Praxity Global Alliance, the world’s leading alliance of independent accounting and consulting firms, has announced record revenues of US$7.94bn, up 14.2% on the previous year.
The revenues represent the combined incomes of Praxity’s 55 member firms in 120 countries. Membership of the Alliance provides a platform for 65,000 professionals in these firms to share expertise and better meet their clients’ international business goals.
Results for the year ended 31 December 2021 show the Alliance grew strongly in every service line and every region of the globe despite the continued challenges of the pandemic.
- Growth increased from 9.1% to 14.2%
- Fee income increased from $6.96bn to $7.94bn
- Strong growth across all service lines
- Increased revenues in all regions
- 18 new offices around the world
The growth in annual revenues, which represents 13.5% at constant exchange rates, underlines the success of Praxity member firms in adapting to the needs of businesses dealing with issues such as the impact of Covid-19, climate change, retention, remote working, and digitisation.
Praxity chairman Phil Verity described the results as “very encouraging.” He said: “It shows the underlying strength and health of the member firms in the Alliance and the quality of management in those member firms.”
Global revenues increased from $6.96bn in 2020 to $7.94bn in 2021, indicating member firms have adjusted well to the challenges of the pandemic and other disruptors. “This is more than a bounce back,” Phil explained. “It’s the start of a longer-term trend that shows Praxity member firms are uniquely positioned for growth. It reflects how member firms are responding to clients’ needs; to support deals, transactions, advisory or assurance needs. Overall, it demonstrates how strong the Alliance is.”
Growth across all service lines
Revenues for Audit and Accountancy – by far the biggest income generator for the Alliance - increased 14% to $4.21bn. This indicates the “increased opportunities that member firms are seeing as they seek to work with larger clients and those businesses with more international operations”, Phil said.
There was strong growth in Advisory services (up 15% to $1.39bn), reflecting stronger global deals activity and a greater willingness of clients to draw on consulting and advisory support.
Tax advisory also performed well, with revenues up 12% to $2.01bn. “I am delighted to see double-digit tax growth which is a major contributor to the Alliance revenue. With balanced growth across all service lines, member firms are taking this as an opportunity to invest and strengthen their teams,” Phil commented.
Greater global presence
Combined global revenues grew in all regions of the world, buoyed by the addition of 18 new offices worldwide. Asia Pacific (including Australia and New Zealand) recorded strongest growth, up 21% to $1.24bn. US and Canada revenues, which account for more than 50% of the total income of the Alliance, grew 15% to $4.43bn.
EMEA revenues grew 9% to $2.18bn, mainly due to strong business in Europe (up 9% to $1.99bn), while Africa and Middle East income grew 8% and 13% respectively. Revenues in Latin America (including Mexico and the Caribbean) rose 13%, reflecting a successful strategy to extend reach into less well represented regions to achieve greater global coverage.
Consistent growth through collaboration and quality
The figures for 2021 mean Praxity has recorded strong growth every year since it was created in 2007. This consistent growth reflects the outstanding performance of members firms together with improvements to Praxity’s knowledge-sharing platform.
A focus on continuous development helped Praxity win Association of the Year in the Digital Accountancy Awards 2021, the fifth time the Alliance has won the award. Latest developments include enhancements to Praxity’s virtual global conference capabilities and the development of a Mergers and Acquisitions portal to provide a searchable listing of buyers and sellers across the globe.
Deborah Poulter, Head of Business Development, Praxity