Accounting contractors rarely work for accountancy firms

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Accounting contractors rarely work for accountancy firms

Published on Sep 5, 2008

New research shows that despite current recruitment shortfalls in the industry, less than one in twenty finance and accounting contractors actually work for accountancy firms.

The survey by contractor services provider, giant group, revealed that 36% of accountancy and finance contractors work in industry & commerce, with 34% in the public sector. 18% work in the worlds of investment banking and fund management.

Matthew Brown, MD or giant group, said: "Accountancy firms have been reluctant to utilise contractors, despite ongoing difficulties recruiting the right skills. Contractors represent a very cost effective means of plugging short-term skills gaps, which if left unfilled, can hinder firms' expansion plans."

"As well as having the right professional expertise, accountancy contractors have often worked in industry and commerce previously and can bring an unparalleled level of experience to an accountancy practice. In areas such as consultancy and M&A the type of hands-on experience contractors have can be particularly valuable. It's usually quite difficult, especially for a mid-tier practice, to recruit someone with experience in industry on a permanent basis."

The survey also suggested that the number of contractors in accounting firms is expected to rise in the future, as are the rates they receive. 77% of contractors polled expected a rise in incomes over the next year - with just 4% expecting to suffer a rate cut.

Just like their IT contractor counterparts, accounting contractors also experience a very low long term jobless rate. Only 4% spent more than 90 days out of work, compared to 5.5% of IT contractors.