Accountants working in small- and medium-sized practices (SMPs) around the world are facing heightened staffing challenges, according to the latest IFAC Global SMP Survey results. Attracting new clients, keeping up with new regulations/standards, and pressure to lower fees remained key challenges faced by SMPs.

Additionally, the anticipated impact of technology developments over the next five years increased substantially in 2016 over 2015. Investing in and staying current with software and achieving a digital, paperless environment topped this list of technology challenges.   

Despite these challenges, SMPs’ future performance expectations increased slightly from a year ago in three of the four service areas, with the exception of tax. Growth is expected to be driven by advisory/consulting services, along with accounting, compilation, and other non-assurance/related services, with 45% and 44%, respectively, predicting fee revenue increases in these areas in 2017.

“The ever-increasing pace of technological change represents both a challenge and opportunity for SMPs,” said IFAC CEO Fayez Choudhury. “As trusted business advisors to small- and medium-sized entities or SMEs, a sector critical to global economic stability and growth, SMPs need to consider how they can best leverage technological advances to reduce costs and offer value-added services to meet clients’ changing demands and expectations. In addition, SMPs that keep pace with developments in technology are likely to do better in attracting, retaining, and nurturing talent.” 

Additional key findings from the survey include:

SMPs recognize the value of offering business advisory and consultancy services.

• A significant majority of respondents provide some form of advisory services, with corporate advisory (48%), management accounting (46%), and human resource/employment regulations (30%) being the most common.

SMEs continued to be challenged by economic uncertainty and rising costs.

• Consistent with 2015, the top challenges facing SME clients were economic uncertainty and rising costs (with 61% and 59%, respectively, rating these as a high or very high challenge).

SMP performance in 2016 improved slightly over 2015.

• In 2016, 30% or more of SMPs reported moderate or substantial increases in fee revenue across services areas, compared to 27% or more in 2015.

Some regions, countries, and larger SMPs were not well represented in the survey results; caution should be exercised when attempting to generalize survey results to specific countries or regions, or SMPs of all sizes. See the full results, including breakdowns by region and size of practice, and subscribe to receive SMP updates, on the IFAC website: www.ifac.org/SMP.

About the Survey
The 2016 IFAC Global SMP Survey received 5,060 respondents, representing 164 countries. It was conducted October–November 2016 in 23 languages. The survey design and reporting were undertaken in collaboration with Sarah Webber and Donna L. Street, lead researchers from the University of Dayton (US). The survey’s translation and distribution were only possible with the support of IFAC member organizations and partners. The next IFAC Global SMP Survey is expected to open in 2018.

Designed to be completed by senior SMP professionals, whose clients are predominately SMEs, the survey takes a snapshot of key issues, and tracks important trends and developments, facing this critical sector. The survey results help IFAC and its members gain an understanding of the specific challenges and opportunities faced by SMPs and SMEs globally, and as a result, better serve them. To this end, IFAC develops and facilitates the sharing of tools and resources to help build SMPs’ capacity, including publications to support practice management and international standards implementation. These and over 400 original articles and 10,000 links to related resources can be accessed in the IFAC Global Knowledge Gateway.

About the SMP Committee
The SMP Committee of the International Federation of Accountants^® (IFAC^®) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

Organized by the Institute of Chartered Accountants of the Caribbean (ICAC), IFAC, and the World Bank, a 2016 conference brought together representatives of Caribbean governments and the accountancy profession to discuss enhancements to public financial accounting and reporting, and to consider how to enhance collaboration between governments and the accountancy profession to improve public financial accounting and reporting in the region.

Conference participants completed a survey on the status of IPSAS adoption in their country, the findings of which are reported here. 

Highlights from the IPSASB's March 7-10, 2017, meeting in Washington, DC.

00:10 Introduction

1:00 Overview of March 6 Seminar, Harnessing the Power of Accrual in Managing Public Finances, from IPSASB Chair Ian Carruthers 

3:00 Overview of IPSASB Meeting from Chair Ian Carruthers 

5:10 Heritage

6:40 Revenue and Non-exchange Expenses

8:00 Social Benefits

9:20 Strategy and Work Plan

12:10 Closing Remarks

Opportunities, lessons learned, and ongoing challenges in the adoption and implementation of international standards and best practices across the Middle East and North Africa (MENA) region were recently explored during an IFAC Statements of Membership Obligations (SMOs) workshop in Sweimeh, Jordan, on January 21, 2017.

The IAASB is pleased to announce the appointment of Matthew Waldron as Technical Director.

In this role, Mr. Waldron works closely with the IAASB Chair to engage senior members of the global accountancy profession, the regulatory community, and other key stakeholders in support of, and to enhance, global public trust; and to manage the international audit and assurance standard-setting program.

Mr. Waldron leads and develops a dynamic team of highly-talented individuals that help influence the direction, shape, and content of leading-edge standard-setting projects. His team operates in a diverse and collegial environment, building strong relations with colleagues and peers who are passionate about international standard setting.

Previously, Mr. Waldron was a Director in the Financial Reporting Policy Group at CFA Institute, where he represented membership interests regarding audit and financial reporting proposals issued by the US Financial Accounting Standards Board, the International Accounting Standards Board, and other regulators and standard setters. Earlier in his career, he also worked for KPMG and PwC. Since 2014, Mr. Waldron has chaired the IAASB’s Consultative Advisory Group, in addition to serving as a member representative since 2007. Under Mr. Waldron’s leadership, the IAASB is now seeking to fill multiple vacancies.

Are you seeking an exceptional professional opportunity that combines your understanding of the public interest role of auditing and assurance standards with your desire to make a difference on a global stage?

The IAASB is seeking two talented individuals to fill a Principal and a Manager position based in New York. These impactful positions require knowledge of audit and assurance, an understanding of standard setting, and strong team work and leadership skills.

For the Principal position, we are looking for an individual with advanced expertise in auditing or assurance, or prior standard-setting experience. As a senior member of the IAASB, this position will be responsible for more technically challenging projects and initiatives as well as providing guidance to managers and support staff.

The Manager, Standards Development and Technical Projects position requires intermediate expertise in auditing or assurance. He or she will support senior IAASB staff on challenging projects while also taking primary responsibility for other important projects and activities.

The IAASB is responsible for global audit and assurance standard setting. Robust audit and assurance standards are fundamental to the way modern societies work, enhancing credibility and trust in a society’s external reporting. The IAASB achieves this through its commitment to advancing audit quality worldwide, developing standards that protect the interests of those who rely on audits, assurance, and other services, and are practicable for those who implement the standards.

The IAASB is supported by a talented team of professionals from different backgrounds, all of whom embrace the opportunities and challenges of collaborating on a global stage. This team assists the IAASB in serving the public interest by setting high-quality international standards, and by facilitating their adoption and implementation. We offer our team a competitive compensation and a superior benefits package, including medical, dental, retirement plans, and annual leave.

We invite you to apply for our open positions by March 31 and join our expert and dedicated team.

The IAASB is one of four independent international standard-setting boards whose operating structures are supported by the International Federation of Accountants. Most standard-setting staff positions for the IAASB and the International Ethics Standards Board for Accountants are based in New York, US. Standard-setting staff positions that support the International Public Sector Accounting Standards Board and International Accounting Education Standards Board are based in Toronto, Canada.