8 April 2015 11:53
Accountants’ Biggest Concerns in 2015
Read the article HERE
Challenges Facing SMPs
The recent IFAC Global SMP Survey showed that attracting new clients is a top concern for SMP accountants with 58% of respondents rating it as a high or very high challenge. This challenge is particularly significant in the Middle East, where as many as 80% of respondents rated it as a high or very high challenge, and in Central/South America and Europe (66% and 59%, respectively). The IFAC Global SMP Survey is conducted annually, and the 2014 edition received more than 5,000 responses from accountants operating in small- and medium-sized practices (SMPs) around the world.
Pressure to lower fees is also worrying accountants in some of these regions. As many as 68% of accountants in the Middle East, 56% in Asia, and 52% in Africa consider fee pressure a high or very high challenge for their practices. This is happening in the context of increasing amounts of regulation. The survey found that keeping up with regulations and standards was rated as a high or very high challenge by 57% of respondents. Increased regulatory responsibilities and potentially lower revenues driven by fee pressure make a very dangerous combination and may compromise the ability of professional firms to continue operating in the future.