Data from part of the accountancy profession in the UK shows firms are getting more confident about their ability to put up their fees.

Almost a quarter (24 per cent) of 56 accountancy firms polled by UK tax and accounting data group Bloomsbury say they are likely to hike fees to boost profitability in the economic recovery.

The firm said the desire by the firms in question to raise fees is a “key sign” that confidence is returning to the sector after client resistance and competition held fees down after the recession of 2008-09.  The study found that the number of firms poised to increase their fees has increased by two fifths in the last 12 months, when just 17 per cent of accountancy firms planned to increase rates.

Some 55 per cent of firms said they plan to cut unprofitable services to increase profits. Just over half of respondents said they would look to improve credit control in order to boost profitability, the survey found.

The overwhelming majority of respondents (96 per cent) said they were unlikely to make staff redundancies over the next year – a significant improvement on the results 12 months ago when 17 per cent were concerned that they might have to make redundancies.

Work on fixed-fee contracts overrunning and incurring additional costs was seen as the biggest risk to profitability facing accountancy firms in the next year. Almost a third of accountancy firms rank this as a high risk (32 per cent).

Pressure from clients to reduce fees and late payment from clients were also viewed as significant risks to a firm’s future profits, with 26 per cent and 25 per cent of respondents highlighting these issues as high risks.