Page 1 | Confidential and Proprietary Information
A Win-Win Partnership: SMPs
and SMEs
Dawn McGeachy
Member, IFAC SMP Comm...
Page 2 | Confidential and Proprietary Information
• SMEs and SMPs
• IFAC SMP Committee
• Insights from IFAC SMP Quick Poll...
Page 3 | Confidential and Proprietary Information
• SMEs typically account for majority of private sector GDP,
employment,...
Page 4 | Confidential and Proprietary Information
IFAC SMP Committee—Overview I
• To represent interests of SMPs
• Compris...
Page 5 | Confidential and Proprietary Information
IFAC SMP Committee—Overview II
• Global Knowledge Gateway
• www.ifac.org...
Page 6 | Confidential and Proprietary Information
• Latest poll Nov-Dec 2013 attracted over 3,700 respondents, 180 from
Ce...
Page 7 | Confidential and Proprietary Information
• What is the biggest challenge faced by your SME clients?
Insights from...
Page 8 | Confidential and Proprietary Information
• What is the biggest challenge your practice is facing right
now?
Insig...
Page 9 | Confidential and Proprietary Information
• What is the fastest growing source of revenue for your
practice?
Insig...
Page 10 | Confidential and Proprietary Information
• What is the main driver of your practice’s profitability?
Insights fr...
Page 11 | Confidential and Proprietary Information
• How does your practice expect business to be in 2014
compared to 2013...
Page 12 | Confidential and Proprietary Information
Insights from IFAC Research I
Page 13 | Confidential and Proprietary Information
• SME demand for business advice
– Owner-managers can be reluctant to r...
Page 14 | Confidential and Proprietary Information
Gallup’s 2013 Business Banking Industry Study
Page 15 | Confidential and Proprietary Information
• Reasons for choosing an accounting firm, especially SMP
– Recognition...
Page 16 | Confidential and Proprietary Information
What do clients REALLY want from their Accountant?
What Else Can We Lea...
Page 17 | Confidential and Proprietary Information
• Changing environment and challenges to traditional
provision of servi...
Page 18 | Confidential and Proprietary Information
• SMPs will vary in their provision of ―non-traditional‖ advice
for a v...
Page 19 | Confidential and Proprietary Information
• Non-audit assurance (e.g., review engagements)
• Trusted business adv...
Page 20 | Confidential and Proprietary Information
SMP Committee—Knowledge Sharing
Page 21 | Confidential and Proprietary Information
• Develop new and improved services to serve SMEs
– New forms of assura...
Page 22 | Confidential and Proprietary Information
• SMPs are SMEs operating in the accountancy sector
• SMPs are similar ...
Page 23 | Confidential and Proprietary Information
• IFAC SMP Committee: www.ifac.org/SMP
• Follow us on Twitter: IFAC_SMP...
www.ifac.org/SMP
Upcoming SlideShare
Loading in …5
×

A Win-Win Partnership: SMPs and SMEs

424 views
371 views

Published on

Presentation by Dawn McGeachy, Member, IFAC SMP Committee at the International Federation of Accountants & Institute of Chartered Accountants of Jamaica Business Development Conference, March 18, 2014

Published in: Business, Economy & Finance
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
424
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

A Win-Win Partnership: SMPs and SMEs

  1. 1. Page 1 | Confidential and Proprietary Information A Win-Win Partnership: SMPs and SMEs Dawn McGeachy Member, IFAC SMP Committee International Federation of Accountants & Institute of Chartered Accountants of Jamaica Business Development Conference Jamaica Conference Centre March 18, 2014
  2. 2. Page 2 | Confidential and Proprietary Information • SMEs and SMPs • IFAC SMP Committee • Insights from IFAC SMP Quick Poll and IFAC Research • Implications for SMPs—new services • Concluding Remarks • References Agenda
  3. 3. Page 3 | Confidential and Proprietary Information • SMEs typically account for majority of private sector GDP, employment, and growth, and are engines of innovation • SMEs are a heterogeneous group—different size, age, sector, location, and growth profiles • SMEs typically look to accountants, especially SMPs, for range of professional services (assurance to advice) • Accountants often preferred source of advice for SMEs— established relationship based on trust SMEs and SMPs
  4. 4. Page 4 | Confidential and Proprietary Information IFAC SMP Committee—Overview I • To represent interests of SMPs • Comprised of 18 members from 17 countries • Regular input to policy, regulation, and international standards • Develops tools and guidance • Promotes the visibility and recognition of SMPs • Global Knowledge Gateway
  5. 5. Page 5 | Confidential and Proprietary Information IFAC SMP Committee—Overview II • Global Knowledge Gateway • www.ifac.org/Gateway • Initially focuses on Ethics, Business Reporting, Finance Leadership & Development, Performance & Financial Management, Governance, Risk Management & Internal Control and Sustainability • Six key components—Viewpoints, Accountancy News, Resources, Discussions, Topical News, Upcoming Events
  6. 6. Page 6 | Confidential and Proprietary Information • Latest poll Nov-Dec 2013 attracted over 3,700 respondents, 180 from Central and South America & Caribbean • Report at www.ifac.org/publications-resources/ifac-smp-quick-poll- 2013-year-end-round • Poll was conducted in 17 languages • Responses are heavily skewed in favor of practitioners from Europe and Asia working in smallest categories of practice • Key findings—global (with emphasis where Caribbean/Central and South America differs) Insights from IFAC SMP Quick Poll I
  7. 7. Page 7 | Confidential and Proprietary Information • What is the biggest challenge faced by your SME clients? Insights from IFAC SMP Quick Poll II 13% 15% 14% 18% 15% 8% 5% 9% 3% Lack of demand for their products and services Pressure to lower prices of their products and services Rising costs Economic uncertainty Difficulties accessing finance Competition Attracting and retaining staff Compliance with regulation Other
  8. 8. Page 8 | Confidential and Proprietary Information • What is the biggest challenge your practice is facing right now? Insights from IFAC SMP Quick Poll III 24% 4% 21% 6% 2% 7% 7% 7% 2% 15% 5% Attracting and retaining clients Ability to adapt to changing client needs Pressure to lower fees Rising costs Succession planning Work-life balance Attracting and retaining staff Competition Keeping up with new technology Keeping up with new regulations and standards Other
  9. 9. Page 9 | Confidential and Proprietary Information • What is the fastest growing source of revenue for your practice? Insights from IFAC SMP Quick Poll IV 33% 18%21% 23% 6% Accounting, Compilation, and Other Non-assurance/ Related Services Tax Advisory/Consulting Services Audit and Assurance Other
  10. 10. Page 10 | Confidential and Proprietary Information • What is the main driver of your practice’s profitability? Insights from IFAC SMP Quick Poll V 34% 33% 11% 9% 9% 2% 2% Acquisition of new clients Better retention of existing clients Increased productivity Reduced overheads Increased average fee size Other Better utilization of working capital and other assets
  11. 11. Page 11 | Confidential and Proprietary Information • How does your practice expect business to be in 2014 compared to 2013? • Next Quick Poll November 2014 Insights from IFAC SMP Quick Poll VI 31% 47% 22% Better than this year About the same Worse than this year
  12. 12. Page 12 | Confidential and Proprietary Information Insights from IFAC Research I
  13. 13. Page 13 | Confidential and Proprietary Information • SME demand for business advice – Owner-managers can be reluctant to readily seek advice – SMEs lack of in-house expertise – Change in enterprise or external environment – Regulatory demands extending outside financial compliance – Growing information needs of SMEs • Accountants as external advisers – Most studies worldwide indicate accountants are preferred and first source of advice for SMEs Insights from IFAC Research II
  14. 14. Page 14 | Confidential and Proprietary Information Gallup’s 2013 Business Banking Industry Study
  15. 15. Page 15 | Confidential and Proprietary Information • Reasons for choosing an accounting firm, especially SMP – Recognition—SMPs face similar compliance burden as SMEs – Technical competency – Trust – Proximity and responsiveness – SMEs wanting a one-stop shop Insights from IFAC Research III
  16. 16. Page 16 | Confidential and Proprietary Information What do clients REALLY want from their Accountant? What Else Can We Learn from the Gallup Research? • Help to be Successful • Knowledge of Their Business & Their Industry • Creative Ideas • Quick Service (responsive) • Effort *Source: Gallup Survey • Value for Money (not to be confused with a low fee) • Concern for Their Well Being • Someone to Talk to • Reliability • Wider Range of Services
  17. 17. Page 17 | Confidential and Proprietary Information • Changing environment and challenges to traditional provision of services – Consolidation within the accountancy profession – Rise in the provision of services by larger practices – Shift in regulatory environment: fewer audits – Shift in the nature of the SME population – Reluctance of some SMPs to provide advice Insights from IFAC Research IV
  18. 18. Page 18 | Confidential and Proprietary Information • SMPs will vary in their provision of ―non-traditional‖ advice for a variety of reasons: – A combination of the regulatory regime in the country – Education tradition of accountancy profession in the jurisdiction – The demand from the market – The strategic intent of the accountant Insights from IFAC Research V
  19. 19. Page 19 | Confidential and Proprietary Information • Non-audit assurance (e.g., review engagements) • Trusted business advisor – Compliance with regulations (e.g., HR, IT, Safety) – Risk management – Financial management (incl. access to finance) – Sustainability (advisory, accounting, assurance) – Start-ups/entrepreneurs (formation, finance, etc.) – International development (finance, FOREX, and regulation) Implications for SMPs—New Service Offerings I
  20. 20. Page 20 | Confidential and Proprietary Information SMP Committee—Knowledge Sharing
  21. 21. Page 21 | Confidential and Proprietary Information • Develop new and improved services to serve SMEs – New forms of assurance and related services – Advisory (e.g., regulation, sustainability, internationalization) • Build capacity to offer new and improved services – Networking – Marketing – IT (e.g., cloud computing) Strategic Imperatives for SMPs
  22. 22. Page 22 | Confidential and Proprietary Information • SMPs are SMEs operating in the accountancy sector • SMPs are similar to SMEs—similar strengths and weaknesses and face similar opportunities and threats • SMPs and SMEs need each other • SMPs and SMEs can make a winning partnership Concluding Remarks
  23. 23. Page 23 | Confidential and Proprietary Information • IFAC SMP Committee: www.ifac.org/SMP • Follow us on Twitter: IFAC_SMP • IFAC SMP Quick Poll www.ifac.org/smp • Join us on LinkedIn: IFAC SMP Community • Global Knowledge Gateway www.ifac.org/Gateway IFAC Resources
  24. 24. www.ifac.org/SMP

×