This document summarizes key findings from the IFAC Global SMP Survey. It discusses opportunities and challenges for small and medium practices (SMPs) globally and in Asia. The top challenges for SMPs in Asia are rising costs, pressure to lower fees, and attracting new clients. Over the next 5 years, SMPs in Asia expect the largest impacts from technologies like business intelligence/data analysis tools, CRM/document management software, and cloud computing. The document also provides an overview of IFAC resources available to SMPs.

1. Opportunities and Challenges for SMPs
Moderator:
Paul Thompson, Director, Global Accountancy Profession Support, IFAC
Panellists:
Mats Olsson, Member, IFAC SMP Committee
Robyn Erskine, Member, IFAC SMP Committee
Chiew Chun Wee, Head of Policy Asia Pacific, ACCA

2. Page 2
IFAC Global SMP Survey 2014 – About I
• 5,083 respondents from
135 countries
• Available in 21
languages
• Report published
www.ifac.org/smp

3. Page 3
• Top 3 regions
– Europe 46%
– Asia 17%
– Africa 15%
• Majority of responses from
– Sole practitioners (37%)
– Practices with 2-5 professional
staff (35%)
IFAC Global SMP Survey 2014 – About II
46%
17%
15%
11%
5%
5% 1%

4. Page 4
IFAC Global SMP Survey 2015—Open Now

5. Page 5
IFAC Global SMP Survey
Highlights
Session 2
Robyn Erskine, SMP Committee
Member
MIA-IFAC Regional Forum
November 18, Kuala Lumpur,
Malaysia

6. Page 6
• Top 3 challenges SMPs in Asia:
– Rising Costs (58%)
– Pressure to lower fees (56%)
– Attracting new clients (55%)
• Next 5 Years in Asia:
– Regulatory environment (52%)
– Competition (58%)
IFAC Global SMP Survey – Highlights I

7. Page 7
Practice Fee Revenue Asia:
• Majority SMP revenues in 2014 increased moderately
(42%) or stayed same (33%)
– Larger the practice – more likely to report increase
• Majority SMPs in Asia believe revenues in 2015 in all
areas expected to grow – most advisory
• Tax planning (71%), corporate advisory (58%), business
development (38%) most common in 2014
IFAC Global SMP Survey – Highlights II

8. Page 8
Membership in Network, Association, or Alliance Asia:
• 32% of SMPs belong to a network, association, or alliance
– Asia most likely region
• 31% are considering joining one
• 37% are not members
• Larger SMP more likely
IFAC Global SMP Survey – Highlights III

9. Page 9
Top SME Challenges Asia:
• Rising costs (66% high / very high)
• Competition (58%)
• Economic uncertainty (49%)
IFAC Global SMP Survey – Highlights IV

10. Page 10
Access to finance in Asia:
• 67% reported that at least 1% of SME clients seeking
finance had difficulty
• However, for 49% less than 25% of total clients
experienced difficulty
• 32% High or Very High Challenge
IFAC Global SMP Survey – Highlights V

11. Page 11
Financial Crime in Asia:
• 55% reported that at least one client experienced financial
crimes
• But most less than 5% of SMPs total clients experienced
• Most common
– Asset misappropriation/ theft (39%)
– Bribery (38%)
– Financial statement/ accounting fraud (36%)
IFAC Global SMP Survey – Highlights VI

12. Page 12
Member Body Promotion includes:
• Dedicated website sections and rolling
banners
• Direct e-mails to members
• Newsletters and magazines
Survey Reports
• Global Report to be published in Feb
2016
• European SMP Survey Report with FEE
• Member Body Country Reports e.g.
Uganda
Global SMP Survey 2015 – Promotion

13. Page 13
IFAC Global SMP Survey Highlights
Session 2
Mats Olsson, SMP Committee
Member, Chair Small Business
Support Task Force (SBSTF)
MIA-IFAC Regional Forum
November 18, Kuala Lumpur, Malaysia

14. Page 14
Next 5 years - technologies with most impact in Asia:
• Business intelligence / data analysis software & tools
(42% high / very high)
• CRM / document management software & tools (37%)
• Cloud computing (33%)
IFAC Global SMP Survey – Highlights VII

15. Page 15
Technology Developments I
Opportunity, Threat and Challenge
• Technology is part of step change in accounting
• Technology = opportunity – the future of practice
• Technology = threat – commoditization, DIY
• Challenge is how to implement technological change

16. Page 16
Technology Developments II
Opportunities Presented by Technological Change
• Profitable outsourced client accounting services (CAS)
• Expand geographical scope
• Real-time round the clock service
• Time and resource available for analysis and advice
• Rapid change and increasing complexity are driving up
demand from clients for outsourced accounting services

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• What services to provide?
– non-audit services (compilations, review, AUP), advisory (corporate, tax,
business development) and data (analysis and implications)
• How to render services?
– embrace IT (cloud, analytics), forge alliances / collaborate, manage talent
and change pricing / marketing model
Future Ready SMPs – What and How?

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Practice Management — General
• The main resource is the
Guide to Practice
Management for Small-
and Medium-Sized
Practices
• Eight stand-alone modules

19. Page 19
• News, views, resources, thought
leadership
• www.ifac.org/Gateway
• Ten topic areas
– Practice Management
Resources — Global Knowledge Gateway

20. Page 20
IFAC Resources
• IFAC SMP Committee: www.ifac.org/SMP
• Follow us on Twitter: IFAC_SMP
• IFAC Global SMP Survey www.ifac.org/smp
• Join us on LinkedIn: IFAC SMP Community
• Global Knowledge Gateway www.ifac.org/Gateway

21. THANK YOU
Jointly Organised By: