PRACTICE DEVELOPMENT STRATEGIES By CA Nina P Kapasi

PRACTICE DEVELOPMENT STRATEGIES By CA Nina P. Kapasi Organised by Women Members Empowerment Committee of ICAI 18 th April, 2015 Hotel Aurora Towers, Pune

Past and Present Trend • Past- More inclination towards selfemployment • 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 1980 s 80% 20% 2000 s 50% 2020 s 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 clients b) 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 investments c) E-commerce d) 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 ”