Accounting leaders discuss the advantages of joining a network
April 13, 2023
In a recent Accounting & Business magazine feature, leaders from Kreston Global offered their insights on the benefits and factors to consider when joining a network, such as a larger group or association. The article includes comments from Kreston Global’s CEO, Liza Robbins, Modern Mutumwa, managing partner at Kreston Zimbabwe, and Sudhir Kumar, senior partner at Kreston Menon in the UAE.
When considering whether to join a larger group, such as an association or network, many accountancy firms weigh the advantages of being an independent operator against the benefits of being part of a larger entity. Joining a larger group can provide opportunities for extending the reach and expanding the knowledge base, as well as staff development and professional bonds across borders.
In addition, these groups offer support through annual conferences and online events, knowledge sharing, and work referrals that can lead to revenue growth. However, it is important to actively invest time in building relationships with other group members for these benefits to accrue.
‘What I always say to firms is really think about what you’re trying to do. Don’t just say it’s the next stage of your development – boil it down. Broadly, if you’re a firm wanting to develop, you’re looking for resources – you may be looking for a technical person because you don’t employ one yourself – so you might be looking more towards the networks that have that sort of resource. Across the world, there’s a challenge with identifying and retaining staff. One of the things our firms are saying to us is that staff perceive an international link as very positive. They enjoy the interaction we can give them from being part of something bigger.’
Modern Mutumwa, managing partner at Kreston Zimbabwe in Harare, Zimbabwe
‘I wanted a brand I could rely on to be competitive in the local market. We have also seconded staff to Kreston Reeves in the UK. They learned new things and gained exposure to larger clients. Some were able to lead assignments, which strengthened their technical skills and opened them up to interact with staff from a global perspective.’
Sudhir Kumar, senior partner at Kreston Menon in the UAE
‘We are on the Forum of Firms list, which is recognition for us, for the quality of our work. Everyone is very happy that the organisation has changed culturally because Kreston talks to everyone, not only the top management. Everyone is part of Kreston.’
Over the past 15 years, the terms “network”, “association”, and “alliance” have become less interchangeable. “Network” now refers to practices that are members of the International Federation of Accountants (IFAC) Forum of Firms, meaning they comply with the International Standard on Quality Control (ISQC 1), International Standards on Audit, and the International Ethics Standards Board for Accountants’ code of conduct. This membership is important as many banks, governments, and not-for-profits will only work with auditors who are Forum members. Networks may also have stricter rules than associations regarding systems, processes, branding, and marketing. Some networks enforce a common brand, while others do not.
To learn more about joining the Kreston Global network, click here.
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Kreston Global welcomes new member firm in the Netherlands
March 28, 2023
We are delighted to welcome Qwintess as a new member of the network in the Netherlands. Qwintess is an accounting firm that is focused very much on the entrepreneurial marketplace and the opportunities for the next generation to get involved with both the firm and also entrepreneurship. Led by Julian Jonker, Audit partner, and Lynn Pennings, Tax partner, the firm has 22 employees and is based in Noordwijk.
Kreston Global welcomes new member firm in the Netherlands
Qwintess has joined the growing Kreston Netherlands family which now numbers eight firms. Chaired by Gooitzen Boonstra, Kreston Netherlands has 650 employees across the Netherlands working on client matters.
Herbert Chain is a highly experienced author is a financial expert with 40 years of experience in business, accounting, and audit, having served as a Senior Audit Partner at Deloitte. He holds certifications from the National Association of Corporate Directors and the Private Directors Association, with knowledge of private company governance and effective risk management. He has extensive knowledge in the financial services sector, including asset management and insurance, and experience with SPACs.
Accounting in the US: Examining bank failures
March 23, 2023
Herbert Chain, the technical director at Kreston Global Audit Group and a director at CBIZ, talks about “hold-to-maturity” accounting in the US context following recent bank failures. With the collapse of Silicon Valley Bank and Signature Bank, much discussion has been on the accounting treatment of debt securities held until maturity. This article delves into the accounting principles from a US standpoint, examines the consequences of this approach, particularly for banks in a period of increasing interest rates, and explores the considerations for external auditors in assessing going concerned and auditing debt securities held until maturity. It also briefly touches on the failures of the two banks concerning the timing of the audit reports.
FASB’s accounting methods for debt securities
The US Financial Accounting Standards Board (FASB) has established accounting standards codification (ASC) sections related to “hold-to-maturity” (HTM) accounting for debt securities. These include ASC 320-10-25, which pertains to the recognition and measurement of debt and equity securities; ASC 320-10-35, which covers the subsequent size of debt securities; and ASC 320-10-65, which relates to the impairment of other debt securities. The FASB has three accounting methods for debt securities: HTM, available-for-sale (AFS), and trading.
The key differences between these methods are that HTM securities are held until maturity, AFS securities may be sold before maturity but are not part of regular trading activities, and trading securities are intended for short-term sale to profit from price fluctuations. In HTM accounting, securities are recorded at cost and recognised based on interest income, while changes in fair value are not reflected in the financial statements. In AFS accounting, securities are initially recorded at fair value, and changes in fair value are recognised in other comprehensive income. In trading accounting, securities are also initially recorded at fair value, and changes in fair value are identified in the income statement.
Asset-liability management and disclosing gains and losses
Banks heavily rely on managing asset-liability risks, mainly because they hold a considerable amount of debt securities and depend on short-term deposits to fund their day-to-day operations. To avoid facing liquidity risk, banks must ensure that their investments’ maturities align with their liabilities’ maturities. If banks mismanage these risks, they may have to liquidate their HTM securities to meet depositors’ demands, resulting in significant losses.
With the recent increase in interest rates, the market values of debt securities decreased accordingly, resulting in unrealised losses for HTM securities. These losses were not initially recorded in the bank’s equity or income but were disclosed in the notes to the financial statements according to GAAP. However, when the banks had to sell HTM debt securities to fund depositor withdrawals, the previously undisclosed losses were recognised in income. Therefore, it’s essential to note that a savvy financial statement user would have considered the disclosed unrealised gains and losses to assess the bank’s financial condition.
The two banks that failed shortly after receiving audit reports from a Big Four firm have sparked discussions on the role of external auditors in assessing a company’s ability to continue as a going concern.
The role of external auditors
Management must evaluate any conditions or events that raise doubts about the company’s ability to continue as a going concern. At the same time, external auditors must judge whether there are any such conditions or events that raise substantial doubts about the company’s ability to continue as a going concern for a reasonable period. The banks’ failure occurred after the financial statements, and related audit reports were issued, but it is unknown if there were any indications or conditions at the report issuance date that the external auditors needed to recognise. As for the audit of HTM securities, external auditors should ensure that a company’s accounting treatment of these securities aligns with accounting standards and that they are valued and disclosed appropriately.
Auditing HTM securities
To audit HTM securities, the external auditor should evaluate management’s ability and intent to hold the securities to maturity. Reviewing the company’s investment policy, liquidity position, cash flow projections, and external factors affecting its ability to control the stakes can achieve this. However, since it’s challenging to audit management’s intent, external auditors often include an item in the management representation letter related to their intent to hold the securities to maturity. The auditor can also examine the company’s history of holding HTM securities to maturity to evaluate management’s decision-making and internal controls. Apart from assessing management’s intent, the external auditor should also ensure that the securities are valued appropriately, which involves obtaining market data, reviewing the company’s valuation methods, and evaluating the amortisation of premiums or discounts. Finally, the auditor should consider any impairment losses recognised, or that should be recognised on HTM securities as well.
In auditing HTM securities, the external auditor should also review the company’s disclosures regarding investments and unrealised gains or losses, assess whether they comply with accounting standards, determine if any impairment should be recognised and recorded, and ensure that the financial statements provide sufficient information for users to understand the nature and extent of the investments and their impact on the financial statements.
The collapses of Silicon Valley Bank and Signature Bank had serious repercussions for the stability of the worldwide banking system, necessitating prompt action from banking regulators. The ensuing concerns were linked to how banks manage the balance between their assets and liabilities, the accounting methods applied to held-to-maturity debt securities, and, in the end, the part played by external auditors in such situations.
Liza Robbins, Kreston Global Chief Executive, shares her thoughts on what makes a great international leader.
A requirement for leadership
The first is that thinking internationally positions you for success in a globalised world. More than that, it’s a prerequisite for leadership. Our countries are far more connected and interdependent than they used to be, and being able to confidently navigate the different environments in which you will find yourself is a key competence.
If you’re narrow-minded, you’re going to fail. You will not connect to the people you’re dealing with, you may not understand how they operate, and there may be multiple misunderstandings. Of course, you can’t entirely erase a culture gap just by being curious, but the willingness to learn goes a long way.
You will also miss opportunities to learn and grow. There is so much we can learn from other cultures, both about how to do business and about life more generally. You don’t have to struggle to reinvent the wheel at your firm when you can simply watch how your peers at Kreston firms elsewhere operate and adapt their best practices. This is how many of the greatest advances are made.
When you think internationally, you will talk to clients and colleagues about your differences and commonalities, exchange views and share what’s important to you. The result will be deeper, more meaningful relationships.
These aren’t just ‘nice to have’ but the foundation of long-term partnerships and a sustainable business. The reason that “Knowing you” is the Kreston motto is precisely because having these conversations and forming these deeper relationships is critical to offering a transformative service.
Think Internationally… Even locally
All this applies and benefits you at a local level too. Although we talk about thinking “internationally”, this mindset does not miraculously switch on when you phone someone in another country or get on a plane abroad. Being curious about others makes you a better, more informed, and more personable leader at home.
And finally, this approach is fun! At least I’ve always found it to be so. Nothing is as interesting as other people. If you enjoy travelling and discovering new places and new sights, actually getting to know people whose lived experience is very different from your own is even more fulfilling.
None of this necessarily comes naturally and simply belonging to an international network does not automatically mean you’re thinking internationally. Your mind can still be shut even if you speak to people on the other side of the world every day. It’s a skill that has to be cultivated.
Consciously develop your international thinking
An oft-cited survey by McKinsey showed that 76% of senior executives believe that their companies need to develop global leadership capabilities while only 7% think that their efforts are effective. That survey is more than a decade old now but the gap and the need certainly still exist.
Some of you may be natural ‘international thinkers’ while others will want to be. Either way, I want to challenge both you and your teams to do more to consciously think internationally.
Here are some easy baby steps:
When a firm joins Kreston from another country, email them and ask them to share something about themselves. Better still, get on the phone.
Every time a new firm joins, follow them on LinkedIn. Notice their cultural celebrations and the issues that are important to them.
Get your atlas out! Do you know where our firms on other continents are located?
Through globalisation, our world is getting bigger. But the more you get to know people, the smaller it feels. That’s exactly what we should be aiming for – to take actions that make us feel closer and more intimate, whatever the distance between us.
News
Kreston Global retains 13th position in global rankings
Kreston Global has maintained its 13th position in the International Accounting Bulletin world survey. Kreston Global continues to enjoy steady growth, with a 4% turnover increase in 2022.
The network has attracted a record number of new firms in recent years and US firm CBIZ MHM has contributed significantly to the growth with key strategic acquisitions, including New York–based Marks Paneth, helping to propel CBIZ MHM from 13th to 8th position in North America regional rankings.
Liza Robbins, Kreston Global Chief Executive commented,
“We are delighted to have retained our global position, although our focus continues to be on delivering real benefits to firms to help them grow and thrive, and less about global rankings.
The fast pace of development of Kreston Global led to a new strategic plan being unveiled in 2021, which embraces the network’s wider purpose-led approach. The new firms that have joined us over the last 12 months have only enhanced the strong ties that connect our firms to each other.
2023 looks set to be another strong year of member growth, with excellent firms interested in joining the network.”
If you are an ambitious, internationally-focused firm that is interested in joining Kreston Global as a member, you can fill out a form to apply to start your application.
News
Kreston ATC Chile joins the network
March 10, 2023
Kreston ATC Chile is the latest firm to become part of Kreston Global.
The firm provides services to local and international companies across Chile and overseas, ranging from external and internal audits, taxes, risk advisory, forensics, payroll and bookkeeping. Headquartered in the capital, Santiago, the firm is led by experienced partners with backgrounds in EY and RSM, used to reporting to offices in North America, Europe and Asia.
Pictured from left to right are Ricardo Gameroff, Partner-Advisory Leader and International Liaison, Hans Caro, managing partner, and Eduardo Medina, audit lead partner.
Hans Caro Larsen, Managing Partner, commented, “We are very excited to join Kreston and are committed to contributing to the global organisation with our knowledge and experience. We already have one of our partners involved in the network’s Global Audit Group as well as serving as a member of the Global Quality Group and look forward to extensive international collaboration”
To learn more about doing business in Chile, click here.
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International Women’s Day: Jenny Reed
March 7, 2023
International Women’s Day is celebrated globally every 8 March to recognise the contributions of women to social, economic, cultural, and political advancements. The day also calls for action to accelerate progress towards gender equality and women’s empowerment. This year, Kreston Global aims to feature a few remarkable women from their network and learn from their experiences on what it means to be a successful woman in the organisation.
Jenny Reed is a well-established figure in the accounting and auditing industry, with over 25 years of experience across both public practice and industry. Earlier this year, she was appointed Director of Quality and Professional Standards at Kreston Global, a role she has taken on with great enthusiasm and expertise. Before this, she served as the Head of Audit and Assurance at Baker Tilly International, where she established a reputation for herself as a dedicated and innovative leader.
What drives as a senior role in the global accounting network? My key driver is the desire to help people – I work for the benefit of our member firms, so everything I do is to help them, ultimately to help them help their clients.
Do you think the sector welcomes females in leadership roles? Things have improved since I joined the accountancy profession some 25 years ago. When I was a trainee, I wasn’t even allowed to wear trousers at work! Thankfully, things have moved on a lot since then, and we are seeing far more female directors and partners and more women in senior leadership roles within the global offices of accounting networks. So I think it’s imperative to do all I can to encourage and enable the next generation of women moving up in the profession. We can all do that at every stage of our careers.
What qualities do you need to be a successful female leader in global accounting? Working internationally is a great privilege. People from different countries, cultures, and backgrounds have their perspectives and ways of working, and part of my role is to help bring those other ideas and views together for the benefit of the whole network. You need to be a good listener and have much humility – I have strong opinions but hold them very lightly, as I never know when someone worldwide will have a better idea or approach. A certain amount of diplomacy and patience is also needed – bringing people together and reaching a consensus can take time but is valuable to the organisation.
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be? Historically, many women believed they needed to work harder and be better than men to get ahead, and their drive to succeed may encourage them to take the risk to go global. Effective overseas expansion is always a collaborative effort, so since teamwork is a strength of many women, this statistic doesn’t surprise me.
There was a significant indication that existing networks were an attraction to overseas expansion in particular countries; why do you think female interpreneurs value this more than their male counterparts? Knowing that you have access to local knowledge and expertise through an accounting network is reassuring and gives confidence to interpreneurs to focus on what they do best.
What advice would you give your 28-year-old self? When I applied for trainee roles in accountancy, I was surprised at how many interviews I was offered. In the early part of my career, I would frequently underestimate my abilities and not push myself forward for promotions. The best advice I could give my younger self would be to have confidence in my abilities and to reach for the stars!
Read more from our other featured women for International Women’s Day, here.
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International Women’s Day: Mercè Martí Queralt
Each year on 8 March, the world observes International Women’s Day to acknowledge women’s accomplishments in various social, economic, cultural, and political fields. It is also an opportunity to advocate for gender equality and women’s empowerment. Kreston Global uses this occasion to highlight exceptional women within their network and gain their perspectives on what defines success as a woman in their organisation.
Mercè Martí Queralt is a highly experienced professional with over 30 years of expertise in auditing. As the Executive President of Kreston Iberaudit, Mercè plays a crucial role in representing Kreston Global in Spain, Portugal, and Andorra, and is responsible for driving the company’s expansion and internal development plan. Iberaudit is a leading audit network in the region, representing Kreston. Mercè’s exceptional leadership and strategic vision have driven the company’s success and cemented its reputation as a top-tier auditing firm in the area. With her extensive experience and deep knowledge of the industry, she continues to be an inspiration to her colleagues and a driving force behind the firm’s continued growth and success.
Why did you decide to run your firm? After several years as a Partner in a well-known consulting firm, I decided to leave to fulfil my objectives. Unfortunately, I needed more support to grow and consolidate the firm’s future, so I founded my own company. At that time, becoming part of the Iberaudit project had already been proposed to me, so I decided to join the two projects and create a firm in which quality was the central pillar and with international projection, from here to our integration in Kreston. When it came to assuming the executive presidency, the only condition I set was to have the unanimous support of the entire team. I did not want obstacles; I wanted to be supported fully in my efforts to lead the company.
What qualities do you need to run a successful accounting firm? There are many qualities that one must have to run any company successfully. Having the capacity for resolution and determination in decision-making is vital. The ability to adapt is fundamental, especially in auditing, where change is part of our routine. The curiosity to learn about a subject and expand knowledge to other spheres allows us to acquire a global vision and anticipate possible events. Last, good communication is essential to improve negotiation through active listening and enthusiasm.
How do you support equality in your firm? As Executive President of the firm, I am actively involved in all issues related to equality in general, participating in the development of internal policies that ensure genuine equality of opportunities within our organization in all processes: selection, promotion, and development of our professionals- regardless of origin, gender, age, sexual orientation, and ideologies. I participate in mentoring projects for women and try by my example to be a reference for all the professionals in my firm. On the other hand, I continually propose team meetings to learn about problems and suggestions, and from these initiatives, I implement actions that contribute to equality.
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be? Honestly, I wouldn’t just say it’s a gender issue, regardless of the results of the surveys. Instead, it is an entrepreneurial attitude—restless men and women who thirst for innovation. From my experience, after having been part of a prestigious auditing firm for more than 20 years, I understood that I had to take risks to improve and grow, and I believe that these actions speak of one of the entrepreneurial spirits that transcend gender. That entrepreneurial motivation gives us the courage to leave our comfort zone and take risks to grow, develop new businesses, and expand globally.
What advice would you give female entrepreneurs starting today, or would you give your 28-year-old self? The best advice I could give an entrepreneur starting today is to believe in herself, her goals, and her objectives. And that if she “falls, she should get up,” No matter how many times, you must persevere. All my work has paid off, and my efforts were worth it, but the most valuable thing that stands out is the experiences I have lived, which is the key to enjoying the road. Finally, I would advise you never to stop training, growing, innovating, and participating in congresses, meetings, and travelling; it is a vital learning process that allows you to analyse your surroundings in a more empathetic and global way that has helped me a lot, both personally and professionally.
To learn more about doing business with Iberaudit, click here.
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International Women’s Day: Erika Larsdotter Hed
8 March marks the annual celebration of International Women’s Day, dedicated to recognising the global achievements of women in social, economic, cultural, and political realms. It additionally serves as a reminder to take proactive measures towards promoting gender parity and empowering women. This year, Kreston Global has chosen to showcase several inspirational women from their network and gather their insights on what it means to be a prosperous woman within the organisation.
As the current CEO of Finnhammars Revisionsbyrå, a leading accounting firm based in Sweden, Erika Larsdotter Hed has played a crucial role in shaping the company’s reputation for excellence and dedication to customer service. Finnhammars was founded in 1983 to provide superior accounting services and build lasting client relationships. Today, the firm boasts 12 partners and a team of over 50 employees and continues to be known for its commitment to quality and personalised service. With her extensive experience and industry knowledge, Erika has been instrumental in the firm’s growth and success, having worked at Finnhammars for over 11 years. Her dedication to maintaining high standards and delivering exceptional results make her a valuable asset to the company and an inspiration to her colleagues.
Why did you decide to run your firm? It is an exciting challenge, and the firm has always been close to my heart, my family were even clients of the firm at one point. We have such a fantastic firm that from the very beginning put long-lasting relationships at its core, both clients, co-workers, suppliers etc. Something I am very proud of is that we have an average time of employment of nearly 15 years! It’s a lot of hard work and challenges for sure. However, to be able to be in a position where I can be a part of developing the firm is a huge motivating factor for me. We are now seeing a generational shift and I can contribute with leadership that suits the change in the organisation I am proud to be a part of representing and leading the firm into the next generation. I am also proud to, in some ways, be a representative for diversity which I firmly believe is something that creates an essential climate for sustainability.
What qualities do you need to run a successful accounting firm? Running a successful accounting firm requires a variety of skills. We have a fantastic team with strong technical expertise in accounting, tax, and auditing combined with business acumen. As I mentioned earlier, we put relationships at heart- we strive to be responsive to our client’s needs. I also see that being curious and willing to work to both maintain and develop the company’s culture is essential. A part of that includes looking at the bigger picture and to look ahead where a part of that is having an international perspective.
How do you support equality in your firm? We constantly work to recruit, attract, and retain strong female role models and it is going in the right direction. We strive to create a work environment that values diversity and encourages open communication, collaboration, and respect for different perspectives and opinions. We regularly review our policies and practices to ensure they align with our values of equality and inclusivity, but we still have work to do. Equality is a strategically important issue for the industry, and we, as well as many other firms in our industry, are struggling. The percentage of female partners in the accounting industry in Sweden is 29%. We can also see that 1% of all venture capital is invested in teams with only female partners. When you work in an environment with an unequal representation, it may not be as likely to see yourself as a partner in the long term, therefore it is our responsibility to emphasize that we see both women and men as future partners. We are proud to see a higher equal proportion when it comes to parental leave, where I believe we as a country have made some significant progress. You can roughly say that Swedish parents today get paid 80 % of their salaries up to 390 days and each parent has 90 of these days reserved for that person. We as a firm are seeing a more even distribution between the genders today compared to a decade ago. We as a business have a responsibility to our staff to combine private life with working life and a career in the auditing industry.
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be? The survey showed a 3% difference between the genders but also a 38% difference between the age gaps 31-40 compared to 51 and older. I find it easier to explain the difference in age compared to the variable of gender considering we live in an internationalized world where technology, the internet and communications all facilitates expansion overseas.
What advice would you give female entrepreneurs starting today, or would you give your 28-year-old self? Be yourself and be brave and find your own path. Our differences are our strengths.
To learn more about doing business in Sweden, click here.
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International Women’s Day: Annie Sun
Every year on 8 March, the world celebrates International Women’s Day to acknowledge women’s social, economic, cultural, and political accomplishments. It is also a time to take action towards achieving gender equality and empowering women. This year, Kreston Global aims to highlight some remarkable women within the organisation and gain their perspectives on what it takes to succeed as a woman in the network.
Annie Sun is a highly accomplished professional with nearly two decades of experience in accounting and statistics. She currently serves as the CEO of Brighture, a leading firm in China that specialises in providing expert accounting services to clients across various industries. Founded in 2003, Brighture has rapidly become a key player in the industry, thanks in no small part to Annie’s exceptional leadership and guidance. In 2015, the company joined the Kreston Global network, further cementing its reputation as a leading provider of accounting services in the region.
Why did you decide to run your firm? Being a professional, I want to help more entrepreneurs succeed.
What qualities do you need to run a successful accounting firm? To run a successful accounting firm, the endless selection of “professional, integrity and efficient” internal and external clients, namely colleagues and customers, helps.
How do you support equality in your firm? There are two main points:
Simple, transparent, unified corporate values and performance evaluation standards
Flat organisational structure.
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be? Female CEOs may be more focused on collaboration and resource integration.
There was a significant indication that existing networks were an attraction to overseas expansion in particular countries; why do you think female interpreneurs value this more than their male counterparts? The network can maximize the unity, service concept, and standards, which is a guarantee for both the company team and the clients.
What advice would you give female entrepreneurs starting today, or would you give your 28-year-old self? Attentively adapt to society’s development and clients’ needs, with professional expertise to help them achieve success and stability.
To learn more about doing business in China, click here.
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International Women’s Day: Carmen Cojocaru
International Women’s Day is celebrated annually on 8 March to recognise women’s worldwide social, economic, cultural, and political achievements. It also serves as a call to action to accelerate gender equality and women’s empowerment. This year, Kreston Global will showcase some inspiring women across the network and get their insights on what it means to be a successful woman in the industry.
Meet Carmen Cojocaru, a highly experienced professional in accounting, business process outsourcing, audit, and tax. As a certified accountant, financial auditor, and tax advisor, Carmen has amassed over 20 years of experience in the industry, making her a valuable asset to Kreston Romania, where she currently serves as the Managing Partner. Carmen’s journey in the accounting and tax field started in the early 90s, working for an Italian firm and later joining BG Conta SRL, which eventually became Kreston Romania. Since then, she has risen, becoming the manager in 2006 and the Audit and Accounting Partner in 2008. Carmen’s expertise and leadership skills have allowed her to coordinate a team of professionals while actively attending and participating in international workshops and conferences.
Why did you decide to run your firm? I have always had determination and a clear goal to be my boss and a leader of wonderful people. It was the combination of willingness to have extra freedom, flexibility, and satisfaction. So I took a chance on the ambiguous circumstances and decided to convey it into opportunity.
What qualities do you need to run a successful accounting firm? To run a business, a person needs many qualities: communication and negotiation, delegation and time management, networking, problem-solving, and of course, financial management. It’s one thing to run the business and another to grow it; to do so, a person has to communicate effectively, learn, and strategise. One critical skill is the ability to learn and adapt continuously. Otherwise, the business owner is definitely going to miss more opportunities.
How do you support equality in your firm? Equality is about ensuring that every individual has an equal opportunity, which I always knew and believed. Kreston Romania has two partners- Eduard Pavel and me. Both have been working together before becoming partners, so for us, it’s just the essential pillar of how things get done. Therefore there has never been any prejudice associated with equality. We have excellent professionals with unique backgrounds and acknowledge that from the beginning of the hiring. We have created and encouraged a safe work environment where people behave however they want. At Kreston Romania, we had apprenticeship programs with participants from Georgia, Greece, and Brazil – a young generation with totally different cultural and professional backgrounds. One of them has been with us since the end of the program.
We recently surveyed ‘interpreneurs’ – entrepreneurs looking to expand internationally. The data showed that female CEOs were more likely than males to consider expanding overseas. Why do you think this might be? As I mentioned, running a business is different from growing a business. Suppose a business person detects the potential for extending business activities. In that case, there is a high chance that the person is backed up with relevant data and has support from other partners (if there is/are such) and the team members. There are many factors to consider. For example, being an entrepreneur means taking more or less calculated risks, and maybe surveyed ‘interpreneurs’ were such entrepreneurial females more in quantity? I can only talk about my example, and at Kreston Romania, both partners are involved fully by putting out insights into any activity that may benefit the firm.
There was a significant indication that existing networks were an attraction to overseas expansion in particular countries; why do you think female interpreneurs value this more than their male counterparts? Existing networks undoubtedly hold a competitive advantage, and even the fact that those networks are on the market today, successfully operating, clearly indicates that they know how to do business. Every business person wanting to ensure the risks associated with overseas expansion wants some guarantee and risk mitigation. Foreseeing barriers is another essential quality that a business person needs, and I am glad if, according to the data, we, females, have that power.
What advice would you give female entrepreneurs starting today, or would you give your 28-year-old self? Dare to dream and maximize your potential. As with every beginning, you need courage and a little madness. As W. Churchill said: “Success is not final; failure is not fatal: It is the courage to continue that counts!” So, develop a growth mindset and clearly understand that people are different in every sense; without acknowledging that, it is impossible to lead others. Say YES more than you think you should, but be cautious. Most importantly, ladies, you are mighty and can do wonders. So, make it happen! Let the world be your oyster in your desired colour, size, and shape.
To learn more about doing business in Romania, click here.
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Investing in Asia Pacific
March 6, 2023
If you are planning on investing in Asia Pacific in 2023, Kreston Global has launched a comprehensive guide to expanding into the Asia Pacific region with the new publication, “Doing business in Asia Pacific”. This inaugural edition of “Doing Businesses in Asia Pacific”, written by Kreston Global experts within the region, offers invaluable advice on navigating the market requirements in this region, and setting up investors for success.
Kreston Global capabilities in the Asia Pacific region are both geographically and commercially diverse, with 21 exciting markets and locations, represented by 46 member firms with 146 offices and 6, 000+ professionals across the region, generating over US $490 million in fees each year.
Local experts advise on investing in Asia Pacific
The guide includes detailed features covering the economic outlook for 2023 and recommended sectors that are highlighted by local experts as ready for investment. Australia, China, Thailand and India are larger features, with summaries for New Zealand and Malaysia and plenty of advice on how to practically set up businesses in the region.
Peschaud International specialises in oilfield logistics services in extreme conditions and environments (rivers, lagoons, deserts, swamps). Specialising in rig moves since 1956, Peschaud International is providing its added value in all regions where climatic or geographic conditions make prospecting particularly difficult to operate. The company aims to provide all-inclusive solutions, including a qualified workforce and specialized equipment to resolve all transport, lifting, handling and lodging matters in remote areas.
Peschaud has operated for over 70 years in African countries such as Gabon, Yemen, Madagascar, Sudan, and other difficult areas such as Chad, Congo, Myanmar, Tanzania, and also in the U.A.E. Peschaud owns a large fleet of floating equipment such as crew boats, landing crafts, barges, and a large fleet of onshore logistics equipment across the African continent. Most recently, Peschaud International created a Maritime entity specialising in offshore solutions and has acquired a shipyard in South Africa “Via Maris” where vessels are being internally designed, built and operated.
Kreston provides audit services for Peschaud through our French firm, Kreston Groupe Conseil Union, in Paris, led by Ali Smaili, and for its two subsidiaries in Mozambique which also require statutory auditing of their Financial Statements. Kreston Mozambique was invited to submit a proposal to audit the two subsidiaries – Peschaud Mozambique and Sociedade Moçambina de Cabotagem “SMC vi” our French firm, which was successful – we now also handle their corporate tax matters.
Kreston Global welcomes new member firm in Bangladesh
February 24, 2023
Kreston Global has welcomed new Bangladesh-based firm Howlader Maria & Co., (HmAC) to the Kreston network.
Howlader Maria & Co., (HmAC) is one of the fast-growing Chartered Accountants firms in Bangladesh. Based in Dhaka, the firm offers audit, accounting, outsourcing, tax, foreign direct investment facilitation & business consulting services to international businesses and foreign subsidiaries based in Bangladesh and overseas. Regardless of the nature or size of the engagement, HmAC insists on the best quality services, working in clients’ best interests while upholding the firm’s values of integrity and professionalism. The people of HmAC are experts in their respective fields and take pride in their problem-solving approach to helping business by easing the challenges they face in doing business at home and abroad.
Howlader Maria & Co., (HmAC) was founded by renowned Chartered Accountant Maria Howlader. Prior to this, Maria was a partner for 11 years in A. Qasem & Co., Chartered Accountants, a member firm of Ernst & Young (EY).
The firm comprises 34 employees. The firm also offers a separate outsourcing service, back office support services for overseas and domestic clients needing help with accounting services such as accounts preparation, payroll and tax compliance – these business outsourcing solutions are provided through HmAC BPO.
Maria Howlader was Vice President of the Institute of Chartered Accountants of Bangladesh (ICAB) in 2021 and is currently a Council /Board member. She is also a Director on the Board of the Japan-Bangladesh Chamber of Commerce & Industry (JBCCI), and a frequent speaker on different forums and chambers in connection with taxation, doing business in Bangladesh and company law.
“We are very ambitious for growth in this firm and joining the Kreston network will accelerate this for us both locally and internationally. Being able to help our international clients connect and expand overseas in collaboration with our network colleagues will be hugely beneficial for our future growth and success. I am excited to begin our journey together.”
Liza Robbins, Chief Executive of Kreston Global, said:
“Kreston is delighted to have Maria Howlader join our network as they have such an entrepreneurial mindset which fits beautifully with our Kreston culture and client profile. Our Asia Pacific region is going from strength to strength as a result of Kreston’s collaborative and dynamic firms.”
To learn more about doing business in Bangladesh, click here.
News
Brighture newsletter February 2023
February 14, 2023
Kreston firm, Brighture, shares their expertise in their latest February 2023 newsletter covering financial news and updates from China.
The latest James Cowper Kreston Finance Update newsletter for February 2023 is here.
The UK-based firm has released an easy-to-digest finance update newsletter, highlighting the key issues that affect businesses from the start of this year. In addition, it offers a helpful summary of the most recent economic developments in the United Kingdom, giving global readers the key headlines impacting businesses this month. Including insight on the energy support bill reductions and interest rates raised to the highest level in 14 years, the February financial update is a bite-sized version of the UK economic landscape.
There is also an opportunity to register for their upcoming seminar on Tuesday, 21 February. The free, 45-minute seminar, “Managing Businesses in Uncertain Times – Directors’ Responsibilities,” will welcome specialists to discuss what Business Directors should understand regarding their responsibilities and obligations and provide insight into how to mitigate risks they may face while navigating the UK’s challenging economy.
To find out more about James Cowper Kreston, click here. Click here to read the James Cowper Kreston newsletter in full.
News
BANSBACH growth in Lake Constance region
February 8, 2023
BANSBACH has acquired strong partners in the growth region of Lake Constance, with Dr. Altmann in Überlingen, the tax consultancy firm Böttinger in Frickingen-Altheim and Bodensee Treuhand GmbH Wirtschaftsprüfungsgesellschaft, effective 1 January 2023.
With a total of 35 colleagues, WP/StB Dr. Michael Altmann and WP/StB Wendelin J. Böttinger will manage their respective locations and, together with StB Olaf Gläser, will be responsible for the development of the Lake Constance region. Bodensee Treuhand will provide auditing services alongside BANSBACH GmbH. This merger enables BANSBACH to offer its comprehensive advisory services in the Lake Constance area, with continuity through regular contacts and personnel. Services include bookkeeping, preparation, and auditing of annual financial statements, accounting and audit-related consulting services, national and international tax and legal consulting, transaction services, and business consulting services for CFOs.
For more information on the ongoing BANSBACH growth and doing business in Germany, click here.
The article in Compliance Week outlines how the European Union is set to shake up corporate reporting on environmental, social, and governance (ESG) goals by introducing new regulations. Companies are being urged to use 2023 to prepare for these changes and stakeholders’ expectations.
Regulators in the EU have been increasingly vocal about the need for companies to act more sustainably and report their actions and progress in achieving ESG goals in a more meaningful and transparent manner. Last month, the EU agreed to pass legislation to do just that.
Action
The Corporate Sustainability Reporting Directive (CSRD) will introduce more detailed reporting requirements for large and listed companies on non-financial areas such as environmental impacts, social rights, human rights, and corporate governance. The directive will ensure that sustainability information will sit alongside financial information and be audited, which means that the initial compliance cost for companies could be significant as the amount of data that needs to be collected will likely increase, along with the number of people involved in the integrated reporting process.
The CSRD will apply to large companies already covered by the EU’s non-financial reporting directive from 2025 and other companies incrementally year-on-year through 2029, depending on their size and/or revenues. For the 2025 financial year, companies with a net turnover of 40 million euros (U.S. $42.5 million) or more, at least €20 million (U.S. $21.2 million) in assets, and 250-plus employees will need to report. Around 50,000 organizations in the European Union or with EU-based subsidiaries will need to comply.
CSRD Updates
In a Nov. 9 speech, Mairead McGuinness, European commissioner for financial stability, financial services, and the capital markets union, said, “For the first time …we are putting sustainability reporting on an equal footing with financial reporting.” She added that the final text of the CSRD provides a good basis for alignment with the EU’s proposed Corporate Sustainability Due Diligence Directive, which is currently being negotiated between the European Commission, European Parliament, and the European Council and aims to further improve long-term corporate governance.
On Nov. 23, the European Financial Reporting Advisory Group, which provides technical advice to the European Commission, submitted its first draft of CSRD standards, which the commission must review/amend before making them available for public consultation in the spring. Under the 12 standards, companies would be required to publish comprehensive and comparable information about their sustainability, from their environmental impact regarding pollution, climate change, and biodiversity to workers’ rights, communities affected by their operations, and the impact on customers.
Stuart Brown, Kreston Global ESG committee member was invited to comment, stating he felt that businesses should not feel overwhelmed by the new compliance directive, but see it as an opportunity to assess their own ESG risks.
Get in touch to discuss your ESG reporting with one of our experts.
News
Kreston Global welcomes new member firm in Uganda
January 4, 2023
Kreston Global has welcomed a new member firm in Uganda to the network.
Kreston HM (formerly Nexia HMS ) focuses on providing audit, accounting services, and tax advisory and was founded by managing partner Hitesh Mehta, in 2005. Based in Kampala, with another office in Jinja, the firm has 3 partners and 45 staff and has rebranded as Kreston HM to take advantage of the extensive global reach of the Kreston network.
Hitesh Mehta, Managing Partner at Kreston HM, said:
“We are very pleased to be joining the Kreston network and becoming part of its highly-active African region, as well as an extensive international network. We are looking forward to becoming Kreston HM and are excited about the future.”
“Kreston is delighted to welcome Kreston HM to the network to drive the continued growth of our Africa region. They are one of many new firms joining the network and extending our worldwide footprint. We look forward to helping them connect with our members across the network as they explore new opportunities both at home and globally.”
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