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