PRACTICE DEVELOPMENT STRATEGIESBy

CA Nina P. Kapasi

Organised by Women Members Empowerment Committee of

ICAI18th April,2015

Hotel Aurora Towers, Pune

Past and Present Trend

• Past- More inclination towards self-employment

• Retention of independence, flexible hours, not confined to particular sector, challenging, less return in earlier days, but more rewarding

• Present- Goal is to choose best employer• Good Salary, Guaranteed standard of living, many opportunities in job market, however,

growth restricted

Past and Present Trend• Statistics- of Fresh CAs entering into profession and

going in practise. C.A in Practise C.A in Employment 1980s 80% 20% 2000s 50% 50% 2020s 20% 80%

• Opting for employment

• With inorganic growth and vibrant economy, trend is again changing.

Why more suitable for women professionals

• Change in Society’s perception• Gender equality• Vibrant economy, many opportunities• Flexi Hours• No need to have separate infrastructure• Net connectivity• Retain independence

Practice D’ment Strategies- Gender Neutral

• Profession at crucial transition stage• Overwhelming changes - New Companies Act, 2013 - GST from FY 2016-17 - Introduction of ICD standards - Introduction of Ind Ass - Introduction of Undisclosed Foreign Asset and

Income Bill, 2015

Re-orientation in approach and attitude

• Challenges = Opportunities• Emerging areas of opportunities- require

different skill sets and delivery mechanism• With Statutory Work such as Audit- thorough

knowledge of Accounting and AAS and tax laws

• With non-statutory Work such as Management Consultancy – Effectively compete and Deliver qualitatively

VISION AND MISSION STATEMENT• Progress with end in mind• Goal oriented• Involve the entire office including your article

clerk• Service, Satisfaction and Success• Service – Outstanding services for clients• Satisfaction –Fulfilling career and professional

satisfaction for juniors• Success- Professional and Financial Success for

the firm

KNOWLEDGE IS THE KEY INGREDIENT• Regular updation through reading journals and

professional magazines• Attending workshops, seminars and training

programmes• Lead group discussion & share knowledge, Gyan Dan

is the only Dan which increases while giving• Participation in professional work by mentor firms• In-house training programmes • In-house Newsletter and updates• Constant upgradation of human skill

CORE COMPETENCY AND PROPER DIVISIONS

• Not possible to do everything singlehandedly.• Specialisation necessary• At least three leaders- - Audit and Assurance Division - Tax and allied services Division - Consultancy Division• Networking and Merger

LEVERAGING- I

• Professional firms must manage customized activities where nothing can be reliably made routine.

• To deliver outstanding client service, to provide fulfilling careers and professional satisfaction for our people and to achieve financial success so that we can reward ourselves and grow.

• Three goals to survive: service, satisfaction, and success.

LEVERAGING- II

Leverage and the People Marketplace• The connection between the two is “People

do not join professional firms for jobs, but for careers“.

• They have strong expectations of progressing through the organization at same pace agreed to (explicitly or implicitly) in advance.

LEVERAGE- III

Leverage and Profitabilty• The professional service firm's leverage is also

central to its economics. • The "rewards of partnership" come only in part

from the high hourly rates that the top professionals can charge for their own time.

• Profits also come, in large part, from the firm's ability, through its project team structure, to leverage the professional skills of the seniors with the efforts of juniors.

GEOGRAPHICAL SPREAD• Growth and tier – 2 and tier-3 cities.• Growth of professional opportunities. But dearth of talent.• Identify s/ forms in different geographical locations.

professional• Develop an understanding for mutual reference and

execution of work.• Once compatible, merger can be achieved.• International affiliation.• Mini association at global level.• Identifying member forms in different countries for work

reference.• Initial cost may be heavy but can be turned as good

investment

INFRASTUCTURE

• Stability in the office space.• Acquisition of test modern gadgets and good

systems.• Work place suitably designed considering

growth.• Good spending in installing and documenting

system, procedures and control to secure and enhance operational efficiency.

MARKETING & SELLING

• Not dirty word, if subtle and not crude.• Publicize your services.• Part of rotary or lions club or other community

organisation.• Address seminars and workshops.• Updates to existing clients for probable services• Updates of new skill acquired by your

organisation

PARETO PRINCIPLE-I

DEFINITION : • A principle, named after economist Vilfredo

Pareto, that specifies an unequal relationship between inputs and outputs.

• The principle states that, for many phenomena, 20% of INVESTED input is responsible for 80% of the results obtained.

• Put another way, 80% of consequences stem from 20% of the causes. Also referred to as the "Pareto rule" or the "80/20 rule".

PARETO PRINCIPLE-II• Success is only through ‘THINK BIG’• Hard work must, but in right direction.• Pareto principle – 80% results are achieved only

through 20% efforts.• Separate your clients into: a) Upper most -20% of clientsb)and c) remaining 80% of clients.• Maintain and cultivate a) list.• Check whether any potential to become major

clients. If yes, maintain b) and disregard c)

IMPACT OF INFORMATION TECHNOLOGY

• Auditing will have to be done by using the systems and technological tools.

• Auditing firms will have to adopt automation in the process to deliver reports.

• Reports have to given on timely basis and should be done qualitatively.

• Financial information presentation to shareholders will replace the present general purpose financial statements.

CORPORATE GOVERNANCE AND ROLE OF AUDIT

• Audit findings and reporting can no longer be elusive on non detection of collusive frauds.

• More information and assurance on the risks is expected by the stakeholders.

• Corporate Social Responsibility includes sustainability and growth.

• Peer review does not lead to Disciplinary proceedings.• Quality Review Board will replace peer review which

will lead to Disciplinary proceedings.

CONVERGENCE OF STANDARDS

• International Financial Reporting have been adopted by many countries.

• There is requirement of expertise in IFRS as well as International Accounting Standards and Audting and Assurance Standards.

• Indian Standards are formulated keeping the International Standards.

• Differences to be synchronized are limited.

International Taxation

• Causes for International Taxation :a)Globalization b)Cross border investmentsc) E-commerced)Consequent convergence.• Expertise in DTAA requires specialization.• The scope of transfer pricing may extend to

the service sector too.

MANAGEMENT CONSULTANCY SERVICES

• ‘ Management Consultancy Services’ promises to keep managers busy at least for the next few decades.

• Services relate to project appraisal and funding by way of private equity or debt syndication.

• Funding is done through IPO, Valuation, Risk assessment etc and knowledge is these requires immenses opportunites and there cwill be no dearth of work for those who posses these skills.

BILLING STANDARDS

• Maintain time sheet.• Identify services properly.• Take care incase of retainer ship fees or

annual billing.• Professional backed by knowledge, values and

competence should do billing with absolute confidence without fearing losing of the clients.

• Follow minimum fees prescribed by ICAI.

“ THE QUESTION IS NOT WHOS’S GOING TO

LET ME; IT IS WHO IS GOING TO STOP ME ”