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Shaping the Future: SMPs' Changing Role in Providing Business Support Services to SMEs
The document discusses the evolving role of Small and Medium Practices (SMPs) in providing business support services to Small and Medium Enterprises (SMEs), emphasizing the importance of SMEs for economic recovery and the challenges SMPs face. It outlines the strategic objectives of the IFAC SMP Committee, which include improving the capabilities of SMPs to deliver relevant professional services, and highlights the demand for business advice from SMEs paired with the critical role of accountants as trusted advisors. Lastly, the document suggests ways SMPs can adapt to changing environments, including specialization, capacity building, and collaboration.
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Shaping the Future: SMPs' Changing Role in Providing Business Support Services to SMEs
- 1. Shaping the Future:SMPs’ Changing Role in Providing Business Support Services to SMEs Paul Thompson, Senior Technical Manager, SMP Committee ACCA SMP Roundtable Singapore November 4, 2010 Page 1 | Confidential and Proprietary Information
- 2. Agenda • IFAC SMPCommittee • The Demand for Business Advice by SMEs • The Role of SMPs in Providing Business Support to SMEs – Accountants as External Advisers – The Motivation for Using SMPs – The Changing Environment – How to Adapt? • Role of IFAC and its Member Bodies Page 2 | Confidential and Proprietary Information
- 3. Importance of SMEs& SMPs • Health of SME sector is public interest priority • SMEs hold key to sustainable economic recovery • SMPs can help SMEs perform and conform • But SMPs confronted with unprecedented challenges • operational, regulatory, market Page 3 | Confidential and Proprietary Information
- 4. IFAC SMP Committee- Overview • Helping member bodies to help their SMPs • Building capacity of SMPs to support SMEs • 18 members (4 from Asia-Australasia) • IFAC Board review – more support for SMPs • Strategy and Work Plan for 2011-2014 Page 4 | Confidential and Proprietary Information
- 5. IFAC SMP Committee– Strategic Objectives • Help to shape the form and content of international standards so as to ensure their stability, relevance, and proportionality to SMEs and SMPs • International Standards on Auditing (IAASB), Code of Ethics (IESBA), IFRS for SMEs (IASB).... • Review, compilations, agreed upon procedures, other assurance services Page 5 | Confidential and Proprietary Information
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- 7. IFAC SMP Committee– Strategic Objectives • Provide and promote practical support to SMPs so as to enhance their ability to provide high quality and relevant professional services to their clients • Web-based resources at www.ifac.org/smp • High quality and free to download –Guide to Using ISAs in the Audits of SMEs –Guide to Quality Control for SMPs –Guide to Practice Management for SMPs Page 7 | Confidential and Proprietary Information
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- 12. IFAC SMP Committee– Strategic Objectives • Provide and promote practical support to SMPs so as to enhance their ability to provide high quality and relevant professional services to their clients (cont.) • The Role of SMPs in Providing Business Support to SMEs (April 2010) • Summarizes global evidence on role of SMPs in providing business support to SMEs • How to help position and equip SMPs for this role Page 12 | Confidential and Proprietary Information
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- 14. The Demand forBusiness Advice by SMEs • Growing information needs of SMEs • Regulatory demands extending outside financial compliance • Growing government regulation • SMEs lack of in-house expertise Page 14 | Confidential and Proprietary Information
- 15. The Role ofAccountants as External Advisers • All studies worldwide indicate that accountants are preferred and first source of advice for SMEs • Frequency of meeting their accountant is a function of size of the SME: the larger the more often Page 15 | Confidential and Proprietary Information
- 16. The Motivation andReasons for Using SMPs • Recognition that SMPs face similar compliance requirements as small businesses • Technical competency • Trust • Proximity and responsiveness • SMEs wanting a one-stop shop Page 16 | Confidential and Proprietary Information
- 17. The Changing Environmentand Challenges to the 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 Page 17 | Confidential and Proprietary Information
- 18. How to Adapt? •No one right solution/way • Match clients with practice capacity and expertise • Consider specialization – type of client or service • Merger and/or form/join referral network • Develop skills and competencies – Strategic development, soft skills (people and communications), branding, marketing, HRM, etc. – Technical Page 18 | Confidential and Proprietary Information
- 19. The Role ofIFAC and Member Bodies • Awareness raising • Thought leadership • Capacity building - resources and tools • Promote role of SMPs in supporting SMEs Page 19 | Confidential and Proprietary Information
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