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Enhanced Practice Management and New Services

Enhanced Practice Management and New Services. SAFA- IFAC Regional SMP Forum. M FARHAD HUSSAIN FCA Member Council & Past President ICAB. New Delhi, 10 October - 2014. WHAT ARE WE GOING TO COVER TODAY?. Introduction Key Aspects of Practice Management Practice Development New Services

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Enhanced Practice Management and New Services

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  1. Enhanced Practice Management and New Services SAFA- IFAC Regional SMP Forum M FARHAD HUSSAIN FCA Member Council & Past President ICAB New Delhi, 10 October -2014

  2. WHAT ARE WE GOING TO COVER TODAY? • Introduction • Key Aspects of Practice Management • Practice Development • New Services • Bangladesh Perspective • 6. Conclusion 2

  3. INTRODUCTION What is Practice Management? Practice management covers a wide array of topics, both operational and strategic, to do with running a successful accounting practice. The theories, techniques, approaches and tools of practice management are same as it is in a business. Why Practice Management? Effective management is essential to the success of any organization including accountancy practices. It is about recognizing opportunities and taking advantage of them to the benefit of the organization 3

  4. KEY ASPECTS OF PRACTICE MANAGEMENT • Strategy and planning — Practices need to build a strong foundation to ensure their success. A strong foundation starts with a clear strategy and a plan to execute it. • Practice models — Practices will need to consider the best structure and model to use. 4

  5. KEY ASPECTS OF PRACTICE MANAGEMENT • Business development—As practices grow, they will increasingly need to consider issues relating to practice development 5

  6. KEY ASPECTS OF PRACTICE MANAGEMENT Networks—In order to gain new clients and access expertise, many practices use different forms of networking. Marketing—Attracting and retaining clients is a primary challenge facing practices, and securing new clients is one of the main drivers of future profits. This makes marketing and client relations one of the keys to success. Information technology—It is critical for firms to adopt best practice in respect of emerging technologies. Risk management —Risk management is important to practices especially in those jurisdictions where the number and size of legal claims have increased over the years. 6

  7. PRACTICE DEVELOPMENT • 1. Development of strategy: • Diversification in professional services. • Coping with competition. • Coping with increased regulation. • Customization to work. • Face – to- face interaction with the client. • 2. Satisfaction on three goals (the main mission of the firm): • Service • Satisfaction • Success • Success will normally follow service and satisfaction. 7

  8. PRACTICE DEVELOPMENT • 3. Appropriate mix of staff: • Relative mix of juniors, seniors and managers • 4. Leverage and profitability: • Profits come from firm’s ability to leverage professional skills of the senior with the efforts of junior. • 5. Profitability and growth: • The firm must grow to motivate and retain best staff. • Without growth the dynamic of the profit is lost and morale will suffer. • 6. Types of practice: • Types will vary according to needs of the service seekers. 8

  9. PRACTICE DEVELOPMENT • 7. Strategy for being more valuable to clients: • Greater focus on human resource. • Being more systematic. • 8. Increasing firms capability: • Increase knowledge of client industry. • Study industry newsletters / journals. • Attend industry meeting with client. • 9. Focused client service: • Going extra mile on current engagement. • Increasing the amount of client contact. • Building business relationship. 9

  10. PRACTICE DEVELOPMENT • 11. Enhance client value: • Involve clients in process through brain storming sessions. • Hold continuous meetings with the client. • Make report more valuable. • Help client use what is delivered. • 12. Improving profitability. • Raise fee levels. • Lower variable cost. • Fix under performers. • Increase volume. • Lower overhead costs 10

  11. BUILDING FIRMS WORK CULTURE

  12. BUILDING FIRMS WORK CULTURE

  13. NEW SERVICES New emerging areas for Chartered Accountants 1. Performance management services. 2. Services related to change management. 3. Assurance service. 4. Tax Compliance advice and planning 5. Practice Specialisation. 6. Servicing global organization. 7. Outsourcing. 8. Corporate Finance. 9. Insolvency. 10. Management consultancy. 11. Risk assessment. 12. Valuation services. 13

  14. BANGLADESH PERSPECTIVE • Challenges to Bangladeshi Chartered Accountants include: • Management of information technology. • Change management. • Education needs. • New members. • The changing nature of competition.

  15. CONCLUSION We must try to take profession away from number crunching towards interpretation and value added services. Enhancement can take place with a little effort and in some cases no cost by way of having stronger focus in HR and change in work culture.

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