Strong trends, the challenges and emerging service offerings of the accounting professions are revealed by an Allinial Global study, second world association of independent audit firms, expertise and advice. Read the explanations of Christophe Like, president of the international committee of Walter France, member of the global board of Allinial Global.
Can you introduce us to the Allinial Global association??
Like Christophe : This association brings together 261 firms present in 107 countries. It is experiencing very significant development since its turnover has more than doubled since Walter France joined in 2018.. With an estimated turnover for 2023 of nearly 5,6 billion dollars, Allinial Global should position itself in the top 10 networks and associations globally. This development was carried out in different geographical areas of the world, leading to a gradual rebalancing of areas, while in 2017 the weight of the American zone was predominant.
What are the major trends emerging from this study? ?
All geographic areas combined, the four trends considered to be the most significant for the years to come are : work more with fewer teams ; digital acceleration ; flexibility in the organization of working time ; pricing of offers (point raised particularly by American firms). In practice, The findings reported by Allinial Global member firms are as follows:. The difficulty of recruiting and retaining talent is one of the points common to most members of the association., particularly in eight countries : UNITED STATES, Canada, Australia, France, Germany, Japan, China, Singapore. There is also the need to offer a different organization of working time to new generations., who want more balance between their professional and personal lives and more flexibility… even if numerous studies show that certain measures such as teleworking can generate drops in productivity. Another common point : the acceleration of digitalization in different professions is a key development. New models of governance and shareholding are emerging, particularly in the United States and certain European countries. (for example in Holland) with the receipt of funds from private equity in the capital of audit and expertise firms. In the opinion of the firms concerned and with hindsight, feedback is positive, because funds are driving forces to accelerate growth, more than in traditional shareholding and governance systems. Finally, a major trend comes from the consolidation of the sector, with the emergence of firms which represent more than a billion dollars in turnover after mergers. The recent announcement of the merger between Mazars and Forvis is a perfect illustration of this..
Are other points highlighted in this study? ?
Outsourcing of certain work by firms, particularly in accounting and payroll, is a trend identified as strong in both compensating for staff shortages and cost increases in developed countries. Countries like India, notably, have made great efforts to structure their offer in the different areas (audit, expertise or advice). One of the obstacles, however, is often linked to the confidentiality of data processing and storage.. On the other hand, topics related to diversity and inclusion are increasingly considered a priority theme, to which rapid and concrete solutions must be provided.
What are, more precisely, the expected process challenges, services and teams ?
In terms of process, a significant transformation of firms is expected around three axes : the ecosystem, digitalization and value creation. Regarding services, firms must fundamentally evolve their offerings to meet market expectations. Historical offers — accounting assistance, consultation fiscale, traditional audit, silo consulting — must evolve towards a different structuring of offers, systematically including a technological dimension — “virtual” financial function (back-office, financial advice…) —, integrated services, audits using artificial intelligence, advice focused on customer relations and the use of data. When it comes to teams, the challenges are different : they expect more flexibility in the organization of their working time, a better balance between professional and personal life, and more meaning in work.
What are the emerging service offerings ?
Member firms d’Allinial Global anticipate a significant increase in consulting engagements, particularly in the following areas : technology risk management, for example the cybersecurity ; blockchain ; reporting extra-financial and ESG with environmental criteria, social and governance ; fraud and money laundering ; indirect taxation. Some firms estimate that in the next three years, nearly 20% of their turnover will be generated on new missions. The strategy is in practice different depending on the firm : recruitment of specialists in these fields, often with engineering profiles, or merger with specialized companies. This development has an impact on the organization of firms : different recruitment profiles, salary policy, etc. All these trends apply to France, where accounting firms, auditing and consulting companies are making significant efforts to structure themselves ever better and offer companies the support and advice they need to develop.
