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Strategies for Practise Strategies for Practise Development vis-a-vis Mergers Development vis-a-vis Mergers
and Networkingand Networking
K.Raghu FCA
Bangalore
Current PractisesCurrent Practises
Sole Proprietory Firms
One-man Show
Insufficient time
80 : 20 rule
Working after office hours
Myths in CA practiseMyths in CA practise
Only large firms need proper systemsNetworking doesn’t workMergers are not successfulCA’s are good only in Taxation and Audit
Changes in CA practise Changes in CA practise Dwindling traditional practiseMore automation – Less Paper trail Need to understand clients business in a
changing technology environmentShift from Compliance related services to Value
added servicesIncreasing clients awarenessClient relationships becoming more professional
and formal
Changes in CA practiseChanges in CA practise
Need for Succession PlanningNeed to upgrade IT infrastructureNeed to upgrade Office infrastructureSingle Window serviceSpecialisationMulti-Locational ServiceServices to Global organisations
Challenges in CA practiseChallenges in CA practise
Retaining client baseRecruit and retaining quality staffLitigationCompetition from Big 4 and othersLevel of FeesMandatatory CPEIntroduction of Peer Review.
CA PractiseCA PractiseThe way forward The way forward
NetworkingMergersSpecialisations
Definition of NetworkingDefinition 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”
NetworkingNetworking
Necessary Conditions
Appointment of a Managing CommitteeEngagement PartnerReview PartnerSharing of ProfitsContribution of Membership FeesAdministration of the Network
NetworkingNetworking
Optional Conditions
Publishing E-NewslettersDevelopment of Training MaterialsDevelopment and maintenance of databasesAppointment of a Technical DirectorDevelopment of a digital libraryDevelopment of SoftwareDetermine Uniform Fees across the network
NetworkingNetworking
Optional Conditions
Peer Reviews of the member firmsConduct Seminars for updating the Seminars
Networking – ICAI guidelinesNetworking – ICAI guidelinesICAI has started registering NetworksICAI 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 NetworkPrescribed format of application for approval
of Name – Form ANetworks cannot advertise nor use a logo
Networking – ICAI guidelines Networking – ICAI guidelines
Registration of Network with ICAI in Form B.Proprietory/Partnership Firms as well as
individuals to join only one networkExit from Network to be done by sending
declaration in Dorm C to ICAI
New Opportunities and New Opportunities and NetworkingNetworking
INFORMATION TECHNOLOGYERP ImplementationE-Commerce ImplementationInformation Systems AuditInformation Systems ConsultancyDetection of Computer CrimesData and System Assurance ServicesWeb Trust Seal and Certification
New Opportunities and New Opportunities and NetworkingNetworking
BUSINESS PROCESS OUTSOURCING
Payroll ProcessingUS Tax Returns ProcessingAccountingClaims Processing
New Opportunities and New Opportunities and NetworkingNetworking
INSURANCE SECTORClaims ManagementRisk ManagementThird Party Administrative ServicesUnderwritingSurvey and Loss Assesment
New Opportunities and New Opportunities and NetworkingNetworking
INTERNATIONAL TAXATION
Advising on Cross Border issuesDevelopment international financial
productsConsulting under SOX Act.
Mergers – Pro’s and Con’sMergers – Pro’s and Con’s
Compensation for immovable propertyDiffering scale of feesDiffering staff salary structuresFear about loss of clienteleLoss of independence and flexibilityPower and Profit sharing mechanismsPersonal expenses
Mergers - MeritsMergers - Merits
Reduced OverheadsShared burdenstensionsImproved quality of serviceImproved infrastructureBetter quality of staff and trainingBetter image Capability to handle large assignmentsContinuitySynergy in operations
Mergers - DemeritsMergers - Demerits
Clash of work cultures, personality clashesLoss of clienteleStaff redundancyIntegration of different staffing policiesLoss of personal touch with clientsIncreased fees
Strategies for Practise Strategies for Practise DevelopmentDevelopment
Delegation of workCreating teams for assignmentsTime Limits for administrative workUse of pre-printed formatsChecklists for all important work system of
appointmentsResponsible persons for answering routine
queries
Strategies for Practise DevelopmentStrategies for Practise Development
Create client awareness by sending circularsUse automation for MIS, Billing etc.,Keep 10% - 20% time for readingPaper clearance weekCode of conduct for Articled clerks and
employees Periodical reporting system to partnersTraining to articled clerks and office staffHiring Quality Manpower
Tactics to enchance Client valueTactics to enchance Client value
Improving client contactSending useful articles to clientsHelping clients with your contactsBuilding a personal relationship with the clientParticipating in social activitiesOffering use of firms facilitiesVolunteering to attend clients internal
meetings if requiredUsing technology to improve turn-around time
Tactics to improve Profitability 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 BillingImprove speed of CollectionReduce space and equipment costsAccommodate part-time and flexi staff
ConclusionConclusion
OUR MISSIONSERVICE Delivering outstanding client service
SATISFACTION Provide maximum satisfaction to clients
SUCCESS
Achieve financial success
ThanksThanks
Members for a patient listening