I decided to abandon the notion of predictions for 2008 because so many of them are little more than attention grabbing. Instead I’m going for a wishlist:
- HMRC finally recognizes that continually cutting head count is not a good idea. Many have talked about the negative impact on general service but just as worrisome is the impact on service quality.
- HMRC gets people in who understand what’s needed to make the gateways work reliably. It’s clear that the usual suspects of the Big Four, EDS and Accenture are not up to the task but are very good at charging fees that produce little reward.
- The non-domicile issue is finally resolved. Baby steps that have been taken have stirred the pot but there is still a way to go before a sensible resolution is reached.
- ICAEW gets serious about its role in the disciplinary process and the setting of ethical standards. My views on this are well known but the profession as a whole is at serious risk of being rendered irrelevant.
- A major failure on the part of one of the Big Four brings forth much needed professional oversight. This needs to take two forms: 1. the licensing of professionals as is the practice in the US and 2. the legal enforcement of standards through the imposition of civil penalties.
- A recognition that the notion of ‘stakeholder’ extends beyond immediate business ownership. Reputation matters and as more attention is paid to wider social issues, clients will need to understand and relate to these. I believe this has significant potential impact on the role of professionals as providers of public service duties like audit. It could mean that audit becomes more broadly defined and business will look to the profession for guidance. We are not well prepared but could be at the vanguard of these new disciplines. It just requires a little imagination and forethought coupled with appropriate partnerships.
- Wider recognition that the profession as a whole is changing. Technology is able to automate much of what was done by hand just 5 years ago. That should lead to a reduction in client compliance costs accompanied by a reduction in production costs. But in addition, the profession needs to think hard about the service portfolio it offers. It should lead to the development of value add services but that will require a different approach to practice development, management and staff training.
- A change in the practitioner mindset from that of the detached advisor to one that works in partnership with clients. This is really an extension of my previous ‘wish’ but is essential for practices to flourish. Much needs doing and may require a restructuring within some practices. Those that grasp the challenge will benefit enormously.
- A recognition that inventive tax planning is doomed to failure. It has always been so but some practitioners cling on to the belief the tax system is there to be manipulated. Those days have gone. The alternative is much time and money wasted on clients’ behalf.
- The introduction of industry practitioners into the practice partner regime. Those from industry (which is where I originally came from) offer insights and experience that lifelong practitioners do not possess. They add value which in turn helps differentiate the firm. That means accepting ACCA and CIMA types into otherwise 100% CA practices.
- An increased emphasis on business issues being taught to CA students. ICAEW training is still not flexible enough and is not turning out the people who can flourish in a more business oriented world. I’m not suggesting that CA training should be more MBA focused, that would be just as bad. I’m saying there should be much closer attention paid to understanding issues around real world business management.
- Embrace innovation. The profession has been woefully slow at embracing technical innovations yet the initial cost of trying new technologies is now almost trivial. There are many services that professionals could easily deploy at very low cost that will reap almost immediate benefit. Regular readers will know of my enthusiasm for blogs and wikis but there are so many more new ‘toys’ out there with more arriving on a weekly and sometimes daily basis. Each brings a new level of ‘fun’ in getting things done that has to be good for clients and staff alike.
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