Beancounters' business is booming

The three firms reporting revenues to the Warsaw Business Journal's questionnaire this week showed significant increases from 1993 to 1994. Officials at each practice said they had to expand operations to keep up with that growth. One had just opened a new regional office, while the other two plan to do so by the end of the year.
When foreign companies want to enter the Polish market, one of the first resources they seek is an accounting firm. When Polish firms look westward for new markets, partners or cash, they also call in the accountants. Both trends translate into more business for the professionals who do a lot more than just count beans.
Deloitte & Touche, an international firm headquartered in New York, posted the most total revenue for both years, with total revenue jumping by 83%, from zl. 9.15 million to zl. 15.95 million, ($3.95 to $6.65 million at current rates) between 1993 and 1994. Leslaw Paga, managing partner, said the practice started from a base of work for established multinational firms like R.J. Reynolds Tobacco, Procter & Gamble and General Motors. But expansion has come as more and more Polish companies need to comply with international accounting standards.
A new accounting law, which took effect this year, is partially responsible for this growth.
"But more and more Polish companies are becoming more and more international," Paga said. "They know that if they want to get loans, investments or cooperation from firms outside of Poland they need to present themselves credibly."
This requires transparent reports that comply with international accounting standards.
Deloitte & Touche is building its Polish client base "because we see that as having the biggest potential," he added. Last week, the firm opened a new regional office in Szczecin. Deloitte & Touche also has offices in Warsaw and Krakow.
Revenues at KPMG Polska have increased by 30% over the year before, from zl. 12 million to zl. 16 million (from $5.22 million to $7 million at current rates). The firm's worldwide headquarters is in Amsterdam.
"With the very substantial flow of capital into Poland," Drysdale said, "many multinationals are investing here. They want to have their established advisers.
"On the other side, very many new (Polish) companies are coming forward for listing. Listed firms are seeking international investors, and these listed companies are looking to the Big Six (international accounting firms)."
KPMG plans to open regional offices to service its growing business. The first will be in Poznan, by the end of the year. Drysdale said a Krakow office is also in the works.
The Paris-based firm of Guerard Viala Polska reported a 50% increase in revenues from 1993 to last year, up from zl. 1 million to zl. 1.5 million ($435,000-$652,000 today).
The practice is based almost entirely on working with French firms, and Yann Joseph, assistant manager, said he expects the practice to keep on growing, along with the French presence in Poland.
Currently located in Warsaw, Guerard Viala expects to open another office in Poznan by the end of the year. Joseph said the firm also foresees operations in Gdansk, Wroclaw, Lodz and Krakow.