In the book Rich Dad Poor Dad by Robert Kiyosaki, which I read years ago, it was mentioned that going into the real-estate business could make one rich rather quickly. However, Kiyosaki has reservations about the practice of the profession since it is one endeavor requiring the physical presence of the professional, one not likely to grow if the person is not there.
I grew up with my father in the public practice of accounting in the province and my take on it is that it is more a vocation, like that of a teacher, than a business. Retainer fees in the province are not that big and Dad supplemented his meager income by teaching after work and even became a successful insurance person on the side.
The latter provided for most of our needs at home and helped my father buy our first car and build our home without taking out a loan.
His practice grew through the years at a modest pace, and may not be comparable to audit firms in Manila, which are run by top-tier professionals. I know he managed the business well because it grew through the years. Still, external factors, such as low competitor fees from rival firms, hindered further growth.
I can also see how other professional practices have grown, particularly in Manila, and not only in the accounting profession, but also in others like medicine and law. It is just a matter of looking after and managing our profession. At a seminar I last attended where Mr. Joel Tan-Torres, Board of Accountancy chairman, was the resource speaker, he talked about helping change the way clients treat our professional fees. We must let them understand that the charges are as important as paying the utility bills. I completely agree with this.
There are two certainties in life: death and taxes. Our clients need to secure an auditor’s report and have their financial records audited to comply with the requirements of the regulatory agencies or even hire someone to help them with tax compliance and the keeping of records. For sure this is as important as paying one’s light, water and telephone bills.
We have clients who have been with us a long time and are good-paying clients. When my father died I have to weed out those who were a headache to us and replaced them with good ones. As I mentioned, our auditing business was based in the province but we also have a few clients from Manila, although the work was being done in the province. I also introduced new professional services and were able to get special audit projects. But because of rather predatory fees charged by competing firms in our place, it was very hard to keep ahead.
We were also limited by professional ethics to market our services and we just have to improve the quality of our services, so that clients will look for us and ask for our services.
The profession has to keep up with rapid changes in technology, too. Technology can make our work easier and faster and add value to our services. But it can also increase costs, because one has to invest in technology infrastructure. We have to manage our profession like a business, while keeping true to the profession’s ethics to keep us afloat and even thrive.
In an article in icaew.com, four factors were cited as having driven the changes in the accountancy landscape: technology, competition, regulation and clients’ expectations. We also need to be constantly updated through seminars and training programs. I divide my time between the province and Manila since my father’s death and most of my time were spent in attending training sessions and seminars in Manila to keep pace with the latest regulations, procedures, processes and everything related to my profession. I also have to meet potential clients and colleagues in the profession to discuss services we provide our clients to help boost their businesses.
While technology and the global accountancy environment is evolving, the profession also needs to keep its pace. We can help improve our clients’ businesses by helping improve our own. We just have to find our niche—whether in outsourcing services or audit services. Our fees should be reasonable so clients are satisfied with our fees and the quality of our service.
The demand for accounting and audit services and the rapidly changing technology and the global economy could prove either a boon or bane to the profession, depending on how we look and manage it.
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Wilma Miranda is the chairman of the Media Affairs Committee of Finex, Managing Partner of Inventor, Miranda & Associates, CPAs and Treasurer of KPS Outsourcing Inc. The opinions expressed herein are the views of the writer and do not necessarily reflect the views and opinions of these institutions.