Presentation by the chair of the IFAC Small and Medium Practices Committee in January 2012 at the Institute of Chartered Accountants in India International Conference. 

Regulatory burdens and economic woes continue to top the list of challenges faced by small- and medium-sized accountancy practices (SMPs) and their clients, according to the fourth quarter SMP Quick Poll results released today by IFAC.

Burden of regulation and economic uncertainty were tied for the top challenge faced by practitioners’ SME clients, with nearly 30% of respondents choosing each. Difficulties accessing finance followed closely behind with 25%. Similarly, for accountants within small practices, keeping up with new standards and regulations (41%) ranked as the top challenge, followed by attracting and retaining clients (25%).

Commenting on the results, SMP Committee Chair Giancarlo Attolini said, “Once again, this poll has provided invaluable insights that help us and our member organizations better understand the concerns of SMPs and their small- and medium-sized entity (SME) clients globally, as well as identify significant trends in the SMP sector.”

As a whole, pessimism increased since the August-September 2011 poll was conducted, which may be due in part to the high European response rate in the fourth quarter and deepening debt crisis across the region. Overall, in the fourth quarter poll, only 29% reported that business was better in 2011 than 2010, while nearly 50% of those from North and South America said that business was better. Looking forward, over one-third of respondents expect an improvement in business performance in 2012 over 2011, while 44% expect no change, showing that respondents are slightly more optimistic about the year to come. When asked about the main driver of growth for their practice, revenue from new clients (38%) came out on top with nearly twice the number of responses as revenue from existing clients (20%).

See these and additional results broken down by size of practice and region in the IFAC SMP Quick Poll: 2011 Round-Up, which includes the fourth quarter poll results, as well as trending data from key questions that were asked in each of the four polls throughout 2011.

The fourth quarter poll received 2,441 responses and was conducted in seven languages from November 17 to December 19, 2011. IFAC wishes to thank those member bodies and regional organizations that translated and/or helped promote the poll to their members.

About the SMP Committee
The SMP Committee of the International Federation of Accountants 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. IFAC is comprised of 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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This report summarizes and analyzes the responses from the fourth quarter poll of 2011, conducted from November 17 to December 19, 2011. The report also illustrates the SMP Committee’s activities, undertaken in collaboration with IFAC member bodies, that respond to the issues, challenges, and needs of SMPs as identified by the findings.The fourth quarter poll received 2,441 responses and was conducted in seven languages. 

The Companion Manual provides member bodies and other professional accountancy organizations with guidance on how they can make the best use of the SMP Committee's Guide to Practice Management for Small- and Medium-Sized Practices including adapting, translating, or incorporating the Guide into CPD courses and/or training programs. 

Download the fourth edition of the Guide to Practice Management for Small- and Medium-Sized Practices.

This article presents the rationale for small businesses to improve their environmental performance and highlights the role that small- and medium-sized practices (SMPs) have in this emerging area of business advisory services.

The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) today released the second edition of its Guide to Practice Management for Small- and Medium-Sized Practices (PM Guide). First released in 2010 and developed with CPA Australia, the new edition of the guide features guidance on several new topics, including cloud computing and updated resources for further reading.

“As trusted advisors and small businesses themselves, small practitioners need to be well-versed in all areas of operating a practice. The PM Guide can help SMPs achieve proficiency in a variety of areas to ensure their sustainable, long-term success,” said SMP Committee Chair Sylvie Voghel. “Only by properly managing their practices can SMPs successfully compete in today’s market for professional services.”

To help practitioners improve the management of their accounting practices, this guide includes an extended case study, a sample office procedures manual, and numerous checklists and other worksheets. The comprehensive guide is comprised of eight standalone modules that include developing a growth strategy, managing staff and client relationships, risk management, succession planning, and more. It is intended to help IFAC members support their SMP constituents, and can be used for education and training. An updated companion guide to help members make the best use of the PM guide will be released in early 2012.     

IFAC is grateful to its member bodies Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili and Certified General Accountants Association of Canada for providing some of the funding for the PM Guide’s development.

The updated PM Guide can be downloaded free of charge from the SMP Publications and Resources area of the IFAC website. Filter by language to find translations of the first edition. Visit the Small and Medium Practices web pages for access to additional resources, aligned with the topics in each module of the PM guide (see Relevant Links—Practice Management).

About the SMP Committee
The SMP Committee of the International Federation of Accountants represents the interests of professional accountants operating in small- and medium-sized practices and other professional accountants who provide services to small- and medium-sized entities (SMEs). The committee develops guidance and tools, and works to ensure the needs of the SMP and SME sectors 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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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