The introduction of the 2008 American Institute of Certified Public Accountants' (AICPA) PCPS/TSCPA National MAP Survey (see http://pcps.aicpa.org/Resources/National+MAP+Survey/2008+National+MAP+Survey+Commentary.htm), says that while US CPA firms, most of them small- and medium-sized practices (SMPs), are thriving the findings and the state of the economy raise questions about the future economic landscape for these firms. The commentary goes on to say that:
"As part of their strategic planning, firms may wish to consider the best response to a shift or decline in demand for their services. Given the current economic uncertainty, it may not be surprising to find fee competition from other firms and fee pressure from clients. However, CPAs may also be called upon to offer additional services in the wake of the credit market crisis, as banks and other entities look for greater assurance about the companies with which they do business. There may be a greater need for agreed-upon procedures to suit specific situations and more banks may demand audits rather than reviews."
While a US view the same is likely to be true to varying degrees of SMPs everywhere. But while the credit crisis dominates the headlines and is the issue of most immediate concern, SMPs must not lose sight of their longer term strategy and think about where they want to be when the crisis blows over. The long run offers great challenges - competition, regulatory complexity and reduced compliance work. But it also presents great opportunities since many regard the SMP as a trusted and competent professional, well placed to offer business advice. Hence, forward looking SMPs may wish to read the following articles:
- Firm of the Future, Journal of Accountancy, AICPA (see http://www.journalofaccountancy.com/Issues/2008/Nov/The+Firm+of+the+Future.htm); and
- Firm of the Future, CPA Australia Report (see http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FECA-9AB6E3C4/cpa/hs.xsl/724_23181_ENA_HTML.htm).
While these articles only reflect the views from two countries it is likely they are relevant to many if not most other jurisdictions. Hence, the IFAC SMP Committee is not only looking into ways of supporting SMPs and their clients during these difficult times - it has also started investigating how to position and equip SMPs for the long run to keep them relevant, sustainable and prosperous, starting with the development of a practice management guide.
Please tell us how your practice will change and what we can do to help make that change.