Challenges Facing Small- and Medium-sized Practices

Source: IFAC, Global Knowledge Gateway

In its 2015 Global SMP Survey, the International Federation of Accountants (IFAC) asked practitioners operating in small- and medium-sized practices (SMPs) about challenges they face, market factors most likely to affect them in the future, consulting services they provide, and their performance. Here are some highlights:

• The top four challenges in 2015 were the same as in 2014: Attracting new clients, keeping up with new regulations and standards, differentiating from competition, and pressure to lower fees. But the severity of each challenge decreased in 2015.
• The top three anticipated environmental factors were the regulatory environment, competition, and technology developments.
• For 2015, the largest portion of respondents, 33 to 38 percent, reported revenues stayed the same, 23 to 27 percent reported revenues increased moderately, and 6 percent or less reported revenues increased substantially.
• Across service lines, 35 to 44 percent of respondents predicted fees would increase in 2016 (44 to 55 percent at firms with 21 or more partners and staff).
• Advisory and consulting services had the rosiest outlook: 35 percent of respondents predicted fees would increase moderately and nine percent predicted they would increase substantially.

For the complete article, see “IFAC Global SMP Survey: 2015 Results.”

From IFAC, February 29, 2016, www.ifac.org.