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Strategies for Practise Development

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Strategies for Practise Development

  1. 1. Strategies for PractiseDevelopment vis-a-vis Mergers and Networking K.Raghu FCA Bangalore
  2. 2. Current PractisesSole Proprietory FirmsOne-man ShowInsufficient time80 : 20 ruleWorking after office hours
  3. 3. Myths in CA practise Only large firms need proper systems Networking doesn’t work Mergers are not successful CA’s are good only in Taxation and Audit
  4. 4. Changes in CA practise Dwindling traditional practise More automation – Less Paper trail Need to understand clients business in a changing technology environment Shift from Compliance related services to Value added services Increasing clients awareness Client relationships becoming more professional and formal
  5. 5. Changes in CA practise Need for Succession Planning Need to upgrade IT infrastructure Need to upgrade Office infrastructure Single Window service Specialisation Multi-Locational Service Services to Global organisations
  6. 6. Challenges in CA practise Retaining client base Recruit and retaining quality staff Litigation Competition from Big 4 and others Level of Fees Mandatatory CPE Introduction of Peer Review.
  7. 7. CA Practise The way forward Networking Mergers Specialisations
  8. 8. Definition of Networking “NETWORKING amongst two or more firms means an entity under common control, ownership and management with the firm or having affiliation with an accounting entity or any entity that a reasonable and informed third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or internationally”
  9. 9. NetworkingNecessary Conditions Appointment of a Managing Committee Engagement Partner Review Partner Sharing of Profits Contribution of Membership Fees Administration of the Network
  10. 10. NetworkingOptional Conditions PublishingE-Newsletters Development of Training Materials Development and maintenance of databases Appointment of a Technical Director Development of a digital library Development of Software Determine Uniform Fees across the network
  11. 11. NetworkingOptional Conditions PeerReviews of the member firms Conduct Seminars for updating the Seminars
  12. 12. Networking – ICAI guidelines ICAI has started registering Networks ICAI guidelines to be followed for formation and registration of Networks. Network to have distinct name which has to be approved by the Institute “ & Affiliates” should be used after the name of the Network Prescribed format of application for approval of Name – Form A Networks cannot advertise nor use a logo
  13. 13. Networking – ICAI guidelines Registration of Network with ICAI in Form B. Proprietory/Partnership Firms as well as individuals to join only one network Exit from Network to be done by sending declaration in Dorm C to ICAI
  14. 14. New Opportunities and Networking INFORMATION TECHNOLOGY ERP Implementation E-Commerce Implementation Information Systems Audit Information Systems Consultancy Detection of Computer Crimes Data and System Assurance Services Web Trust Seal and Certification
  15. 15. New Opportunities and Networking BUSINESS PROCESS OUTSOURCING PayrollProcessing US Tax Returns Processing Accounting Claims Processing
  16. 16. New Opportunities and Networking INSURANCE SECTOR Claims Management Risk Management Third Party Administrative Services Underwriting Survey and Loss Assesment
  17. 17. New Opportunities and Networking INTERNATIONAL TAXATION Advising on Cross Border issues Development international financial products Consulting under SOX Act.
  18. 18. Mergers – Pro’s and Con’s Compensation for immovable property Differing scale of fees Differing staff salary structures Fear about loss of clientele Loss of independence and flexibility Power and Profit sharing mechanisms Personal expenses
  19. 19. Mergers - Merits Reduced Overheads Shared burdenstensions Improved quality of service Improved infrastructure Better quality of staff and training Better image Capability to handle large assignments Continuity Synergy in operations
  20. 20. Mergers - Demerits Clash of work cultures, personality clashes Loss of clientele Staff redundancy Integration of different staffing policies Loss of personal touch with clients Increased fees
  21. 21. Strategies for Practise Development Delegation of work Creating teams for assignments Time Limits for administrative work Use of pre-printed formats Checklists for all important work system of appointments Responsible persons for answering routine queries
  22. 22. Strategies for Practise Development  Create client awareness by sending circulars  Use automation for MIS, Billing etc.,  Keep 10% - 20% time for reading  Paper clearance week  Code of conduct for Articled clerks and employees  Periodical reporting system to partners  Training to articled clerks and office staff  Hiring Quality Manpower
  23. 23. Tactics to enchance Client value Improving client contact Sending useful articles to clients Helping clients with your contacts Building a personal relationship with the client Participating in social activities Offering use of firms facilities Volunteering to attend clients internal meetings if required Using technology to improve turn-around time
  24. 24. Tactics to improve Profitability Withdraw from services that cannot support salary levels – Drop non-remunerative clients Earn higher fees through specialisation and innovation Improve speed of Billing Improve speed of Collection Reduce space and equipment costs Accommodate part-time and flexi staff
  25. 25. Conclusion OUR MISSION SERVICE Delivering outstanding client service SATISFACTION Provide maximum satisfaction to clients SUCCESS Achieve financial success
  26. 26. Thanks Members for a patient listening

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