26th July 2022
It's great to see MGI Worldwide members, once again, make time in their busy schedules to contribute to global publications such as the International Accounting bulletin (IAB), cementing their position as thought leaders within the accounting industry.
Kenya import prices impacted by Ukraine invasion
Kenya's economy has grown rapidly in the last decade but despite optimistic GDP forecasts, it has emerged fragile from the pandemic. Despite extra business brought by its tax expansion programme, the economy is vulnerable and Kenya's national debt is in danger of getting worse.
Felix Kimoli, Partner at MGI Alekim in Nairobi explains:
"Despite a forceful policy response by the authorities, the socio-economic impact has been immense. The effect has also exacerbated the country's pre-existing fiscal vulnerabilities, pushing Kenya into high risk of debt distress. While the economy is now recovering, fiscal and balance of payments financing needs remain seizable over the medium term."
Make in India
The Indian accounting services market is expected to grow at an impressive rate, thanks to the additional boost given to the economy by government initiatives such as Make in India, start-up hubs, and the Digital India programme. However, this boom has led to stiffer competition, increased fee pressure, as well as problems in recruitment and retention - as seen worldwide.
Increased changes in business strategies have led to rapid changes in regulation particularly affecting those working in statutory audit.
Anuj Sharedalal Partner at C.R. Sharedalal & Co., Gujarat comments on the impact of these regulatory changes on small businesses and recent discussions between the ICAI and NFRA.
“The NFRA opined that most companies subjected to regulatory impacts and audits would be private, have minimal turnovers, and have insignificant indebtedness, recommending that ICAI reconsider accounting standards’ structure, form, and contents for such companies.
"ICAI, however, had a different perspective. Differing from the recommendation made by the NFRA, ICAI asserted that a detailed audit of a company, irrespective of its size and affordability, helps mitigate the risk of corporate governance lapses. Time will tell if both the bodies can meet common ground and arrive at a conclusion regarding the divergent views on this as well as other topics."
Australia faces inflation and drop in significant FDI
While demand remains high for accountancy services in Australia, the country is facing uncertain times. The Australian dollar is on the slide but inflation is on the rise. As well as skills amongst staff, IT infrastructure is being upgraded and firms are getting to grips with new technology and new ways of doing business, all while coping with the worst skills shortage the Australian accountancy industry has ever seen.
Anthony Dobbyn, Partner at MGI Dobbyn Carrafa, Melbourne comments:
“I have been in the accounting industry since 1988 and I have never seen a shortage of accountants like we are experiencing right now. This has placed unprecedented pressure on salaries and benefits and at the same time pricing on traditional compliance work is under pressure in the opposite direction. In order to cope with this, we are looking to automation and associated cloud-based software tools to assist in taking manual work out of the equation.”
Greg Winnett, Partner at Accru Melbourne, Melbourne followed these thoughts, with the view that a massive national overhaul of the entire tax structure is what’s needed.
“For real tax reform to take effect in Australia we need to rationalise the number of taxes, we have to create a much more efficient system. The myriad of state government taxes should be abolished or seriously pared back and supplemented by a broader consumption tax that is offset by lower personal income tax while allowing for a fairer welfare system.”
To read the full articles, log in to the member area and click on Key International Organisations.
We are pleased to announce that our member firms continue to rank highly against the other top accounting networks!
In Kenya we are ranking 15th for fee income and 14th for staff data. Our member firms in Australia are raking 13th for both fee income and staff data while member firms in India rank in the 13th position for fee data and 14th for staff data.
MGI Worldwide with CPAAI would like to congratulate our member firms in Kenya, India and Australia who are responsible for helping achieve these fantastic results.
For more information reach out to our contributing firms
MGI Alekim LLP website and firm profile page
C.R. Sharedalal & Co.website and firm profile page
Accru Melbourne website and firm profile page
MGI Dobbyn Carafa website and firm profile page
MGI Worldwide with CPAAI, is a top 20 ranked global accounting network and association with almost 9,000 professionals, accountants and tax experts in some 400 locations in over 100 countries around the world.