Enhanced Practice Management
& New Services
Giancarlo Attolini, Chair IFAC SMP
Committee
New Delhi
October 10, 2014
Page 1 | Confidential and Proprietary Information
Agenda—Expanding the range of SMPs Services
• Practice Management
• Technology Developments
• Trusted Business Advisor
• New Service Offerings
• References
Page 2 | Confidential and Proprietary Information
Practice Management — General
• The SMP has developed resources to help SMPs in their
practice management activities
• The main resource is the Guide to Practice
Management for Small- and Medium- Sized
Practices
• Other resources
– Practice Management section on
www.ifac.org/Gateway
Page 3 | Confidential and Proprietary Information
Implications for SMPs—Practice Management I
• Specialization/ niche
– Develop capability to offer and market new services
– Choose fields where firm has high degree of industry and/or
technical understanding
– Choose fields big enough to justify spending on marketing and
gaining specialist knowledge
– Consider offering your firm as an adviser to second-tier firms,
whose clients want top-tier specialist expertise
• Networking
– Forge alliances/network with other practices
Page 4 | Confidential and Proprietary Information
Implications for SMPs—Practice Management II
• Pricing
– Consider value over time-based – 77% Gateway poll respondents
said it will be the pricing strategy of the future
• Invest in people
– Develop technical and soft skills (branding, marketing, selling,
negotiating, etc.)
• Marketing
– Use social media (e.g., Twitter, Facebook, LinkedIn)
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Implications for SMPs—Practice Management III
• Accounting, compilation & other non-assurance / related
services (33%) is fastest growing source of revenue for
practices (IFAC SMP Quick Poll 2013)
• Opportunities
– Technological advances enable practices to profitably provide
outsourced accounting services
– Rapid change and increasing complexity are driving up demand for
outsourced accounting services
Page 6 | Confidential and Proprietary Information
Technology Developments I
Three Mega-Trends
• Digitization (cloud computing)
– Paper to paperless to boost productivity
• Virtualization (systems of engagement)
– Physically present to virtually present to improve market reach
• Transformation (business intelligence)
– Compliance provider to trusted advisor to enhance value
– On-demand reporting, business analytics, dashboard graphics,
target market segment benchmarking and advisory services
(discussing how best to respond to revealed issues)
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Technology Developments II
Opportunity, Threat and Challenge
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Technology is part of step change in accounting
Technology = opportunity – the future of practice
Technology = threat – commoditization, DIY
Challenge is how to implement technological change
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Technology Developments III
Opportunities Presented by Technological Change
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Profitable outsourced client accounting services (CAS)
Expand geographical scope
Real-time round the clock service
Time and resource available for analysis and advice
Rapid change and increasing complexity are driving up
demand from clients for outsourced accounting services
Page 9 | Confidential and Proprietary Information
Technology Developments IV
Digital Enablers
• Help improve practice efficiency and move client
interactions online
• Smartphone apps
– Wi-Fi Finder, Evernote, Feedly, Dropbox, Keeper, TripIt, XE
Currency, Uber, PrintCentral, The World Clock, HP12C & AirServer
• Video and instant messaging services
– Skype, FaceTime and Google Hangout
• Search engine optimization (SEO)
Page 10 | Confidential and Proprietary Information
Trusted Business Advisor—What it Means
• Understanding and listening to clients’ needs
• Using our broad experience/expertise to help clients
accomplish their goals
• Creating an ongoing relationship with clients
• Providing more than core accounting services
Page 11 | Confidential and Proprietary Information
New Service Offerings—Country Examples I
• Ireland (IFAC Board member)
– “If we do not provide bookkeeping services, we encourage the
client to purchase an accounts software package, then install it and
get it set up and then train the client on how to use it and to take
back-ups. Each year we review how they are getting on and attend
their premises to tidy up, before doing a year end procedure. The
“cloud” is the obvious next move for this service though it is a little
cost prohibitive for now. These are all value added services which
the client pays a bit more for and gets them more engaged with the
financial side of their business. Equally, we are not burdened with
quality control issues over low value bookkeeping services.”
Page 12 | Confidential and Proprietary Information
New Service Offerings—Country Examples II
• Australia (SMP Committee Member)
– “We aim to become the virtual CFO. We target companies which
are large enough to need planning, SWOT analyses, but not so
large to have their own CFO. Our role is to facilitate, engage in your
clients’ business and make an impact on their life – help them pay
off their house loans, pay kids school fees, plan for retirement”
• Brazil (SMP Committee Member)
– “SMPs have been supplying all kinds of services related to tax and
accounting issues—including complete outsourced accounting,
payroll & tax. Additional services related to evaluation, financial due
diligence, and outsourcing of administrative and financial routines,
are also an increasing market”
Page 13 | Confidential and Proprietary Information
New Service Offerings III—Sustainability Services
• Sustainability Services Insights from IFAC SMP Quick Poll
– Mid year 2013
• 46% of practices offer sustainability services
• 27 % respondents current do not offer any sustainability
services but plan to in the future
• May be a growth area for practices
Page 14 | Confidential and Proprietary Information
New Service Offerings IV—Review Engagements
• International Standard on
Review Engagements (ISRE)
2400 (Revised)
• The Guide to Review
Engagements available on
www.ifac.org/SMP
Page 15 | Confidential and Proprietary Information
New Service Offerings V— AUP
• Agreed-Upon Procedures (AUP) Engagements
• Based on the IAASB’s ISRS 4400, Engagements to
Perform Agreed-Upon Procedures Regarding Financial
Information
• Attractive and fast growing service
• The practitioner provides a report based on the factual
findings regarding financial information – no assurance is
expressed
• The report is not distributed publicly – it is restricted to
those parties that agreed to the procedures
Page 16 | Confidential and Proprietary Information
References—Business Advisory
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Gateway—embedded various topics: www.ifac.org/Gateway
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The Role of SMPs in Providing Business Support to SMEs research paper:
www.ifac.org/publications-resources/role-small-and-medium-practices-providingbusiness-support-small-and-medium-s
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SMP Committee Business Advisory Interviews (Videos) IFAC YouTube Channel:
www.youtube.com/user/IFACMultimedia
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Good Practice Checklist for Small Business, 2e:
www.ifac.org/publications-resources/good-practice-checklist-small-business
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How to Build Your Business Advisory Practice article: www.ifac.org/publicationsresources/how-build-your-business-advisory-practice
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Sustainability: Challenges and Opportunities for SMPs and SMEs article:
www.ifac.org/news-events/2013-04/sustainability-challenges-and-opportunitiessmps-and-smes
Page 17 | Confidential and Proprietary Information
References—Practice Management
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Guide to Practice Management for Small- and Medium-Sized Practices, 3e
(incl. companion manual): https://www.ifac.org/publications-resources/guidepractice-management-small-and-medium-sized-practices
7 Tips for Accountants on Supporting the Globalization of Small Business article:
www.ifac.org/news-events/2013-08/7-tips-accountants-supporting-globalizationsmall-business
Social Media Marketing May Be the Key to Practice Profitability article:
www.ifac.org/news-events/2013-10/social-media-marketing-may-be-key-practiceprofitability
Tomorrow’s Firm and the Role of Value Pricing: IFAC Interview with Ronald J.
Baker article: www.ifac.org/news-events/2013-02/tomorrow-s-firm-and-role-valuepricing
Page 18 | Confidential and Proprietary Information
See you in Rome in November 2014
www.wcoa2014rome.com
www.ifac.org