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moreBusiness consulting and tax consulting grow significantly
RSM Puerto Rico, local audit, tax and consulting firm focused on the middle market, reported a revenue growth of 7.1% at closing of fiscal year during an extremely challenging year for the business community both locally and globally.
Business consulting and tax advisory services grew 9.2% and 10.1%, respectively, attributed to an agile response to fast-changing business needs.
"RSM Puerto Rico’s growth reflects the agility with which our firm adapted to the challenges 2020 brought about, which started in Puerto Rico with a series of earthquakes prior to the arrival of the COVID-19 pandemic in March. As we faced those challenges and learned to manage them, we were able to advise our clients on next steps to follow. That was key to our growth", said José Gómez León, Chairman of the Board at RSM Puerto Rico, who also directs the Consulting division.
Similarly, the increase in demand for tax advisory services comes from the need to stay abreast of the multiple changes in matters of taxes and incentives available for individuals and businesses.
"Our tax advisors and the team as a whole stay vigilant to any changes in legislation, processes, and regulation related to taxes at a local level as well as nationally and internationally, to serve our clients promptly and with reliable information, so they can comply with requirements and deadlines", said Rafael De Rojas, Tax Partner and Division Director at RSM Puerto Rico.
Audit service revenue also increased, by 4%. Given the increase in demand for services, RSM Puerto Rico’s workforce grew 18%.
"Hiring new employees was part of our strategic plan because our firm has experienced sustained growth these last years. However, as result of the pandemic we had to move faster and hire even more staff than we had anticipated", said Doris Barroso, RSM Managing Partner and Audit Partner.
RSM Puerto Rico’s growth aligns with the revenue growth reported by the RSM network on a global scale, which was of 9.2% for 2020, taking global revenues to $6.3 billion and its team to 48,000 people across 120 countries.
As experienced locally, consulting services saw the highest growth with an increase of 15% in global revenue. This was driven by demand for management and business consulting, IT consulting, and risk management, as RSM supported middle market business leaders in their response to the pandemic, the reorganization of their business operations and the digitalization of their infrastructure.
Significant audit client wins in 2019 contributed to a 10% increase in audit revenue in 2020. Audit services were further enhanced through the launch of an innovative online collaboration tool to enhance client experience, enable efficiencies in audit, compliance, and advisory services, as well as offering integrated data analytics capabilities.
Recording a 6% increase in global tax revenue, predominantly driven by its business advisory services, RSM’s tax team rapidly mobilised to help clients address heightened complexity in an ever-changing legislative landscape caused by the COVID-19 crisis. RSM also saw an increased demand for advice regarding the application of government stimulus packages, M&A opportunities for strategic deals and, in the latter part of the year, restructuring and transaction support as businesses looked for recovery solutions.
Jean Stephens, Global Chief Executive Officer, commented:
“We enter 2021 in a strong position. That said, we are highly cognizant of the fact that, in common with businesses across the globe, there will be material impacts on our Member Firms, clients and communities due to the lasting and ongoing effects of the pandemic.”
“Amidst the uncertainty and many challenges presented by the pandemic, we have seized the opportunity to reflect, and reimagine how we collaborate, harness the right technology, stay connected and intentionally shape our future. These are the themes that we continue to focus on as we think about the changing world around us and our 2030 strategic roadmap for RSM.”
RSM Puerto Rico, as the rest of the RSM member firms, is driven by a common vision of providing high quality professional services, both in its domestic market and in serving the international professional service needs of its client base. Follow us on LinkedIn and Facebook.
Note: Revenue and growth data for RSM Puerto Rico were calculated based on its fiscal year 2019-2020, closing on June 30, 2020. Global revenue data reported for RSM are based on closing of calendar year 2020.