Professional Documents
Culture Documents
4BSA
Management Consultancy Services by CPAs can be categorized as
follows:
1) Traditional Services
Managerial Accounting
Design and appraisal of accounting system
Financial Management-related services
Project Feasibility Studies
Managerial Accounting
this engagement involves providing assistance to the management related to
planning and controlling business operations as well as decision making.
Examples are:
In designing the
This will involve:
accounting system, the
cost must be sufficient Development of an accounting system
and effective in providing for a newly organized firm
the needed information.
Revision, partial or complete, of an
existing accounting system
Examples:
Preparation of feasibility studies for
Study of working capital requirements
new projects
Study of methods of financing asset
Study of alternative methods of
acquisitions
financing expansion
Credit and collection practice studies
Survey of pension, retirement, and
and advice
profit sharing plans
Analysis of capital investment
Valuation of capital stock of
proposals
companies for purposes of merger
or sale
Traditional Services
rather than just diving into a project and hoping for the best, a
feasibility study allows project managers to investigate the possible
negative and positive outcomes of a project before investing too much
time and money
Emerging Consultancy Services
Responsibility to establish scope of services
Contact clients
Independence
Intermediate clients
Competence
Primary clients
Requirements for specialization
Unwitting clients
Identification and resolution of clients basic
problems Indirect clients
Privately-owned business firms Provision of information
The consultant can add value by analysing and presenting information in a way that
enables the business manager to make effective decisions from it.
Certain projects require the application of technical knowledge and an ability to use
specialist analysis techniques. Rather than have to learn these themselves managers will
often call upon the support of consultants.
Some important areas of management that can benefit from the insights and ideas of a specialist are:
Business strategy
MANAGERS
CONSULTANTS
A consultants opinion is of clear value here. It is presented as independent and
as coming from an expert. A few useful grounds are as follows:
Be sensitive
Make sure any information used can be legitimated and any analysis
undertaken justified
Build rapport with the client and be honest to them about their strengths
and weaknesses
Provision of Support for Internal Arguments
Introduce and explore options which reconcile different positions
Provide the client manager with information and insights but allow him
or her to make a particular case within the business
Important resources for the business include:
Capital of investors
Organization undergo change all the time. Sometimes this is a natural response to
the internal dynamics of organizational growth.
At other times it may be in response to an external impetus or shock that forces the
organization.
All of the types of project may, if they are to be implemented successfully, demand
some degree of change in the structures and operating practice of the business.
END