The document summarizes the results of the 2016 IFAC Global SMP Survey. Some key findings include:
- Over 5,000 accounting professionals from 164 countries responded to the survey.
- The top challenges for SMPs were attracting new clients, pressure to lower fees, and keeping up with regulations.
- SMPs saw the highest fee revenue increases in advisory and consulting services.
- Technology investment, determining the best technology, and achieving a paperless environment were top technology challenges.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face.
Presentation by Beverley Bahlmann, Senior Technical Manager, IAASB, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
Presentation by Alta Prinsloo, IFAC Executive Director, Strategy and Chief Operating Officer, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face.
Presentation by Beverley Bahlmann, Senior Technical Manager, IAASB, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
Presentation by Alta Prinsloo, IFAC Executive Director, Strategy and Chief Operating Officer, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Ken Siong, Technical Director, International Ethics Standards Board for Accountants.
Presentation by Subodh Agrawal, Past President of ICAI, Member of IFAC SMP Committee, at the CAPA 2015 Conference, in Seoul, Korea, October 27-29, 2015.
This study gives insights on the implementation as well as internal and external facilitators of integrated reporting in companies. The joint research project of CCR and the University of Leipzig was sponsored by Clariant.
The International Auditing and Assurance Standards Board (IAASB) Quality Control Task Force Chair, Karin French, leads a discussion on proposed changes to International Standard on Quality Control (ISQC) 1 for firms. The proposed changes will result in a restructured and enhanced standard that will change the current approach to firms' systems of quality control.
Full webcast with audio available at http://www.ifac.org/news-events/2017-09/iaasb-webcast-proposed-changes-international-standard-quality-control.
Presentation given by Paul Thompson, Deputy Director, SME and SMP Affairs, IFAC, at the Malaysian Institute of Accountants Conference, Auditing Micro-Entities Efficiently and Effectively, March 23, 2012, Kuala Lumpur.
On May 18, 2016, IAASB Chairman Prof. Arnold Schilder presented "The IAASB's Work to Enhance Audit Quality" to the Standing Advisory Group of the US Public Company Accounting Oversight Board in Washington, D.C.
Presentation by Gwenda Jensen, Senior Technical Manager, IPSASB, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
What is the future of corporate reporting? AEP's Sandy Nessing, managing director of Sustainability, spoke to an MBA class at The Ohio State University's Fisher School of Business on Feb. 29, 2012, about AEP's experience, why sustainability is a growth platform as well as a risk management strategy and what the trends are in corporate reporting.
Discussion of Singapore SME Internationalization - Victor TayVictor Tay
Chairing of Discussion of SME Internationalization Policies
@ Oct 2021
Lee Kuan Yew School of Policy Studies
National University of Singapore
https//www.linkedin.com/in/victortay
email: victortay@globalcatalystadvisory.com
Singapore was founded in 1819 as the global trading post by British Sir Stamord Raffles. With that Singapore has become a unique country with Trade 3x its GDP and per capital at $65k/capital. Singapore's SMEs forms 99.1% of its economy. They are borned global, what is the status of their internationalization? What will accelerate their internationalization process?
Integrated reporting 101; Getting started with Integrated Reporting in IndiaVrushali Gaud-Shinde
Introduction to Integrated reporting - India
The Securities Exchange Board of India (SEBI) recently raised a circular recommending top 500 companies to adopt Integrated Reporting. This is a quick guide that answers the Why? What? How? questions to get Indian companies started with Integrated Reporting.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Hysen Cela, President, Institute of Authorized Chartered Auditors of Albania.
Presentation delivered at the Women in Finance Conference, South Africa.
The presentation deals with Integrated Sustainability Reporting, South Africa, 2010.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Ardiana Bunjaku, Executive Director, Society of Certified Accountants and Auditors of Kosovo.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Paul Thompson, Director, European Federation of Accountants and Auditors for SMEs.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Ken Siong, Technical Director, International Ethics Standards Board for Accountants.
Presentation by Subodh Agrawal, Past President of ICAI, Member of IFAC SMP Committee, at the CAPA 2015 Conference, in Seoul, Korea, October 27-29, 2015.
This study gives insights on the implementation as well as internal and external facilitators of integrated reporting in companies. The joint research project of CCR and the University of Leipzig was sponsored by Clariant.
The International Auditing and Assurance Standards Board (IAASB) Quality Control Task Force Chair, Karin French, leads a discussion on proposed changes to International Standard on Quality Control (ISQC) 1 for firms. The proposed changes will result in a restructured and enhanced standard that will change the current approach to firms' systems of quality control.
Full webcast with audio available at http://www.ifac.org/news-events/2017-09/iaasb-webcast-proposed-changes-international-standard-quality-control.
Presentation given by Paul Thompson, Deputy Director, SME and SMP Affairs, IFAC, at the Malaysian Institute of Accountants Conference, Auditing Micro-Entities Efficiently and Effectively, March 23, 2012, Kuala Lumpur.
On May 18, 2016, IAASB Chairman Prof. Arnold Schilder presented "The IAASB's Work to Enhance Audit Quality" to the Standing Advisory Group of the US Public Company Accounting Oversight Board in Washington, D.C.
Presentation by Gwenda Jensen, Senior Technical Manager, IPSASB, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
What is the future of corporate reporting? AEP's Sandy Nessing, managing director of Sustainability, spoke to an MBA class at The Ohio State University's Fisher School of Business on Feb. 29, 2012, about AEP's experience, why sustainability is a growth platform as well as a risk management strategy and what the trends are in corporate reporting.
Discussion of Singapore SME Internationalization - Victor TayVictor Tay
Chairing of Discussion of SME Internationalization Policies
@ Oct 2021
Lee Kuan Yew School of Policy Studies
National University of Singapore
https//www.linkedin.com/in/victortay
email: victortay@globalcatalystadvisory.com
Singapore was founded in 1819 as the global trading post by British Sir Stamord Raffles. With that Singapore has become a unique country with Trade 3x its GDP and per capital at $65k/capital. Singapore's SMEs forms 99.1% of its economy. They are borned global, what is the status of their internationalization? What will accelerate their internationalization process?
Integrated reporting 101; Getting started with Integrated Reporting in IndiaVrushali Gaud-Shinde
Introduction to Integrated reporting - India
The Securities Exchange Board of India (SEBI) recently raised a circular recommending top 500 companies to adopt Integrated Reporting. This is a quick guide that answers the Why? What? How? questions to get Indian companies started with Integrated Reporting.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Hysen Cela, President, Institute of Authorized Chartered Auditors of Albania.
Presentation delivered at the Women in Finance Conference, South Africa.
The presentation deals with Integrated Sustainability Reporting, South Africa, 2010.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Ardiana Bunjaku, Executive Director, Society of Certified Accountants and Auditors of Kosovo.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Paul Thompson, Director, European Federation of Accountants and Auditors for SMEs.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Beverley Bahlmann, Deputy Director, International Auditing and Assurance Standards Board.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Dawn McGeachy, Member, IFAC SMP Committee.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. This is a presentation by Hilde Blomme, Deputy Chief Executive, Accountancy Europe.
IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.
The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face.
Women at the wheel: Recruitment, retention, and advancement of women in the E...Deloitte United States
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Webinar - Multichannel Maturometer 2018 results: Key global trendsAcross Health
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For the recorded webinar please visit our website: http://bit.ly/2vC86oc
Presentation of the eighth biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
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Northern Europe: Norway, Sweden, Denmark, Finland
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Changing SMPs Business Model: Challenges and Opportunities
1. Page 1 | Proprietary and Copyrighted Information
Changing SMPs Business Model:
Challenges and Opportunities
Mats Olsson
Deputy Chair
IFAC SMP Committee
Global SMP Survey 2016 Results
World Bank – IFAC SMP Forum
May 31, 2017
Vienna, Austria
2. Page 2 | Proprietary and Copyrighted Information
IFAC Global SMP Survey 2016
• Objectives
– Visibility
– Market intelligence
• 5,060 respondents from 164
countries
• 23 languages
• Report & summary
published March 2017
www.ifac.org/smp
3. Page 3 | Proprietary and Copyrighted Information
IFAC Global SMP Survey 2016 – About I
Respondents by Region
38%
28%
14%
7%
5%
5% 3% Europe
Asia
Africa
Central and South
America and Caribbean
North America
Middle East
Australasia and
Oceania
4. Page 4 | Proprietary and Copyrighted Information
Country (Global) Responses
China 493
India 417
Romania 365
Turkey 259
Canada 196
Poland 191
France 168
South Africa 150
Italy 142
Finland 134
IFAC Global SMP Survey 2016 – Top Countries
5. Page 5 | Proprietary and Copyrighted Information
Country Responses
Albania 18
Armenia 1
Azerbaijan 7
Belarus 2
Bosnia & Herzegovina 6
Georgia 1
Kosovo 7
Macedonia, TFY 3
Republic of Moldova 1
Montenegro 5
Serbia 5
Ukraine 12
IFAC Global SMP Survey 2016 – The 12 Countries
Represented Here
6. Page 6 | Proprietary and Copyrighted Information
IFAC Global SMP Survey 2016 – About II
35%
35%
10%
7%
12%
Sole practitioner
2-5 partners &
staff
6-10 partners &
staff
11-20 partners &
staff
21 or more
partners & staff
Respondents by Size of Practice
7. Page 7 | Proprietary and Copyrighted Information
Respondents by Region by Practice Size
Region
Sole
practitioner
2-5
partners &
staff
6-10
partners &
staff
11-20
partners &
staff
21 or more
partners &
staff
Africa 41% 39% 9% 6% 5%
Asia 26% 35% 11% 10% 18%
Australasia &
Oceania 45% 30% 5% 5% 14%
Central & South
America & Caribbean 27% 38% 14% 9% 11%
Europe 37% 36% 9% 6% 12%
Middle East 34% 35% 15% 9% 8%
North America 57% 22% 9% 3% 9%
IFAC Global SMP Survey 2016
8. Page 8 | Proprietary and Copyrighted Information
Partner,
Owner,
or Sole
Propriet
or
76%
Director
7%
Senior
Manager
5%
Manager
7%
Other
5%
2%
16%
28%
29%
18%
7%
Respondents By Age
Under 25 25-35 36-45
46-55 56-65 Over 65
IFAC Global SMP Survey 2016 – About III
Position Level of
Respondents in Practice
9. Page 9 | Proprietary and Copyrighted Information
Top 3 Challenges For SMPs (high/very high)
Challenges
12 Countries
Cluster
Europe (%) Global (%)
Attracting new
clients
43 47 46
Experiencing
pressure to
lower fees
37 41 41
Keeping up with
new regulations
and standards
30 47 41
IFAC Global SMP Survey 2016 – Highlights I
10. Page 10 | Proprietary and Copyrighted Information
Factors Most Impacting SMPs
Over the Next Five Years (high/ very high)
Challenges
12 Countries
Cluster (%)
Europe
(%)
Global
(%)
Political instability 62 41 40
Regulatory
environment
57 62 56
Perceived trust and
credibility of the
profession
50 49 43
IFAC Global SMP Survey 2016 – Highlights II
11. Page 11 | Proprietary and Copyrighted Information
Fee Revenue Increases 2016
(Across Service Line)
Note: For the 12 countries & the greater Europe, the highest
growth is still in advisory & consulting services.
Region/ Countries Percentage of Firms
12 Countries Cluster 19 - 40%
Europe 23 – 32%
Global 30 – 35%
IFAC Global SMP Survey 2016 – Highlights III
12. Page 12 | Proprietary and Copyrighted Information
Forecasted Fee Increases for 2017
Service Line 12
Countries
Cluster (%)
Europe
(%)
Global
(%)
Accounting,
Compilation & NAS
57 37 44
Advisory &
Consulting
52 38 45
Tax (incl.
Compliance &
Planning)
41 31 42
Audit & Assurance 41 25 38
IFAC Global SMP Survey 2016 – Highlights IV
13. Page 13 | Proprietary and Copyrighted Information
Business Advisory & Consulting Services
(More Common Services)
Type of Business
Advisory
12
Countries
Cluster
(%)
Europe (%) Global (%)
Management accounting 56 41 46
Human resources/
employment regulation
47 40 30
Corporate advisory 46 52 48
Restructuring/
insolvency/ liquidation
22 29 24
IFAC Global SMP Survey 2016 – Highlights V
14. Page 14 | Proprietary and Copyrighted Information
SME Client Challenges
Challenges 12 Countries
Cluster (%)
Europe
(%)
Global (%)
Economic
uncertainty
66 66 61
Difficulties in
accessing finance
60 52 51
Rising costs 53 59 59
Competition 49 57 53
IFAC Global SMP Survey 2016 – Highlights VI
15. Page 15 | Proprietary and Copyrighted Information
Top 3 Technology Challenges For SMPs
(high/very high)
Technology
Challenges
12 Countries
Cluster
(%)
Europe
(%)
Global (%)
Investing in and
staying current with
Software
44 45 38
Determining what
technology is best for
the practice
37 40 36
Achieving a digital,
paperless environment
35 38 37
IFAC Global SMP Survey 2016 – Highlights VII
16. Page 16 | Proprietary and Copyrighted Information
Top 3 Personnel & Staffing Issues For SMPs
(high/very high)
Staffing
Challenges
12
Countries
Cluster (%)
Europe (%) Global (%)
Retaining
qualified staff (all
levels)
40 40 41
Finding qualified
staff (all levels)
38 47 45
Technical
training
31 34 35
IFAC Global SMP Survey 2016 – Highlights VIII
17. Page 17 | Proprietary and Copyrighted Information
• Practice Utilization Percentage (of less than 50%)
– Global: 12%
– Europe: 8%
– The 12 countries cluster: 20%
• Firm’s Receivables Collection Period (most common
practice)
– Global: 0-59 days (59% of respondents)
– Europe: 0-59 days (66% of respondents)
– The 12 countries cluster: 0-59 days (65% of respondents)
IFAC Global SMP Survey 2016 – Highlights IX
18. Page 18 | Proprietary and Copyrighted Information
IFAC Resources
• IFAC SMP Committee: www.ifac.org/SMP
• Follow us on Twitter: @IFAC_SMP
• IFAC Global SMP Survey: Publications & Resources
on the IFAC website
• Join us on LinkedIn: IFAC SMP Community
• Global Knowledge Gateway: www.ifac.org/Gateway
The IFAC Global SMP Survey 2016 was open in 23 languages from October 1 to November 30, 2016 and received a good number of respondents – 5,060. We believe this is still one of the largest study of SMPs (in the world). For 2015, the no was 6,725.
The survey aims to raise the voice and visibility of SMPs as well as learn about this constituency so IFAC and its Member Organizations can better support SMPs – going forward.
Languages: English, Arabic, Chinese, Dutch, Finnish, French, German, Hebrew, Hungarian, Italian, Japanese, Korean, Latvian, Lithuanian, Polish, Portuguese, Romanian, Russian, Spanish, Swedish, Turkish, Thai & Serbian.
Full Report plus Summary were published in mid March. It was also disseminated via IFAC’s 170 plus member organizations and is now available on the IFAC website at www.ifac.org/smp.
Number of Gateway articles and videos will be made available to share key findings for 2016: see Practice Management topic area. The earlier one for 2015 is still in the Gateway. So, feel free to browse through.
Both Europe & Asia – combined is 2/3 of the respondents in total
The top 10 countries already accounted for 50% of the total respondents of 5,060 in 2016. The no. of respondents from Europe were 1,935.
In the top 10, you have Romania, Turkey, Poland, France, Italy and Finland (all these are from Europe)
Please note that the no. of Respondents from all these 12 countries are not likely to be statistically meaningful. But, it will give you some flavor… and to get you to start reflecting about the state of the accountancy profession in your respective countries.
The no. of respondents from all these 12 countries are 68.
Based on our last year’s record, the no. of respondents are consistently low. For example, Albania (33 – in 2015), Bosnia & Herzegovina (2), Kosovo (12), Macedonia (7), Montenegro (1) and Serbia (4).
One of the reason for the significant no. of respondent from Romania could be because of the availability of the survey in the Romanian language. The next survey will be in 2018. If you are from a member body from a country that is interested in providing a translation, please let us know.
Sole proprietor & those up to 5 staff make up of 70% of the Respondents. For 2015, the percentage was 71%
Asia has the most no. of Respondents with 21 or more staff and partners – at 18%. The next is Australasia & Oceania. Europe came in third at 12%. Africa is the least.
Europe has an equally high concentration of sole proprietorship. So, it appears to be represented by a 2 extreme professional landscape.
For the 12 countries, sole proprietor is at 22%. The largest – 21 or more staff & partners; this is at 4%. Almost half (49%) is 2-5 partners & staff firms.
I think, we are getting the right level of Respondents (looking at the position level) – They are partners, owners & proprietors.
3 quarters of those Respondents also appear to be in the “right” age group (ie. 36 to 65 years of age).
On a gender basis, 2/3 of the Respondents in Europe are male (no chart included).
Top 3 Challenges Facing SMPs in Europe:
Attracting new clients 47%
Keeping up with new regulations and standards 47%
Experiencing fees pressure 41%
Globally (again, Top 3):
Attracting new clients 46%
Keeping up with new regulations and standards 41%
Experiencing pressure to lower fees 41%
The 12 countries cluster here – your top 3 concerns are in alignment with the top 3 of Europe and also the world. Just the quantum is slightly different. Talk about consistency. Almost a “good” fit.
Consistent with 2015, a majority of respondents (at least 55%) viewed all 11 challenges as a moderate, high, or very high challenges.
Thus, SMPs continued to face many challenges. Some challenges were considered more pressing. The largest challenges facing SMPs globally included Attracting New Clients (46% rated as a high or very high challenge), Keeping Up with New Regulations & Standards (41%) and Experiencing Pressure to Lower Fees (also at 41%). Most of these were also the top challenges in the 2015 IFAC Global SMP Survey; however, the percentages were the same or higher in the previous year (2015: 47%, 44%, and 41%, respectively) indicating some moderate improvements.
Next 5 Years Factors Most Impacting SMPs (in descending order)
Regulatory environment 62% (Europe); 56% (Global)
Technology developments 55% (Europe); 52% (Global)
Competition 47% (Europe); 48% (Global)
On a global basis, competition is expected to heat up over the next 5 years (it is at # 4 for the 12 countries) and these will come from other practices or other non accountants. Capability to adapt to new client needs is at 51% (for Europe) and 45% (on a Global basis).
Respondents (globally) rated eight environmental factors to indicate the extent to which they believed each might impact their SMP over the next five years. Consistent with 2014 and 2015, the Regulatory Environment, Technology Developments and Competition were viewed as the most impactful with 56% (up from 52% in 2015), 52% (up from 43%) and 48% (up from 46%) respectively, anticipating that these environmental factors would have a high or very high impact. Globally, Technology Developments at 52% has shown a remarkable spike from the previous year. For the 12 countries here, your # 1 concern is political stability. Similarly, for the 12 countries, Mergers, Acquisition & Consolidation is still a relatively emerging issue, the least of the SMPs concern in the next 5 years. It is a reflection of the maturity of the profession in the region.
SMP Revenue Increases (for 2016)
Respondents were asked how their revenues changed in 2016 compared to 2015:
Audit and Assurance – 19% (Europe – 23%; Global – 30%)
Advisory and Consulting Services – 40% (Europe – 32%; Global – 35%)
Tax (including compliance & planning) – 28% (Europe – 24%; Global - 33%)
Accounting Compilation, Other Non-assurance/ Related Services – 26% (Europe – 32%; Global - 35%)
In Europe, 2/3 of the overall fees increases (for 2016) was between 1 – 10% (across all service line).
In March’s presentation to the World Bank, the service line that stand out is the accounting compilation and other NAS. That was a 10 countries cluster then (which also includes Romania). What is view of the 12 countries here on accounting compilation & other NAS? Is there a lot of demand?
The Australasia/ Oceania, Central America/ Caribbean and African regions are three (3) of the most buoyant region in 2016 – at least, measured in term of fees increases.
Do note that, for the tax services, we have included compliance & tax planning under this service stream rather than “lumping” them under advisory and consulting in the previous year (2015).
The projected increases for 2017
Accounting Compilation, Other Non-assurance/ Related Services - 57% (Global 44%)
Advisory and Consulting Services – 52% (Global 45%)
Tax – 41 (Global 42%)
Audit and Assurance – 41% (Global 38%)
Generally, the outlook of the 12 countries here is very much aligned to Europe & the world. Biggest potential is still in accounting, compilation, other NAS & advisory & consulting. Only 5% of the 68 Respondents did not plan to offer these 2 services in 2017.
Generally, respondents representing the largest SMPs (21 or more partners and staff) had a brighter outlook for 2017 than those representing smaller practices. In general, sole practitioners were the most pessimistic.
What are the examples of NAS that are more wide-spread in the 12 countries here? Is the margin of such services better than audit & tax?
Respondents were asked to specify the types of advisory and consulting services their SMP provides in 2016.
On a global basis, only 17 % do not provide any form of business advisory & consulting services.
Generally, larger practices more frequently provided business advisory and consulting services compared to sole practitioners. This is understandable since one can’t be doing everything.
Perhaps, to ask – what are the more common “human resources/ employment regulation” services in Europe (and also the 12 countries)? Are these mostly recurring in revenue stream?
In general, the trend in Europe mirrored those of the globe (at least, as the top 3 are concern)
Challenges faced by SME clients is insightful in helping to direct SMPs activity towards helping them address such challenges.
When asked about the challenges facing their SME clients, globally 75% or more of respondents rated seven of the eight challenges as a moderate or greater challenge. The top challenges facing SME clients in Europe included Economic Uncertainty (66% rated as a high or very high challenge) with Rising Costs (rated at 59%) coming in next. For the 12 countries in the cluster, they are not too far off.
All the 4 challenges are quite in alignment – from the cluster countries to the global stage. Now, that is certainty …
Top 3 Technology Challenges (Globally):
Investing in & staying current with Software 38% (Your 12 countries cluster, 44%)
Achieving a digital, paperless environment 37% (Your’s, 35%)
Determining what technology is best for the practice 36% (Your’s 37%)
4. Managing privacy and security risks 36% (Your’s 35%)
The alignment is the same when comparing with the globe. Only, the number is more over whelming for the 12 countries here.
As a general rule, we tend to talk about ROI when it comes to investing in software & hardware. Now, there is a new term – RONI (risk of non investment). You can’t afford not too invest. The idea is to invest smartly (so, start planning now) …...
Can the PAOs help out at issue # 2 – identifying the appropriate operating platform? But, be aware of the one size fit all mentality.
Top 3 Staffing Challenges (Globally):
Finding qualified staff – 45% (Your 12 countries cluster, 38%)
Retaining qualified staff – 41% (Your’s, 40%)
Technical training – 35% (Your’s, 31%)
When benchmarking against the Europe and the globe, the 3 top challenges is the same, only differences is the ranking among the 3. Almost in alignment.
Can also direct them to our Knowledge Gateway – a lot of resources on dealing with current issues on talent retention. Also, to remind them that the SMPC is also currently looking at the technological impact on SMPs.
Are there any popular work life balance initiatives being implemented in Europe/ your region/ your country – that you are aware of? Can you share? We are trying to locate some good story for our Gateway – in this respect.
Recent study has shown that, for the millennials, a purpose or a mission that appeals to them can be a powerful motivator for them to stay on your payroll. Compensation & rewards only come in 2nd. Does this applies to the millennials in your region?
These 2 questions are optional. About 16% of the 12 countries’ respondents did not answer the utilization question and 5% did not response to the collection period query.
On practice utilization, it shows that Firms in your region still has some slack for expansion. Only 13% of those responded had cited that their firms are currently operating at more than 90% of the available capacity.
Your region’s collection policy for receivables is slightly higher than the global standards. But, very much in alignment with Europe. Hence, managing cash flows and late payment is not really an issue for all the 12 countries combined.
On another note, do check our Gateway on value pricing and other videos. This is a future trend coming your way (value pricing as compare to time sheet billing).
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