There are plenty of reasons to expand accountancy and auditing scope and services. Abu Dhabi is becoming the center of business activities and a huge number of local and international businesses are setting their feet in the capital city of the United Arab Emirates. Accounting and audit firms in Al Ain offer new and potential clients investment advisory services or business investment and insurance products which are necessary to increase sales and profits. There are some sensitive potential risks associated with the expansion of services criteria which need proper consideration and analyses before any further step.
Potential Customers: Though it seems very attractive to capture more potential customers and client portfolio after expanding services and scope of audit and accounting facilities but the biggest and the most obvious risk involved is additional resource allocation to the existing firm and hiring of more staff members. The addition of more capital maintains and helps in introduction of new services to make the firm stay competitive and attractive for the new customers.
Value Enhancement: The efficiency and rating of accounting and audit firms depend on their staffing capabilities and areas of specializations. If the auditors well understand new avenues and investment products procedures that can be more helpful and beneficial for acquiring client’s confidence that will gradually enhance the value of trust and potential cliental portfolio. Honest and value adding advice in the area of financial investment and profit generation is always valuable. The recommendations towards other clients would be increased if the existing clients are happy with your services.
Procedures and Mechanism: For expansion of financial services, an accounting firm needs several decisions and analyses to make before executing the plan. The additional building requirements can be met through rental means, or by constructing a new building, or by purchasing a new building structure. It is quite difficult and expensive procedure to form a small scale firm into a mid or larger size accounting firm. To make this decision less stressed, a joint venture with another financial services provider can be an option to enter in a bigger picture. It also reduces the burden of hiring additional staff and additional licenses requirements.
Risk of Losing Trust: There is a genuine risk of losing trust of the existing clients in a bigger scope of service providing. An accounting firm that is going through the expansion process might not focus on existing clients for few months which might be harmful for their trust and clients’ relations.
Keep in mind that every new avenue has some drawbacks and limitations. Only risk taking is not a good idea if you cannot afford additional pressure and time and money allocations. For better advice and understanding scenarios of audit firms click here now.