Every year the International Federation of Accountants (IFAC) conducts a survey of representatives of audit, accounting and consulting firms all over the world to determine challenging issues that the market players face with, trends in service provision and plans for the near future
6 725 respondents from 169 countries participated in the survey “IFAC Global SMP Survey: 2015 results”, which was conducted from 1 October to 30 November 2015. The most responses there were received from representatives of the European market (41%) and Asia (26%). Less active there were firms from Africa (15%), Central and South America and the Caribbean (8%), Middle East (5%), North America (3%), as well as from Australia and Oceania (2%).
47% respondents called attracting of new customers among the main challenging issues, somehow related to representatives of professional markets all over the world, 44% - change in the legal framework and adaptation to it, 43% complained about the tough competition, and 41% were dissatisfied with the necessity of continuous confrontation with price dumping.
According to analysis by the regions, audit firms, accounting and consulting firms in Africa and in the Middle East the most concerned about rising costs and customer base increasing. It is difficult for representatives of Asia to provide services for international customers. And the majority of respondents from North America emphasized the difficulties associated with recruiting and talented employee upkeep.
Market participants predict that over the next five years change in legal and regulatory environment, strengthening of competitive struggle and rapid technological development will have the greatest impact on their business
Membership in professional international associations currently is a significant competitive advantage for representatives of market of audit and related services. However, according to the survey, only 28% of firms are members of these associations. Among those firms 11% belong to professional networks, 10% − to associations and 7% − to alliances. At the same time, 24% of respondents consider the possibility of membership acquiring in a professional association in the near future. 48% of respondents do not recognize it as a necessity.
According to the companies that belong to professional associations, membership helps to attract new customers, to expand the range of services, to improve brand promotion strengthening its position, allows participating in conferences, exercises, trainings and also provides technical support.
Answering the question about the types of services that were most in demand and brought major profits in 2015, the respondents said that there were not leaders among the main activities − audit and assurance provision, consulting, tax consulting, accounting and other related audit services, and the level of profit remained at the level of 2014. Next year the respondents predict an increase in demand for consulting services (44%), accounting and other related audit services (41%), tax consulting (39%), audit and assurance provision (35%).
“The results of the survey make it possible to understand the key trends of the world market of professional accounting and consulting services, give a chance to understand the risks that may affect the implementation of our activities as well as to see new prospects for future business development just in time”, − Oleksandr Boiko, “De Visu” Group President, commented on the results of the study.
