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Enhanced Practice Management

and New Service Opportunities in


SME Sector

M FARHAD HUSSAIN FCA


Member Council & Past President - ICAB
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF
BANGLADESH

2, DECEMBER -2014
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WHAT ARE WE GOING TO COVER TODAY?


1. Introduction.
2. Key Aspects of Practice Management.

3. Practice Development.
4. SMPs as Trusted Business Adviser of SMEs.
5. New Services.
6. Challenges to Practicing Chartered Accountants.
7. Way Forward Thought.

8. Conclusion.

1. 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
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2. KEY ASPECTS OF PRACTICE MANAGEMENT

1. 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.


2.

Business

they

will

developmentAs

increasingly

practices

need

to

grow,

consider

issues relating to practice development

KEY ASPECTS OF PRACTICE MANAGEMENT


3. NetworksIn order to gain new clients and access
expertise, many practices use different forms of
networking.
4. MarketingAttracting 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.
5. Information technologyIt is critical for firms to adopt
best practice in respect of emerging technologies.
6. Risk management Risk management is important to
practices especially in those areas where the number and
nature of statutory, legal, ethical and other compliance issues
have increased over the years.

3. PRACTICE DEVELOPMENT
SIZE OF THE CA FIRMS AND NUMBER OF PRACTICING
CHARTERED ACCOUNTANTS IN BANGLADESH
Size

Total Number of
Practicing Member

10 Partners

20

9 Partners

8 Partners

7 Partners

14

6 Partners

18

5 Partners

20

4 Partners

11

44

3 Partners

18

54

2 Partners

52

104

Proprietor

77

77

170

359

Total Member of
Chartered
Accountants

1499

PRACTICE DEVELOPMENT
SIZE OF THE CA FIRMS AND NUMBER OF PRACTICING CHARTERED
ACCOUNTANTS IN INDIA

27

102

986

12635

31950

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.
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PRACTICE DEVELOPMENT
3. Appropriate mix of staff:

Relative mix of juniors, seniors and managers

4. Leverage and profitability:


Profits come from firms 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.
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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.


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PRACTICE DEVELOPMENT
10. 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.
11. Improving profitability.

Raise fee levels.


Lower variable cost.
Fix under performers.
Increase volume.
Lower overhead costs
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4. SMPs AS TRUSTED BUSINESS ADVISER OF SMEs


Introduction
An SMPs client portfolio typically comprises mainly, if
not entirely, of SMEs. Many SMEs depend heavily on
their SMP for a range of services.
The environment in which the SMEs operate are in a
constant mode of change and development in respect to
regulatory environment, consolidation and expansion.
The accountants are the most frequently used source of
advice out of all advice providers.

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SMPs AS TRUSTED BUSINESS ADVISER OF SMEs


A SURVEY REPORT ON CONSTRAINTS FACING SMEs IN SOUTH ASIA
Country

Marketing

Finance

India

Pakistan

Bangladesh

Nepal

Energy

Technology

Infrastructure

Market
Environment

Labor
Issues

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SMPs AS TRUSTED BUSINESS ADVISER OF SMEs


NEED FOR SMPs AS BUSINESS ADVISER

Expertise: SMEs often lack a full range of managerial expertise


in-house and outsource the services of SMPs.

Integrity and Trust: As members of a regulated profession with


codes of ethics, accountants enjoy "institutional" trust.
Responsiveness/proximity:
SMEs
rate
highly
SMPs
responsiveness to their demands. Many owner-managers
appreciate personal attention from their advisers and value
easy access.

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5. NEW SERVICES
New emerging areas for Chartered Accountants

1. Practice Specialisation.
2. Management consultancy.
3. Internal Audit.

4. Valuation services.
5. Services related to change management.
6. Corporate Finance.

7. Tax Compliance advice and planning


8. Performance management services.
9. Servicing global organization.
10. Outsourcing.
11. Insolvency.
12. Risk assessment.
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6. Challenges to Practicing Chartered Accountants

Human Resource.
Change management.
Management of information technology.
Business development.
The changing nature of competition.

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7. WAY FORWARD THOUGHT

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THOUGHT 1

ARE OUR CUSTOMERS

SATISFIED?
If YES,
what more do they
deserve
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THOUGHT 2
POSITIONING

Specialise in
taxation

Specialise in service
taxes

IFRS Specialization

Business Consulting
Partner

Business Development has become our part time service.


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THOUGHT 3
OUR INTERNAL BRANDING
Belongingness in the Organization.
Relationship with left employees.
Pride in the Organization and Creation of internal

Culture.
Good News Board.
Todays Special at office.
Vision exercise.

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THOUGHT 4
BUILDING FIRMS WORK CULTURE

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THOUGHT 5
EGO IS A MONSTER

o Usually ego comes and

everything else walks out.

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8. 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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