Pioneering Non-Traditional Services in Accounting Firms

The Panel Discussion (25/05) was one of a series of events held at the SW International Partners Conference 2023 (SWIPC 2023). Related to the theme of the conference “Sustainable Quality Growth in a Challenging World,” this Panel Discussion raised the sustainability of accounting firms, including affiliated companies that have been attached, such as tax consulting and business advisory companies. The Panel Discussion became a momentum to share knowledge, experience, and ideas to develop non-traditional services, that are not included in the traditional services of accounting firms and their affiliated companies.

This Panel Discussion became the stage for partners from SW International’s cross-country members. This interactive discussion was led and moderated by SW Hong Kong Managing Partner Roy Lo. Panelists willing to share their thoughts were Managing Director SW Germany Thomas Tesche, PhD., Managing Partner SW Indonesia Agustinus Sugiharto, Partner SW China Gordon Luo, and Partner SW Hong Kong.

non-traditional services

Non-Traditional Services: Sustainable Finance and ESG Integration

The discussion started with the topic of discussion on the trend of Sustainable Finance in Europe. This topic has become a hot topic of discussion and is one of the parts that business people need to integrate in running a business. The European Union is leading the way by urging financial companies to consider ESG factors to create a greener environment. By 2026, around 100,000 companies will be required to disclose Environmental, Social, and Governance (ESG) information. According to Thomas, the ESG factor has become a topic of global concern and companies are starting to be directed to disclose information and views regarding ESG starting in 2026.

ESG Opportunities and Challenges

“ESG presents both significant opportunities and challenges for auditing management reports and gathering information from various ESG aspects. The finance industry is under pressure to incorporate ESG aspects into their decision-making processes, but also as a prime opportunity for advisory services, as it has become mandatory for companies,” said Thomas.

Non-Traditional Services Regulations in Indonesia: Sustainable Finance

Indonesia is in a transition process in utilizing ESG aspects in its business. This is supported by the government with the existence of OJK regulations concerning Sustainable Finance no. 51 of 2017 requires financial service institutions, issuers, and public institutions to submit Sustainability Reports.

Embracing Technology for Quality Services

Together with the OJK circular, namely SEOJK No. 16/2021 concerning technical guidelines for the preparation of Annual Reports and Sustainability Reports for public companies which places greater emphasis on Sustainability Reports. The purpose of these regulations is to promote transparency and increase the company’s competitive value in the global market. “Utilization of the technological revolution is necessary for the development of the quality and effectiveness of the work of accounting firms. However, this utilization needs to pay attention to aspects of cost and relevance in business. Technology helps us provide higher quality services, increase client loyalty and expand service provision,” said Agustinus.

Diversifying Services and Opportunities

In Indonesia, non-audit services are also starting to develop, especially related to Mergers & Acquisitions such as Due Diligence, due to the economic recovery which requires corporate actions to maintain business continuity. One form of business that can be developed is advisory services for family businesses. It is necessary to provide intensive and educative services so that family businesses can also carry out transformations. Not only in Indonesia but even many family businesses in China and Hong Kong can also become opportunities for accounting firms.

Seizing Opportunities in Family Business

SW Hong Kong Family Business Advisory Partner KP Cheng is aware of this opportunity and is trying to seize the opportunity by collaborating among members. “Realizing that family businesses also become market opportunities in China and Hong Kong, we collaborate with SW International and SW Australia to grab this opportunity to provide services for the family business and wealth management with the utilization of regional advantages,” said KP Cheng.

Promoting Hong Kong as a Family Office Hub

This is also supported by the Hong Kong government which stated a policy promoting Hong Kong as the Family Office Hub, this was based on the Hong Kong region which is quite close to China. The same language, culture, food, and weather make Chinese clients or businessmen feel comfortable and easy to do business in Hong Kong.

Challenges in Chinese Family Business

This opportunity was also explained by SW China’s Partner Advisory, Gordon Luo. China, as the 2nd largest economy in the world, is dominated by the development of family business models which are also supported by the government. “As we know the importance of family business for China’s economy, they are also faced with several challenges in the following year. First, they are facing the succession problem. It’s hard for the successor to continue the successful business led by their previous leader/founder. Second, they are facing the difficulty following the transformation and innovation needed. It’s hard for them to transform their business model to follow the digital economic era.” said Gordon Liu.

Collaborative Approaches and Future Prospects

In closing, SW Hong Kong Managing Partner Roy Lo stressed the importance of the role of members in increasing their capabilities and resources in responding to ESG and sustainability issues. Collaboration between members is needed in capturing existing market opportunities and providing services that are more comprehensive and reliable. Collaboration between members of SW International will help our client to synchronize or conduct consolidation their practices in various countries. Each SW International member can be the Asia Pacific Business Hub for their respectively clients.

Looking to explore the world of Non-Traditional Services and elevate your business strategies to new heights? SW Indonesia is here to assist you on this transformative journey. With our expertise and commitment to innovation, we are ready to guide you towards pioneering solutions that will set you apart in today’s dynamic business landscape. Don’t hesitate to reach out to us for expert advice and assistance in embracing Non-Traditional Services. Contact us today at +62 2993 2132 or email us at [email protected] and let’s embark on this exciting path of growth and diversification together. Your success is our priority.

Author

  • As the webmaster and author for SW Indonesia, I am dedicated to providing informative and insightful content related to accounting, taxation, and business practices in Indonesia. With a strong background in web management and a deep understanding of the accounting industry, my aim is to deliver valuable knowledge and resources to our audience. From articles on VAT regulations to tips for e-commerce taxation, I strive to help businesses navigate the complexities of the Indonesian tax system. Trust SW Indonesia as your go-to source for reliable and up-to-date information, empowering you to make informed decisions and drive success in your business ventures.

    View all posts