Opinion – Balancing income and expenditure.

Opinion - Balancing income and expenditure.

It is ironic that one of the leading accountancy professional bodies has financial troubles.

The ICAEW has some tough decisions to make as it attempts to balance its budget – and it seems that services that members do not value will go.

Which services these are remains to be seen, and undoubtedly all are seen as valuable by some.

A simple solution would be a modest increase in membership fees. Bringing the fee up to #200 would bring in an extra #4m a year – more than enough to put the finances on an even keel.

But this is perhaps too simple and too obvious.

On an individual basis, the extra #33 might not seem that much, but for a Big Five firm, collectively this would be a pretty large bill.

And the Big Five probably get the least out of the institute as they are large enough to stand on their own and represent their own interests.

The incoming president, himself a PwC man, might have difficulty in justifying the increase to his own constituency.

So what choices are left? Where should the axe fall? ‘Reprioritisation’ is a word that has been used to describe the budgeting process, but that inevitably means some services will be deemed to be less of a priority.

But the bottom line is that there is a mismatch between the institute’s income and expenditure.

Of course it should manage its expenditure so it provides focused, relevant services. But is it too much to charge more for what Moorgate Place itself calls a world-class, leading qualification?

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

1y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

1y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

1y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource