We love accountants. And right now, we know they’re under pressure.
South Africa’s independent accounting firms are facing a combination of headwinds that make running – and growing – an accounting practice harder than ever.
While many of these firms are highly respected, deeply trusted and rich in technical expertise, they’re grappling with challenges that aren’t about skill. They’re actually about scale, future-proofing and financial freedom.
Let’s briefly unpack five of the most pressing challenges.
- Limited access to growth capital For many medium-sized firms, expanding beyond the current client base, region or service offering requires capital investment. But banks aren’t always eager lenders and self-funding can constrain cashflow. This leads to missed opportunities to acquire smaller firms, invest in new tech or broaden service lines into advisory.
- Succession struggles The senior partners of today’s independent firms are often owner- operators who’ve spent decades building their reputations. But who takes over when they step back? Younger talent is often less willing to buy in, given the costs and risks of ownership. Without a clear succession plan, firms risk stagnation.
- Securing the right talent The market for skilled accounting professionals is fiercely competitive. Larger firms offer higher salaries, prestige and international opportunities. Smaller, independent firms can struggle to attract top talent – and when they do, retaining that talent long enough to build continuity is a challenge.
- The strain of compliance While compliance is the lifeblood of the profession, it’s also a significant burden. Ever-changing regulations, reporting obligations and governance requirements drain capacity and limit time for strategic work. Firms spend more time on box- ticking and less time on the high-value advisory services that clients demand.
- The administrative burden Running a firm today involves more than technical delivery. HR, marketing, IT, cyber-security, training and client relationship management all sit on the same plate as service provision. The partners in smaller firms are wearing too many hats and burnout is becoming a real threat.
What can be done?
At Ledger, we love accountants. But more than that, we back them.
As a private equity firm specialising in the strategic acquisition of high-quality independent accounting firms in South Africa, we believe that capital can change the trajectory of SA’s
best independent firms. Especially when combined with strategic guidance and operational support.
Here’s how we tackle this:
- Ledger helps accounting firms to access the funding they need to scale.
Ledger partners with them to plan for smooth leadership transitions.
- Ledger enables investments in solutions that free partners to focus on growth.
Ledger professionalises internal structures so firms can thrive, not juggle.
At Ledger we love accountants. And we’re here to prove it.
