OVERVIEW OF MANAGEMENT CONSULTANCY SERVICES BY CPAs
Introduction to the World of Consulting
* Consultants are not all CPAs. Anyone can be a consultant. However, to prosper in consultancy, one has to have the expertise. The most compelling nonmonetary reasons people enter the consulting field are: 1. Sharing their knowledge to help their clients.
2. Building business network and take a step up in one’s corporate career. 3. Having no boss, being independent and making their own decisions. 4. No fear of being laid off.
5. Having a flexible source of income.
6. A means of giving back to the community by providing expertise and assistance in community-based projects. Evolution of MAS
The primary factors that contributed to the emergence and growth of management consultancy are:
1. Growth in size and complexity of business.
2. Difficulty in conducting and managing a business.
3. Greater competition among businesses so that new management techniques will have to be applied. 4. Recognition of the importance of accurate and timely information in decision-making. 5. Inability to have a complete line-up of professional management. Developing Trends
* Management consultancy now specializes in information systems, automated offices, financial analysis and modeling budgeting and cost controls, organization structures, personnel compensation, strategic planning and a host of other areas. * Another trend has been the improvement of business education. * The quality undergraduate and graduate programs in business are producing better-trained entrants into the ranks of management consulting profession. As a result of this infusion, management consulting is becoming a catalyst for advancement of better management concepts and techniques. * Technological developments have occurred at a breathtaking pace in such areas as information sciences and decision sciences. * Computer hardware and software, together with data communication and robotics represent powerful tools for business management.
A veteran management consultant makes the following predictions: 1. Management consulting will become even more specialized. 2. The consultant’s orientation will be towards being an insight-provider, creator and sharer of information. 3. Management consulting firms will tend either to remain small or to become quite large. Small firma will prosper by focusing upon narrow areas of specialization while large firms will have to develop and offer a wide range of services to sustain their high costs of operations. 4. As consultants grow in number, they will develop more sophisticated means of marketing their services. 5. Bright graduates of accounting, management and business schools will continue to be attracted to careers in management consulting. The Consulting Industry
Most definitions of consultancy would include:
1. Information technology
2. Consulting and system integration
3. Corporate strategy
4. Operations management
5. Human resources management
The Main Types of Consultant Firms
1. IT Firms (for example, IBM’s purchase of PwC Consulting) - to increase revenue 2. Accounting firms offering consultancy
3. Major Consulting Only Firms
Professional bodies such as PICPA offer professional training and accreditation and provide a forum for all-important networking. Career in Consulting Firms (in ascending order of seniority) 1. Analyst – responsible for gathering information and processing it for the consulting team. 2. Consultants – undertake the evaluation of the client business and make recommendations on its behalf.
3. Senior Consultant or Managers – more experienced consultants that have the responsibility of leading a consulting team.
- would typically have 3-5 years of consulting experience.
- would be more involved in dealing with members of the client team. 4. Business Development...