Growing Your Practice

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Growing Your Practice
Session 4
George S. Willie, IFAC SMP Committee
Member
WB-IFAC SMP Regional Forum
Vienna
Wednesday, May 31, 2017

Growing Your Practice in a Competitive
and Fast Paced Evolving Profession
 What Issues are Shaping the Future of the
Profession?
 What are Firms’ Priorities?
 Are Practitioners Leveraging Available
Opportunities?
 How are Firms Keeping up with Today’s Dynamic
Economic Environment?
 What are the Opportunities for Growth
 What Tools are Available - What Works (Success)
 How Can Your PAO Contribute?
“There is nothing more difficult
and dangerous, or more doubtful
of success, than an attempt to
introduce a new order of things
in any state.” – Machiavelli

Top Issues: Global Survey –
Impacting Practice
Top Global Challenges 2016 vs. 2015

 Succession, succession, succession...
 Client retention and client acquisition remain a priority.
 Human capital concerns: finding and retaining qualified staff are in
the top five for all firm sizes with more than two professionals.
 Keeping up with tax laws and new rules and regulations are the
biggest concerns for small firms.
 Seasonality and workload compression is now a concern for all firm
sizes.
 Owner/partner accountability and unity remain issues for larger
firms.
CPA Firm Top Issues in the USA – Survey

 Rapidly Evolving Technology and the Speed of Transformation
 External Forces Driving Change
 Surveying and Attracting New Clients
 Retaining and Recruiting Talented Staff
 Staying Competitive
Challenges for Accounting Firms

 Ongoing Technology and Cyber Issues
 Regulatory Complexity
 Cyber Threats
 Changes in How We Work/Job Uncertainty
External Forces Driving Change

Key Factor for Success
 Structure, Strategy and Business Model
 Use of Technology
 Client and Relationship Building
 Staff Development and Culture
 Proper Mindset
 Methodologies and Tools to Achieve Your Firms Goals
 Practice Strategies that Drive Capacity and Growth
Preparing Firms for the Future –
Sustained Growth
“The key to growth is
sustainability and the key to
sustainability is strategy
developments.” – Gale Crosby

 Strategic Planning
o Embrace growth; narrow your focus and develop a niche strategy; grow in strength
not size; grow from inside out; develop and follow business models.
 Refinement:
o Build your business around the right technologies and processes. Growth through
refinement, a prerequisite for success.
 Technology:
o Address security and privacy concerns; adapt traditional services; utilize state-of-the-
art tools to reach out to new markets.
 Education:
o Balance judgment with technical skills; teach soft skills; stay ahead of the curve on
regulations and standards.
 Globalization:
o Understand international issues, trends, standards and regulations; identify new
markets; explore new job opportunities.
Embracing the Future –
How Do We Do It?

 Promotion:
o Market the profession’s virtues of integrity, objectivity and trust to local,
national and international audiences.
 Collaboration:
o Understand the different perceptions and realities of the generations and find
ways to bridge the gap and take advantage of the best each can offer.
 Integration:
o Review our competencies and align them with new realities; enhance our role as
a business advisor.
 Adaptation:
o Address changes in the marketplace, economy, business and regulations;
immerse ourselves in domestic and international trends.
 Competition:
o Understand the numerous choices available to clients.
Embracing the Future –
How Do We Do It? (Continued)

Practice Management—General
 The IFAC SMP Committee 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 the Gateway:
www.ifac.org/Gateway

Guide to Practice Management for SMPs
 Organized into eight stand-alone modules
1) Planning for Your Firm
o Business and strategic planning processes & policies for development
and implementation.
2) Practice Models and Networks
o Structural considerations and models, profit sharing, and use of
networks.
3) Building and Growing Your Firm
o Building a business advisory practice, coping with regulation, and
developing a firm culture.

Guide to Practice Management for SMPs
4) People Power: Developing a People Strategy
o Leadership roles, staff retention, motivation and training.
5) Technology and e-Business
o Effective selection, implementation, and management of tech.
6) Client Relationship Management
o Development and ongoing maintenance of client relationships.
7) Risk Management
o Framework for identifying, evaluating, and acting on risks.
8) Succession Planning
o Valuation and pricing, mergers, internal and external buyouts.

Updated Academic Literature Review—Role of
SMPs providing business support to SMEs
 SMEs heterogeneous in size & growth
intentions
 Demand for Business Support
– Size, Debt, Age, Growth, Resources
– Economy, Regulation, Competition
– Owner-manager Characteristics
– Personal Factors—Trust, Perceived Service Value,
Image
IFAC Research

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.
– Create a culture that supports growth.

 Creating Value for SMEs through Integrated Thinking: the
Benefits of Integrated Reporting <IR>
 How Do SMEs Create Value?
 <IR>: Promoting Integrated Thinking
 The Multiple Capitals in an SME context
 Using <IR>: All Things Considered
 Invest in People
 Develop technical and soft skills (e.g., branding, marketing,
selling, negotiating, etc.)
Implications for SMPs—
Practice Management II

Opportunity, Threat, and Challenge
 Technology is part of step change in accounting
 Technology = opportunity—the future of practice
– Cloud computing can reduce costs and increase agility
 Technology = threat—commoditization, DIY
– Parliament of New South Wales Report—Accounting Clerks have a 94.8%
probability of computerization
 Challenge is how to implement technological change
– Concerns over cyber-security
Technology Developments I

 Opportunities Presented by Technological Change
– 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
Technology Developments II

 AICPA Firm Global Connection
 Worldwide Online Community of Peers
 Resources for Any Firm Size - Tools in:
– Human Capital
– Customer Service and Client Retention
– Marketing
– Practice Growth & Client Acquisition
– Succession Planning
– Cyber Security
– Specialized Training
PAO Support

Overall Program Strategy
 Integrate the accounting profession more prominently into the SMP
business support environment and raise awareness of how
professional accountants can supports SMEs.
 Build the capacity of professional accountants and accounting
practices to improve SME financial management and provide
relevant business.
 Build the capacity of the professional accounting bodies to support
members.

Keeping It
Simple and Relevant
• Resources should be easy
to replicate in a cost
effective manner and
adaptable to local
conditions
Providing
Options
• New Approaches
• Technology
• Niche Strategy
• Flexibility
• Training
• Tools
• Surveys
Lesson/Summary

Growing Your Practice

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