An Introduction to professional services

1. An Introduction to professional services

2. Professional occupations Here are some examples of professional occupations. Some may be more familiar than others. For how many of them can you explain what the job is? Actuary • Accountant • Architect • Tax advisor • Engineer • Lawyer • Management consultant

3. Let’s go through some of the trickier ones... Remember, the only stupid question, is the one you don’t ask! Actuary Accountant Tax Advisor Management Consultant

4. Actuary This is a professional who analyses the financial consequences of risk. So what is risk? Actuaries use mathematics, statistics, and financial theory to study uncertain future events. They make predictions on how serious an impact an event could have and how likely it is. Actuaries are needed for insurance companies, government, large businesses, hospitals, banks or, more generally, in businesses that need to manage financial risk.

5. Accountant This is a professional who keeps track of the financial activities of a business or organisation. So what does that mean? Think of your favourite football club... from?

6. Pitch maintenance • Food and drink outlets • Stadium • Players • Tickets • Merchandise • Kit • Brand What do they spend money on?

7. Think about all the amounts of money that goes out and comes into a football club. That’s a lot of numbers to think about... ? Tickets, food, brand Players, pitch, stadium Income Costs It's an accountants job to work out the balance of costs and sales: Accountants help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time. They analyse financial information and advise organisations on what they could be doing better. What would happen if a large business didn’t perform the role of an accountant?

8. What does that mean practically? • Reviewing financial accounts and data • Selecting samples of accounts for testing • Identifying staff and conducting interviews with them about working practices • Update the client on risks and errors, and advising on the action to take • Preparing and submitting clear and concise audit reports A common task for an accountant is performing an audit All companies have to be audited by law. It is a process that accountants follow to ensure the financial statements of a business are accurate and / or profitable. The results of it effect whether or not investors will want to buy shares in the company. The work of accountants determines the success of every large company you know...

9. Tax Advisor What is Tax? Everyone who earns money pays taxes in one form or another, but even you pay taxes... VAT is 20% in the UK, so if you buy an iPod for £120, how much of that would go to the taxman? But why do we pay these taxes?

10. How can a Tax Advisor help? A tax advisor is a financial expert specially trained in tax law, the system of rules which governs economic transactions. They use their knowledge of legislation to advise companies and individuals. Tax planning Keeping up to date with changes in the law and advising clients lawfully to minimise future tax costs. Tax compliance Making sure a client meets all tax regulations by preparing and submitting tax returns to the tax authorities.

11. Tax scenario – an athlete When an athlete competes in the UK, they must pay tax. They must pay 50% of their appearance fee. They must also pay a proportion of their global earnings from things like sponsorship. Say a runner has a £1 million sponsorship deal and runs 10 races in a year. If one of these was in the UK, then 1/10th of their overall sponsorship could be taxed. The tax would be £50,000. They government would also get tax from the race fee. If the race fee was £100,000, the athlete would have to pay £50,000 tax on the fee, and would have to pay £50,000 on the yearly sponsorship deal. If you were her Tax Advisor, would you advise her to race in the UK? It’s the role of a Tax Advisor to: Make sure the tax compliance process runs smoothly Research, analyse and interpret changing tax law Research issues that will affect clients’ tax issues Preparing and submitting tax returns Planning ahead to help clients understand their financial futures

12. What is a Management Consultant? This is a professional who helps businesses to improve their performance Quick exercise Think of a fashion label which is very unsuccessful....not enough people buy its clothes. How could it be more successful? What would you try to find out?

13. .....The list is potentially endless • Improve the quality of their products • Change their marketing strategy • Reduce the cost of their sales (the cost of buying the products from suppliers / reducing staff salaries • Implement efficiency savings A consultant may perform all of these tasks for a company. But it doesn’t just include retail businesses. Government departments, public services, charities and multinational organisations all employ consultants to help them find solutions to their problems

14. Some of the roles of a management consultant... • Carrying out research and data collection and conducting analysis • Interviewing clients’ employees, management team and other stakeholders • Preparing business proposals/presentations • Identifying issues • Formulating and implementing recommendations/solutions • Ensuring the client receives the assistance needed to implement the recommendations/solutions

15. Guess the profession... • A hospital wants to reduce waiting times and needs someone to assess the problem and think of solutions. Who should it look to? • A company wants to buy an island hotel on the Maldives but wants to know the risks involved concerning the rising sea levels. What kind of insurance coverage would it need? Which professional can help them? • A theme park needs to keep track of income and expenditure in order to submit its financial report. Which professional does it need to employ? • An American retail company is looking to expand into the UK, but is unsure how the VAT increase will affect them. Who should they go to? Accountant Actuary Management Consultant Tax advisor