• Register
Return to: Home > News > Standards > IFAC survey reveals number one challenge for SMPs

IFAC survey reveals number one challenge for SMPs

Accountants around the world in small and medium sized practices are facing increased staffing challenges according to an IFAC Global survey of practitioners operating in small and medium sized practices (SMPs).

The practitioners were asked about the challenges they are facing, market factors most likely to affect them, the services they provide and their performance, as well as being asked about their SME clients.

Attracting new clients was listed as the number one challenge (46%), the majority of the 12 challenges received the same or similar percentage of concern as 2015, except for staffing however. For the first time in the surveys history, attracting and retaining existing staff, the second highest overall challenge, received a markedly higher percentage, a dramatic increase from 33% in 2015 to 42%.

Survey questions addressed the impact of eight personnel and staffing issues such as finding qualified staff at all levels (45%) and retaining them (41%) which were considered to have the greatest impact.

Other new questions in the 2016 survey addressed in detail the impact of technology, personnel and staffing issues on SMPs. Regarding technology issues, 27% to 38% of respondents reported that each of seven technology issues had a high or very high impact on their SMP.

The anticipated impact of technology developments in the next five years has also increased compared to the previous survey results. Moving to the cloud was found to be the top technology challenge, as practices look to stay current with hardware and software.

“The ever-increasing pace of technological change represents both a challenge and opportunity for SMPs,” said Fayez Choudhury, IFAC CEO. “SMPs that keep pace with developments in technology are likely to do better in attracting, retaining, and nurturing talent.”

The largest groups of respondents were from Europe (38%), Asia (28%) and Africa (14%). While the top challenges assessed as those rated as high or very high, varied by region, there were notable similarities.

The global survey, in collaboration with lead researchers from the University of Dayton (USA) received 5,060 responses from 164 countries. The survey has been conducted annually since 2011.

The survey can be found here.

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.