IFAC launches practice transformation action plan

Recognising that these extraordinary circumstances offer small- and medium-sized practices (SMPs) significant opportunities to adapt and service a rapidly changing world, the International Federation of Accountants (IFAC) has published a ‘Practice Transformation Action Plan – A Roadmap to the Future’, which covers four key focus areas for SMPs.

These four key areas include embracing change; leveraging technology; focusing on talent management; and evolving the firm operating model by building advisory services.

According to IFAC, while the COVID-19 pandemic is an accelerator for the adoption of technology, these extraordinary circumstances also offer practitioners significant opportunities to adapt and service a rapidly changing world.

“As trusted business advisers, they are best positioned to provide clients with a range of services to help navigate these difficult and uncertain times,” IFAC said.

“SMPs may still be in a ‘fire-fighting’ phase but want to be proactive and ready to adapt to radical and unplanned changes. Effective transformation requires strong leadership, new approaches to training and continued learning, and an emphasis on providing relevant, value-added services.”

Its explained that the plan was developed with advice and guidance from the IFAC SMP Committee and recognises that every firm will be different, meaning that actions taken will need to be tailored to each firm’s circumstances and objectives to be successful.

IFAC has also created a dedicated ‘practice transformation’ web page, featuring case studies, examples of how member organisations are supporting their firms to innovate and evolve, as well as additional tools and resources.

“Now is the time for practitioners to lead and become part of the solution for their clients and for their own future as we enter a whole new world,” IFAC said.

Tips

According to IFAC, in the current environment it is essential for small firms to:

• Prioritise the health and safety of employees, facilitate virtual operations and support staff’s flexible working;
• Ensure there is regular communication with clients to identify their needs and demands;
• Maximise their close client relationships and in-depth knowledge to provide relevant services, demonstrating the ability to diversify service offerings; and
• Utilise technology to provide insights and enable clients to understand their financial circumstances and take informed and appropriate actions and decisions.