Enhanced Practice Management and New Services

HFC DHAKA 9 November -2014

M FARHAD HUSSAIN FCA

Managing Partner

Hussain Farhad & Co. Chartered Accountants

WHAT ARE WE GOING TO COVER TODAY?

1. Introduction

2. Key Aspects of Practice Management

3. Practice Development

4. New Services

5. HFC Perspective

6. Conclusion

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What is Practice Management?

Practice management covers a wide array of topics,both operational and strategic, to do with running asuccessful accounting practice.

The theories, techniques, approaches and tools ofpractice management are same as it is in a business.

Why Practice Management?

Effective management is essential to the success ofany organization including accountancy practices. It isabout recognizing opportunities and taking advantageof them to the benefit of the organization

1. INTRODUCTION

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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. Practice models — Practices will need to

consider the best structure and model to use.

3. Business development—As practices grow,

they will increasingly need to consider

issues relating to practice development

2. KEY ASPECTS OF PRACTICE MANAGEMENT

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4. Networks—In order to gain new clients and access expertise, many practices use different forms of networking.

5. Marketing—Attracting and retaining clients is a primarychallenge facing practices, and securing new clients is one ofthe main drivers of future profits. This makes marketing andclient relations one of the keys to success.

6. Information technology—It is critical for firms to adoptbest practice in respect of emerging technologies.

7. Risk management —Risk management is important topractices especially in those areas where the number andnature of statutory, legal, ethical and other compliance issueshave increased over the years.

KEY ASPECTS OF PRACTICE MANAGEMENT

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Size Total Number

10 Partners 2 20

9 Partners - -

8 Partners 1 8

7 Partners 2 14

6 Partners 3 18

5 Partners 4 20

4 Partners 11 44

3 Partners 18 54

2 Partners 52 104

Proprietor 77 77

170 359

3. PRACTICE DEVELOPMENT

SIZE OF THE CA FIRMS AND NUMBER OF PRACTICING CHARTERED ACCOUNTANTS IN BANGLADESH

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.

PRACTICE DEVELOPMENT

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3. Appropriate mix of staff:

Relative mix of juniors, seniors and managers

4. Leverage and profitability:

Profits come from firm’s 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 andmorale will suffer.

6. Types of practice:

Types will vary according to needs of the service seekers.

PRACTICE DEVELOPMENT

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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.

PRACTICE DEVELOPMENT

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10. Enhance client value:

Involve clients in process through brain stormingsessions.

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

PRACTICE DEVELOPMENT

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New emerging areas for Chartered Accountants

1. Performance management services.

2. Services related to change management.

3. Assurance service.

4. Tax Compliance advice and planning

5. Practice Specialisation.

6. Servicing global organization.

7. Outsourcing.

8. Corporate Finance.

9. Insolvency.

10. Management consultancy.

11. Risk assessment.

12. Valuation services.

4. NEW SERVICES

Challenges to HFC include the followings :

Human Resource.

Change management.

Management of information technology.

Business development.

The changing nature of competition.

5. HFC Perspective

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HFC’S 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 3OUR INTERNAL BRANDING

Belongingness in the Organization

Relationship of left employees

Pride in the Organization, Creation of Culture internally

Good News Board

Today’s Special at office

Vision exercise

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BUILDING FIRMS WORK CULTURE

THOUGHT 3

THOUGHT 5EGO IS A FASCINATING MONSTER

o Usually ego comes and everything else walks out.

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.

6. CONCLUSION