What are the biggest challenges facing professional services firms today?

#1

Hi all

I have a few interviews coming up with some of the Big 4 and was just preparing for potential questions they might ask. And I am having trouble coming up with an answer for “What are the biggest challenges facing professional services firm X (insert as appropriate) today?” It would be great if you guys can give me some ideas.

Thank you so much

#2

Public perception of audit firms - after the banks nearly collapsed
Fee competition

#3

Challenges facing professional services firm:

  • No. of audit tenders based on price are increasing; remember KPMG’s offer to Rentokil; Admiral is interested in this option.
  • General fall in demand in their services given that clients are cutting their costs; clients are very conscious of their expenses and they will not pay for anything that is not adding value to their businesses.
  • Competition from other mid-tier and smaller firms - check Accountancyage videos.
  • The dilemma of cutting costs (making redundancies) versus holding on to their people so that they are in the best place when the upturn is here (it takes at least three years to train your people); achieve cost cutting targets without damaging the long-term growth of the business.
  • The challenge of making sure the firms have trained their people not only to cross-sell their services but also to attract new business.
  • Since cash is king and liquidity is low, professional services firm need to make sure their clients are paying on time.

Hope this helps and good luck!

#4

very good post ank!

#5

Which site do use for internal audit issues