Presentation by International Federation of Accountants Deputy Director of SME and SMP Affairs to the ACCA's SMP Roundtable in Singapore, November 2010.

1. Shaping the Future: SMPs’
Changing Role in Providing
Business Support Services to SMEs
Paul Thompson, Senior Technical Manager,
SMP Committee
ACCA SMP Roundtable
Singapore
November 4, 2010
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2. Agenda
• IFAC SMP Committee
• The Demand for Business Advice by SMEs
• The Role of SMPs in Providing Business
Support to SMEs
– Accountants as External Advisers
– The Motivation for Using SMPs
– The Changing Environment
– How to Adapt?
• Role of IFAC and its Member Bodies
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3. Importance of SMEs & SMPs
• Health of SME sector is public interest priority
• SMEs hold key to sustainable economic
recovery
• SMPs can help SMEs perform and conform
• But SMPs confronted with unprecedented
challenges
• operational, regulatory, market
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4. IFAC SMP Committee - Overview
• Helping member bodies to help their SMPs
• Building capacity of SMPs to support SMEs
• 18 members (4 from Asia-Australasia)
• IFAC Board review – more support for SMPs
• Strategy and Work Plan for 2011-2014
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5. IFAC SMP Committee – Strategic Objectives
• Help to shape the form and content of
international standards so as to ensure their
stability, relevance, and proportionality to SMEs
and SMPs
• International Standards on Auditing (IAASB),
Code of Ethics (IESBA), IFRS for SMEs
(IASB)....
• Review, compilations, agreed upon
procedures, other assurance services
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7. IFAC SMP Committee – Strategic Objectives
• Provide and promote practical support to SMPs so
as to enhance their ability to provide high quality
and relevant professional services to their clients
• Web-based resources at www.ifac.org/smp
• High quality and free to download
–Guide to Using ISAs in the Audits of SMEs
–Guide to Quality Control for SMPs
–Guide to Practice Management for SMPs
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12. IFAC SMP Committee – Strategic Objectives
• Provide and promote practical support to SMPs
so as to enhance their ability to provide high
quality and relevant professional services to
their clients (cont.)
• The Role of SMPs in Providing Business
Support to SMEs (April 2010)
• Summarizes global evidence on role of SMPs
in providing business support to SMEs
• How to help position and equip SMPs for this
role
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14. The Demand for Business Advice by SMEs
• Growing information needs of SMEs
• Regulatory demands extending outside financial
compliance
• Growing government regulation
• SMEs lack of in-house expertise
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15. The Role of Accountants as External Advisers
• All studies worldwide indicate that accountants
are preferred and first source of advice for SMEs
• Frequency of meeting their accountant is a
function of size of the SME: the larger the more
often
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16. The Motivation and Reasons for Using SMPs
• Recognition that SMPs face similar compliance
requirements as small businesses
• Technical competency
• Trust
• Proximity and responsiveness
• SMEs wanting a one-stop shop
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17. The Changing Environment and Challenges to the
Traditional Provision of Services
• Consolidation within the accountancy profession
• Rise in the provision of services by larger
practices
• Shift in regulatory environment: fewer audits
• Shift in the nature of the SME population
• Reluctance of some SMPs to provide advice
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18. How to Adapt?
• No one right solution/way
• Match clients with practice capacity and expertise
• Consider specialization – type of client or service
• Merger and/or form/join referral network
• Develop skills and competencies
– Strategic development, soft skills (people and
communications), branding, marketing, HRM,
etc.
– Technical
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19. The Role of IFAC and Member Bodies
• Awareness raising
• Thought leadership
• Capacity building - resources and tools
• Promote role of SMPs in supporting SMEs
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20. www.ifac.org