We are pleased to announce that PKF Sridhar & Santhanam LLP, the firm PKF cooperates with in India, has been retained by ICRISAT (International Crops Research Institute for Semi Arid Tropics), an international non-profit organisation that undertakes scientific research for development across sub-Saharan Africa and South Asia.

The firm has been retained to help draft and revise specific IT policies for the organisation. While this is a short engagement, we hope to build on this endeavour for more opportunities going forward.

Founded in 1970 by FAO and the United Nations Development Programme, ICRISAT’s mission is to reduce poverty, malnutrition and environmental degradation in the dryland tropics and is based in Hyderabad, Andhra Pradesh.

The firm would like to thank Mahesh K V and Pankaj Jhawar for their help with achieving this new venture.

Find out more about PKF India
Find out more about ICRISAT

PKF South Africa has launched a bespoke cloud accounting solution, PKF Ignite. The product is designed to be accessed anytime, anywhere, on any device, for maximum convenience, with a team of experts on hand to provide analysis and simplify key financial information. The offering gives business owners back control so that they can make informed decisions based on real-time information.

The platform comprises a range of services which have been packaged in an all-in-one monthly subscription, based on value, with no added costs and no surprises. The services include payroll, bookkeeping, invoicing, budgeting, tax compliance and the compilation of the annual financial statements and much more, providing on-the-go access to the user’s financial information. It allows for real-time reporting using built-in dashboards, giving the client meaningful financial information. The offering is suitable for a wide range of businesses, from sole proprietors and privately-owned businesses to large corporations with multiple branches.

PKF Ignite has partnered with leading technology providers to ensure all their clients’ needs are met. Xero, with whom PKF South Africa is a gold partner, is their main platform. Other partners include Receipt Bank, Futrli, Bridgement, PaySpace and SimplePay.

Nicole Rousseau, Head of PKF Ignite, commented saying: “By using technology platforms, we as financial advisors can spend less time on data capturing and invest more time in relationship building by providing our clients with value added services. Our PKF Ignite philosophy is to ‘Go Digital, Stay Personal’.”

Find out more about PKF Ignite
Find out more about PKF South Africa

 

PKF Econometrica wins at top accounting and law firm awards

We are delighted to announce that PKF Econometrica in Romania has been chosen as the top accounting and law firm in the Romanian county of Timis for the eighth consecutive year. PKF Econometrica and PKF Tax Partner Timisoara were recognized in the Top Firms Awards, which are organised by the Timis Chamber of Commerce.

Carmen Mataragiu, Managing Partner, commented saying: “After more than 21 years of activity in the accounting market we are pleased to share the news of our success and to thank our team and the PKF International family for their support during these years. Being the first ranked (PKF Econometrica) and third ranked (PKF Tax Partner) accounting firms in the county obliges us to demonstrate that those years were not an accident, but a constant in the quality of our work.”

Find out more about PKF Econometrica
Find out more about the Timis Chamber of Commerce

PKF Econometrica recognised as Ambassador of Excellency

As a result of the firm’s involvement in the charity sector and social events in Timis, PKF Econometrica was elevated to Ambassador of Excellency, receiving the ‘Carta Honoreum’ granted by the Conseil of Excellency, formed of the Romanian Academy and the Universities of Timisoara and MNLP.

Carmen Mataragiu, Managing Partner, commented saying: “We believe that taking part in charity and social events is essential for our community work around all areas of charitable activity, both for supporting social causes as well as promoting talent and excellency.”

Find more about the event

New PKF branch opens in Romania

In October 2019, PKF Econometrica in Timisoara opened a new office in Cluj Napoca, Romania, after an accounting firm acquisition.

The Cluj Napoca office has 25 staff and provides bookkeeping, financial audit, internal audit, tax advising, valuation and corporate finance services.

 

Pen (penetration) testing is the practice of testing a computer system, network or web application to find security vulnerabilities that an attacker could exploit. Member firm PKF Audit Azerbaijan now offers this service, making use of the unique expertise of local cybersecurity specialists.

The customer base for pen testing mainly consists of banks, financial institutions, payment processing centers and state organizations, because these types of organisations have mandatory requirements imposed by their respective regulatory authorities.

PKF Audit Azerbaijan has worked with many such organisations, and its largest clients so far have been Kapital Bank (largest regional bank), Komtec (largest regional payment processing center), and Premium Bank, amongst others.

PKF Audit Azerbaijan is helping to expand PKF’s knowledge base and customer base by sharing its expertise in pen testing for joint projects with PKF offices in the CIS and Middle East. The firm also offers training to other PKF firms after several projects, so that they develop their own expertise to carry out this type of work.

Competitors are mainly mature IT integrator companies with focus on cybersecurity (of which there are few, in the CIS there are only two such companies – JET InfoSystem and Solid Lab) and the Big Four.

PKF’s fees for this work varies from $8K to $60K, while the cheapest competitor’s price on average starts from $17K. The result is an audit report with a summary of issues discovered, with recommendations provided so that the customer can improve their cybersecurity procedures. This work can be carried out annually or semi-annually in order to rotate the auditor. A quarterly procedure is also offered where there is a large volume of data and greater risk exposures.

Find out more about PKF Audit Azerbaijan

Felix Pedrosa, Managing Partner of our member firm in Barcelona, PKF Audiec, has been named Auditor of the Year by the Registro de Economistas Auditores (REA). The award was presented at a ceremony during the REA’s 10^th anniversary of its annual Audit Meeting in Madrid.

The REA is a specialised body of the General Council of Colleges of Economists, created in 1982, to promote audit work in Spain, and is the representative of the professional corporation of economists-auditors in the region.

The Auditor of the Year award is one of the most important awards in Spain, providing recognition of everything an individual has done over a long period of time to benefit the profession. It demonstrates an individual’s dedication and contribution to the marketplace.

PKF would like to congratulate Felix on a very well-deserved win.

Find out more about PKF Audiec
Find out more about the REA

Section 6B of the Income Tax Act 58 of 1962 provides for a rebate known as Additional Medical Expenses Tax Credit (“AMTC”) for qualifying medical expenses that were not covered under the taxpayer’s medical scheme or by an insurer under a medical gap cover insurance plan during the relevant year of assessment. 

In circumstances where a taxpayer or dependant is entitled to claim an AMTC for disability expenses, the disability must be confirmed by a duly registered medical practitioner through the completion and endorsement of a Confirmation of Diagnosis of Disability (“ITR-DD”) form. 

More recently, SARS has amended and published an updated ITR-DD form wherein part A of the form must be completed by the person with the disability and part B, C and D must be completed by the duly registered medical practitioner. In alignment with the criteria stated in the form, the medical practitioner will confirm whether the disability is moderate to severe.

 

Validity of a completed and endorsed ITR-DD form:

If the disability is of a permanent nature and the disability remains moderate to severe:

• Ten years where the disability has occurred for the first time on or after 01 March 2019.
• Five years after the expiry date of the form, which was valid on 01 March 2019, where the disability had occurred for the first time before 01 March 2019.

If the disability is not of a permanent nature:

• One year from 01 March of each year of assessment, where the disability is not of a permanent nature.

The taxpayer can claim the AMTC in his or her annual income tax return (ITR12) but is not required to submit the ITR-DD form with the income tax return. The form should, however, be kept on hand should SARS request it in the event of an audit or a verification.

   

Please consult your PKF Partner should you require any assistance in relation to the above.

PKF Thailand has certified seven LucaNet Professionals, meaning that that all the Lucanet Certified Professionals in Thailand now work for the firm, and that the majority of LucaNet Certified Professionals in South East Asia also work for PKF Thailand.

The individuals were certified following one week of training and passing a six-hour exam. This is part of a wider initiative linking three continents, together with PKF Mueller CPA in Chicago, USA and PKF Munich in Germany.

LucaNet provides financial performance management software, to aid consolidation and reporting for finance departments. It is used in over 50 countries and has more than 25,000 users, and was named market leader in the BARC Score for Financial Performance Management 2019.

Andrew McBean, CEO of PKF in Thailand, commented, saying: "This is a fantastic result from our team in Thailand! We fundamentally believe that technology adds incredible value to our clients and efficiency for us and so we are proud to lead from the front as we grasp the opportunity offered to our clients and to us by Digital Disruption. This is part of a wider initiative too, linking three PKF offices across three continents to offer multinational companies these vital and important services.”

Find out more about PKF Thailand
Find out more about LucaNet

PKF held its annual Global Gathering meeting in Rome on 17 – 20 September. The event was a huge success, with over 200 PKF member firms from all over the world coming together in one of Europe's most spectacular cities. They all had one shared objective; to develop and foster new business opportunities.

This year’s meeting also marked a very important milestone for PKF - our 50th anniversary. We took the opportunity during the meeting to reflect on the success of the network over the years, which is entirely down to our people. ​We would like to thank everyone who attended the 2019 Global Gathering and 50th anniversary celebrations.

Highlights from the meeting included:

• Umberto Giacometti, PKF Italia Chairman and EMEI board member, who made a speech welcoming everyone to Rome
• Technology futurist, TEDx speaker and Forbes contributor Ian Khan, who discussed the impact that technology will have on our daily lives
• Paul Smith, Client Partner at Odgers Interim and Odgers Connect, who spoke on the topic 'Without the right talent, your firm and your clients will not have a tomorrow'.
• Gillian Fischer of Mindbridge Ai, who discussed ‘How to lead complex change when adopting AI technologies'
• CEO James Hickey, Director of Global Marketing and Communications Ali Hayes and Promontory’s Scott Garrett spoke about how PKF plans to lead our profession into an exciting new era
• LucaNet and PKF Munchen discussed 'how to add value to your client offering and explore further opportunities for collaboration'
• Paul Richmond, The Grogroup, spoke about 'creating client relevant go-to-market offerings driving greater business value'
• Phil Stubbs, Guildhatch, led a session on how to develop your social media presence in order to have a positive impact on your business.

In addition, the conference offered a fun run, a pre-conference tour of the Vatican City, dinners at the Cavalieri Hotel, Taverna de Mercanti, a Gala Dinner at Vila Miani, and a visit to the Papal Palace and Castel Gandolfo.

 

 

 

 

 

Leading accountancy practice, PKF-FPM, part of the PKF International network, with offices north and south of the Irish border, proved again to be leading their sector when awarded two of the most sought-after honours at the British Accountancy Awards Gala, which took place on 25 September 2019 in Grosvenor House Hotel, London.

The magnitude of taking home these awards, namely Mid-Tier Firm of the Year and Best Employer compliments recent Irish honours bestowed to PKF-FPM for Industry Excellence – Large Firm of the Year. This UK and Irish excellence enables PKF-FPM to guide businesses through Brexit, understanding their needs on both sides of the Border.

The British Accountancy Awards 2019, hosted by Sean Lock, saw its largest number of entries yet.

On receiving the awards, PKF-FPM Managing Director, Feargal McCormack commented, ‘It’s a significant honour to be recognised as the UK’s Best Mid-Tier Firm for three years running. We attribute this accolade, alongside the Best Overall Employer in Accountancy recognition, to our passionate Team in PKF-FPM, who work tirelessly to exceed client expectations and provide best in class solutions.’

PKF-FPM were represented at the awards by a cross section of team members, including: Feargal McCormack, Teresa Campbell, Ashok Thomas, Caroline Preston and Ciara McFerran.

Find out more about PKF FPM

Find out more about the British Accountancy Awards

PKF member firm Hutchinson and Bloodgood LLP, a leading Certified Public Accounting and Consulting Firm serving California for 97 years, is pleased to announce that five members of the firm have been promoted to Partner.

Susy Galloway, CPA, El Centro – Susy Galloway joined Hutchinson and Bloodgood LLP in 2003. She works on a range of engagements in various industries both in the international and domestic fields, such as manufacturing, agricultural, construction, hospitality, medical and service industries. She is a graduate of the Autonomous University of Baja California with a Bachelor of Science in Accounting. She obtained her California CPA license in March of 2006.

Luba Kvitchko, CPA, Glendale - Luba Kvitchko joined Hutchinson and Bloodgood LLP in 2007. Ms. Kvitchko has extensive experience in providing accounting, audit, and business consulting services to small and medium size businesses, as well as significant experience in auditing financial statements in accordance with PCAOB standards. Ms. Kvitchko’s areas of expertise also include SOC engagements; she holds an Advanced SOC for Service Organizations certification from AICPA. Ms. Kvitchko graduated from California State University, Northridge with a Bachelor of Science in Accountancy (Magna Cum Laude) and a Master of Science in Taxation.

Leah LeLoup, CPA, San Diego – Leah LeLoup joined the firm in 2010. She works with a variety of industries including software, bio-tech, alternative energy, professional services, and real estate. She specializes in international tax compliance for both domestic and inbound foreign companies as well as individual tax returns with a focus on US expats and those who are new to the U.S. tax system. Ms. LeLoup is a graduate of UC Santa Barbara with a Bachelor of Arts in Economics & Accounting, and Psychology.

Kimbra Said, CPA, Watsonville – Kim Said joined the firm in 2012. She provides audit, tax and attest services for nonprofit organizations, HOA’s, pension plans and various other nonpublic industries. Ms. Said is a graduate of California State University, Monterey Bay with a BS in Business Administration and Management.

Sue Son, CPA, Glendale - Sue Son joined Hutchinson and Bloodgood LLP in 2008. She provides tax services to various types of individuals and businesses, including consolidated, multistate, and foreign entities, trusts, and nonprofit organizations. She is an expert at dealing with the IRS and Franchise Tax Board, as well as other state agencies, dealing with a wide range of tax issues, from payroll to penalties and collections. A graduate of the University of Southern California (B.S. Accounting), Ms. Son also holds a Master of Business Taxation from the USC Leventhal School of Accounting.

Richard Preciado, Hutchinson and Bloodgood LLP’s Managing Partner, commented:

“We are extremely pleased to see the admission of these highly capable and talented people to Partner. They have distinguished themselves as leaders and are tremendous assets to our Firm. Each of these appointments will keep the firm on its path of long-term success and increased customer value.”

We are excited to announce that our PKF UKI network has been listed number 10 in Accountancy Age’s ‘Top 50 + 50 Accountancy Firms 2019’. Firms listed are ranked by total UK fee income for the last financial year.

We attribute this success to our UKI firms achieving a fee income of £140 million in the year to May 2019.

Accountancy Age is the UK’s leading accounting and audit publication. It celebrates excellence in the sector with the publication of firm and individual rankings, including the annual listings. The publication also holds the British Accountancy Awards, which pinpoint professional development and exceptional achievement in practice and industry across the UK, and at which PKF UKI member firm PKF FPM won two awards.

Find out more: https://www.accountancyage.com/rankings/top-5050-accountancy-firms-2019/

PKF International has strengthened its global coverage with the admission of Aspiration Kazakhstan as a member firm in the Republic of Kazakhstan.

Aspiration Kazakhstan, based in Almaty, has three partners and provides a full range of assurance, tax and advisory services to both private and public companies across a range of sectors. The partners have many years of experience at BDO Kazakhstan. This addition expands the PKF network’s presence to cover the Republic of Kazakhstan, a dynamic and fast-growing market in Central Asia.

Aspiration Kazakhstan has rebranded as PKF Kazakhstan with effect from 1 September.

PKF International CEO, James Hickey, said: "We are really pleased to welcome Aspiration Kazakhstan to the PKF International network as we continue to expand and strengthen the PKF brand. Aspiration Kazakhstan fits well with our value proposition of Quality with Integrity, and also meets our strategic objective of global coverage with quality firms".

Ilyas Kultasov, Audit Partner at the firm, commented: “PKF is a respected and widely recognized brand in global accountancy and this key strategic move reflects the growing importance of supporting our clients as they expand internationally. Every company wants to provide excellent service, that is why we relate very strongly to the PKF International network’s values of quality, independence and responsiveness, and its strong focus on people and customers, which drive modern business and create partner, colleague and client loyalty. It is a great fit for us.”

Semyon Berezhnoy, Accounting and Outsource Partner, also commented, saying: “I really like the words of Peter Drucker that “Whenever you see a successful business, someone once made a courageous decision.” And today we can be proud of this decision that ensures our forces will become part of the PKF International network. We’re also delighted that our efforts will be directed alongside PKF International’s productive team to develop and sustain a brand that people trust.”

Congratulations to Danielle Supkis Cheek, Director at PKF Texas, who has been recognised in the 2020 “40 Under 40 in the Accounting Profession” awards from CPA Practice Advisor. This is the seventh year that Danielle has been named as an honoree in the list.

The awards spotlight leaders in the field who are visibly and incrementally changing the accounting profession through their innovative thinking, collaborative efforts to provide unity to the profession, and community outreach which extends the visibility of the profession outside the workplace. They are compiled annually by CPA Practice Advisor, a print and online technology media outlet for practicing public accountants and tax professionals, which is regarded as the definitive technology and practice management resource in the industry.

PKF Texas’s Chief Growth Officer Byron M. Hebert commented, saying: "In an unusual time where leadership and innovation are needed, Danielle truly shines. She is forward-thinking and always has a keen eye on the future for our firm, as well as the accounting profession, and we’re proud to see her receive this award for another year."

Find out more about the awards
Find out more about PKF Texas

We’re delighted that PKF Australia has been ranked as one of the Top 100 accounting firms in the region by Australian national publication, The Australian Financial Review. The firm’s growth is highlighted via some excellent press coverage within the paper.

The article appears on the accounting and consulting page, in a piece that features just two firms out of the top 100, with PKF being one of them. The reporter writes: “While 14 of The Australian Financial Review Top 100 Accounting Firms recorded negative growth last financial year as the recession hit, two network firms with branches in multiple cities were able to more than offset losses in COVID-19-ravaged cities such as Melbourne with stronger results elsewhere.”

Within the article, it is noted that PKF Australia increased its revenue by 8.7 per cent for the 2020 financial year to hit $125.6 million and also appointed seven new partners across its offices, in a year where roughly half of the Top 100 firms did not appoint new partners. The article includes a chart showing a revenue breakdown and gender balance of the firm’s partners, as well as the mix of services PKF Australia offers.

PKF Australia CEO and chairman Norm Draper is quoted, saying "We have had the ability to be agile in our respective markets, pivot and react really quickly and differently, whilst always having the support of the firms in the network. Our people drew confidence from seeing decisions made and actions taken fast as we moulded the model to work with the market."

Read the article
Find out more about PKF Australia

Norm Draper, PKF Australia CEO and Chairman

PKF International takes great pride in welcoming PKF-IFS Mongolia (formerly Integrated Financial Services) to the network.

PKF-IFS Mongolia was established in 2003 by a group of accomplished professionals to provide tax advisory services. The firm is one of the leading accounting, taxation and business consulting firms in Mongolia and is located in the heart of downtown Ulaanbaatar.

Amarbayasgalan Tamir, Managing Director of PKF-IFS Mongolia, commented: “The membership of PKF International will give us an edge to provide high quality professional services in assurance, tax and payroll in this fast growing market”.

PKF International CEO, Theo Vermaak, said: "We are really pleased to welcome PKF-IFS Mongolia to the PKF family as we continue to expand and strengthen the PKF brand. PKF-IFS Mongolia fits well with our value proposition of quality with Integrity, and also meets our strategic objective of global coverage with quality firms.”

PKF International welcomes the new firm to a network of over 20,000 professions operating in 150 countries across the word.

To find out more about PKF-IFS Mongolia, visit here.

Amarbayasgalan Tamir, Managing Director of PKF-IFS Mongolia

PKF International and our member firms across the globe are proud to support World Mental Health Day on 10 October.

The theme for this year is ‘mental health for all, greater investment – greater access’. It’s an interesting choice of words, which will mean different things to different people.

For me, as CEO of an international professional services network, it makes me think about how supportive our member firms have been, and will continue to be, of their clients and all the communities and stakeholders that they impact upon – as well as what more we all need to do.

The world has been turned upside down this year, hitting both economies and societies. We’ve seen confusion, fear and loneliness, and working and social patterns have changed immeasurably.

Our accountancy and professional services firms are built around supporting their clients, and lockdowns around the world earlier this year saw our member firms providing emergency support to their clients from both a technical and personal perspective.

But those firms needed to support their own people as well. A huge effort was made to help them work away from the office environment while ensuring that they were kept physically safe. Mental health is not a separate issue: it is integral to a healthy and productive working world.

Some of this support has understandably been reactive. In extreme times, I like to think that everyone within the network has stepped up to do what’s required.

But there are initiatives that have been put in place that will continue beyond this pandemic, certainly if some of the changes made in the way we work and collaborate are permanent. For example, PKF Littlejohn has introduced weekly yoga sessions and mental health awareness training for the team. PKF Bredin McCormack Rewcastle has set out key questions for people to reflect upon, plus a phone number if they need help. Virtual medical camps are being set up for the whole East Africa Region where medical experts speak to staff about mental health, and we see a growing number of firms implementing mental health first-aiders.

Mental health doesn’t discriminate. We can all suffer mental ill-health. The drivers may be different, but we are all vulnerable. So, when I think about ‘mental health for all’, ‘investment’ and ‘access’, I think about our people reaching out to ask their clients ‘how are you?’ and ‘what can we do to help?’.

And I would hope to see those questions asked of our own people as well. We must look after those we work for and those we work with.

Finally, we must feel empowered to care about our own mental health, too. To say that we’re ‘not OK’, ‘I’m unhappy’ or ‘I need help’ takes strength and bravery.

As an international organisation, we must take time for individuals and their personal circumstances – now, it’s more important than ever.

Theo Vermaak, PKF International CEO

#TeamPKF #WorldMentalHealthDay #mentalhealth
World Mental Health Day (WMHD) is on Saturday 10 October

We are pleased to announce that our US based member firms BPBCPA and PKF Texas have achieved recognition once again this year from two industry bodies: INSIDE Public Accounting (IPA) and Accounting Today, in association with Best Companies Group. BPBCPA was ranked in the Top 50 Accounting Firms by the IPA, while PKF Texas was ranked in the Top 200 Accounting Firms, and also named a “Best of the Best Firm” by the IPA, and ranked at number 24 in Best Companies Group’s / Accounting Today’s “Best Accounting Firms to Work For”.

The IPA provides resources to support the accounting profession, producing a monthly practice management newsletter, annual national practice management benchmarking reports, firmwide culture assessment and corresponding reports and training. IPA’s goal is to assist accounting firm leaders in making their firms more efficient, growth-minded, profitable and forward-looking. This is IPA’s 30th annual survey and analysis of firms, and this year, more than 540 firms were eligible for this accolade. The top performers within the accounting profession were ranked on more than 50 metrics, and the “Best of the Best Firms” list produce superior financial results while planning for long-term, sustainable growth.

Accounting Today is a leading industry publication, focusing on tax law, accounting standards, technology, audit and assurance, and wealth management, and reaching over 325,000 professionals across the full breadth of public accounting, ranging from sole practitioners to the Big Four firms. Each year, Accounting Today and Best Companies Group select the Best Accounting Firms to Work For, over various categories including large and midsized firms.

Commenting on the firm’s 20th appearance on the IPA list, Joseph L. Saka, CEO of Berkowitz Pollack Brant said: “Making the Best of the Best list is one of our firm goals every year. We are appreciative of all of our firm members’ contributions to this success.”

Chief Growth Officer at PKF Texas, Byron Hebert, CPA, CTP commented on the firm’s rankings and award: “It is a tremendous honor to be named among the top firms in the nation. At PKF Texas, we strive for continuous growth, so it’s rewarding to see our ongoing efforts recognized.”

Sonia Freeman, CPA, CGMA, Chief Culture Officer at PKF Texas, also commented on the Accounting Today accolade: “Being named as one of the Best Accounting Firms to Work For again is rewarding. At PKF Texas, we invest in our team members’ professional and personal development, at all levels, and we are honored to be recognized for our efforts.”

Find out more about PKF Texas
Find out more about BPBCPA
Find out more about INSIDE Public Accounting
Find out more about Accounting Today
Find out more about the Best Accounting Firms to Work For initiative

(Left to right) Joseph L. Saka, CEO of Berkowitz Pollack & Byron Hebert, Chief Growth Officer at PKF Texas

We’re delighted that New Zealand member firm PKF Bredin McCormack Rewcastle has been recognised by Global Advisory Experts (GAE) in its new GAE Awards programme as 2020’s Business Advisory Firm of the Year in New Zealand.

As the premier guide to locating specialist consultants and advisers for the services required by businesses, investors and individuals around the world, GAE is the only organisation to recommend just one expert in each chosen specialism and country. With more than 70,000 users visiting the GAE and GLE (Global Law Experts) websites each month, the organisation also produces an annual handbook and various guides containing specialist reports for each chosen jurisdiction. Since 2010, the GLE Annual Awards have celebrated excellence, innovation and performance across a wide array of legal communities. As of last year, the GAE Awards were also launched – to place the focus on advisory and consulting experts.

PKF BMR’s Director and Head of Tax Jono Bredin commented on the award, saying: “We’re absolutely delighted to be acknowledged and awarded the Business Advisory Firm of the Year in New Zealand. At PKF Bredin McCormack Rewcastle, we’re constantly looking for ways to improve our services to our clients through new educational initiatives, additional services, technology applications and value for money. We’ve moved away from a legacy-style firm towards a modern accounting firm approach, realising that compliance is not the way forward if we wish to grow as a business. Our core purpose is ‘Shaping ongoing success’ - that applies to our client’s success, as well as our own.”

Find out more about Global Advisory Experts
Find out more about PKF BMR

 

PKF International takes great pride in welcoming The Doty Group to the network. Located in the heart of downtown Tacoma, The Doty Group is a leading accounting and advisory firm in the greater Seattle area.

Led by shareholders Paul Doty and Shelley Drury, the firm traces its heritage back to 1918 and was the first CPA firm, Busch & Webb, in Tacoma. Today, they continue the trend of being unique in the area by going beyond typical compliance offerings to serve as a strategic partner for business owners. The team at The Doty Group consists of professionals offering full-service solutions within the practice areas of Tax, Audit, Accounting Services and Litigation and Valuation.

Paul Doty, Managing Partner of The Doty Group, commented: “The Doty Group is honored to be welcomed to the PKF International network. Our mission has always been to improve the well-being of our people, clients and community, so we are thrilled to be expanding that mission internationally. We are looking forward to collaboration within the network, as well as making contributions to the strengths and resources of the PKF brand.”

PKF International CEO, Theo Vermaak, said: "We are really pleased to welcome The Doty Group to the PKF family as we continue to expand and strengthen the PKF brand. The Doty Group fits well with our value proposition of quality with integrity and also meets our strategic objective to recruit firms in key economic centers.”

PKF North American Chairman, Kevin Keane of PKF O’Connor Davies, commented: “It is with great pleasure that we announce the joining of The Doty Group to PKF International. Paul and his team bring a wealth of knowledge and experience to PKF and will be a great addition to our membership.”

PKF International welcomes The Doty Group to a network of over 20,000 professionals operating in 150 countries across the world.

Find out more about The Doty Group.

 

PKF International takes great pride in welcoming PKF Korea (formerly Seo-hyun Accounting Corporation) to the network.

PKF Korea is one of the leading audit and consulting firms in Korea with offices in Seoul, Gwangju, and Busan. The firm has a team of 36 partners and over 200 professionals who deliver ‘one-stop’ services to their clients, based on in-depth knowledge and experience on a broad range of accounting, audit, tax, and consulting areas.

Andy An, CEO of PKF Korea, commented: "As a member firm of PKF International, we will be able to provide valuable professional service lines in Assurance, Tax and Consulting to our companies with foreign investments, as well as domestic companies with their sights on overseas expansion. We will do this through positive collaboration with the firms within the network.”

PKF International CEO, Theo Vermaak, said: "We are really pleased to welcome PKF Korea to the PKF family as we continue to expand and strengthen the PKF brand. PKF Korea fits well with our value proposition of quality with integrity, and also meets our strategic objective to recruit firms in key economic centres.”

PKF International welcomes the PKF Korea to a network of over 20,000 professions operating in 150 countries across the word.

To find out more about PKF Korea, click here

We’re delighted to announce the launch of PKF Advisory, a new firm in North America, conceived by the North American Board of PKF International. This exciting new venture has been featured in leading accountancy publication Accounting Today.

The concept behind the new firm is to provide an integrated team of highly credentialed and intensely knowledgeable professionals to free business leaders from distraction and disarray - so they can run their companies while relying on a single firm for help executing critical initiatives.

The new venture combines the transaction advisory and valuation practices of six leading firms in the network:Berkowitz Pollack Brant, JLK Rosenberger, PKF Boston, PKF Mueller, PKF O'Connor Davies, and Pannell Kerr Forster of Texas, P.C. (PKF Texas). It offers streamlined access to extensive industry insight, real-world business acumen and seamless service integration across geographies to help private equity firms and businesses address increasing complexity amid ongoing pressure to drive growth and stay ahead of change.

Managing Director Byron Hebert commented on the new initiative, saying “Businesses today aren’t just pursuing growth, they’re pursuing transformation across geographies, partnerships and lines of business. PKF Advisory offers companies a new and better way to minimize costs, maximize efficiencies and realize new innovations through high-touch relationships and a consistent approach by a national team with transaction advisory and valuation experts.”

PKF Advisory will be led by Hebert and three managing directors:

• Christopher Hatten, Managing Director
• Noam Hirschberger, Managing Director, National Service Line Leader of Valuation Services
• Jonathan Moore, Managing Director, National Service Line Leader of Transaction Advisory Services.

Learn more about PKF Advisory
Read the article in Accounting Today

We’re delighted that PKF Poland has been ranked at first place in the “Most active audit companies on the NewConnect market” list, which examines companies in the Warsaw Stock Exchange, Poland’s alternative trading system.

This is a significant improvement from last year, when PKF in Poland was listed at number eight in this ranking.

The independent member firm also ranked highly in the “XIX Ranking of the Best Audit Companies 2019”, produced by leading Polish publications, Rzeczpospolita and Gazeta Giełdy i Inwestorów Parkiet, taking seventh place. This is the 19th edition of the prestigious Auditors’ Ranking.

PKF Poland also placed highly within the sub rankings of this list, taking fifth place, just behind the Big Four, in terms of sales revenues of the surveyed companies, and eighth place in terms of the number of companies surveyed.

PKF International would like to congratulate Ewa Jakubczyk-Cały, the Managing Partner of the group, as well as all of the staff at PKF Poland, for their hard work and dedication in obtaining these impressive results.

Learn more about PKF Poland

PKF International announces the appointment of Theo Vermaak as interim Chief Executive Officer of PKF International with effect from May 1, 2020.

Theo has previously been a member of the PKF International team and has held the positions of Chairman of the International Professional Standards Committee and Regional Director of Africa. Theo also previously served as the Chairman of the Forum of Firms.

Christos Antoniou, Chairman of the Board commented: “Theo’s experience and knowledge, with more than 15 years within the network, will provide the stability and strong leadership required to successfully navigate the current climate.

The Board would like to thank James Hickey for his contribution and hard work over the last year and wish him the best for the future.”

Theo commented: “I am delighted to be returning to PKF International. It is a strong network made up of special people, with a long history of supporting firms and driving values that transcend cultures and cross continents.

“I have first-hand experience of the significant benefits that network collaboration brings to our firms. As we face the challenges of COVID-19 together, I believe this is a time for us to focus on the fundamentals: carefully supporting our firms to help their clients.

“As always, PKF International’s main priorities are to connect our members and facilitate real collaboration and harness our collective strengths.”

Rantalainen Audit, based in Hyvinkää, has five partners and provides auditing services and expert services in corporate law and taxation law. With long-term experience auditing companies of different types and sizes, the firm’s particular focus is on generational change and mergers and acquisitions for small and medium-sized enterprises (SMEs).

Eelis Salo, Managing Partner of Rantalainen Audit, commented: “We are very pleased and honored to become a member of PKF International. We have had very good experiences working with PKF and look forward to the future as a member.”

PKF Tajikistan (formerly KB Consulting), based in Dushanbe, has two partners and provides a full range of audit, accounting, assurance, tax and advisory services as well as corporate trainings in the financial fields. The firm’s services support both the private sector and government agencies.

Managing Partner, Asliddin Kamilov, is delighted to see the firm becoming part of PKF family: “PKF Tajikistan is a firm driven by strong leadership and our values are strongly aligned with PKF’s. As part of the PKF family, we will continue to build strong business relationships in order to provide added value to our clients. We deliver a responsive and distinctive service to our clients, enabled by our dynamic teams of local and international high-quality experts with deep sectoral knowledge.

PKF International CEO, James Hickey, said: "We are very pleased to welcome both Rantalainen Audit and PKF Tajikistan to the network as we continue to expand and strengthen the PKF brand. The new members fit well with our value proposition of quality with integrity and also meet our strategic objective of global coverage with quality firms".

We are proud that Dr Nur Bano Ali, Managing Partner of our Fiji firm, PKF aliz pacific, is a champion of women in business, being involved with or founding a number of organisations that promote this vital cause.

Recently, Dr Ali presented a plaque of recognition from Women in Business (Fiji) to the Prime Minister of New Zealand Jacinda Arden, to mark her historic first visit to the country as part of the Women Fiji Female Leaders luncheon, where Prime Minister Arden delivered a strong message on the importance of the empowerment of girls and women in the Pacific.

A passionate advocate of equality and business, Dr Ali is President of Women in Business (Fiji), President of the Fiji Chamber of Commerce and also Chairperson of the South Pacific Stock Exchange. Three years ago, she was awarded ‘Officer of the Order of Fiji’, which is the second highest national award given by the Order of Fiji, the highest honour of the Fijian Honours system.

Dr Ali has been featured in Fiji’s leading popular general interest magazine Mai Life, where she shared with the readers her upbringing in Sigatoka and her education as a prominent professional woman on the go, women’s advocate and mother.

An exemplar of the individuals within PKF, we are proud to say that Dr Ali is part of the PKF team.

Learn more about Women in Business (Fiji)

As we celebrate our 50^th year as a network, International Women’s Day (IWD) gives us the opportunity to mark the global achievements of our PKF Women past, present and future.

Forty-five years ago, PKF’s Dorothy Hall became the first female partner in charge of any accounting firm in North America. Today, our network of over 220 firms celebrates thousands of female partners carving out the future of our profession.

I see on a daily basis our social media channels bursting with success stories of our network’s driven female leaders, graduates and new recruits - all on a journey to achieving their ambitious goals.

I speak with many of these individuals during our global events and am evermore certain that positioning employee wellbeing at the heart of our strategy is the best way to empower talent to grow in a truly meritocratic environment.

While we take the opportunity of IWD to recognise how firms in our network are already challenging stereotypes,and recognising and welcoming diversity, this is already something that we continuously seek to embed in our daily culture.

Watch our PKF International Women's Day Video.

Graham Marjoribanks, Head of Audit and Assurance at Scottish-based member firm Johnston Carmichael, was recently featured in leading accountancy publication AccountingWeb, discussing the after-effects of the Brydon report.

AccountingWeb’s market is mainly focused on smaller practices, but has one of the biggest independent subscriber bases in the UK for accountancy.

In the article, Graham looks at how, following the report, the trickle-down effect from the Big Four accountancy firms will drive demand for more assurance work for smaller firms, and also considers what a broader range of audit and audit-related services might look like.

He notes that there is appetite for increased regulation in the sector, and also that audit services in general will need to become more risk focused as more is expected of auditors, with a need to increase responsibility around reporting. This, in turn, will lead to a demand for increased assurance work.

He goes on to discuss how, as noted in the report, a deeper range of audit services might increase the attractiveness of the sector. This enhanced range might extend to fraud prevention and data analytics through the development of digitization.

“The evolving audit market will reward firms who accurately identify riskier engagements and either price accordingly or turn down opportunities," writes Graham.

Graham concludes by noting that auditors will need to be proactive. The sector should watch out for ‘regulatory creep’ affecting owner-managed businesses, resulting from changes at the top of the market, which would mean that audit and accountancy firms may become less beneficial to their clients.

Read the full article in AccountingWeb
Find out more about Johnston Carmichael

After completing his 3 year term as Chairman of the Africa board, Atul Shah handed over the baton to Ahmed Paruk during the Africa Regional Conference in Swakopmund, Namibia. Ahmed Paruk, Managing Partner of PKF Durban was elected as Africa’s new Regional Chairman and representative on the International Board.

Currently Managing Partner of PKF Durban, the new Chairman began his career at David Strachan & Tayler, one of the firms which later became known as PKF. He completed articles in 1995 and was admitted as a director of PKF Durban in 1999. In 2018 he became the Managing Partner of the firm. Ahmed has gained extensive experience in the audit field and business consulting.

Donald Kaye, managing partner of PKF Gambia has committed to another term on the board as the representative from West Africa and we welcome new board members, Antony Ranjan (PKF Zambia), Alpesh Vadher (PKF East Africa), and Mouafek Abada (PKF Djibouti).

The board, will focus on providing quality service, improving brand positioning and geographical coverage, as well as defining the PKF culture and building on cluster collaboration. Its aims are to ensure that PKF firms work closely together to serve international clients as one global organisation, committing to PKF’s core values while maintaining impeccable quality. It will also help PKF firms leverage their group buying power and refer clients to each other.

James Hickey, CEO of PKFI, commented saying, “We are very pleased to welcome Ahmed to the role of Chair and new board members from each respective sub-region. I have no doubt that their contribution and passion will boost the region to new heights.”

We would like to thank Tajudeen Akande (PKF Nigeria) and Sydney Bvurere (PKF Zimbabwe) for their contribution to the region over the past 6 years and for the support they continue to offer to the network.

We’re delighted that PKFOD FO, the Family Office division of US-based member firm PKF O’Connor Davis, has been recognised as the ‘Best Multi-family Office Over $10bn’ at the Private Asset Management Awards 2020 at a ceremony in New York City earlier this month.

Often regarded as the Oscars of the US private asset management industry, the awards celebrate the top investment professionals, wealth advisors, legal firms, consultants, and other key service providers in the private asset management space. They are selected by a panel of 16 industry experts based on a mix of qualitative and quantitative performance indicators, including financial progress, growth, client satisfaction, and product innovation.

Gemma Leddy, Partner-in-Charge of PKFOD FO, commented on the award, saying: “Ultra-high-net worth families have complex lives and face a unique set of issues, and we’ve continually evolved our broad set of customized services and outsourced solutions to meet their financial, business and personal needs. Our approach is rooted in providing conflict-free strategies and solutions. The entire family office team, including leaders Marc Rinaldi and Steve Prostano, is grateful to Private Asset Management for its recognition of our modern alternative to the traditional multi-family office model.”

PKFI would like to congratulate the firm on this very well-deserved win, reflecting PKFOD FO’s unparalleled experience, specialized expertise and innovative solutions, as well as the team’s fast growth and significant additions in technology and talent over the past year.

Learn more about PKFOD FO
Learn more about the PAM awards

We are pleased to announce that PKF Shiodome, our member firm in Japan, has recently established a China Desk to meet the business needs of both its Chinese and Japanese clients. The Desk aims to provide services to Chinese companies to set up firms in Japan and services to Japanese companies to venture into the China market.

About the Desk

The China Desk team has eight members including consultants who have extensive experience in assisting Chinese companies as they expand their business into Japan, as well as bilingual consultants who can assist clients in Chinese and English. The firm is committed to providing Chinese companies with one-stop support around a wide range of services ― accounting, tax, human resources and payroll, legal, and other consultancy services they need as they venture into the Japanese market. We also provide advisory services through obtaining information on China’s tax system. Additionally, by working with PKF International, it will be possible for us to provide high-quality and efficient support based on the latest, advanced information.

The establishment of the Desk

The total value of foreign direct investment (FDI) into Japan has been on an upward trend in recent years, together with the rapid increase in the number of foreign enterprises venturing into the Japanese market. At the same time, Japan’s own business landscape is seeing a growth in the outward flow of business, with more and more Japanese companies expanding their business overseas. In particular, FDI flowing into Japan contributed by Chinese companies continues to increase, and more Chinese companies are entering Japan.

In 2011, China’s economy overtook Japan in terms of GDP ranking with the tremendous momentum of its economy, leaving Japan third on the list. A British investment bank and a holding company, HSBC Holdings plc, forecasted that China is expected to overtake even the United States and become the world’s largest economy by 2030.

Shiodome Partners has taken the initiative of establishing the China Desk to best meet the needs of both Chinese and Japanese enterprises and to provide them better opportunities to expand their business. We expect that both Chinese companies’ direct investment in Japan and the number of Chinese companies expanding into Japan will keep growing in the future.

Learn more about the China Desk

Our Director of Assurance Jamie Drummond has been featured in leading trade publication Accountancy Today on the topic of making the most out of data analytics tools.

The article looks at how reviewing data is a key part of the audit process and the future of accounting, but that the use of tools is not widespread.

“Since auditing began, it has revolved around some form of substantive analytical review, testing of controls, and audit sampling. But the explosion of data and its accessibility – primarily through the cloud, alongside new interrogative tools – means that an auditor could conceivably check every transaction within a client’s books and records,” writes Jamie.

The article outlines the three main reasons why firms may not be using data analytics tools:

• Firms don’t always have the budget to invest in these tools
• There is a lack of guidance and rules from the regulatory bodies around the use of data in relation to audit
• The risk-averse nature of the profession, which shies away from innovation

The article argues that an external service provider would help many firms, by providing training and support around the use of data tools, and considers how this would also help the client experience.

Jamie concludes by announcing that PKF is launching its own network-wide advanced data analytics (ADA) framework - a reference guide to data analytics tools.

Read the full article in Accountancy Today

Further information on the ADA framework will be released soon – check our social media channels for updates.

We are delighted that our member firm in Cyprus, PKF Savvides & Co Ltd, reached the milestone of 40 years of trading last month. The firm marked the occasion with a celebration at its Christmas party.

The evolution of the firm is one for PKF to be proud of, as it started with five people and has now reached 65 staff members.

Christos Antoniou, Chairman, commented, saying: “We are very proud that our staff stay with us for so many years - it is rare for anyone to leave the firm. We’re delighted that our clients have been supporting and trusting us all these years, with some remaining as clients for over 30 years. We have been members of PKF for 30 years and the support and the great brand of the PKF network has helped us to move forward.”

Find out more about PKF Savvides

James Hickey, CEO of PKF International, has been featured in leading trade publication Accountancy Age, discussing how accountants can move from a focus on compliance to an advisory role – and what this means for international accountancy networks.

The article looks at how to understand who your potential clients are and what they really want from you, and how to help small businesses with the issues they care about.

Marketing and technology are the two main issues for businesses where they could work smarter or de-risk. James explains how technology provides opportunities by freeing up time, and that it is important to control the language used within marketing to allow for greater access to the marketplace.

James concludes by saying that accountancy firms need to believe in themselves, and also to have value-added conversations with their clients in order to become trusted advisors, rather than simply providing accounting, tax and audit services.

• Read the article in Accountancy Age
• Read James’s previous article in International Accounting Bulletin

In March 2018, Malta officially legalised the production and use of medicinal cannabis, following in the footsteps of pioneering countries such as Canada. The Maltese Parliament approved ‘The Production of Cannabis for Medicinal Use Act’, which is an all-encompassing Act regulating the entities that are eligible to produce and distribute cannabis under strict supervision.

In light of this, PKF Malta can now offer support to interested parties in order to draw up the necessary documentation for the cannabis licensing process. The firm is joining other PKF member firms in this venture – PKF O’Connor Davies also provides cannabis related services.

The cannabis industry offers huge opportunities: Malta Enterprise has already approved an area measuring 4,000 square metres for the cultivation of cannabis and Prime Minister Joseph Muscat further stated that the approved projects are expected to create local capital expenditure of more than €110 million and 700 full-time jobs. Moreover, Malta’s exports are also projected to reach up to €900 million by 2020.

From growers to dispensaries, companies involved with cannabis struggle with tax planning and filing because so far there is little guidance in identifying which expenses qualify for deduction. To help businesses forecast, manage and meet tax obligations, PKF Malta can leverage its understanding of how these rules have evolved in the past, watch for opinions and rulings, and apply the insights gained from working with other entrepreneurial clients.

Read about the industry in The Malta Independent

Find out more about PKF Malta

PKF International is delighted to announce the expansion of its francophone presence in Africa with the addition of CBSD Audit et Conseil as a correspondent firm in Mauritania.

Established in 1992, the firm currently consists of three Partners and 17 staff. Its client base includes public bodies, banks, and organisations from the construction, pharmaceutical, and oil and gas sectors.

As well as providing business law and taxation guidance to a range of organisations from global firms down to SMEs and individuals, the firm also assists with real estate law, banking regulations, management consultancy, and mediation advice. It aims to lead the way in transparency and sustainability - integrity and ethics are key to CBSD’s operations.

The Managing Partner, Mamadou Mansour LY, comes from a strong background in auditing public and private enterprises and project management, and also has 25 years of audit experience with EY (previously Ernst & Young).

Managing Partner BA Samba Diom commented on the new alliance:

"CBSD has been operating for over 30 years and is a proven audit, legal and tax consulting, accounting and management firm in Mauritania and the West African and Maghreb sub-region. Our firm enjoys the confidence of donors such as the World Bank, the European Union, UNDP and the African Development Bank. Our efforts are continuously geared towards the ongoing satisfaction of our customers."

PKF International CEO James Hickey also commented on the new addition, saying:

“We are thrilled to welcome the new firm to the network, and we look forward to an exciting and rewarding partnership.”

Find out more about the firm.

We are delighted to announce that PKF New Zealand has been revealed as a finalist in this year’s Xero Awards New Zealand, in the ‘NZ National Partner of the Year’ category. The winners will be announced at an exclusive cocktail event in Wellington, NZ on 22 August 2019.

The annual Xero Awards reward excellence among its accounting, bookkeeping and ecosystem partners, and celebrate the role of Xero’s partners in helping small businesses thrive in New Zealand.

Xero is an award-winning cloud-based accountancy software application with 1.8 million subscribers, which was founded in 2006 in New Zealand and is one of the fastest growing SaaS (software as a service) companies globally.

PKF New Zealand strongly believes that people are the key to the success of each local office - it is through their hard work that the group has been recognised in these awards, so we would like to extend our thanks to everyone involved.

Find out more about the awards

The Kane County Cougars, Class-A Minor League affiliate of the Arizona Diamondbacks, and PKF Mueller have partnered to present the annual accounting scholarship that benefits deserving college students in honor of Alfred (Al) Mueller, founding Partner of PKF Mueller. 

Al Mueller passed away March 2016 and left a lasting legacy for his employees, clients, and the local community through his many civic and philanthropic endeavors. Al believed strongly in community and the wish to support Chicago area students who were focused on studying in the field of accounting. 

The Al Mueller Memorial Scholarship Fund provided four scholarships to deserving accounting college students this year.

Find out more about the Scholarship Fund

PKF member firm PKF Francis Clark has marked its centenary with the opening of a new office in Bristol. The firm has a long history in the area, with Francis S Clark opening the first office in Newton Abbot in 1919. PKF Francis Clark joined the PKF family in 2016, and is now one of the leading firms in the South West.

Mike Lea, previously of Smith and Williamson, will be the new Office Managing Partner in Bristol.

The new office demonstrates the firm’s commitment to the South West in supporting a range of companies, from family-run businesses to AIM-listed firms, having already worked with high profile clients in the South West, including the Eden Project, Bristol Sport and Brittany Ferries.

South West Business Insider, the leading publication for the area, has covered the story.

Read more on PKF Francis Clark’s website 

PKF Al-Bassam & Co has been approved by the Capital Market Authority (CMA) to carry out audits for ESAS companies in the kingdom of Saudi Arabia, the first firm in the region to achieve this. ESAS refers to entities that fall under the supervision of the CMA, which primarily include Joint Stock companies, and other similar companies.

New regulations put in place by the CMA require that firms auditing Joint Stock companies must now be registered. The new rules also state that only registered and approved firms can carry out audit work for these companies, meaning that PKF Al-Bassam & Co is currently the first firm in the region that can carry out this type of work.

See the news on the Tadawul (Saudi Stock Exchange) website

We are delighted that PKFI CEO James Hickey has been quoted in two leading industry publications, Accounting Web and The Accountant, on the topic of the recent Financial Reporting Council’s (FRC) annual audit inspections.

The FRC found a litany of poor results and missed targets in the Big Seven’s audit work and said that poor quality audit work remained “unacceptably common”. The accountancy watchdog looked at Big Four EY, KPMG, Deloitte and PwC, and Big Four challengers BDO, Grant Thornton and Mazars, and found that none had reached the audit quality target for 90% of FTSE 350 audits.

James Hickey said:
“While other accounting networks and associations don’t have the depth or structure to undertake the biggest audits, conflict concerns would be eased if more services moved away from the biggest auditors.”

He added that it was “deeply concerning” to see the UK’s biggest firms struggling to get to grips with audit quality.

Read the Accounting Web article
Read The Accountant article

PKF International CEO, James Hickey, has shared with International Accounting Bulletin his thoughts on what networks and associations need to do to ensure effective future prosperity.

In the article James discusses PKF’s history, how it’s grown and established a presence that spans over 50 years in more than 150 countries, but he believes now is the time to reflect and assess the value we bring to the market, with a key focus on visibility.

James continues to share his reflections regarding how PKF has the same capabilities as the biggest firms. He acknowledges how difficult it is to have visibility in the marketplace as a network and have a unique offering. PKF’s focus will be on quality and the need for consistency throughout the network.

Listening to the client’s needs is also high on the agenda, along with thinking and running as a business.

The group strategy is being defined with the support of agencies and consultants. James is confident that the next 18-24 months will define PKF.

The full article first appeared on International Accounting Bulletin.

Member firm PKF Francis Clark is celebrating after winning at the prestigious South West Insider Dealmakers Awards 2019. Corporate Finance Senior Associate Chris Bishop was announced ‘Emerging Dealmaker of the Year’ at the awards. 

Established in 1994, the awards are held annually across the country to celebrate the outstanding achievements of the professional communities, with the South West winners announced at a ceremony on 27 June at the Bristol Marriott Hotel.

PKF Francis Clark was also shortlisted in three other categories in the awards and has taken away the titles of Corporate Finance Advisory Team of the Year, Dealmaker of the Year and Young Dealmaker of the Year in previous years.   

Find out more on the PKF Francis Clark website

Read about the awards on Insider Media

PKF Malta has made strides to become a hub for blockchain advice and support, following the Maltese Government’s drive to raise Malta’s profile as Europe’s blockchain island in the Med. The office focuses on the advisory side as relevant to the new legislation regulating virtual financial assets. 

Malta now has new legislation and regulation around blockchain, including the Virtual Financial Assets Act, regulating issuers through a formal white paper registration process, and also regulating the process for issuers admitting qualifying DLT assets to trade.

The office has launched various methods to provide advice on this new legislation, including:

• Leading road shows in China, Japan, Vietnam, Switzerland and Amsterdam 
• Launching a 'bitpod' (quasi-lab) offering office and training space to start-ups and encouraging migration of VCs to Malta
• Holding informal meet-up sessions for industry, start-ups and investors
• Producing a series of free educational webinars with expert guests

Find out more about the bitpod
Learn more about the webinars
Read about the bitpod in Malta Today

Danielle Supkis Cheek, CPA, CFE, CVA, recognized as one of the Most Powerful Women in Accounting.

Pannell Kerr Forster of Texas, P.C. (PKF Texas) Director, Danielle Supkis Cheek, CPA, CFE, CVA, has been named one of 2019’s Most Powerful Women in Accounting by the American Institute of Certified Public Accountants (AICPA) and CPA Practice Advisor magazine.

Supkis Cheek was one of 25 women honored at the AICPA Engage Conference in Las Vegas, Nevada. This is the eighth year CPA Practice Advisor and AICPA have presented this award, and this will be Supkis Cheek’s fourth time to be recognized.

“Danielle has not only influenced the accounting profession, but also those who have the privilege of working with her,” said Byron Hebert, CPA, CTP, Entrepreneurial Advisory Services Practice Leader and Chief Growth Officer. “We are honoured to have one of our Directors recognized for their hard work. PKF Texas is proud to have Danielle on our team, and we look forward to her continued success in the profession.”

Most recently, Supkis Cheek was named Chair of the AICPA Technical Issues Committee (TIC), representing the views of local firms and their clients in the standards-setting process. Her multi-year term as Chair started on May 26, 2019.

“It’s an honour to be a role model for women as they develop in their careers in an ever-evolving industry,” said Supkis Cheek. “The future of accounting is rapidly changing, and I'm looking forward to continue making an impact within the industry.”

Find out more about PKF Texas.

Member firm PKF-FPM, with offices north and south of the Irish border, were doubly honoured at the Irish Accountancy Awards 2019 with recognition as Large Practice of the Year and Accountant of the Year, the latter awarded to Managing Director Feargal McCormack. These achievements complement PKF-FPM’s hat trick of UK accolades from the British Accountancy Awards in 2018, namely Tax Team, Mid-Tier Firm and Partner of the Year.

PKF-FPM Managing Director Feargal McCormack commented:

“It’s truly an honour and very humbling to be recognised by our peers in the industry. Indeed, the success in both the Irish and UK Awards reflects the collective passion and focus of Team PKF-FPM to exceed client expectations and deliver excellence in our industry.”

Reacting to their Large Practice of the Year win, PKF-FPM Accountants director Michael Farrell said: 

“PKF-FPM are honoured to be recognised as Large Practice of the Year at the prestigious Irish Accountancy Awards 2019. This award reflects the collective passion of Team PKF-FPM, indeed such an accomplishment has further energised the team for continuous improvement to exceed client expectations, delivering excellence in our industry.”   

Read about the awards in the Irish Times.

 

The Africa Congress of Accountants is hosting its fifth event in Marrakesh from 19 to 21 June 2019. The conference is themed ‘For a successful public sector performance in Africa’ and will be held at the Palais des Congrés. It brings together a wide range of stakeholders, including government representatives, leaders in industry, regional economic groupings, and professional accountants, in order to showcase and share experiences.

Three PKF member firms are attending – PKF Djibouti, PKF Uganda, and PKF Morocco. Mohamed Youssouf, Managing Partner at PKF Djibouti, is the President of the National Company of Statutory Auditors of Djibouti and Frederick Kibbedi, Partner at PKF Uganda is the President of the ICPAU in Uganda.

We’re delighted to share the news that PKF member firm, PKF-FPM, made history on Thursday 13^th June at the 13th Irish News Workplace & Employment Awards in Titanic, Belfast.

PKF-FPM was named as the inaugural winner of the overall Employer of the Year award.

This award follows a series of other fantastic accolades in recent months and consistently over the years for PKF-FPM.  

The judges chose PKF-FPM from a staggering 192 entries and stated, “they were seeking out a firm with a unique wow factor, and which has teamwork embedded in its very DNA – and we found it in PKF-FPM, which has been on this stage many times down the years”.

They added: “PKF-FPM embodies a hard-working attitude backed up by creativity, ambition and energy, but which involves putting its people front and centre of everything it does, and in an innovative way.

“It’s hard to find a flaw in how it energises its team, from senior management down to its newest intake of people.”

To add to their long list of award achievements, PKF-FPM will also receive a special engagement workshop from wellbeing partner the Ulster Orchestra, which will enable further employee engagement.

Congratulations PKF-FPM!

Strategic expansion enhances expertise in comprehensive audit services for public sector entities

On 13 May 2019, PKF O’Connor Davies announced that Hodulik & Morrison, PA, an accounting and auditing firm based in Highland Park, NJ, has joined the Firm. The announcement is the latest move in PKF O’Connor Davies’ ongoing strategic growth initiative focused on strengthening the Firm’s expertise in key practice areas. Hodulik & Morrison is the third firm to join PKF O'Connor Davies in the last six months. The team will expand the Firm's Public Sector practice.

“Hodulik & Morrison has earned its reputation as a leading accounting resource for the public sector,” said Kevin J. Keane, Managing Partner. “We’re excited to work with talented individuals who are as passionate about serving clients as we are. We welcome Bob, Andy and the entire Hodulik & Morrison team and look forward to combining our efforts.” 

Two partners and more than a dozen team members will join the Firm’s Cranford, NJ, office. For nearly three decades, Hodulik & Morrison has provided government accounting services with a focus on auditing, management advisory and financial advisory services for county, municipal, authority, school district and commercial clients. 

“We’re thrilled to combine our experience in government audits with PKF O’Connor Davies’ industry-leading client service,” said Andrew Hodulik. “It’s exciting to join a network of professionals who share our commitment to serving Central and Northern New Jersey public entities.” 

PKF O’Connor Davies has 11 offices in five states as it continues to expand through organic growth and acquisitions on the East Coast. It has supported this growth with a strategic combination of promoting from within coupled with tactical external hires.

With effect from May 2019, PKF O’Connor Davies hired Christopher P. McPhee as Chief Information Officer, a recognised expert who brings more than 25 years of financial, government and corporate IT experience to the new role.

In this role, McPhee will guide PKF O’Connor Davies’ industry-leading technology initiatives and oversee the Firm’s information technology department to ensure effective, efficient and secure operation of all technology systems and services.

“We’re thrilled to welcome Chris as a leader in an area that’s so crucial to the Firm’s ongoing success,” said Kevin J. Keane, Managing Partner. “His expertise and experience offers a unique focus on innovation and ensuring consistent, reliable systems and solutions that will be a tremendous asset to our company and our clients.” 

McPhee has more than 25 years of technology leadership, project management and consulting experience focusing on systems implementation of business solutions on the executive level. His new role at the Firm includes the management of strategic and tactical activities to ensure user satisfaction, technical delivery, contract compliance and resource management for the Firm’s IT Department. He will also implement and create information technology strategy and vision for the Firm’s Management Information Systems (MIS) department. McPhee is a certified project management professional and earned a Master of Business Administration in Information Systems from the University of Maryland.

“There are powerful new opportunities to use technology to better serve clients and streamline operations in today’s accounting and advisory industry,” McPhee said. “I’m excited to join the team at PKF O’Connor Davies and build on its established reputation for superior technology solutions.” 

McPhee has developed and delivered strategic platforms to support compliance and MIS reporting functions. He also specialises in process improvement, transformation programs, regulatory systems and compliance, planning and forecasting, business intelligence, testing and release management. 

PKF O’Connor Davies has 11 offices in five states as it continues to expand through organic growth and acquisitions on the East Coast. It has supported this growth with a strategic combination of promoting from within coupled with tactical external hires with a focus on growing its leadership team.

For the ninth year in a row, PKF Mueller was named one of the Best Places to Work in Illinois. This state wide survey and awards program was designed to identify, recognise and honour the best places of employment in Illinois, US benefiting the state's economy, workforce and businesses.

Companies from across the state entered the two-part process to determine the Best Places to Work in Illinois. The first part consisted of evaluating each nominated company's workplace policies, practices, and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking.

PKF Mueller will be recognised and honored at the Best Places to Work in Illinois awards ceremony coordinated on Thursday, May 9, 2019.

“Speaking for all our partners, we are committed to making our firm a place where employees feel they matter. We strive to create an environment where work and home life can come into an agreeable balance. We are gratified that our employees recognise these qualities that make PKF Mueller the best place to work,” said David J. Nissen, PKF Mueller’s Managing Partner.

With effect from 1 March 2019 Juli-Ann du Preez and Mubashir Mohamed will be appointed as Directors in PKF Port Elizabeth Inc.

Juli-Ann began her career in 2005 as a Trainee Accountant.  She has since excelled and firstly was promoted to the role of Audit Manager in 2010, and thereafter became a Partner in 2015.  Juli-Ann is currently a facilitator for technical training to trainee accountants and has managed audits for a wide range of clients across various industries.  Her experience will prove to be a great asset to the firm.

Mubashir joined PKF as a Trainee Accountant in 2011 and is currently employed within the firm as an Audit Manager.  He also fulfils the role of Director within PKF (Advisory) Pty Ltd.  Mubashir comes with a phenomenal skill-set as he too has managed audits for a wide range of clientele across various industry sectors.

To read more click here.

As from 1 April, the Partners Committee of PKF Carpentieri Colmenares & Asociados, Venezuela appointed Tomás Carpentieri as a new Managing Partner of the firm.

Tomás has been an Auditor in the Firm since October 2002 actively participating in audits of chemical, pharmaceutical, industrial, finance, investment, and construction companies; social clubs, government entities and others.

During his professional career he has taught several courses and seminars to the Firm’s clients and personnel in Venezuela as well as abroad.

Pictured from left to right, Managing Partner Andrew Richards, Rebecca Seeley Harris, Jane Logan and Nick Harris.

Chartered accountants PKF Francis Clark in the UK, has appointed three new Directors at their Exeter office. Rebecca Seeley Harris joins the firm as a director in the Employer Solutions team, Jane Logan becomes Landed Estates Director and Nick Harris becomes Business Recovery Director.

To read the full article here.

Chartered accountants PKF Francis Clark have appointed a new business services partner, Sonia Fisher at its Exeter office, UK. As the firm celebrates its Centenary year, Sonia also becomes the 100^th partner in the firm’s history.

To read the full article click here.

PKF Francis Clark has appointed two new tax directors at their Poole office in the UK. Lisa Whitbread becomes Corporate Tax Director and Victoria Christopher becomes Private Client Tax Director.

Lisa Whitbread has been a senior tax manager in the corporate tax team and specialises in a variety of corporate tax matters.

Victoria Christopher has been a senior tax manager in the private client team and specialises in private client tax.

To read the full article click here.

PKF International Limited has strengthened its global coverage with the admission of Precision Consultancy as an independent exclusive correspondent firm in Bandar Seri Begawan, Brunei Darussalam.

Precision Consultancy was founded 35 years ago on the 19 March 1984. The firm specialises in business solutions and accounting advisory services to a wide range of clients, particularly small and medium sized enterprises. The firm is proud to emphasize that most of their clients today have witnessed the growth of the firm throughout its history, whilst also achieving their own successful development over the years. The firm currently services more than 200 small and medium sized enterprises either owned locally or by overseas investors.

Yun Chin Lee, authorised representative of Precision Consultancy, said “With the 4.0 industrial revolution and globalisation, the profession is undergoing disruption with the development of AI and is evolving with constant change. The decision to join PKF at this juncture is a natural progression, giving Precision Consultancy a global prospective in terms of professional standards of work execution and staff training needs, and building on the fact that the firm is already operating successfully in Brunei Darussalam. Our experience in dealing with PKF during the assessment stage of our membership was a thoroughly smooth and professional process. We believe that being part of the PKF family means we will not be left behind, but instead be able to stay afloat with the changes happening to the profession, and become more connected with the world with a new competitive edge.”

PKF International CEO, James Hickey, said: "Networks are rare in Brunei Darussalam, so we are really delighted to welcome Precision Consultancy to the PKF family as we continue to expand and strengthen the PKF brand. Precision Consultancy fits well with our value proposition of Quality with Integrity, and also meets our strategic objective of expanding geographical presence in ASEAN and Asia Pacific as a whole.”

PKF Shiodome, located in Tokyo’s central business area, welcomes two new tax partners, Shusuke Hirano and Akinari Tsuchiya to the firm.

PKF Shiodome Partners is a group of professional services firms including an Accounting & Tax Firm, Law firm, and Social Insurance and Labour Firm, and a Gyoseishoshi Corporation (for incorporations and visas). They provide comprehensive, all-in-one business services such as accounting, tax, payroll, social insurance, incorporations, legal practice, business registration, fund management, and procurement for Japanese and foreign businesses.

To read more about new partners Shusuke Hirano and Akinari Tsuchiya click here.

On 1 January 2019, PKF Fasselt Schlage opened branches in Erfurt and Magdeburg. During February 2019, the Düsseldorf location was also open.

With the move to the new offices on Günterstraße in Erfurt and with the two other branches, PKF Fasselt Schlage is now represented in a total of 12 locations. "Erfurt is an attractive business location that offers us further market potential. With the opening of the new location we will be able to offer our consulting competence and special technical expertise to clients and interested parties directly on site. Personal proximity is particularly important to us," says PKF partner Peter Jahn. The main areas of activity at the Erfurt location include the energy industry and the public sector.

In Magdeburg, PKF Fasselt Schlage has established a branch in Hegelstraße by taking over Gliemer Magdeburg Partnerschaft mbB: "We are very pleased that Gliemer's partners have trustfully placed their firm in our hands," says managing partner Frank Villwock. Both companies have an existing, successful and long-standing relationship.

Peter Behrbohm, partner at Gliemer added: "We are sure that with PKF Fasselt Schlage we have found a company that thinks and works like we do. We have made our decision in the interests of our clients and employees". Peter Behrbohm and Henning Stoltz will accompany the client for another two years. Klaus-Henning Wachsmuth will  be available to clients after this period. All Gliemer employees were taken over as of January 2019.

In February 2019, a location will open in Düsseldorf. By moving into the new offices, "Sky Office" in a central location, PKF Fasselt Schlage is also strengthening its local presence along the Rhine axis together with the existing offices in Duisburg and Cologne: "By opening a new office in Düsseldorf we are able to offer our consulting expertise and special technical expertise in the areas of corporate finance, taxes, law and IT directly on site. This applies equally to clients such as Metro AG, but also to well-known medium-sized companies, family offices and non-profit organisations, in particular foundations," says managing partner Arnd Schienstock.

In line with the growing need of domestic and foreign clients for cross-border advice, they also benefit from the resources of the PKF International network in 150 countries and from the country-specific competence centres already established at PKF Fasselt Schlage for China, North America and Russia.

PKF TR Upadhya & Co is pleased to announce the admission of Ms Sumitra Rijal as a new partner in the firm.  Sumitra has extensive experience in the assurance and advisory services of development sector and large corporate houses.

Her client portfolio includes entities from various industries such as international not for profit organisations, donor agencies, national level not for profit organisations, large entities in leisure, construction and professional service firms. As partner, Sumitra will be leading and development sector and the risk management practice in helping clients in Nepal, realise tangible value from their investments. Sumitra holds a Master’s degree in economics and is a Fellow Member of the Institute of Chartered Accountants of Nepal.

Sumitra will be the first female partner in the firm which is a demonstration of continued progress in its strategic priorities of developing the next generation leaders and a commitment to accelerating gender diversity and transformation at leadership level.  This development strengthens even more the dynamic and leading position of PKF T R Upadhya & Co. in Nepal.

With effect from 18 March 2019 PKF International welcomes a new CEO.

As part of PKF International’s ongoing succession planning, the board took the hard decision last year to look for a new CEO. It’s incredibly difficult to think about PKF without thinking about John Sim as he has shown incredible commitment and energy throughout his 6 years as CEO.

We are delighted to announce that John will be succeeded by James Hickey.

James is an inspirational leader with a wealth of expertise in achieving high growth within mid-tier accounting and law firms around the world. With nearly 20 years of experience, James has a range of skills encompassing sales, marketing, finance, talent management and multi-jurisdictional client relationship management.

A self-confessed challenger and a strong champion of raising the visibility of mid-sized companies – James has been hand-picked to take PKF to greatness. And he’s certainly no stranger to the network setup, having served as CEO of the Alliot Group since November 2012.

At the Alliot Group - itself an alliance of independent accounting and law firms – James did great work positioning it as a market disrupter creating opportunities and options for its members built on reputation, and a “firm of choice” mentality.  His noticeable empathy for the client-centric approach that we believe in so strongly makes him a solid cultural match for us.

With James at the helm of PKF International we see great potential for aligning to and leading innovative change.

When asked about his understanding of the changing dynamics in the accounting world, James said, “Those firms that think like accountants and lawyers when they strategise for their tomorrow will simply not have a tomorrow. Whether it be AI, mergers, changes in regulations or any of the other market disrupters, professional service firms need to be open minded to new delivery models to maintain a relevance within their respective markets.” He continued, “At the core of PKFI’s tomorrow has to be the right digital strategy. But this must represent an extension of who we are. If we adapt with integrity always preserving our belief that ours is a network of trusted business advisors and build strategic digital value into this offering – then the potential for expansion and deeper relationships will be phenomenal.”

With effect from 1 March 2019, Phil Broadbery, Chief Information Officer at PKF International, is leaving to join PKF Littlejohn as a Partner and Chief Digital Officer.

In his new role, Phil will be responsible for the technology services that PKF Littlejohn provides its clients which include data analytics, cyber security and maximizing investments in cloud technology.

Phil has already agreed to assume the role of PKF Littlejohn’s International Liaison Partner with PKF International.

“It's never easy to say goodbye to a talented executive but luckily, in this case, it’s more like ‘au revoir‘“, says Sebastian Woldhorf, Chairman of PKF International, “After 6 years in his role as Chief Information Officer for PKF International, Phil Broadbery is going to none other than PKF Littlejohn. Thanks to Phil for his tremendous commitment to the PKF International team. He’ll be sorely missed and we all wish him the very best with his new endeavour!“

“It’s been a privilege to serve the PKF global family over the last six years”, comments Phil Broadbery, “Huge thanks to all the international team for their commitment and support to our brand.  I look forward to continue serving clients in our ever digitally connected global market. Clients rightly expect high quality, seamless solutions that protect data across company and country boundaries, the challenge of delivering these is one I relish”.

PKF Littlejohn is an independent firm of chartered accountants and business advisors with their base in Canary Wharf in London's Docklands, and serve a wide range of business and private clients. Click here to find out more about PKF Littlejohn.

In February, PKF O’Connor Davies, LLP, announced that Batchelor, Frechette, McCrory, Michael & Co. (BFMM), an accounting, consulting and financial services firm based in Providence, RI, has joined the Firm. This is the latest move as part of PKF O’Connor Davies’ ongoing strategic growth initiative focused on expanding the Firm’s geographic reach and strengthening its expertise in key practice areas. The BFMM team brings deep experience in specialised industries, including private clubs, commercial construction and real estate, employee benefit plans and manufacturing and not-for-profit organisations.

“BFMM brings a team of recognised expertise in key areas that complement our professionals and our service offerings very well,” said Kevin J. Keane, Managing Partner. “We’ve had the opportunity to work alongside BFMM in a variety of engagements over the years and we’ve seen the quality of their people first-hand. We’re excited those top-notch professionals are now part of PKF O’Connor Davies as we continue to grow the Firm and provide greater value for our clients.”

Four partners and over 20 staff will join the Firm. For over 30 years, BFMM has provided accounting, auditing, tax and consulting services to mid- and large-sized organisations offering customised professional solutions.

“PKF O’Connor Davies has a strong reputation for its industry-leading practices and unmatched focus on client service,” said BFMM Managing Partner Ned McCrory. “We’re thrilled to join forces with an established and internationally renowned firm.”

PKF O’Connor Davies will now have 11 offices in five states as it continues to expand through organic growth and acquisitions on the East Coast. It has supported this growth with a strategic combination of promoting from within coupled with tactical external hires.

PKF Mueller, Illinois, welcome two new tax directors, Margaret Nowak and Dean Pearson to the firm.

Margaret (Peggy) Nowak, EA, MST, MBA has recently joined PKF Mueller as an International Tax Director. She brings over 20 years of experience, including working for large international firms. She also has expertise in U.S. international tax planning and compliance for both inbound and outbound multinational companies.  Peggy has also provided support to companies in managing their global workforce challenges.

Peggy has a wide variety of leadership experience and has managed large multi-national engagements, where her responsibilities included managing large teams of tax practitioners, reviewing complex returns and providing consulting assistance. 

Peggy graduated with a Bachelor of Arts in both International Business and French with a minor in Spanish from St. Norbert College. She earned both a Masters in Business Administration and a Masters of Science in Taxation, from DePaul University Graduate School of Business. She is an Internal Revenue Service Enrolled Agent as well as an Internal Revenue Service Certified Acceptance Agent.

Dean Pearson, CPA has recently joined PKF Mueller as Tax Director. Dean brings over 14 years of experience in State and Local Tax (SALT) advisory services. He regularly assists clients during state and local audit examinations, administrative appeals, and other state and local tax controversies. Dean has extensive experience with both state income/franchise tax and sales/use tax matters.

Dean has strong leadership experience and has managed large multi-state engagements, where he was responsible for managing teams of tax practitioners both domestically and internationally. Prior to joining PKF Mueller, Dean was a regional practice leader at a national firm for multi-state tax in Chicago.

Dean graduated with a Bachelor of Science in Accounting from University of Illinois and is a Licensed Certified Public Accountant in Illinois.

“We are extremely excited to welcome Peggy and Dean to our team. They bring extensive experience in two of the key growth areas for our practice, International Tax as well as State and Local Tax (SALT). Their Big 4 experience will provide valuable perspective while serving our clients” said Ann Behrens, Partner-in-Charge of PKF Mueller’s Tax Group.

As from 1 February 2019, PKF Texas is pleased to announce Matthew Goldston, CPA, CM&AA, CVA has joined the firm as a Director in the Entrepreneurial Advisory Services (EAS) department.

Goldston’s experience as a CFO includes leading multiple companies through transactions from mergers and acquisitions to integrations, spin-offs and successful exits. Additionally, he has extensive experience with growth consulting, audit and business valuation.

“PKF Texas continually evaluates ways to further enhance our client service offerings,” said Byron Hebert, CPA, CTP, Chief Growth Officer. “With the experience Matt brings to the firm, we have added another layer to our ability to co-develop solutions with our clients who may be considering a transaction.”

Goldston has served industries including manufacturing, technology, construction, industrial services and private equity. Goldston holds a Bachelor of Business Administration in Accounting from the University of Houston.

In January 2019, AJ Meade joined PKF International as Technology Manager based in London, UK. AJ’s role is to support the network’s independent member firms as we go through a time of important technology developments worldwide, with a focus on cyber security and improving network communications.

AJ joins PKF International with a wealth of experience from his previous role at a London based law firm, where he worked for 18 years leading technology and business change.

During 2019 there is a big focus on creating a solid Cyber Security strategy that can be implemented by member firms to ensure they are accredited, increasing consistency across the network and provides evidence that the client’s data is secure. Another main focus will be looking at ways to implement IT systems to improve communication and connectivity across the network.

“I am delighted to join the PKF network and have just had the privilege of attending the International Board meeting in Munich,” said AJ. “Being there it was clear there’s a real passion about PKF and the brand with a focused desire to add value. I am looking forward to meeting with people across the network and making a difference.”

PKF East Africa is pleased to announce the appointment of Alpesh Vadher as the new Chief Executive Officer with effect from 1 January 2019. He takes over the role from Atul shah who has led the firm with distinction for the last 8 years.

Alpesh has over 25 years experience providing audit and assurance services to clients in various sectors which include Floriculture, Manufacturing, Financial and Trading. He also has a wealth of experience in financial planning, restructuring and reorganising various entities.

Prior to his appointment, Alpesh was the Managing Partner for PKF Kenya in Nairobi and was the Executive Regional Partner for PKF in East Africa. Alpesh has been at the forefront of PKF’s strategy development for the last couple of years and has driven key business projects that positioned the firm for the transformation of its business. He has demonstrated his integrity, leadership capability and strong strategic and financial acumen throughout his time and has earned the respect of his team, our clients and the Board.

Alpesh was nominated for the TOP 40 under 40 men awards by the Business Daily Media in the year 2012. He has also been a keen sportsman and represented the Country in Cricket in two ICC Cricket World Cups in the year 1999 & 2003. He also further represented Kenya in the Commonwealth Games in the year 1998. He has also been a past Chairman of the Kenya Cricket Selection Committee.

The Board of Partners & Directors of PKF in East Africa welcomes the appointment of Alpesh and looks forward to benefit from his skills, knowledge and experience.

Commenting on his recent appointment Alpesh said “I am delighted to lead the PKF East African team of 35 Partners and Directors with a staff force of 750 as we celebrate our 55^th Anniversary this year. I look forward to taking the firm to greater heights as we continue to help our clients to navigate the rapidly changing business and technological landscape. To achieve that we will foster a culture that attracts and retains the best and brightest talent. What makes our organisation also so special is its people and I am very proud that I have been entrusted by the PKF Board to lead them”.

Spin-Off and Co, a consulting firm focused on M&As, joined PKF Fi.Solutions in September 2018. The firm is managed by three senior partners: Frédéric Assouline, Daniel Colé and Jean-Marie Simon, who graduated from the best business schools in France and have a vast experience in their fields.

Thanks to the acquisition, PKF Fi.Solutions, has widened its range of services. Now the PKF member firm is in a position to serve any demand from the international network, regarding transaction services (with a strong expertise in due diligence and consolidation services).

PKF Spin-Off and Co, which has been one of the main actors in the Small Cap Space since 2004, offers additional international solutions to its clients focused on their growth strategies, development capital and capital transfer. Their customers are mainly private equity firms, small and medium size companies.

For further information, contact:

Frédéric Assouline
Partner
Email: frederic.assouline@spin-offandco.com
Tel: +33 (0)6 11 57 10 56

Daniel Colé
Managing Partner
Email: daniel.cole@spin-offandco.com
Tel: +33 (0)6 08 73 05 20

Jean-Marie Simon
Partner
Email: jms@spin-offandco.com
Tel: +33 (0)6 09 67 81 92

 

PKF International Limited has reinforced its presence within South Africa with the admission of independent member firm PKF George.

PKF George Incorporated has 3 partners and provides a full range of assurance, tax and advisory services. Their clients are made up of individuals, privately owned businesses and corporations of different sizes that span a wide range of industries. Managing Partner, Cobus Goosen says “PKF is a respected and widely recognised brand in the local and international accounting and business community and this key strategic move reflects the growing importance of supporting our clients as they expand locally and internationally, while retaining our independence. We relate very strongly to the network’s values especially passion, quality and integrity, and the strong focus on people and clients. It is a great fit for us.”

Theo Vermaak, PKF South Africa Chairman said “The addition of PKF George to the South African network is a key reflection of our strategy, to selectively grow our presence throughout South Africa with the right people. The firm has a strong focus on the owner-managed market and, with its solutions-driven service philosophy and investment in technology, will complement our existing knowledge base. We are delighted to welcome PKF George to our family!”

“PKF International are pleased to welcome PKF George to the global network as it continues to expand and strengthen the PKF brand. PKF George fits well with our value proposition of Quality with Integrity, and also meets our strategic objective of global coverage with quality firms” said John Sim, CEO, PKF International.

PKF O’Connor Davies has announced it’s added two new members to its Executive Committee. Nominees Christopher Petermann and Garrett Higgins were approved following recommendations by the firm’s recently established Governance Committee. The new members reinforce the Firm’s commitment to achieving the highest standards of quality and the Executive Committee’s role in supporting the Firm’s mission, vision and values.

“These nominations show the importance of attracting and growing talent at the firm,” said Kevin J. Keane, Managing Partner. “Chris and Garrett have demonstrated exemplary leadership qualities throughout their careers and specifically during their time as partners at PKF O’Connor Davies. We are lucky to have them and we are excited to have their expertise and guidance on our Executive Committee.” 

Petermann serves as Co-Partner-in-Charge for the Private Foundation Practice, and specialises in accounting for exempt organisations and private foundations, as well as closely-held businesses and financial services entities. Higgins serves as Partner-in-Charge for the Exempt Organisation Tax and Advisory Services Group, and specialises in providing tax compliance and advisory services to tax-exempt organisations. 

In an effort to stagger future terms served and eliminate multiple partners finishing their duties in the same year, the Governance Committee also recommended Petermann serve a six-year term and Higgins serve a four-year term. The Executive Committee accepted these recommendations upon appointment on January 1, 2019. 

“We are pleased with the Executive Committee’s decision to accept Chris and Garrett with our consideration,” said Thomas Blaney, Partner and Governance Committee Chair. “Our goal is to support and enhance the Firm’s leadership decisions and it is an honour to be a part of this formative process.”

The executive committee is the top leadership in the Firm, working with several groups to carry out its internal advisory and leadership practices. The committee is designed to strategically support and implement the Firm’s highest priorities. 

PKF O’Connor Davies has ten offices in four states and continues to expand through organic growth and acquisitions in the Northeast and Washington, D.C. region. It has supported this growth with a strategic combination of promoting from within coupled with tactical external hires.

PKF International Limited has strengthened its global coverage with the admission of Audit Service LLC as an independent member firm in Yerevan, Armenia.

Audit Service LLC was founded in 1997. The objective of Audit Service LLC is to support Armenian enterprises to be effective in the domestic and international market through supply of qualified and professional services including auditing and consulting. To date, the Company has effectively provided its services to more than 550 companies.

Gor Davtyan, Managing Partner of Audit Service LLC said: “We are proud to be part of the PKF Family. We look forward to working with members of PKF to develop our service offerings to the businesses and broaden the expertise available to our clients.”

PKF International CEO, John Sim, said: "We are pleased to welcome Audit Service LLC to the PKF family as we continue to expand and strengthen the PKF brand. Audit Service LLC fits well with our value proposition of Quality with Integrity, and also meets our strategic objective of expanding geographical presence in the region.”

Audit Service LLC will rebrand as PKF Audit Service LLC with effect from February 2019.

PKF International Limited has strengthened its global coverage with the admission of William Expertise as an independent member firm in Rouen, France.

William Expertise was founded in September 2017 by Olivier Lefort and Ludovic Adrien. It is a firm of French public accountants offering a wide range of services to French and international businesses. The objective of William Expertise is to provide top management and executives of go-ahead businesses with a wide range of solutions tailored to their specific needs including: traditional accounting services (bookkeeping and accounts, payroll), and further solutions for monthly or periodic management reports, legal and tax advices from the in-house law firm, outsourcing, and internal control.

Olivier Lefort, managing partner of William Expertise said: “We are proud to be part of the PKF Family. We look forward to working with members of PKF to develop our service offerings to the businesses and broaden the expertise available to our clients.”

PKF International CEO, John Sim, said: "We are pleased to welcome William Expertise to the PKF family as we continue to expand and strengthen the PKF brand. William Expertise fits well with our value proposition of Quality with Integrity, and also meets our strategic objective of expanding geographical presence in the region.”

PKF is now represented in France by PKF Gross Hugel in Strasbourg, PKF Audit Conseil in Marseille, PKF Cogeparc in Lyon as well as Fi.Solutions in Paris, who also joined the PKF family this year.

William Expertise rebranded as PKF William with effect from 1 January 2019.

Strategic growth initiative expands expertise in transportation, food manufacturing and processing and employee benefit plans

In December PKF O’Connor Davies, New York announced that GKG CPAs, an accounting, consulting and financial services firm based in Chestnut Ridge, NY joined the firm. The move is part of PKF O’Connor Davies’ ongoing strategic growth initiative focused on deepening the Firm’s expertise in key practice areas. GKG brings experience in key industries, including transportation, food manufacturing and processing, employee benefits plans and not-for-profits.

“GKG is a perfect fit for the Firm’s strategic growth goals,” said Kevin J. Keane, Managing Partner. “We’re eager to work with like-minded individuals with a strong dedication to serving clients, and GKG has demonstrated that commitment over the years. “We welcome the GKG team and look forward to their efforts to expand the Firm’s knowledge and services in critical practice areas.”

Six partners and about 40 employees will join the Firm. Some employees will move to PKF O’Connor Davies’ Woodcliff Lake, NJ, offices and others will remain in GKG’s Newburgh, NY, location. For 25 years, GKG has provided comprehensive business consulting, tax and estate planning, auditing, reviews and compilations, and accounting and financial management services to middle and large-market businesses and individuals with complex needs.

“PKF O’Connor Davies has a strong reputation for its industry-leading practices and unmatched focus on client service,” said GKG Managing Partner Donald R. Karlewicz. “We’re thrilled to join forces with an established and internationally renowned firm.”

Joe Tarasco, CEO of Accountants Advisory Group, facilitated and advised both firms on the transaction.

PKF O’Connor Davies has nine offices in four states and continues to expand through organic growth and acquisitions in the Northeast and Washington, D.C. region. It’s supported this growth with a strategic combination of promoting from within coupled with tactical external hires.

Left to right: Steffen Zipperling, Nicole Busch, Marius Künne, Tanja Schmitz, Gerd Norta, Ingo Hesse.

The PKF network is growing in Europe, with German member firm PKF Fasselt building on its established base with six new associate partner promotions across its offices spanning the region. This news has been featured in key local publication, Innenhafen-Portal.

Part of PKF Germany, PKF Fasselt, along with seven other partner-managed independent member companies, 80 partners and around 1,400 employees, forms one of the largest accountancy networks in Germany.

The firm’s new associate partners consist of Steffen Zipperling, Nicole Busch, Marius Künne, Tanja Schmitz, Gerd Norta, and Ingo Hesse. The hires will be based in the firm’s locations across the country, with the new individuals working in the Braunschweig, Helmstedt, Berlin, Duisburg, and Düsseldorf offices.

Arnd Schienstock, Partner and branch manager at the Duisburg office, said: “Our new associate partners will sustainably strengthen our group of partners through their excellent expertise, broad experience and proven leadership qualities. This enables us to further expand our comprehensive range of services for the benefit of our clients.”

We would like to welcome the new hires and offer our congratulations on the promotions within the firm.

Find out more about PKF Fasselt
Read the news in Innenhafen-Portal

We’re delighted that PKF Singapore has been named as one of “2020 Asia’s Top Employers” by Asia’s leading brand recognition think tank, Influential Brands, which exists to celebrate “Champions of Excellence” in the region.

The recognition is the result of an extensive survey in July 2020, which looked at company culture and employee engagement, conducted in collaboration with aAdvantage Consulting firm, Influential Brand’s research partner. This year, the awards focused on firms which demonstrated outstanding resilience during the COVID-19 pandemic.

A spokesperson from Influential Brands said: “The awardees surpassed industry standards in having meaningful employee engagement, strong alignment between employee and company culture and relevant HR practices in this digital age.”

The listing is based on an anonymous survey of more than 10,000 employees, with only three other businesses named in the category, so we would like to offer our hearty congratulations to the firm on this excellent achievement.

Find out more about the award
Find out more about PKF Singapore

The PKF network’s second virtual US-German Summit took place recently, organised by US member firm Mueller & Co. Various PKF member firms in the US and Germany attended, following on from the inaugural virtual summit in October 2020. Set up in 2018, these summits were created with the primary focus of promoting US-German collaboration and identifying necessary steps to strengthen the US-German PKF relationship.

After a brief overview of the current political situation following Biden’s inauguration, the summit considered comparisons between the measures taken by the US and Germany to deal with Covid-19, and the impact that the pandemic had had on the economy and travel in both countries. The meeting also included expert presentations and discussions on PKF's legal advisory services in Germany, as well as investment structures in the real estate sector for both regions.

In this summit, more than 20 participants from the US and Germany attended. It is hoped that a face-to-face meeting will be set up soon, and this is likely to take place in New York. 

David J. Nissen, CEO/President of Mueller & Co, commented, saying: “It was a wonderful collaboration of the highest quality CPA firms in the world that are committed to transatlantic services.” 

Read about previous summits
Watch a video about the 2019 summit

We’re thrilled that PKF New Zealand has been awarded “Xero National Partner of the Year 2020” at the Xero awards in Auckland, New Zealand, earlier this month.

Founded in 2006 in New Zealand and now with over two million subscribers, Xero is the leading cloud-based accounting software solution for small businesses. Its yearly awards celebrate those who have made a vital contribution in the audit and accounting sector. This year, more than ever, the awards recognised those who have gone above and beyond to make a difference.

PKF New Zealand Chairman said: “We have been finalists for the last two years and winning the 2020 award will proudly feature on our list of key successes. PKF member firms across the network have worked very closely with Xero over recent years, particularly in 2020, when the spotlight was firmly centred on “cloud computing and anywhere any time access” during the lockdown. In collaboration with Xero, we reached out to hundreds of clients across the country, helping them through a very challenging year.” 

In explaining their decision-making behind the award, a spokesperson for Xero said: “PKF New Zealand has worked really hard to embed Xero across the business, and upskill and educate their team. They have a clear focus on building and fostering the next generation of great leaders and are truly values led. The judges were impressed with PKF New Zealand’s heavy focus on education and training for their clients and dedication to helping them thrive.”

The lauded National Partner of the Year award goes to an accounting partner with a national presence who has added significant value to clients across New Zealand and championed the use of Xero and cloud technology – a fantastic achievement. We at PKF New Zealand are incredibly proud and would like to thank everyone for their hard work and dedication in securing this impressive accolade. 

Find out more about the awards
Find out more about PKF New Zealand

As a result of many years of experience and expert knowledge, and taking into account market expectations regarding the expansion of its business also by legal services, PKF Poland decided to establish a new company.

Its activity is dedicated to comprehensive legal and tax services for its clients. Solutions built individually for each client, enriched with unique expert knowledge tailored to the industry in which the client's enterprise operates, are also comprehensively developed in terms of tax and law.

PKF Poland can facilitate foreign clients both to start their business on the Polish market and adapt their operations to the dynamically changing economic realities. At the same time, PKF Poland look forward to cooperating with other member companies on supporting its Polish clients in entering foreign markets through, among others, support in starting an investment or establishing business relations.

View the new website here

PKF MEF has become one of the six leading tax advisory firms in Russia and one of the top fifteen law firms of tax litigation consultants, according to the results of the federal ranking of law firms PRAVO 300, which were published at the beginning of December 2020.

"Interaction in the PKF network also allows us to carefully analyse international experience and actively cooperate with our foreign colleagues. We understand what is going on; we adequately assess risks; we are aware of what needs to be done in any situation and we do what is necessary for our clients," says Alexandra Ambrasovskaya, a partner of PKF MEF (Tax Litigation and Dispute Resolution).

Pravo.ru-300 is designed to increase transparency of the Russian legal services market and for over 10 years has been serving as a benchmark for courts and clients to assess the level and professionalism of legal consultants. The rating is highly reputable and its auditor is the international audit company Deloitte. The expert council of the rating include heads of legal departments of major Russian and international corporations. A total of 389 companies participated in the rating in 2020 with projects worth RUB 220 trillion, compared to RUB 119 trillion the year before.

Alexandra Ambrasovskaya,
Partner of PKF ME

PKF Econometrica in Romania has been awarded first place for the 9th consecutive year in the Timis Firms Awards, which are organized by the Timis Chamber of Commerce.

PKF Econometrica Timisoara has received recognition in the Top Firms Awards for the services provided both to the local business environment as well as in other areas of the country. Due to Covid-19 circumstances, the organizers decided to maintain a strict social distancing policy and publicized the awards via an online ceremony. The event was held from the 9-13 of Nov 2020 and was broadcasted on Romanian TV on the 4th of December 2020.

Carmen Mataragiu, Managing Partner, commented saying: “After more than 21 years of activity in the accounting market we are pleased to share the news of our success and to thank our team and the PKF International family for their support during these years. Being the first ranked (PKF Econometrica) and third ranked (PKF Tax Partner) accounting firms in the county obliges us to demonstrate that those years were not an accident, but a constant in the quality of our work.”

Carmen Mataragiu, Managing Partner, commented saying: “After more than 21 years of activity in the accounting market we are pleased to share the news of our success and to thank our team and the PKF International family for their support during these years. Being the first ranked (PKF Econometrica) and third ranked (PKF Tax Partner) accounting firms in the county obliges us to demonstrate that those years were not an accident, but a constant in the quality of our work.”

Find out more about PKF Econometrica
Find out more about the Timis Chamber of Commerce

Feargal McCormack, PKF-FPM Managing Partner quotes: "​We at PKF-FPM are delighted with these Awards, a result of a great collective team effort in an extraordinary year. Lovely to see our colleague Ashok Thomas being acknowledged as Irish Young Accountant of the Year 2020, a very popular and caring team member and an inspirational talent".

Ireland based accountancy practice, PKF-FPM, with offices north and south of the Irish border, proved to be leading their sector when awarded two of the most sought-after honours at the Irish Accountancy Awards, which took place virtually on Wednesday, 18th November 2020.

The magnitude of taking home these awards, namely: Large Practice of the Year for a second consecutive year and Individual Excellence Young Accountant of the Year – awarded to Senior Manager, Ashok Thomas, was a significant accomplishment for Team PKF-FPM, who have collectively focused all efforts and resources on supporting clients and the community in what has been an extraordinary year.

In expressing her delight when collecting the Large Practice of the Year Award, PKF-FPM Director, Teresa Campbell commented,

‘I truly am delighted to accept this award on behalf of Team PKF-FPM, who really are passionate about exceeding client expectations, while at the same time recognising the importance of giving back to the community. It is very humbling to be recognised by our peers in the industry two years in a row, especially when faced with the current Covid-19 pandemic.

Find out more about PKF-FPM

In a year like no other, PKF Littlejohn is proud to have helped so many listed businesses in 2020 achieve their vision – from listing on Aquis, AIM and the Main Market, to supporting takeovers and acquisitions. You can read all about the transactions and the companies we supported in our Capital Markets Deals Review 2020.

Now 4th ranked auditor for AIM listed clients Littlejohn are excited to have gone up the rankings in Consumer Discretionary & Consumer Staples, Energy, Financials & Real Estate, Healthcare and Industrials clients. These represented a total increase of 11 per cent when compared to listings during 2019. In terms of funds raised, the UK remained third behind the US and Chinese markets. During the year, AQSE saw seven IPOs. Of these IPOs, we were pleased to be involved in four of them.

Technology IPOs accounted for more than 25 per cent of total funds raised in 2020. No doubt Covid had some influence on this. A thriving biotech sector is benefitting from increasing opportunities in healthcare..

It was also encouraging to see new sectors coming onto the LSE in 2020, with PKF acting on the listing of Guild eSports Plc and Helium One Limited. Guild is the first global eSports business to be listed while Helium One represents the first company on AIM carrying out helium specific exploration activities in Tanzania.

Find out more about PKF LittleJohn

In 2013 PKF Fasselt in Duisburg established a China Desk, to meet the business needs of its Chinese clients. With its "one-stop-shop" principle the team    has been supporting Chinese companies planning to invest in Germany or already having done so. Despite the Covid-19 pandemic and its impact on several sectors all over the world, Chinese economy is booming.

PKF Fasselt is committed to helping foreign companies to be successful in Germany. Our special expertise is to provide services to Chinese companies planning to invest in Germany or already having done so. Furthermore, we provide support to companies who are cooperating with Chinese investors − whether it be in Germany, Mainland China, Hong Kong, Taiwan Europe or worldwide. In this process we can offer a broad range of services under one roof to all business parties.

Our HR managers, IT specialists, German puplic accountants, certified tax advisors, lawyers and business consultants are by your side at all times ready to help you, from the establishment of the initial contact with potential investment partners along the merger and acquisition processes to the successful development of business activities.

Thanks to the OBOR initiative, the freight trains between Germany and China became a major channel for the transportation of medical supplies. Industries such as infrastructure and logistics flourished during that time, while digitization became a top priority. This was just one of the reasons, for the success of the China Desk during the last year, contributing to an acquisition of new customers, among which there is a subsidiary of one of the world's top construction machinery manufacturers.

Find out more about PKF China Desk

Find out more about PKF Fasselt 

PKF Slovensko prepared a detailed analysis of Brexit impact on Slovak exporters (EU) to the UK and UK exporters to Slovakia (EU) after the Brexit. This article was one the most read in December and in January 2021.

The United Kingdom of Great Britain and Northern Ireland (UK) has left the European Union (EU) In accordance with the Withdrawal Agreement concluded on 31 January 2020. Nothing had substantially changed for both businesses and citizens of the UK and EU during the transitional period that started on 1 February 2020. It had given businesses room to prepare for the changes in the movement of people, goods, services and capital after 1 January 2021, when the rules of the customs union would cease to apply to the United Kingdom.

The United Kingdom remains a member of the World Trade Organization on its own behalf and will be subject to relevant agreements with the World Trade Organization, especially in its concessions and obligations relating to trade in goods, services and to intellectual property rights.

In the long run, relations with the UK regarding customs will be directly dependent on what form a possible free trade agreement negotiated between the UK and the EU will take, or whether the UK will be in a position like any other third country. As part of preparations for a potential “hard Brexit”, the European Commission has prepared a handbook for customs authorities in the Member States, detailing selected customs procedures and possibilities after the transitional period.

Read the full article 

Now that the UK has come to the end of the transition period and fully left the EU, what are the implications from a tax and customs duty perspective?

Our experts have summarised the latest guidance, supplemented by their experience in recent weeks, in this month’s Tax Talk.

The changes are in some cases obvious; in other cases, they are more subtle. However, in all cases, the impact of getting matters wrong can be significant – for example, being unable to export your products and upsetting your customers, or failing to apply tax changes correctly which could build up significant liabilities when discovered later. In all cases therefore, as ever, if it appears that a tax change affects your transactions, employees or business structure, you should seek specific advice at the earliest opportunity.

Read full Brexit Tax Talk article 

After an eventful start to 2021, which has already seen the completion of Brexit, new lockdown measures and the acceleration of the COVID-19 vaccination programme, experts from Johnston Carmichael, have revealed their top business predictions for the remainder of the year.

They speculate that climate change will come to the fore as Glasgow prepares to host COP26. Increased investment in technology to tackle global warming, growth in offshore wind and greater focus on carbon capture are also likely to be in the offing.                   

Other trends established as part of the pandemic, they say, will continue, including growth in convenience retailing, demand for food that promotes health and wellbeing, and the ongoing digitisation of financial services; contributing to the decline of cash. Tax will also be subject to change as the Chancellor seeks to recoup the cost of bailing out businesses and jobs.

“Despite the continued uncertain economic outlook, the positive is that businesses have shown they can be highly flexible and deal with disruption in an agile way”

Andrew Walker, CEO

Read full article 

In 2020 PKF Wallast was certified by Great Place To Work in the Netherlands. Great Place To Work Netherlands examines the degree of trust, pride and pleasure within organizations. 

The results of the employee survey are used to determine whether the criteria for being a good employer have been met. Only organizations that achieve the required score may directly bear the title Great Place To Work Certified. 

PKF Wallast is a very committed partner for entrepreneurs with integrated financial, fiscal and corporate legal services. We operate from four offices in the Netherlands (Amsterdam, Delft, Rotterdam and Woerden). We are also connected to the international PKF International network. Integrated advice is our original core activity, in which we know more and more specializations such as Valuation Services, VAT, Payroll Tax, IT Audit and Risk Management. We do our best to become the best employer and the most valued accounting and consultancy firm in the market. 

Since this year, PKF Wallast has been ranked 3rd on the annual Net Promoter Score (NPS) in the tax advice and accountancy sector. We are therefore very happy and proud that we are now also Great Place To Work Certified.

“We believe that the colleague performs better if he or she feels safe and can work comfortably. In addition, we consider our family culture important: learning from each other and celebrating successes together. We are extremely proud that the way in which we have set up employer-ship for our employees is seen. ” - Stefaan Rods, CEO PKF Wallast

Read the full article 

Katrin Statz has been appointed as a partner and managing director of PKF Industrie- und Verkehrstreuhand GmbH in Munich since January 1, 2021.

In her new role, the tax advisor will be responsible for corporate taxes and the preparation of annual financial statements, with a focus on tax advice for closed-end alternative investment funds, project development companies and leasing companies. 

“As a long-term employee of PKF Munich, I am very happy to be able to contribute my specialist knowledge and female intuition to society as a partner with even more responsibility than before. A motivated team awaits me in an exciting environment,” says Katrin Statz.

Find out more bout PKF Munich

PKF Francis Clark are delighted to announce the promotion of 12 rising stars to partner or director roles, as the firm continues to develop its next generation of leaders while supporting our clients through the coronavirus pandemic.

Corporate tax specialist Adam Kefford has become a partner at PKF Francis Clark, having joined the firm in 2005 as a graduate trainee. Eleven other rising stars have been promoted to director roles, while audit partner Paul Putnam has joined the firm’s growing Bristol office.

Meanwhile, 11 team members from across a range of specialist services have been promoted to the role of director. The newly appointed directors, based in Exeter, Plymouth, Truro, Salisbury, Poole and Torquay, are: Tom Beable (audit); Becky Hayes (VAT); Matt Willmott and Nick Tippett (corporate finance); Scott Campbell (tax advisory service); Dawn Peattie (rural); Nicky Cornish, Ryan Prynne, Ian Hughes, Luke Green and Aaron Lawes (family and owner managed businesses).

“I’m very proud of the work everyone has done to get to this milestone and wish them every success in the next chapter of their careers with PKF Francis Clark. It’s a challenging time for all businesses, but it’s great to be able to take a moment to celebrate this positive news.” - Managing partner Andrew Richards

Find out more about careers with PKF Francis Clark 

In today’s world of oil and gas, Guyana is rarely off the front pages. But this is a relatively new phenomenon.

Since independence from the UK in 1970, the country has seldom made a splash in world affairs except for the infamy of 1978’s mass suicide in Jonestown. That aside, Guyana remained an innocuous agricultural outpost wedged between Venezuela, Brazil and Suriname. But, in 2015, everything suddenly changed for Guyana when Exxon struck oil and the world took interest.

Since then the rise of the country’s fortunes has been meteoric, bringing a welcome boost to an industry in global decline since oil prices slumped back in 2014.

With 5.5 billion barrels of recoverable hydrocarbons, plus more prospects on the horizon, Guyana’s economic outlook has been revolutionised. To describe its oil discovery as a ‘game-changer’ is to woefully underestimate how life will never be the same again for the Guyanese.

With production ramping-up to 750,000 barrels per day (bbl/day), Guyana will soon top the list of oil-producing countries by bbl/day per capita, comfortably looking down on second-placed Kuwait.  At that stage Guyana will be thrust into the world’s Top 25 countries by production volume, ranking ahead of neighbouring oil producers Trinidad and Brazil.

Inexhaustible opportunities - and threats

The potential for huge economic upsides is unquestionable, but Guyana still faces many difficult challenges in order to capitalise on these. Since 2015 debate has raged on an inexhaustible list of hot topics, covering taxation policy, anti-corruption legislation, chronic skills shortages, infrastructure improvements, environmental protection, establishing a national oil company and developing a sovereign wealth fund - to name a few. But for a government with precious little experience in these matters, the most important question is – where do they start?

Above all else, the one thing putting most strain on the country is the speed of change. Later this summer the Liza Destiny FPSO will set sail from its shipyard in Singapore to hook up and commence production in 2020 at the Stabroek field. That makes it a mere five years in which Guyana has transformed itself from economic dependence on sugar and rice exports to its impending status as a major player in global energy supply.

The ‘speed of change’ is keeping today’s business leaders on their toes but few of them are dealing with the kind of supersonic speed of change sweeping over Guyana. And before Guyana can truly gain from the opportunities that lie ahead, the government must still make some huge decisions, and get them right, all within a rapidly reducing timeframe.

This creates a once-in-a-generation need for professional advisers to help steer Guyana in the right direction. At PKF, we not only have deep expertise in advising the energy sector around the world, but we have a long-established office in-country. So, we’re involved in the global issues at play and we’re also at the heart of business in Guyana. We’re here already and we’re ready to help.

Jamie Drummond is a director in PKF International’s assurance team

PKF member firm, PKF Francis Clark, featured in UK newspaper, The Independent, on Saturday 1^st June 2019 with the article - Talk to your partner about money (before it’s too late).

The article discusses the importance of making financial ground rules in the early stages of a relationship. Frank and honest discussions regarding finances are encouraged to prevent issues arising in the future.

Gary Quick, director at PKF Francis Clark Financial Planning & Wealth Management says "Money issues can make or break a relationship, so it is important to start an open and frank discussion about it as early in the relationship as possible"

“Ask about other income, aspirations and ambitions and talk about the realities of living together including paying the bills and access to the finances you have between you.”

To read the article in full, click here.

Rebekka Van Wickern, is employed at PKF Fasselt Schlage in Germany. She has held the role of Associate for the last two and half years. Rebekka is currently embarking on an exciting secondment opportunity, as a Global Exchange Employee/Associate, to PKF Mueller in Chicago, North America as part of PKF GO from May 17th to August 15th. Rebekka has shared her story on why it was important for her to seize the PKF GO opportunity and to expand her horizons. 

I first became interested in PKF GO, PKF’s secondment programme, when I was introduced by Kai Schoeneberger to Dave Nissen (Managing Partner at PKF Mueller) at the Global Gathering in Cape Town in 2018.  Dave told me about his secondment experience and that’s when I knew I wanted to undergo a secondment to PKF Mueller for three months! 

I chose the US for my experience as the US economy has a huge impact on Germany and since I was already participating in a US / German Collaboration Group, it made sense to explore this option and get to know much more about PKF across the globe.

I didn’t have to undertake any additional learning - my skills were transferable. Although I would say language skills is very important. I speak English as well as German and that has helped me immensely to communicate with my new colleagues and friends.

My biggest achievement
I wanted to get to know as much of PKF Mueller as possible and to find out more about the differences in the two cultures. Since I work in three departments in Germany (accounting services, tax and audit) I am happy I got to switch between these departments within PKF Mueller. I’m able to compare the work they do and can take my new experiences back to PKF Fasselt Schlage which I believe will be helpful.

I have learnt so much about myself
I have previously been an exchange student, so I knew I already liked the area and had some friends nearby. Since starting my secondment I’ve made lots of new friends, not once have I felt lonely as they always keep me so busy! I regularly go to baseball games, evenings out with my team to see the Chicago sights and not to mention kayaking on the Chicago River. I feel very grateful and privileged to have this opportunity.

I’ve learnt to be bold and curious. I’m not afraid to ask questions or to worry that I don’t know all of the answers to all of the questions. Being brave is key - ask lots of questions! This not only helped my knowledge; it’s also helped my language skills too.

I would recommend a PKF GO secondment to anyone who can try it as I’ve found the experience to be very well organised and fulfilling. I’ve really enjoyed attending meetings and getting to know my colleagues and new people. I thought the experience would be good, but not this good!

“It’s a great work experience that I will never forget!”

In this article, Martin Prinsloo and Gabriel Campos of PKF member firm Berkowitz Pollack Brant examine six common ways that business professionals and their legal counselors unintentionally alter or destroy digital evidence, complicating forensic investigations and exposing themselves to legal risks.

Many disputes have been decided based on digital data collected and recovered from computers and cellular phones. In this age of big data and expanding digital footprints, legal professionals are faced with a multitude of challenges around preserving and protecting digital evidence to ensure it is forensically sound and credible for use in legal proceedings.   

As well as discussing the common mistakes, which include turning recovered computers off or on, failing to disconnect devices from the internet, and assuming data can be recovered from damaged devices, the authors also look at how to mitigate against such issues and offer advice around protecting digital evidence.

Read the full article on the BPBCPA website

Dean Pearson from PKF Mueller writes about The EDGE Credit and how it is one of the more lucrative tax incentives available to businesses with Illinois facilities. Click here to read more.

Florentina Susnea, Managing Partner at Romanian member firm PKF Finconta, has published an article on LinkedIn discussing the importance of business operations redesign when planning a strategy to recover from the current crisis.

In the article, Florentina looks at operational restructuring, different tax approaches including requesting additional time to file and pay income tax or seeing if the company is exempt under new measures, and working with outside consultants to help with more complicated tax matters.

Florentina writes: “As companies stabilize, fiscal and financial functions will be required to play an even stronger role in helping companies determine the next steps in their recovery plan. Transforming the operating model can help reduce overheads, control the unpredictable costs of digitization, and redirect internal resources to more strategic activities.”

The article concludes with essential advice around re-evaluating a company’s operating model, including conducting an audit to understand priorities, determining which areas of the business need upskilling, and finding the right mix of tactics for your company. Florentina notes that many businesses follow a hybrid route of outsourcing certain tax issues to a third party, allowing their people more time to focus on profit making activities.

Read the article on LinkedIn
Find out more about PKF Finconta

This article will discuss why the existing culture that surrounds our audit businesses needs to change. Traditional hierarchical structures that encourage rigidity of operations needs to evolve to become more agile, or risk becoming outmoded for the modern, fast moving, corporate world.

We are now several years into sweeping changes to the audit market. Most of the regulatory direction has focused on the structure of the market while standard setters have looked at enhancing quality in audit, as well as providing comfort to end users and stakeholders.

The audit profession has had to deal with a perception that, at times, the relationship between auditor and client has become too cosy and created a culture within audit organisations where issues aren’t challenged robustly enough with those they audit.

During this time, audit providers have looked at using technology to become smarter in understanding a business’ financial position and better utilising data to counter potential fraud or error.

In this environment the question we need to address is: what kind of culture should a successful audit organisation have so that it is fit for purpose now and tomorrow?

Culture in business

Before we can answer that we need to understand what culture is within an organisation. In reality, this can be difficult to define. As accountants we tend to like tangible things, while culture is much more intangible. However, it will shape the things we do, and the way people behave. The culture in a good organisation will create an energy. It fills the gaps that no amount of policy and procedure can ever legislate for.

Behaviours are a key element in culture. How people interact, how they collaborate in teams and treat each other all influence how we feel which, in turn, has an impact on our behaviours. In some organisations it’s ‘all about me’ or ‘do as I say, not as I do’ whereas in a collaborative organisation, positive behaviours create a virtuous cycle.

Systems can support culture – but can undermine it as well, if they do not effectively implement what your organisation is trying to achieve.

Adopting an agile culture

Having considered what culture is, what could an effective audit culture look like? An ‘agile’ culture is one with an ‘open’ environment – where people can learn, make mistakes and encourage others on that journey. Where one person isn’t critical to everything – and things still function if someone comes out of the process. An important part of agility is embracing technology.

There is so much tech available, and firms that adapt will be far better placed to cope with audit’s rapid evolution. There is an expectation that we can do more – agility is vital for us.

But why is this agility hard to come by in audit? There’s an element of us preferring to stay in the pack; people don’t want to be trailblazers. We’ll step forward when we think we’re safe. Sometimes we’re guilty of trying to make too many decisions by committee, and this can lead to important decisions being deferred and progress being stalled. We can be hierarchical which exacerbates things getting logjammed.

We put policies in place and lines of reporting, but they can make us inflexible. So, can we move towards a more ‘living and breathing’ way of working, with flexibility? Perhaps we need our teams to be accountable for what they achieve (outputs) rather than more traditional hours-based performance measures (inputs).

Actions for effectiveness

If we accept the merits of cultural agility, we need to ask ourselves what we can do today or tomorrow that will help us achieve this. First, listen to and engage with the team and take action where possible. If you don’t act, they won’t continue to engage with you. Second, create a shared vision of what the organisation is trying to achieve. In many organisations without this, the team will work against each other pulling in different directions.

In terms of process, the more we automate, the easier it is to concentrate on the things that will make us effective as an organisation.

I would strongly encourage firms to identify one item of tech that would make a difference to your organisation and implement it. In time we’ll be adopting multiple elements of new tech but we have to start somewhere.

In summary, auditors and their organisations that are agile, adapt quickly, and recognise and embrace diversity, will become the successful ones. The ones that carry on doing the same things the way they’ve always done will fall behind – which is fatal when there are so many external influences directing us to change and adapt. Let’s start the journey towards greater agility today.

David McBain is an Audit and Assurance Partner at Johnston Carmichael LLP, a member firm of PKF International

Following roles in HR and recruitment in her Canadian home, Karen Soo would have expected that joining PKF Littlejohn in the UK would bring about new experiences. Perhaps though, helping manage and coordinate the accounting firm’s hiring operations through a global pandemic was not high on her list of expectations.

But for all of us it was a new experience, and one that impacted HR directly across the vast majority of corporates.

“I’m sure a lot of companies faced a recruitment freeze when lockdown hit,” says Karen. “The uncertainty led us to pause.” But as the PKF International member firm moved to begin hiring again in June, for some the impact of Covid-19 on all aspects of working life still hadn’t hit home.

“At first a lot of candidates would say they want to come in to see us. It’s understandable because the face-to-face aspect of interviews is about seeing the office space and having a more natural conversation with someone.”

Video interviews had been a last resort for PKF Littlejohn – an exception. But both parties had to grasp the ‘digital nettle’. Since lockdown all of the firm’s interviews have been remote – via Zoom.

Karen believes that the majority of candidates have transitioned well to this new environment. And in terms of presenting themselves as best as possible, she has noticed that most candidates make an effort to check that everything from an audio-visual and operational perspective is optimised to give the best first impression and experience.

Some might think that managing technology, and more than just their own physical appearance, might put candidates, and even employers, in a mindset that video interviewing is more difficult – or less beneficial. However, Karen points out some real positives that have come out of this new way of liaising – particularly around time management and job-seeking.

“As most candidates are already working full-time but from home, they have had more flexibility about managing time to undertake interviews.

“A more direct approach will hopefully give them more confidence and control in knowing where their CV and information has been sent.”

This direction of travel isn’t the end of recruitment agencies though. “Candidates conducting their work search in London, for example, will undoubtedly go to an agency first, because searching for their next role in the big city is akin to finding a needle in a haystack.”

The lack of commuting for candidates – which would have often been outside normal working hours – means that the recruitment process has been faster internally. Employers and candidates can get more done quickly.

The core of the interview – namely the questions to be asked of the candidate plus any testing, has not changed. Technical interview tests, for example, are being administered via OneDrive.

“Otherwise the interview structure and its duration have remained the same for consistency,” explains Karen.

For the firm as a whole, Karen envisages that HR will be more involved and have greater ‘control’ of the recruitment process.

“Communication will be handled entirely between us and the candidates, which we feel will make it more personal and more efficient – there’ll be less chance of miscommunication because of someone else in the middle of the process.”

However, the video interviewing that has been all-pervasive in recent months is unlikely to remain that way.

“Ultimately, in-person interviewing will still be the preferred method of interviewing, because video misses out so much non-verbal communication. But it will be likely to continue going forward, as we now have more acceptance of it,” says Karen.

“Remote interviewing means candidates are available to interview quicker and the likelihood of interview cancellations or delays, because of traffic or getting lost, are reduced. Essentially, the amount of time from initial application to an offer can be reduced quite a lot.”

And advice for other PKF member firms?

“Embrace technology,” she suggests. “Lockdown has clearly showed us that there are many ways to be connected and efficient at work without needing to be in an office. If there are product updates, update the software immediately and read the release notes.

“If there is a new software being tested at your firm, volunteer to be part of the trial process. Utilise technology to your advantage to create better and stronger candidate experiences.”

Find out more about PKF Littlejohn

Pictured: Andrew Killick, Corporate Finance Partner and Lucinda Coleman, Business Recovery Partner, PKF Francis Clark

We’re delighted that PKF Francis Clark’s corporate finance partner Andrew Killick and business recovery partner Lucinda Coleman have been featured in Business Leader, the UK’s leading media platform for high growth and scale-up businesses, discussing how to prepare your business for life after Covid-19.

The article first examines PKF Francis Clark’s changed business strategy, with Andrew commenting, “Now is the time to step back, consider the bigger picture and ask yourself some fundamental questions about the future of your business.”

Next, it goes on to look at the firm’s new Covid Business Review service, which brings together experts to help business owners to refocus or restart their operations as we enter a new era.

There is an outline of the key components of the new service, including existing asset assessment, marketplace analysis, options around routes to market, and recommendations and actions for your business. 

Looking at the possibilities of refocusing or restarting for a business, Andrew says “The first step is understanding where your business is right now, before exploring how your physical and non-physical assets can be used profitably going forward. This could be as simple as a pub or hotel turning under-used outdoor space into a venue for socially-distanced events.”

Lucinda adds to this, considering how an objective analysis of the situation and potential routes forward can be the key to survival, saying: “The earlier you seek advice, the more options you are likely to have. By being involved at an early stage, we can often find creative alternatives to a formal insolvency process to keep a business trading, enhance its opportunities and safeguard employment.”

Read the article
Find out more about PKF Francis Clark

We speak to Kylee Dare, non-executive director of Australian firm PKF Sydney & Newcastle

The story of Kylee Dare isn’t a simple tale of ‘triumph over adversity’. Though to tell that, in isolation, would itself be compelling.

Instead, the non-executive director of Australian firm PKF Sydney & Newcastle’s story encompasses many other things such as identity and mindfulness, through to broader themes affecting the workplace and its people: leadership, diversity, inclusion, and meritocracy.

Those themes should also include ‘authenticity’, a word that Kylee uses a lot in her role as a non- executive.

“When I was the firm’s only female partner, having come up through the ranks, I tried to fit a mould,” she explains. “My only reference point was fitting the mould of the other male partners – in other words, ‘toughen up’. I was an effective leader, but it was perception rather than reality.”

It took time for Kylee to understand and appreciate that she wasn’t being true to herself or utilising fully her other strengths: empathy, compassion and courage. But time was something that Kylee found she had much of, after her accident.

It was a seemingly innocuous incident, but still one that required multiple corrective surgeries and included spinal complications. Sadly, a mistake made during one operation left her with constant nerve pain in her lower back and neurological damage to her right leg.
To battle the constant pain, Kylee was put on medication that had severe side effects, including impairment of her cognitive functions.

“I would drive, reach a stop sign and then not know what to do next. I couldn’t finish sentences, or process things I was reading,” she explains. Kylee attempted to return to her role three times, but it didn’t work out. “I went from being a highly productive and busy partner, to nothing.”

Declared permanently disabled and having to retire from her role as a Partner, Kylee realised that her career role had become her identity, which had now gone. She became isolated and lonely, in fact barely leaving the house for eight years due to her functional impairment.

She sought professional help to manage her mental strength, and then clinical help to embed spinal cord stimulators that would turn down the volume of the physical pain. Summarised in a sentence it sounds quick, straightforward. Kylee’s physiotherapy and rehabilitation over that eight-year period was nothing of the sort. Part of what Kylee describes as the “grieving process” she went through at the time involved acceptance that her career was over. Kylee says she learned that moving from grief to acceptance is a “powerful path”.

“This is who I am and I’m okay with that,” she explains. “Am I a better person? Definitely. I’m more balanced and have a better perspective. It was a period where I spent time with people with disabilities – who are some of the strongest and most inspirational people I’ve met.”

A visit from PKF Sydney & Newcastle Managing Director Steve Meyn offered an opportunity to come back in a limited way, a way that Kylee felt she was able to manage. “The offer opened the door a bit, one I thought was closed.”

“Nothing was going to stop me after that, although it was about working the hours I’m capable of and doing the best on mentorship and leadership that I can.” Kylee came back to the firm a different person, with different goals and objectives. “It was important I felt comfortable with my leadership style, courageous but not fearless, empathetic and passionate.”

The board created a leadership programme, alongside businesswoman Helen Wiseman, called Thrive and Lead. It was designed to explore and motivate the firm’s future leaders, in particular to help increase the number of senior women at the table.

The first group of eight were all women, and Kylee was charged as a non-exec and mentor with building a link between these women and the board. “Designing the Thrive and Lead programme created something different. The immediate success is three women as partners, with others following closely behind.”

A key part of the mentoring involved helping the women find their own leadership style, rather than try to replicate others. “We talked about finding out your strengths and using them.”

Another aspect of Kylee’s efforts has involved looking beyond just the path to partnership, and whether any other perceived barriers can be broken down. For example, making it more attractive and sustainable for women to come back to the workplace after having children.

Kylee says: “We are a professional services firm with 50% of our team who are women. Its leaders need to represent them and develop opportunities for them.”

But it’s not just about women. The firm has a diversity and inclusion committee, chaired by their youngest female partner, which is looking to make it easier for people with different backgrounds into the profession. And bringing in different people will mean different approaches to working and culture – fresh ways of thinking. This approach effectively mirrors Kylee’s own appointment.

“When I came onto the board as a non-executive I knew I was different, and wanted to offer an unbiased and new perspectives of thinking. The aim on a board is to move away from ‘group thought’,” she explains.

Kylee takes great heart in the women partner appointments, and how they will support momentum for change. “I know that the original eight women on our programme are providing informal mentoring between themselves and for others. They will be really important as the alumni for the next Thrive and Lead.”

Of course, all this effort must ultimately have a positive impact on client service. Kylee sees different voices, different views, as integral to helping build deeper relationships for what is a broad client base. Australia’s Newcastle, for example, is a burgeoning city that requires community support to help it grow.

“We’ve seen our people spending time with clients, building that emotional connection – and that has worked well for our Thrive women,” says Kylee.

“As we return to the new normal, the investment in time and support the firm has provided will give us a client uptick and open up opportunities for new business.”

The pandemic has and will continue to affect us all in a myriad of different ways. It has provided an opportunity for new technologies and policies to emerge, which will help us advance as a business, as a network, and as a community. What has become abundantly clear during this time is that it is essential for entities like ours to demonstrate positivity and lead by example, ensuring we live our brand values in how we treat our staff and our clients.

It’s vital we think about how we react to a crisis. I’m proud to see the ways the firms within our network have addressed the situation, by pivoting their strategies and showcasing their people’s and structure’s resilience during this time.

Nowhere is this more visible than on our social media channels. I was recently invited to contribute to a white paper on how professional services firms are navigating social media during COVID-19. In the paper, prepared by MD Communications, my comments were included where I said, “social media is our shop window to the world. Everything on display reflects our core values and demonstrates that we are resilient, yet human, and very much open for business.”

We can use the multiplicity of channels across our network, all delivering quality content to an audience of hundreds of thousands, to show flexibility and fortitude during difficult times, as well as reassure clients and our community as a whole, by drawing on the strong connections and dedication of the entire network.

We owe our continued success to the people in our network, so thank you to you all for rising to the occasion during these testing times.

Theo Vermaak, PKF CEO

We spoke to Brett Settles, Director of Human Resources at PKF O’Connor Davies

PKF firms across the globe have faced a range of challenges posed by the coronavirus pandemic. From remote working to maintaining service provision to recruiting graduates, overcoming such challenges are global – though each country and each firm has their own solutions. For Brett Settles, serving as Director of Human Resources at a $160m+ firm such as PKF O’Connor Davies in North America, these challenges really scale up.

“We’ve certainly had challenges on many levels,” he explains.

From an IT perspective, working from home for staff meant testing servers and support systems.

Then, can clients’ requirements be satisfied? “There have been lots of calls, emails, and video conferences – making sure we meet deliverables and assist clients with solving an array of new significant challenges that they face as result of the pandemic.”

PKF O’Connor Davies also had to quickly adapt from what was previously a one day a week remote work policy option for employees, to a fully remote workforce of over 800 employees. “It has worked better than we could have ever hoped it would”, says Brett. “Our employees have done a tremendous job of adapting to this new normal, remaining productive and even strengthening client relationships.” As a result of the success, PKF O’Connor Davies is allowing employees to be fully remote through to the end of the year if they wish - even when the firm opens its offices back up.

The pandemic has impacted on certain areas of work such as transactions and tax preparation/filing, while providing broad advice and ‘crisis support’ to client has been all-consuming. Making the pieces fit the new jigsaw has been vital for Brett and the firm’s management.

“We created a service where we help clients put together paperwork for business loans that they need to keep running”, Brett explains. For PKF Connor Davies, it’s about building strong relationships with clients and always looking to add value, especially when they need it most. The firm created a coronavirus ‘resource centre’, where its  wide range of experts provide their thoughts and takes on any aspect of managing the impact of the pandemic on a business or individual, from a tax, accounting, regulatory and transactional perspective.

Even Brett ‘s team got involved, reviewing how governmental policy updates would impact their clients in terms of workforce management, along with health and safety. The information hub has proved massively popular.

“We now have a huge library of a resource centre… it’s led to us having webinars with thousands of clients live. Many called us afterwards with further questions and requests for support.”

Communication isn’t just outwardly focused. With more than 800 employees, helping maintain morale alongside good working practices has been critical.

“We’re about the people and have always had a more community-based environment - it’s been magnified through this pandemic. Happy hours and coffee breaks are now globally recognised as good online practice.” But O’Connor Davies’s marketing team went a step further: creating a special newsletter, ‘News To Get Us Through’, motivating people by flagging up the great work being done. It also includes ‘Thank You to our Frontline Heroes’ section, where friends and relatives who are key workers are highlighted and thanked.

Going forward, Brett accepts that there is “still a lot of uncertainty” in gauging what the ‘new normal’ will look like.

As we enter a transitional phase, he sees the remote culture of working dominating for a while longer. When people are made “comfortable and safe”, they will return to the office – and then face-to-face meetings with clients will be managed.

“I think it’s a matter of waiting and seeing what’s going to happen but being able to adapt.” he explains.

“We understand that things are going to be different than how they were, but it has been incredible to see that we can all come together and deal with anything that is thrown at us.”

Find out more about PKF O’Connor Davies

Elmer van Lienen, Tax Partner at PKF Wallast, has written an article for leading accountancy publication, International Accounting Bulletin, discussing how to define a worker’s status for employment and tax purposes, and highlighting the issues that may be faced by the self-employed.

Introducing the piece, Elmer writes, “the issue of how to define a worker’s status for employment and tax purposes is not a new one – but it is one attracting more headlines as the weeks and months pass. In recent times, cases involving Uber drivers and Deliveroo couriers have filled business pages.”

Elmer then considers loans and furloughs for employed individuals during the pandemic and poses questions about how this situation affects the self-employed: “Simply put, if there are loans, grants and furloughing payment schemes for people that are employed, what about those that are self-employed? Will they fall through the cracks as far as support is concerned?”

He notes that businesses will need to better assess their workforce to provide flexibility, and that the issue as a whole “brings up a political, even societal, discussion: what kind of country – or countries – do we want to live in, and how do we see the future working lives of our people and businesses?”

Elmer goes on to suggest that organisations should work with government and regulators in order to produce coherent plans around the status of their workers, as more individuals are now providing contracting services on a self-employed basis.

“As we move to the next stage of rebuilding our lives, businesses and economies, then organisations should have, as a priority, a plan to create a stronger tax control framework,” writes Elmer.

The article concludes by expressing hope that the self-employed will be better understood and that companies may “even embrace the vital role they play in a modern, flexible and fast-paced economy”, as, for organisations, “putting a framework in place helps you consider all the stakeholders and the risk or opportunities for your workforce. Whether they’re employed by you, or working for themselves.”

Read the article (subscription required)
Find out more about PKF Wallast

With the increasing popularity of cannabis products of all kinds causing considerable growth globally, our experts provide their international insights into the trends shaping the market.

The cannabis industry around the world is experiencing unprecedented growth, as restrictions on recreational use are relaxed and the medicinal properties of cannabidiol (CBD) are finally acknowledged. While there is a general trend of legitimisation and acceptance, the mechanisms of legalisation and company operating rules vary hugely across countries. So, how are the entities in these different markets navigating the challenges involved?

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Brexit will create unique challenges in industries across the economy. Following the UK's vote to leave the EU, PKF firms have prepared detailed insights into the implications for organisations across the globe, as well as within the UK itself.

We are helping the industry and our clients to navigate this inevitable period of uncertainty. Experts in our network are available to answer questions on the impact on the financial markets, as well as the implications for businesses across all sectors and regions.

Read our Brexit advice:

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Brexit and International Social Security

Dealing With Data Post Brexit

Brexit Update Tax Guide

Brexit Planning Presence in the EU Post Brexit

10 Million Brexit Readiness Fund for Business Organisations

Customs Arrangements Preparation for Brexit What You Need to Know in Relation to the Movement of Goods

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A No Deal Brexit Considerations and Preparation for Scottish Businesses

Brexit Update Flextension to 31 January

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Navigating Brexit What Should You be Doing

Brexit

Navigating Brexit What Should You Do Now

Brexit What Does it Mean to You

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YouTube: Helping Businesses be Brexit Ready

Brexit still delaying business decision making

No Deal Brexit - Will Your Businesss Competitiveness in the Republic of Ireland Market be Eroded

Brexit and Cross Border Solutions

Brexit Briefing 1

Brexit Briefing 2

Brexit Briefing 3

Brexit Briefing 4

Brexit Briefing 5

Brexit Briefing 6

Brexit Briefing 7

Brexit Briefing 8

Brexit Briefing 9

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PKF Bredin McCormack Rewcastle, part of PKF New Zealand, has recently released a briefing on the country’s third “Wellbeing Budget”. Presented by Minister of Finance Grant Robertson, this Budget is unique in that it focuses solely on “rebuilding together”, outlining the New Zealand government’s proposed steps on the road back to economic normality.

The Wellbeing Budgets initiative, pioneered in 2019, signaled a programme of change and introduced Budget decisions based on what matters to New Zealanders.

The extremely thorough briefing, authored by PKF BMR’s Director and Head of Tax Jono Bredin, examines the $50 billion COVID-19 Response and Recovery Fund (CRRF) proposed in the Budget - the single largest investment set aside in New Zealand’s history.

Looking first at business support measures, the briefing discusses the extension to the Wage Subsidy Scheme, short-term temporary loan schemes for R&D programmes, and how the investment will boost trade and support SMEs in a digital economy. It also scrutinizes the jobs package, training for tradespeople, and the tourism recovery plan within the Budget, as well as providing an overview of tax matters and setting out next steps for New Zealand.

Download the briefing
Find out more about PKF Bredin McCormack Rewcastle

How can we bring Europe back to a healthy financial position? This is the question that Jan Sanders of PKF Wallast tackles in his latest article for leading global publication, Bloomberg Tax.

Jan suggests an overhaul of the VAT system, as it is a key source of revenue for European governments. He believes that it is too complex, and that streamlining is needed. This issue has been pushed to the forefront due to the Covid-19 pandemic, which has resulted in governments “spending like never before to fill the holes in corporate and household budgets,” while “at the same time, the shutdown of the economy has turned off the tap on much of governments’ tax income.”

Jan explores this issue in detail, looking at expectations for the near future, where he says “it is clear that a holding pattern will not be enough” and considers how we might build a better VAT system, as it is a low-cost, low-enforcement method of bringing in income.

The article concludes by proposing three fixes to make VAT more efficient, which include a single rate of VAT, giving up the current exemption system, and adjusting the rules for non-business use.

Read the article
Find out more about PKF Wallast

We spoke to Luciana Pestana, HR partner at PKF International member firm PKF Brazil. 

Despite working in the hustle and bustle of Rio, for Luciana Pestana, the people of her accounting firm PKF Brazil, and the broader business and civilian communities, the coronavirus pandemic and subsequent restrictions have come as a complete shock.

“We were so surprised, we never imagined something like this would reach us in Brazil,” says Luciana.

“We don’t have the same technologies in business as companies in the US or Europe. Our firm is traditional, offering payroll tax and other business solutions.”

Luciana points (metaphorically) to the cloud as an example. Businesses in Brazil are a bit insecure of taking on new tech, and PKF Brazil, like many other Brazilian organisations, uses in-office servers to store data and run systems, rather than ‘in the cloud’.

As such, lockdown has meant the firm and its people have had to adapt.

“Once we saw the remote working policy being pushed through, we knew we had to change. Our people now have two computers – one at home and one in the office.”

But flexible working, or working from home, has had little take-up in the past. The firm bought some time by having staff take vacation time. “Despite being on the back burner for years, we created and implemented a remote working policy in a matter of weeks.”

Other tough decisions have been made around their people, and Luciana has seen the firm work less with some clients – but a lot more with others. Facetiming, Skype calls and Zoom conferences are now commonplace.

“We’re finding solutions to problems every day. There are other ways of working with our clients.”

For a gregarious and close-knit community of people, Luciana saw there was something missing, initially, from the virtual communications.

“At the beginning we felt far away from each other, but we increased the calls, started having lunch together online, and making the communication less structured – a lot of important communication is made informally.”

“We used to decorate desks for a birthday – now we create birthday pictures and share them online. It’s a simple solution but it shows a bit of your life.”

Decisions to build a resilient, modern and valuable practice are already being made.

“Working from home, and being more flexible, has made some of our people happy.”

 “I think we’ve already reached conclusions that we won’t need as much physical space as we have done; and we will invest in cloud technology!”

We spoke to John Lim, HR Partner at PKF-CAP in Singapore

PKF’s John Lim hopes that a positive impact on the future will come about as a result of the myriad of changes to working patterns and lives when the coronavirus crisis passes.

John, an HR partner at Singapore firm PKF-CAP, has borne witness to two major changes in the way the firm operates – both due to online communication.

Firstly, the lockdown in Singapore has pushed the firm’s training online. Some may have concerns that e-learning can be a passive experience, but running technical and ‘soft skills’ training through the Microsoft Teams platform has worked well for John and the firm’s ‘pupils’.

“Some of our people have found they have more time available by working from home, and it’s focused their minds on wanting to make the most of their time,” explains John. “They want to do something productive.

“Because of that we’ve found our training to be highly subscribed and popular.”

About 50 (more than 50% of total staff) people have attended the online courses. While some prefer to run the course without their camera on, John has found that asking questions of attendees “always brings a response and good feedback”.

John believes that sharing PowerPoint presentations to accompany the discussion means the audience has a better experience absorbing information, alongside the ‘grouped solitude’ that an online meeting brings.

“They say that their concentration is better because they can see and hear clearly, whereas in a physical group and in an office, you can get distracted and lose concentration.”

Online training also provides the opportunity to record the presentation. This means it can be used to share with others where required, or can be accessed again by those who attended in the first instance. “They’re available for catch-up or repeat, it’s an advantage.”

The firm ran a virtual recruitment session with students in their final year at Nanyang Technological University – one of the most prestigious learning institutions in Singapore.

This Zoom-run session included a presentation, video, discussion (including talk by a post-graduate PKF member) and then a Q&A session. It was the first time online with the university.

“Students wrote to me and said they were motivated and inspired. We immediately received resumés.”

The future, John believes, will look different following these experiences.

“We should be able to engage with students in the way that we have been doing, certainly from time to time,” he explains.

For the firm’s staff, he expects remote working to become more prevalent – this would also increase the amount of online training.

Face-to-face learning, where brainstorming and much sharing of ideas is required, will still form the majority of sessions, although online may take the place of e-learning modules, in certain situations.

“I’ve been conducting online training every Friday since the lockdown – the difference compared to other e-learning is that this is contextualised for my local situation. Therefore, those learning have been able to appreciate it better.”

We spoke to Christine Wamukoya, Regional HR Development Manager, at PKF in Eastern Africa.

Many of us take internet access for granted. But such accessibility is not a given for many.

For the PKF offices across Eastern Africa, more limited access to the internet – alongside scheduled power cuts – have meant that remote working put in place due to coronavirus management has required careful planning to achieve client service delivery. The firm currently has 38 partners and directors and a staff force of approximately 750.

“We’ve had to go the extra mile to make sure our people can have online access to be able to work on their assignments and access systems at certain times remotely,” explains PKF Eastern Africa HR Development Manager Christine Wamukoya.

Staff in entry level roles have been given an ‘airtime allowance’, so that they can submit reports or access organisational portals while working remotely. The allowance can be loaded as data onto a phone which can then be connected to a laptop.

Job plans were created for each team, “so that on a week-by-week basis it’s clear what’s expected of our people and those managing them”, says Christine. “They also know when they can connect online with each other to communicate and share work.” Ultimately, much time is spent working offline (mostly on assignments), so consideration needs to be made as to what work can be undertaken.

This has worked well, says Christine, and “people have been responsive.”

Face-to-face communication is very important in Africa, and so making the transition to remote working was tough for some. “But we ran trials, simulations and they bought into it.”

A region’s plan of action was shared with the clients via an online communique. This explained how the firms in the region would be operating, and outlined several options available for them to contact their engagement teams at PKF.

Remote, or flexible, working will become a bigger part of the regional firms’ future, Christine believes.

“Before Covid-19 we’d been talking about working remotely and flexi-hours, so this has pushed us towards what we’d been considering in certain instances, particularly for new mothers. However, this could be a way of operation for all staff moving forward.

“We have noticed that some of our teams’ and individuals’ productivity has improved because there are fewer interruptions, as well as a significant time saving commuting to the office. This will definitely change how we work in the future where required, and for the better.”

We spoke to Amy Taylor, People Director at PKF Francis Clark

A successful practice in the South West of England with 750 staff in eight offices, the lockdown from late March onwards has seen much change at PKF Francis Clark.

“Prior to this period, we were office-based, so it’s been a very real change to get used to,” explains People Director Amy Taylor. “Many people have been pleasantly surprised by how well they have been able to continue working with their teams despite everyone being in different locations.”

A key aspect of this change has been managing and supporting people who are working remotely, as well as some of their colleagues who aren’t currently working – and making them all feel that they’re still part of one team.

Similarly, the firm has been helping clients who are going through the same challenges. “For us it’s all about being the trusted adviser at the end of a phone, email or video call. We have teams in place, and alongside them there’s other resources such as the Coronavirus Updates hub on our website, where we are collating useful information and insights to help businesses through the current crisis.”

For Amy and the rest of the firm, it’s vital to remember that this is a crucial time “when we’ll be judged by clients and employees on how we act”.

“We have been making sure that our actions are aligned to our values. Ultimately you’re judged by your behaviour.”

The firm’s values are: the ingenuity to deliver; the compassion to respect everyone; the commitment to put the client first; the expertise to drive excellence; and the courage to be ambitious.

Amy points out that communication has increased among its people in recent weeks. “People are taking the time to talk to others on a one-to-one basis with a very open ‘how are you?’ Everyone’s own situation in this crisis is different, but communication has definitely increased - and I’d say improved.”

Driving social interaction has been key. Fun get-togethers have been important in recent weeks. Video-based photo competitions, Friday ‘virtual’ drinks and quizzes are commonplace.

Some changes in working patterns, plus client and team communications, may stay in place once lockdown is eased.

“We’re thinking about how lockdown ending will impact us, in both the short-term and longer term,” says Amy. “It will impact our clients and therefore our service offerings as well. Perhaps there will be less working in the office, less travelling and more online discussions with clients.

“We’ve proved that we can change how we work, and there will be a demand for some of those changes to stay in place as we think about how we can work more effectively going forward.”

Find out more about PKF Francis Clark

For more information on how PKF member firms are implementing positive change, visit our COVID-19 hub.

The current COVID-19 crisis is reshaping the economic order. Customers are fundamentally changing their behaviour and jurisdictions are implementing all kinds of measures to combat the crisis. These will be drivers for businesses to decide on change, which immediately presents challenges for the way businesses comply with value-added tax (VAT).

Jan Sanders and Michelle Rang of PKF Netherlands discuss what businesses should do, from a VAT perspective, to respond to the “new normal” in the post-Covid-19 crisis period.

Click here to read the full article

During COVID-19 we have witnessed some inspirational examples of people coming together to help the most vulnerable and, at the other extreme, we have also seen cybercriminals taking advantage of the pandemic. Robert Brooker, Co-head of Fraud and Forensic and Martin Moore, Senior Manager, Forensic & Counter Fraud Services at PKF LittleJohn share their guide; Don't become a victim of Coronavirus fraud.

Working with PKF Fasselt Schlage in both their Köln and Duisburg offices has overall been an enjoyable, eye-opening, experience. PKF Mueller has a successful track record of sending employees on Secondment to Germany and after meeting with Wolfgang van Kerkom, Partner of PKF Fasslet Schlage in Köln while he was visiting Chicago, I felt that this was an opportunity that I should not let pass me by.

While working with PKF Fasselt Schlage in their Köln office, I had the chance to work in the departments of audit and corporate finance. Although to this day I rely heavily on translating websites, I was very pleased to find out that German HGB audits for the most part operate very similar to US GAAP audits. Back in Chicago, I regularly work on audits so starting off in the audit department in Köln only made the transition easier. After three weeks I switched over to their corporate finance department, where I assisted on a transaction services project. I consistently am trying to look at things from a different perspective and I feel that analyzing data from a non-audit perspective introduced me to some new ways of thinking. Near the halfway mark of my Secondment was the 2nd annual US-German Summit in Hamburg. I am grateful to have had the opportunity to attend, present on my experience and network with PKF members from the US, Germany and various other countries. After being away from home for about 5 weeks or so, it was also nice to see some familiar faces from PKF Mueller, who were also in attendance. Finally during the last month of my exchange I worked out of PKF Fasselt Schlage’s Duisburg office (aside from a few days visiting PKF’s office in Frankfurt and working with PKF International). There I got to assist various departments with my knowledge of the English language and US GAAP. I also held presentations on both the path to becoming a CPA and working in the United States as well as a key differences between US GAAP and German HGB.

Living in Köln has introduced me to both German culture as well as “city life”. When asked where I am from, I usually default to saying that I am from Chicago when in reality I live about 40 miles outside of the city. I grew up in the suburbs of Chicago and my University was about 2-3 hours south of the city surrounded by cornfields, so up until now living in a city was just a dream.

PKF International Limited administers a family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

The array of attractions, restaurants and shopping that were within walking distance is something I will miss greatly when I am back home. And as much as I enjoy driving my VW Bug back in Illinois, not sitting in traffic at any point during the past three months has been a perk in itself.

Outside of work, my PKF colleagues went out of their way to include me in events (both PKF and non-PKF sanctioned). Whether it was barbecues, grabbing drinks after work, shopping at flea markets, movie nights, soccer games or parties, members of PKF succeeded in making sure that I felt like I was a part of their family. Twice a week, I also attended night classes where I studied basic German. Although the language barrier was slightly difficult for me at times, I feel like I am leaving Germany with an, albeit slightly, better understanding of the German language than I did when I first arrived.
While overseas, I also had the opportunity for some personal travel including Berlin, Amsterdam, France, Switzerland and Ireland. And like many of the PKF Mueller Secondees before me, towards the end of my Secondment I was able to partake in the Oktoberfest celebrations in Munich. Going on Secondment has opened doors for me professionally and exposed me to a wide variety of European cultures through experiences that I will remember for a long time.

The opportunity to participate in a Secondment has allowed me to grow both professionally and personally. To PKF Mueller, PKF Fasselt Schlage, the PKF Network and to all who made my three-month exchange possible, I would like to say thank you for this opportunity. I plan to stay connected with my PKF colleagues once I have returned to back home to Chicago. One of the focuses of my Secondment with PKF Fasselt Schlage was to strengthen collaboration between the firms by building connections so that members of PKF Fasselt Schlage have someone they can feel comfortable contacting with US GAAP specific-questions and vice versa.

Mindbridge’s Gillian Fischer looks at how to lead complex change when adopting AI technologies.

We’ve all heard of artificial intelligence and you’ve probably encountered it today while using your phone or browsing the internet. While many individuals have started to embrace AI, the accounting and financial services industries are relatively behind. While 76% of banking CxOs agree (‘Realising the full value of AI in banking,’ accenture.com) that adopting AI will be critical to differentiate in the market, firms still struggle to understand, validate, and build out AI for their practice.

WHY IS AI IMPORTANT?
AI is transforming the accounting industry by allowing firms to process vast amounts of client data to report on behavior, trends, and anomalies that were previously undiscoverable. With clients looking for broader scope in navigating risks, ensuring compliance, and protecting reputation, AI makes it possible to ingest and analyze 100% of financial data and go beyond traditional rules to extract valuable insights.

A common example of how artificial intelligence algorithms are applied to accounting is the detection of material misstatements by auditors using ‘unsupervised learning.’

This set of AI techniques leverage the science of determining what is usual versus unusual to report on outliers in ledger data without bias or history, letting the data speak for itself.

In a 2017 KPMG survey report, ‘Audit 2025: The Future is Now,’ nearly 80 percent of respondents said that “auditors should use bigger samples and more sophisticated technologies for data gathering and analysis in their day-to-day work.”

By understanding the entirety of general ledger data and identifying outliers based on risk, rather than rules, AI identifies suspect transactions based on how they deviate from the data set, such as unusual payments or activities that would not normally be caught by traditional audit tests.

It also eliminates the back and forth with clients, as the complete ledger is available for the auditor to explore and dive into details as they wish, providing a richer picture of the client’s financials.

A recent fraud case with a consumer goods manufacturer provides an example. As explained on the ACFE Insights blog, an audit services firm in the United States used AI to analyze more than $2.8 million in fraudulent transactions.

Going beyond the capabilities of the auditor’s traditional tool, Microsoft Excel, AI was able to ingest and understand all of the data, reporting on transaction items of unusual amounts and accounts that warranted further investigation by the auditor.

WILL AI REPLACE ACCOUNTANTS? 
The answer is definitively “no.” It cannot replace the experience and judgement of auditors, nor can it understand and manage the relationships between firms and clients. AI works alongside people, automating and accelerating large and complex data tasks and it assists with decision making when it comes to identifying misstatements and determining risk.

It is transformative technology and therefore any firm must carefully consider their adoption strategy and timelines. For auditors, AI warrants a re-evaluation of how audit planning, testing, and reporting are done, as well as understanding
the skills and competencies required.

HOW TO GET STARTED
As I’ll discuss in my talk at the Global Gathering Meeting, ‘How to Lead Complex Change when Adopting AI Technologies,’ bringing AI into any firm requires an investment into the people as well as the technology. From working with hundreds of firms worldwide, those that focus on change management and building data literacy tend to be more successful, rather than those that force new technology on unsuspecting staff.

These successful organizations typically perform the following steps:

1. Validate AI for their practices – understand the applications of AI to engagements and services, including the technology stack and staffing needs.

2. Build their AI adoption journey – considering the people and process impacts, and above all else, the change leadership, determine the phases of transformation.

This includes defining the success metrics, enablers such as training and communication, and timelines for
each phase.

3. Engage the initial team and build data competencies – build a small, but powerful, team of champions and build out the skills necessary for successful adoption.

4. Educate the team – to build a strong foundation across the firm, the entire team must understand the value that AI brings, through both educational resources and capturing and sharing insights and real use cases that align to the strategic objectives the firm.

AI adoption is not easy, but there is research-driven and experience-proven ways to smooth the process out for firms of all sizes and demographics. By attending my session, we’ll dive into more details on the above topics, see some real examples, and help you navigate your adoption journey by connecting it to business value, empowering your team, driving new behaviors, and building the necessary competencies within your firm.

Learn more about AI for audit at mindbridge.ai. MindBridge Ai is restoring confidence in financial data with Ai Auditor, the world’s only AI-powered auditing solution that leverages machine learning and AI techniques to augment human capacity and redefine reasonable risk assurance.

In 2018 I learnt about PKF GO, the secondment programme offered and organised by the PKF network. This programme gives PKF employees all over the world the opportunity to work, gain experience and learn about the culture of other countries where PKF offices are located.

In the Autumn of 2018 I sent my CV in response to the adverts posted on PKF365, the network’s intranet. I received replies from three locations: London, Malta and New York and received invites to interview at PKF O'Connor Davies and PKF Littlejohn.

After the interviews I was delighted to receive a secondment invitation to go to London for six months at PKF Littlejohn. With the consent of my partner and my managers, I decided to accept this opportunity and began my secondment in January 2019.

Under the secondment programme, the host is obliged to provide me with accommodation for the duration of my stay which was great as it meant I didn’t have to worry about finding a place to live.

The beginning of my stay in London was quite hard - I had to find my way in a new culture, familiarise myself with speaking English daily and meet new people from a new office.

I also had to get to know new roommates from Australia, who were also participating in the programme.

At PKF Littlejohn I worked as a Junior Assignment Leader (the equivalent of a Polish Junior Coordinator) in the general audit and not for profit department. I conducted audits of financial statements of production companies and foundations.

Every new audit I started was stressful for me - I always worried about whether I would manage, which was also an additional motivation, however with a lot of support from my English managers everything worked out well.

During my stay in London, I certainly improved my English and gained valuable experience and a different perspective on the audit process (use of different software, different regulations, organisational structure of PKF Littlejohn).

I met many interesting people and I have to say that everyone was always very kind and helpful to me, making every effort to make me feel comfortable in my new job.

Six months is quite a long time, so I had a lot of time to see London and its surroundings. I visited all of the important places including Buckingham Palace, Westminster Abbey, Tower Bridge, Greenwich and many more interesting places - there is really so much to visit!

In summary, I am very pleased with my trip to London and PKF Littlejohn. I value the professional help and support I’ve received from my office in Poland and London and I’m grateful for the valuable experience I gained.

Join Ian Khan, Forbes contributor and Technology Futurist and James Hickey, PKFI CEO along with a panel of industry experts for a live debate on The future on CPA’s and Accounting Firms beyond COVID-19 tomorrow at 12:00 noon EST.

The BounceBack LIVE STREAM is free initiative to help understand where your industry is heading and what you should do to understand the impact of COVID-19. By bringing in industry leaders on a neutral platform, Ian’s goal is to help find solutions and a sense of direction. We invite you to join the BounceBack live stream tomorrow at midday and use this opportunity to plan a BounceBack strategy for your businesses.

Click here for more information.

 

By Thomas J. DeMayo, Principal, Cyber Risk Management
PKF O'Connor Davies

The coronavirus has grabbed the attention of the world by inciting fear and uncertainty into people’s lives and bringing into question the operational stability of a business should employees be unable to leave their homes. As the world struggles to contain the coronavirus and businesses prepare for the potential impact to their operations, we offer the following cybersecurity considerations to help safeguard your business and workforce.

Social Engineering

Issues or events that trigger emotional distress or curiosity are key topics for cybercriminals to use in creating social engineering campaigns. A social engineering campaign is an act through a social mechanism ‒ be it email, phone calls, text messages, etc. ‒ that are designed to manipulate the victim into performing an action, e.g. clicking on a link, opening an attachment, or disclosing information. For these types of attacks to be successful, they must trigger an emotional response with the target. The coronavirus scare is the perfect mechanism for cyber criminals to leverage and trigger that emotional response.

Remind your employees to be cautious of emails with links or attachments that reference the coronavirus or status thereof. The following scenarios are examples of how the virus could be leveraged to manipulate your employees:

• An email from a spoofed news outlet claiming a cure has been found or a pandemic has been declared. A link is supplied to access an article for the victim to click to read the additional details.  While the act of clicking alone may sound benign, that is enough for the cyber criminals to infect your systems, steal data, or hold you hostage with ransomware.
• An email claiming to be from Human Resources or the COO with an updated work from home policy in response to the virus. The memo is provided in an attachment that needs to be opened. The act of clicking on the attachment and opening the document could be enough in and of itself to become compromised.
• A message from a fraudulent charity soliciting donations to find a cure or help those impacted. As with any time of crisis, people will try to create fraudulent schemes to steal money.

Remind your employees that when receiving any messages that reference the virus to Pause, Inspect, and Think (PIT) before acting. Remind and encourage them to control their emotions and not to let their fear or curiosity drive their response. It is critical that you also have someone who the employees can reach out to if they have questions about the communication and want to confirm the legitimacy. If you have standard methods of communicating significant issues, such as posting the information to your intranet, remind employees of these methods.

Remote Work Force

Over the past week, many businesses are minimizing office staff and requiring employees to work from home. Conferences are being canceled and meetings are moving into the virtual spectrum. Many businesses have a business continuity plan, but a lot of businesses still don’t.  For those that have a plan, remote access strategies will be put to the test. For those that don’t, the urgency to create one will be pushed to the forefront and defined on the go.  If you haven’t already defined and verified your remote access solution, be sure that you factor in security. While you certainly need to operate, you don’t want to expose the business to being compromised or trigger an inadvertent data breach. For example, allowing employees to take copies of data on removable drives from the office location to work from home may result in data loss should the drive be misplaced.

The following should be considered as part of your strategy:

• If your employees access sensitive data, they should be provided a company-controlled and secured laptop, inclusive of encrypted hard drives. While ideally everyone will have a laptop to work remotely, that may not be a financial reality or a necessity. If you need to prioritize, focus on the high risk employees based on the sensitivity of the data they need to access.
• Any remote access or cloud based application should leverage multi-factor authentication. This is particularly important if you embark on a rapid deployment of a remote desktop software such as LogMeIn or GoToMyPC to allow employees to utilize their own equipment at home to connect to their at-work resources.
• If you have the resources, offer to have your IT department perform a security check on employees’ home devices if the ultimate decision is that they need to work from home using their own equipment.
• Try to limit the options for employees to save data out of secured locations to their own devices. The capabilities will depend on the solution you implement.
• Ensure you establish and communicate clear expectations of the work-from-home strategy. While you may not be able to implement the ideal set of technical controls to manage risk, you can ensure your employees play their role and know how to work efficiently and securely when not in the office.  Empower them with the knowledge of the risk so they know how to manage it.
• Once the crisis begins to subside, require and communicate to employees that any saved data to non-traditional locations during the course of the crisis be securely returned to the company and removed or destroyed from those other locations.

Going Forward

This is without question a scary time with potentially devastating consequences to human life and the operational stability of businesses. However, know you are not doing it alone. If you need assistance in establishing a secure work-from-home protocol or creating a cybersecurity program designed to be resilient regardless of the issue, we are ‒ and will remain ‒ available to assist you.

Part of our mission to provide “value-added” services is only possible if we can ensure your success in the process.  We strive to be your trusted advisor not only through the good times, but also through the more challenging.

More about PKF O'Connor Davies

 

By Mark Bednarz, CPA, CISA, CFE, Partner
PKF O'Connor Davies

We work with for-profit, not-for-profit and governmental clients, and the majority of these organizations have either a business continuity and/or disaster recovery plan in-place. In constructing these plans, most threat scenarios typically cover natural disasters such as hurricanes and earthquakes, power grid outages and major cyberattacks. In recent years, some entities have had to activate their plans to deal with Hurricane Sandy and ransomware incidents.

Almost no organization has ever dealt with the outbreak of a new virus like COVID-19 (coronavirus) and the adverse impact it can have on employee health and their families, contaminated workplace facilities, questionable food sources, stockouts of essential goods due to supply chain disruptions and other facets of business operations. Management should take immediate action in either developing or revisiting their business continuity plan (BCP) because no industry is immune to this coronavirus because little is known about how it spreads, how long it remains potent on surfaces, the human incubation period and what safeguards beyond quarantine are truly effective. 

While some companies are already taking precautionary actions, such as disinfecting offices and conference rooms, sending communications to customers, cancelling non-essential travel, prohibiting large group meetings, converting face-to-face meetings to web conferencing and splitting the workforce between multiple facilities, it is becoming clear that so much more will likely be required.

Planning and Risk Management

In facing a crisis, planning is critical.  A good starting point is using business continuity planning as a foundation for deciding how to address catastrophic events that can negatively affect an organization. The strategy that management puts in place must ‒ at a minimum ‒ consider its employees, critical processes, customers, suppliers and other stakeholders. While most events are confined to a specific geographic area, the response to a pandemic is more complex and forces management to strategize on different severity levels, requiring assumptions about the anticipated spread and duration. COVID-19 is an example of how a threat that appears to have its origins in China has evolved into a global issue due to travel and transportation.

With every BCP, there is a risk assessment component that identifies the potential threats and vulnerabilities and prioritizes the severity of each business disruption. Management needs to involve employees in multiple areas and departments to understand the risks and the associated likelihood and impact. The specific risks related to the pandemic must be incorporated into the business impact analysis (BIA) portion of the BCP, which should include:

• Assess and prioritize the critical business processes and locations affected by the coronavirus
• Determine the impact of the coronavirus on the business processes, employees, customers, service providers, technology and regulations
• Estimate the recovery time objective (RTO), which is the target time management sets for the recovery of the organization’s IT and business activities after a pandemic

Pandemic Considerations

Due to the complexities associated with any pandemic, management should develop a pandemic plan, which requires careful planning, preparing, responding and recovery. Numerous internal and external factors and interdependencies should be considered including:

• Assign a group to monitor the stages of the virus outbreak
• Identify possible work-related exposures to the coronavirus
• Monitor absenteeism, which can be a result of quarantined households, ceasing public transportation and school closings
• Educate employees on preventive care and human resource policies or topics (i.e., workplace and leave flexibility, non-essential business travel)
• Identify key individuals at different locations who will have the authority to take appropriate action that is documented in the pandemic plan
• Make procedure manuals available and consider cross-training for critical functions or processes
• Identify and establish communication protocols with employees, investors, customers and suppliers

Responding to a pandemic requires significantly more collaboration between management, employees and outside parties than other types of events. Pandemic events will likely last far longer than typical BCP threat scenarios so communication is essential as the pandemic continues to evolve. Assigning individuals to closely monitor the situation and communicate with key stakeholders should be a top priority.

Testing

Though an organization may have a well-documented plan with detailed analysis, testing is a critical component in the program. Testing allows the identification of issues and promotes employee confidence. By performing tabletop or other testing methods, it allows individuals to understand their roles and responsibilities.

We have seen situations where management has run into issues or technical challenges related to inadequate technical resources, lack of communication with outside parties, the inability to properly identify or classify events due to environmental and other changes, and the lack of coordination with employees.  In addition, a crisis takes a toll on an employee’s mental health and physical stamina as they try to balance their work commitments with their fears and concerns about their homes and families. 

One example of a technical challenge is the heavy reliance on remote access if an office is closed and personnel must work from home. [Refer also to our article Dealing with the Cybersecurity Challenges of Coronavirus.]  The information technology department should work with management to test their remote access capabilities and determine whether their infrastructure has the capacity to handle the workload and that users are aware of the steps to access network-based computing resources. This assessment should extend beyond on-premise systems to those applications hosted by software as a service (SaaS) providers where less may be known about their capabilities under such circumstances.

Takeaway

Benjamin Franklin’s words ‒ By failing to prepare, you are preparing to fail ‒ still hold true today.  Your well-considered, well-documented and well-tested BCP can help protect both your business and your workforce. 

More about PKF O'Connor Davies

Ignacio Creus Marti, is employed at PKF Attest in Madrid, Spain. He has held the role of Transfer Pricing Tax Lawyer for the past two years. In September 2019, Ignacio undertook a secondment opportunity to PKF Wulf & Partner in Stuttgart, Germany for one month.

This opportunity came about following a conversation with Alvaro Beñaran, partner at PKF Attest, who knew my background and general interest in Germany and offered me this opportunity – I jumped at the chance!

I wanted to take this challenge because of the important trade relationship that exists between Spain and Germany. As a transfer pricing specialist, I had previous working experience with German companies operating in Spain, therefore I thought it would be interesting to see the German perspective of the cross-boarding transactions.

Personally, I was made to feel very welcome by the team at PKF Wulf and Partner from the moment I landed in Stuttgart. Special thanks to Anna Katharina Villbrandt, who picked me up directly from the airport and introduced me to the team on my first day.

This experience clearly exceeded my expectations thanks to Daniel Scheffbuch and the PKF Wulf & Partner team. In addition to improving my language skills (both German and English) I learnt about transfer pricing and international tax practices in Germany (including common practices of the German Tax Auditors). At the same time, I was encouraged to share and offer my professional experience in transfer pricing projects beginning a relationship that I believe is of mutual profit. Needless to say, this experience will be quite useful in advising future clients in Spain and I hope it would help to strengthen the current relationship between our two PKF firms, PKF Attest and PKF Wulf & Partner.

I didn’t come across too many cultural differences, in fact the business side is very similar. Daily life is a little different, especially around lunchtime, when lunch can often start at 12pm whereas in Spain it’s around 2pm but it was easy to get used to.

I’ve always enjoyed the German culture, as I’ve previously been fortunate enough to study in the country and so visiting Stuttgart has been a pleasure. Besides, my new colleagues were very nice. They ensured I felt involved at work and often took me to lunch and helped me improve my German language skills. That’s why, from the very beginning, I felt included and a part of the team. I’m very grateful for this as it made my experience even more enjoyable.

As a conclusion, I would absolutely recommend a PKF GO secondment. I learnt about Germany’s working culture which helped to broaden my horizons and encourage my professional growth. It has also created relationships and great working partnerships that are extremely positive for everyone involved. In terms of living in Stuttgart – I’m pleased to say that the football team, VfB Stuttgart, has gained a new supporter!

Finally, I’d like to thank everyone at PKF Attest and PKF Wulf & Partner for giving me this opportunity and for making my secondment experience so rewarding.

Johnston Carmichael is where sharp minds meet, from all over the world! Our membership of leading global accounting network PKF International not only gives our clients access to on-the-ground advice and support in over 150 countries, but also gives the combined PKF team of over 18,000 people a chance to experience a country and culture they might not otherwise have the opportunity to. Anna Katharina Villbrandt, a Senior Consultant at PKF WULF & PARTNER in Germany, recently spent three months working in Johnston Carmichael’s Glasgow office on a PKF GO secondment. Here, Katharina shares her experience of her time in Scotland.

My PKF GO experience started with the idea of doing something abroad; something beyond the usual holiday experience. I wanted to be part of another team, another company in a different city, and ideally the British lifestyle.
Great Britain was my first choice. As I am a fan of Great Britain, its people and language, it was obvious for me to choose a British destination if possible. Luckily my colleague, Daniel Scheffbuch from PKF WULF & PARTNER, had some good contacts at Johnston Carmichael, the PKF member firm in Scotland. This was the beginning of my great PKF GO secondment in Glasgow!

My secondment at Johnston Carmichael started in May 2019 and I was excited to take on the role of Audit Senior. I did my degree in accounting, taxation and business law, focused on audit, and this opportunity allowed me to build on the knowledge that I already gained through my studies and work.

Johnston Carmichael gave me the opportunity to work as a full member of the team on different clients. Besides improving my English, this enabled me to learn much about their procedures, their systems and the way of working.

My colleagues at Johnston Carmichael were very friendly and helpful. They really made me feel welcome and part of their team. On my last day they even surprised me with some lovely presents including a special speech from one of the partners, who made the effort to include some special German sayings - this was very impressive!

One of the main personal learning points I have taken away from my secondment is that each experience and challenge is part of everybody’s progress, and it is so important to stay open-minded in terms of trying new things and meeting new people. I am also happy that I have been always right in saying that British food is amazing! I fell in love with Scotland and its diversity of restaurants, including the best mussels I have ever tried! I really enjoyed the beautiful landscapes, the impressive architecture, the traditional pub culture and the unique museums all over Glasgow and Edinburgh. I can only recommend visiting this beautiful country.

Following my experience, I definitely recommend a PKF GO secondment. It is a perfect chance to work in a different country or even continent and to become part of another business environment and culture. In my opinion PKF GO strengthens the link between network firms. This is the beginning of an important and successful relationship for our firms and our clients.

Finally, many thanks to the partners and my team at PKF WULF & PARTNER and to Johnston Carmichael who made this possible for me. In particular, I would like to thank everyone in the audit team for their help, especially Karen McBride for all her support from the beginning of my secondment throughout my time at Johnston Carmichael.

A big thank you!

So there you have it - a summer in Scotland and a wish fulfilled! With over 400 offices across the world and a culture founded on collaboration, there’s no shortage of opportunities for growth at PKF International; both for our team and for your business.

“If we take PKF’s five values, they pinpoint what we as a network care about. If we can create the link between personal and company values, then we can have greater team cohesion and productivity”

Understanding how individuals’ values align with corporate strategy formed a key part of discussions between PKF member firms in November, during our virtual International Assurance and Tax Meeting + Techfest sessions.

The ‘Cultural health check’ session featured illuminating talks from PKF Sydney & Newcastle non-executive director Kylee Dare and David McBain of PKF member firm Johnston Carmichael.

Kylee spoke about firms being open to new ideas and thinking – creating an environment where people can be themselves and not feel they have to conform, fighting against unconscious bias and adapting to change and new ideas.

“If we take PKF’s five values, they pinpoint what we as a network care about. If we can create the link between personal and company values, then we can have greater team cohesion and productivity,” said Kylee.

David looked to break down culture into something that we can all understand – and from that point, act to improve it. Culture, he said, is about the day-to-day behaviours and actions that individuals take. Systems, processes, and an organisation’s strategy will influence those behaviours.

He used the example of the tension faced by the audit profession: it is under regulatory and market pressure to adapt and improve, but the methodologies and processes that underpin audit work lend itself to be more rigid and less open to change. But technology can be leveraged to free up auditors and potentially adopt different working patterns.

“What are the things we can do today or tomorrow that will help us achieve a more agile culture? … If you could pick one item of tech that would make a difference to your organisation, then do it,” said David.

The ‘Take your firm’s culture to the next level’ session involved various PKF member firms looking at the different types of culture an organisation can follow, such as being ‘people-led’ or ‘performance-focused’. Each of the key cultural directions were than analysed and discussed among the session attendees, outlining the positives and negatives of these in context of the direction of a professional services firm.

“What are the things we can do today or tomorrow that will help us achieve a more agile culture? … If you could pick one item of tech that would make a difference to your organisation, then do it”

“The PKF network is about the personal touch – we focus on people and relationships and it’s something we mustn’t forget”.

The International Assurance and Tax Meeting + TechFest, held virtually across 34 sessions in November, held a ‘Gala Roundtable’ as its finale.

The online discussion, led by PKF Sydney and Newcastle’s Clayton Hickey, looked at key themes raised throughout the year. The roundtable’s objective was to outline and highlight ideas that would help shape PKF firms’ workplan for 2021 and beyond.

Discussion kicked off with thoughts on improving the process around cross-referring across the network. PKF International CEO Theo Vermaak noted there were good examples of cross referring working well, and that such examples should be more broadly shared.

‘Embracing digitalisation’ proved an extremely popular topic, with ideas about how this could be leveraged by PKF firms coming from many attendees.

Some of the points raised included taking a ‘customer-centric approach’ to technology - namely, where it enhances the value of a firm’s service. Better helping clients not only embrace, but use, technology to improve the relationship between them and the adviser was also flagged up.

One attendee mooted the possibility of centralising both software evaluations and pricing.

CEO Theo Vermaak agreed with many of the points, suggesting that “we focus historically on how we manage our own functions, and we need to flip it towards the client experience”.

Clayton Hickey, who also serves as PKFI’s global chair of the International Professional Standards Committee, said there was an opportunity for firms to think about how they describe the use of analytics and data tools when pitching to potential audit clients. “Defining that for us and the market would be very valuable,” said Clayton.

Theo concluded that part of the session by pointing out that “the PKF network is about the personal touch – we focus on people and relationships and it’s something we mustn’t forget”.

In the ‘service offerings’ section of the session, PKF Francis Clark corporate finance partner Mark Greaves suggested that the pandemic had accelerated some firms’ automation plans – and, as such, had freed up time for their workforce to consider new or enhanced client offerings. “Diversification of services is therefore a critical area,” said Mark.

‘Culture’ was, again, a key issue when considering the future of PKF’s firms. There was concern about how to instil culture into new recruits if working remotely is prevalent. Others said that staff interaction needed to be encouraged, and that extra effort was required in this area with a more remote working world.

There was, inevitably, discussion about the culture of PKF and understanding how that applied to the firms’ efforts with their people, clients, and the wider communities impacted.

Discussion then moved onto ‘quality’. Again, there was consideration for setting network-wide quality definitions for key services, such as audit. This might tie into how referrals work, for example where a bigger firm is considering a referral to a smaller firm in the network, said Stefaan De Ceulaer, PKFI Tax Director. Ultimately, understanding each firm’s capability within a network is crucial.

Finally, attendees broached the topic of the PKF ‘hub’. PKFI Assurance Director Jamie Drummond believes that the hub will be an important sharing and collaboration tool.