Accountancy firms may need to alter their practice structure as a result of the global recession, according to one expert.
Peter Farry from Cripps Harries Hall LLP claims the economic climate could result in "a radical reconsideration" of business models within the industry.
He added that some professional practices are now choosing a hybrid structure for their firm, where profits made can be distributed among individual members or partners.
Mr Farry stated that accountancy firms may "need to consider innovative structures" in order to divide rewards.
"The cyclical nature of the world economy, or a downturn in a practice's fortunes for other reasons, can lead to the breakdown of a valuation scheme and/or difficulty in recruiting new partners, as well as, in some cases, a great deal of heartache," he stated.
Michael Rendell, partner and global head of human resource services at PricewaterhouseCoopers, recently said the recession will create a surge in the number of firms looking for innovative ways to transform their business.
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