Global trends in accounting, auditing and consulting
International Accounting Bulletin has published World Survey 2024. The Global Review 2024 identified the following trends in accounting, auditing and consulting.
Audit Evolution: navigating quality and investment in talent and technological progress.
In terms of auditing, dynamic strategic responses to conflicts of interest, quality assurance, and emerging trends like ESG reporting (environmental, social and corporate governance) and sustainability assurance are pivotal. Top management of international audit firms notes the importance of adaptability, innovation and maintaining high ethical standards, since auditors and consultants are an important element in the chain of trust in the economies of various countries that help ensure the health of financial markets for the benefit of society. Collaboration, investment in talent and technological progress stand out as the key success factors in the changing landscape of audit and consulting services.
Consulting services: a shift towards specialised services.
Demand for advisory services in the accounting industry is on a robust ascent, driven by the imperative need for specialised expertise and strategic counsel in navigating the intricate labyrinth of today’s business landscape. The global phenomenon of digitalisation transcends geographical boundaries, permeating industries worldwide. While developed economies grapple with increasing indirect taxes and regulatory complexities, emerging regions grow as outsourcing hubs for advisory services, reflecting a global shift towards innovative expertise and technological adoption. Special attention is focused on the relevance of risk management consulting. Global audit and consulting companies are striving to expand the list of services to cover corporate finance, legal services, digital transformation and cybersecurity, ESG consulting and other areas of consulting. This expansion is a direct response to the rapid technological progress and increasing regulatory complexities currently faced by companies, especially those operating internationally. The trajectory, therefore, of the accounting industry indicates a profound shift towards specialised advisory services, driven by these concerns but aided by evolving technological solutions and stakeholder expectations. As businesses navigate the complexities of today’s environment, the role of advisory services assumes even higher significance in guiding strategic decision-making and fostering sustainable growth.
Taxation dynamics: adapting to varied jurisdictions and difficulties in implementing technologies.
The demand for tax services in the global market has been steadily growing, driven by various factors ranging from regulatory complexities to the evolving geopolitical landscape. Multinational clients, in particular, are increasingly sensitive to transfer pricing matters and dealing with these requires substantial expertise due to the complex and varied rules imposed by different jurisdictions. Multinational clients need to navigate diverse sets of rules and regulations across different jurisdictions, requiring a deep understanding of financial reporting and tax compliance.
According to the general opinion of top experts, the demand for tax services remains stable regardless of whether firms are part of a network or an association. The implementation of tax technology solutions in multinational organizations is fraught with numerous challenges that require careful consideration and strategic planning, and the complexity of several tax regimes is a serious obstacle. BDO’s Pat Kramer echoes the sentiment of rapidly changing tax regulations across global borders posing a key challenge by stating that, “these frequent shifts in regulatory landscapes also present obstacles to successfully implementing tax technology solutions.” Investments in technology, implementation of AI are also playing a crucial role in improving efficiency, cooperation and compliance with regulatory requirements in the field of tax consulting. However, network firms are independently run entities and will have different priories and objectives, so a one‐size fits all platform might not deliver.
Recruitment strategies: fostering diversity and talent.
Diversity, Equity, and Inclusion (DEI) initiatives are increasingly becoming a focal point for accounting firms worldwide, reflecting a commitment to fostering diverse and inclusive workplaces. While approaches may vary across different firms and jurisdictions, the overarching goal remains consistent: to create environments where all individuals feel valued and supported, regardless of their background or identity. The importance of promoting accountancy as an exciting and diverse career for everyone, with many larger member firms implementing bespoke programmes to achieve this goal, is critical to the success of the industry. Firms develop a business culture focused on teamwork, mutual trust, gender and other equality. They also focus on the importance of attracting talent based on meritocracy while acknowledging the ongoing consideration of DEI principles in recruitment efforts. Firms want to prioritise building a positive and inclusive work atmosphere for all employees. Flexible working is a feature that many firms have retained post pandemic, which can be a major draw for many people. The spread of technology in the field of recruitment and retention of staff should be another important distinguishing factor.
On the other hand, skills shortages are driving more efficiencies through automation and AI. Routine tasks are being automated and moved to the cloud. This is impacting all roles across the firm, not just professional staff. In support functions such as IT or payroll, firms are investing more in development of staff to improve retention and develop higher level analytics and insight skills. Professional staff now need to develop higher level skills such as communication, empathy, innovation, and business acumen.
There is still an overwhelming demand for personnel with a diverse set of skills and competencies. As technology continues to advance and client needs evolve, this need becomes more pronounced. Personnel at an accountancy practice are so much more than what used to be deemed as an ‘accountant’. Today, it is very much about people relations, business development skills, business advisory knowledge and a rounded understanding of the latest technologies and how these can help assist in client work, along with technical experts and industry specialists.
Mergers & acquisitions, direct investments: shaping the industry landscape.
For global accounting networks, strategic expansions, mergers and acquisitions play a significant role in shaping reach and influence. Recent developments underscore this trend, with notable expansions and strategic partnerships across different regions.
The influence of private equity (PE) investments and the trend of consolidation have emerged as significant factors shaping the trajectory of accounting firms. With PE injection, the global accounting landscape will, no doubt, continue to evolve through strategic expansions, mergers, and acquisitions, driven by the pursuit of greater reach, influence, and specialisation.
Through 2024, for most networks and associations, considerations related to navigating the choppy seas of consolidation and competitive pressures will remain a growing priority. The exit of smaller firms and the encroaching influence of consolidation underscore the need for strategic positioning and proactive engagement in the evolving marketplace. As accounting networks and firms navigate the complexities of the sector, a steadfast focus on culture, communication, multi stakeholder collaboration and differentiation emerge as foundational pillars for sustaining competitive advantage and fostering long-term success.
Business Assurance Comment
The tendencies and trends presented in the study are equally characteristic of the auditing and accounting profession in the Republic of Belarus. Highly specialised consulting services (cyber security, processing and protection of personal data, implementation of accounting in banks and non-bank credit financial institutions based on the principles of International Financial Reporting Standards) are becoming in demand in the market, when organising business activities within interconnected business entities, participants count on assistance from consultants and auditors in ensuring unconditional compliance with the requirements of tax legislation, in the labour market there is a disparity between supply and demand, mergers and acquisitions and investment activity transactions have retained their importance, in which external consultants and auditors traditionally play an important role in managing inherent risks. Thus, the study of global tendencies and trends, ways of leveling negative effects and maximizing positive effects, can be a useful mechanism for organising activities in the local market in the Republic of Belarus.
Source: IAB, World Survey 2024, March 2024.