Business picks up for Christchurch accountancy firms

Media release 27 May 2011

Business picks up for Christchurch accountancy firms

Accountancy firms in Christchurch say business is picking up as they adjust to the impacts of Februarys devastating earthquake. A recent health checks programme introduced by the New Zealand Institute of Chartered Accountants (NZICA) suggests the business outlook is improving, and many firms are considering hiring more staff.

“The need for more staff arises from firms trying to catch up on the loss of work time and client demand for help with insurance claims due to the earthquake, “says Tom Davies, NZICAs Director of Professional Support.

NZICA identified around 75 chartered accountancy firms operating in the Christchurch CBD prior to February 22. Thirty five firms, with up to 10-12 staff, are participating in the health checks programme. Most firms took advantage of the Government Employee Subsidy Scheme to keep their businesses afloat.

“These chartered accountant practices have done whatever it takes to look after their staff and clients,” says Mr Davies. A key lesson from the quake was the need for robust computer back-up. The recovery for many was delayed as they waited for permission to enter the „red zone to retrieve their computer servers.

“Gaining entry to buildings to get at least the bare essentials, like office records and electronic files has been frustrating for many businesses and costly too for some, but its a great help that most have now had limited access to their offices,” says Mr Davies.

Insurance matters are outstanding for many chartered accountancy businesses and relate to material damage and business interruption claims. But most are satisfied with the progress of their claims.

“Its been a double whammy for some people who have lost or damaged homes and offices, and are still waiting on their insurance claims to come through. Its amazing they keep their spirits up and still do well at business,” says Mr Davies. Some firms are operating from owners homes, and are yet to decide whether to return to the CBD or relocate elsewhere in the city. NZICAs 3000 Canterbury members are linked to approximately 90 percent of Christchurch businesses. Since the February quake, NZICA has been active in providing a suite of recovery initiatives for its members including member forums, business seminars on tax, building access, insurance etc, trauma counselling and more.

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