work such long hours, spending more time at home with their family and working a less stressful job. However what's also clear are the pull reasons, how attractive setting up your own firm can be, with the increasing demand for US Tax services for expats, there is a huge market to tap into.

Another pull factor is if you're one of these new firms that are looking to subsequently hire, as there are lots of things you can do that those larger companies with complex structures often struggle to implement- making it a very attractive proposition. This can range from offering 'true' remote working, flexible working hours, flexible working locations, higher salaries, increased time off, better performance bonuses, improved 1-on-1 mentoring etc.

Part of the increase in the number of new businesses being set up (at least in the UK) is due to EA/CPAs setting up on a freelance basis (not necessarily hiring more people than themselves) and these adding to the number of 'new businesses' being incorporated. I've in fact been asked several times in 2022 if I can help supply self-employed US tax professionals for firms across Europe - something that was a very rare conversation in the 2 years prior!

Of course, a key takeaway here for my network will be how established US tax firms can make their offering more desirable in order to attract and RETAIN talent. It's an important topic and one that is becoming more and more important in an employment world that's changing faster than we've seen in a long time.

An exciting time for small businesses and more on how to retain talent soon.

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