We discuss with Bent Kofoed, Chairman of our global accountancy network Kreston, the present and future of globalization, the role of Millennials in the audit sector, the application of new technologies in accountancy, the normative trends for the coming years, the parity between men and women, as well as the strategic plan for the future of the international network.
With its new slogan, Knowing you, Kreston is reinforcing its brand image around the world, how do you value Kreston’s positioning worldwide? Can we consider Kreston, with presence in more than 100 countries, an example of the globalisation of the worldwide economy?
Kreston is in a strong position, seeing a 7% aggregate fee increase and presence in over 120 countries this year. We are now making our clients aware of the opportunities that digital globalisation presents – ensuring they have the knowledge, insights and expertise they need to negotiate the different cultural, financial and tax systems of whichever geography they operate in. Our Knowing you. strategy sets out to share Kreston’s brand values with our members, boosting awareness to help us to all ‘Be more Kreston’ if not in name but by the trusted relationships we forge with each other and our clients, working as one to help their business to stay at the forefront of this new age of globalisation.
Has globalisation reached equally all the countries of the world?
Now through digital globalisation and initiatives, developing countries and SME’s have more opportunities to enter larger markets around the world, having access to capital flows, technology, human capital, cheaper imports, and larger export markets. However, there are a number of factors that will impact on the development of international business. These include the ease of doing business; the reliability and transparency of the legal system; a clear tax system; the availability of suitably skilled labour and reliable communications and transport infrastructures.
At our last Conference in Cambodia, Graeme Codrington, specialist in the business of the future, spoke about the role of young people in the companies. How do you think that the arrival of new generations will affect the accountancy sector?
‘Making the most of your Millenials’ was a fascinating insight into the young workforce of today and how technology is the ‘norm’ for them in all aspects of everyday life. Graeme highlighted how we can all maximise on the opportunities Millenials can deliver, and the rewards available to the success of accounting firms once they are fully integrated into the business environment.
We don’t take it for granted that Kreston will continue the current upward curve; we know our future success lies in the hands of the next generation Click & Tweet! . That’s why we’re actively planning for leadership succession. This year we held our first Future Leaders Conference in Berlin, which aimed to give our bright young colleagues the skills they need to head up a firm, forge international connections and drive business expansion in the decades to come. The conference was both challenging and fun and we hope that this event will continue to attract attendance from our ‘future leaders’
How is Kreston applying new technologies in its sector?
The accountancy profession is still amongst the main industries forecast to be significantly impacted by digital disruption, with lots of services we provide being eliminated by technology. Recent Kreston conferences have highlighted the importance of how “smart leaders” can adjust to new technological changes. This year, our conferences will focus on the way technologies such as artificial intelligence and Block chain are transforming life and business, looking at how we can help member firms and their clients innovate and profit. More and more firms are streamlining tasks to focus resources on consultative areas, providing our clients with the expertise to help them grow and innovate.
Member firms are also actively experimenting with technology to improve efficiency and quality with attention being given to data analytics and the power of cloud accounting.
What are the normative trends in the audit sector for the coming years?
Audit Quality will continue to be a key focus for regulators and there will be a growing pressure on firms to utilise technology to deliver high quality audits. In addition, the growth of Blockchain, which provides a technology based solution to issues of trust, may change the market for assurance services. In many markets the statutory audit requirement is reducing and this combined with technology changes will mean a growing shift for firms towards advisory services.
How is parity between woman and mandistributed in Kreston offices in the different countries? Do you think that there has been an evolution over the last 10 years?
Women continue to gain ground in the profession and we are seeing changes within certain of our firms. Kreston’s Board also has a higher percentage of women Directors than in previous years.
What are the immediate objectives for Kreston within its strategic plan for the coming years?
Our immediate strategy for the coming years is still fully focused on moving to a branded network. The ultimate success depending on three interconnecting factors; Kreston becoming a strong and respected brand in its own right, a pervasive communications programme that underlines the value of the brand and member firms that build on their own brand equity to take on key elements of the brand. We will also continue to recruit firms in regions where we have no or little representation and to encourage further collaboration between our networks in areas such as India, China and Latin America.
