The document summarizes a session from the IFAC Small and Medium Practices Forum in 2012 on helping SMPs (small and medium practices) meet challenges and seize opportunities. It identifies key challenges facing SMPs as resource constraints, regulatory overload, business complexity, retention issues, and technology changes. However, it also notes opportunities in working with SMEs, which make up most economies. The session included a panel discussion on supporting SMPs to help SMEs through shaping standards, providing implementation guidance and practice tools, and raising awareness of SMPs' value in supporting SMEs.
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Albert Au - Helping SMPs Meet the Challenges and Seize the Opportunities of Tomorrow
1. IFAC SMALL AND MEDIUM
PRACTICES FORUM 2012
Session 3
Helping SMPs Meet the Challenges
and Seize the Opportunities of
Tomorrow
Chair :
Albert S.C. Au
Member, IFAC SMP Committee
Page 1 | Confidential and Proprietary Information
2. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• What are the challenges to SMPs?
– Resource constraints
– Regulation and compliance overload
– Complexity and changing business landscape
– People issues- retention and succession
– Fierce competition
– Lack of brand and reputation
– Fast pace of change of technology
– Economic uncertainty
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3. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• Opportunities
– SMEs make up more than 90% in most economies and are the engines of
growth and innovation.
– SMEs need business advisors and personalized services, which best suits
SMPs.
– The Big firms are slow, like an ocean going vessel in making changes and
directions.
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4. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• How to respond?
– Proximity to clients and be the trusted advisers of SMEs.
– Be versatile, be quick
– Innovate
– find new markets, new services
– look beyond traditional geographical boundaries
– exploit the new technologies
– Differentiate from the rest of the pack- find your niche and don’t be a jack
of all trade
– Don’t ever compete on price
– Compete on quality and personalized service
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5. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
IFAC SMP Quick Poll: 2011 Round- Up
Executive Summary
• Challenges & Issues facing SMPs and SMEs:
For SMPs, the 2 foremost challenges are:
– Keeping up with new regulations and standards
– Attracting and retaining clients
For SMEs, the 2 biggest challenges are:
– Burden of regulations
– Economic uncertainty
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6. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
IFAC SMP Quick Poll: 2011 Round- Up (continued)
Executive Summary
• Opportunity for practice growth
– Business from new clients is the main driver of growth
– The fastest growing practice area in 2011 was accounting and compilation
work, followed by advisory/consulting services.
New business with existing clients is also an important opportunity
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7. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• What is the SMP Committee doing to help?
– Helping IFAC member bodies support their SMPs
• What role should we play?
– Shaping regulation, policy and standards
– Resources and tools – implementation guidance; practice management
support; business advisory practice development
• SMPs are constrained by limited in-house resources, and therefore face
challenges in efficiently implementing international standards and running their
practices.
– Communication to stakeholders to raise awareness and value proposition
of SMPs in supporting SMEs.
• How can members bodies best support their SMPs, to
help them to support SMEs?
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8. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• This gets me back to the topic of our panel discussion:
• Helping SMPs Meet the Challenges and Seize the
Opportunities of Tomorrow
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9. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
• An introduction of our panelists
• Brendon Yeo, Member of the Executive
Council, Association of SMEs, Singapore
• Stuart Black, Australia, IFAC SMP Committee member
• Florin Toma, Romania, IFAC SMP Committee member
• Don Ho, Member of Council, Institute of CPAs of
Singapore
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10. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
Q&A
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11. IFAC SMP Forum 2012
Helping SMPs meet the challenges and seize the
opportunities of tomorrow
Thank You
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