If you want to grow bigger then you must shift your focus from being a chartered accountant involved with simple accounting to becoming ...

Know Why Advisory Firms In India Are Growing And Its Building Process

If you want to grow bigger then you must shift your focus from being a chartered accountant involved with simple accounting to becoming an advisory firm in India. It is the ever growing business pressure along with external regulation that has compelled the working process of the audit firms in India.
To cope up with this changing scenario, you will need to think big and think advisory. If you want to survive tomorrow, you will have to become a ‘Tomorrow’ firm.’ Therefore, forget being the best chartered accountant firm and shift your focus on advisory to be as successful and one of the advisory firms in India.
The position of a simple auditor in an Indian company is no longer a lofty one. Until recently, any auditor engagement was regarded with respect, apprehension and matters were discussed courteously between the heads of the audit firms and a promoter of a company. With the changing times, the entire process has now shifted to the procurement sector of the company.

The changing scenario

There has been a paradigm shift in the idea, working process and accounting concepts of the Chartered Accountants India. The effect is also seen all over the world. Now, most of the chartered accountants working in small and medium-sized accounts firms do not swap their notebooks after a busy financial year with golf clubs to recharge their cells. Instead of relaxing, they reassess the bigger picture. They take stock of the changing scenario and reflect on:

  • What the future has in store for this great profession
  • How it may evolve in the recent future
  • How to retain and reinforce its greatness and 
  • How to strengthen business and the society at large.

As for the accountancy firms, this is the time to consider whether or not grow the firm and if so how. The opportunities are considered along with the impediments that might come in the way.

Focus towards advisory

Whether it is the Chartered Accountants in Pune or in Delhi, the focus now is increasingly on advisory services. This happens to be the safest and most effective alternative to generate new revenue.

  • Advisory and consulting services revenue has grown up significantly since 2015 by as much as 32%, according to the most recent IFAC Global SMP Survey. 
  • Moreover, as explained by the Gateway articles, 44% of respondents forecasts a further increase in the coming years in the fees from advisory and consulting services.

It is seen that the revenue growth in such services strikingly higher in especially larger practices. There are several surveys that show advisory service is and has been the star performer in recent years and it is highly unlikely to change anytime soon.
Even the medium-sized firms are now earning significant revenues from such services that typically did not exist even a decade ago.

Steps for transition

Specific steps must be followed by the Chartered Accountants in Mumbai, Delhi, and all over India as well as the world to bring in such transition. There are key questions to answer before you make a successful transition. The steps include:

  • Finding a champion – Since advocacy at the management level is critical just as an endorsement, it is natural that you will not get a partner readily to run the advisory practice. However, if you search through and thoroughly, you will find at least one senior-level member ready to champion your shift to the advisory. All it needs is visible passion, high level of commitment, devotion and leadership quality to excel and succeed. 
  • Avoiding the common mistake – Most accountants make a common mistake in the area of qualified commitment wherein the leader is asked to manage the existing client work as well as launch the new practice of advisory. You must avoid making this mistake knowing the fact that starting any new service needs time to succeed and a lot of energy, and focus. Make sure that the leader is free enough to focus on the efforts to build the new service.
  • Identifying suitable staff – It will be easier for you to increase the capability of your business and build enthusiasm among the staff if you can only determine the most suitable persons for the job. While choosing, consider factors such as their level of interest in advisory and consulting services, their technical and soft skill set, and their desire. Conduct performance reviews and ask how excited they are to have a new goal set for them.
  • Recruiting from outside – You can hire from outside for your practice but make sure that you stick to auditors who have or are likely to hone their skills to ensure a smooth transition. Look local talents for quick results. This means you must look for the Chartered Accountants in Delhi if you are based there as that will expedite your recruitment process.   
  • Talking about the service – If you want to promote your service you will have to talk and discuss it with your staff. The service will include reviewing financial statements and looking for anomalies in it, asking questions, gaining insights from a broad range of clients, evolving in audit work, and delivering report after discussing with the clients about the possible areas of improvement in their organizational performance.

Therefore, stay away from following the fanfare and kick-starting as you’re a new service. Instead, be slow and steady for a deliberate build-up so that your transition proves to be appropriate and more productive. Understand the target market, services to render and how to deliver.