Are you really just an accountant?
Author:
Brian Walsh
[Fulltext] This is the time of year when we welcome students as they embark on the road to qualification as Chartered Accountants. But will these students use the designation "Chartered Accountant" throughout their careers? Increasingly there are those who think that the term "accountant" has become redundant. It no longer reflects the broad range of services and activities of the members of our profession. Alternative descriptors, such as 'Business Adviser' are perhaps more accurate, offer greater scope and suggest an individual who can solve complex business problems.
Designation Debate
The designation debate is peripheral for the global firms. In this issue of Accountancy Ireland, Mary Canniffe reports on conversations with the Managing Partners of some of our largest accountancy practices whose observations are very much in line with the findings of the various "vision" studies that have been carried out by accountancy bodies across the English speaking world. The business environment is changing rapidly; the global village is with us; the market for traditional accounting services is stagnant; the expectations and needs of clients are changing and we must respond by increasing our focus on adding value to clients and developing new services. The large firms saw this emerging trend some time ago and have developed their own brands very successfully.
Straining at the Leash
Now, there are indications that some of our small and medium-sized firms are straining at the leash to get away from the restrictions imposed by Statement 12 of our Ethical Guide which states:
"A firm which describes itself as "Chartered Accountants" on its notepaper may include a list of the services it particularly wishes to offer. However, it should not incorporate any of that list of services into the general description of the firm (e.g.
"Chartered Accountants and Tax Advisers") lest this should suggest that these services are not offered by other Chartered Accountants." Paragraph 2.2.
Mid-tier practices have developed skills in areas such as forensic accounting, consultancy, environmental performance, corporate finance, and yet their clients still go to the global firms for these services. Why? One reason may be that the designation "Chartered Accountants" does not reflect the broad range of services and specialisms now commonplace in practices.
Time for a Change
Given that these are the facts, many are questioning whether the term "accountant" is still the best description for members of our profession - not just here in Ireland, internationally. There are growing indications that change may be on the way.
In England, the ICAEW seems to think so. It recently relaxed its rules to allow member firms to add extra words to the title "Chartered Accountants". Member firms can now call themselves "Chartered Accountants and Business Advisers", "Chartered Accountants and Tax Consultants" or "Chartered Accountants and Management Consultants".
The International Federation of Accountants (IFAC) devoted a full issue of its quarterly newsletter to exploring this issue. Not only does it question the relevance of the term "accountant" - particularly where firms are now bringing in non-accountant expertise at partner level - but, like Dr Pat Barker in Mary Canniffe's article, it also questions the need for a multiplicity of qualifications. Describing accountancy as "the most globalised of professions in a rapidly globalising world" it points out that there is no easy way for consumers of accountancy services to assess the equivalence of professional accountants from different countries.
For the Institute, the expansion of the roles performed by practising firms, not to mention the fact that more than 60% of Chartered Accountants now work outside of practice, poses a challenge in terms of service provision - a challenge that is, perhaps, best met through strategic alliances with other bodies.
As you read this in the first week of October you may be about to take time out to attend our residential conference in Galway. Conferences offer an opportunity to discuss and reflect on the broader issues. I would encourage those of you with views on this issue to share them with your fellow members and me.
Brian Walsh Chief Executive