George Themistocleous: Significant global and local changes are reshaping the professional services sector

The accounting profession is growing and changing as the needs of clients evolve, George Themistocleous, Managing Partner and CEO of RSM, tells GOLD.

He also highlights how continuous professional development is crucial to maintaining a competitive edge in this dynamic sector.

Given the rapidly evolving global business landscape, what role do you expect accounting firms to play in the future and how do you envision their function and influence?

Accounting firms are expected to play a critical role in assisting businesses navigate complex regulations and make well-informed decisions based on financial insights in the rapidly evolving global business landscape. They will do this by offering businesses financial transparency, compliance expertise and strategic guidance. Personally, I see the role of our profession becoming increasingly focused on artificial intelligence (AI), data analytics and technological integration in general, which will increase the accuracy and efficiency of our operations.

Another area will be sustainability reporting, which aims to provide transparency while meeting the evolving expectations of regulators and clients for reporting on these issues. Beyond providing typical assurance services, we will also drive innovation and assist companies in navigating difficult situations with integrity and transparency.

In addition, it is crucial to focus on ways to draw in and keep talented experts. An ongoing investment in training and development will be crucial to ensuring that our teams have the required skills to adjust to the new challenges, trends and technologies.

What are the most significant challenges you currently face as Managing Partner and CEO of a prominent professional services firm?

I believe that we are currently dealing with a number of significant challenges. In addition to the aforementioned points about technology development, recruiting and retaining talent, we must proactively remain ahead of evolving regulatory requirements, so as to successfully meet our clients' needs while maintaining high standards.

Moreover, client expectations are aligned with the increased need for transparent and customised services. While our focus is on achieving these objectives while maintaining efficiencies, RSM is committed to continuous improvement, innovation and client service excellence to overcome these obstacles and drive sustainable growth for our firm.

With revenue streams from professional services evolving significantly, how do you see the future of traditional services like Audit/Assurance, Tax, and Advisory/Consultancy? Which service lines do you anticipate seeing the most growth over the next five years and are there emerging areas or new opportunities that you are exploring?

Clients' needs, changing regulatory requirements and technology breakthroughs, are all contributing to the substantial evolution of the professional services industry. In relation to traditional services, at RSM we focus on providing valuable deliverables and adjusting our service offerings to the clients' needs. We foresee the demand for advisory and consultancy services rising significantly over the next five years.

As data analytics and digital transformation gain traction, there will be a greater focus on offering insight-driven solutions to assist clients in taking wise decisions and maintaining their competitiveness in their respective markets.

Furthermore, we are exploring emerging areas such as sustainable finance, cybersecurity and ESG compliance to address the evolving priorities of our clients and create additional value to their business. By staying agile, proactive and continuously investing in our expertise and capabilities, we seize new opportunities and deliver holistic solutions that drive long-term success for our clients across various sectors.

What major trends, both global and local, do you see reshaping the professional services industry and how is the accountancy profession adapting to these changes?

Several significant global and local changes are currently reshaping the professional services sector. The profession is responding to these shifts by investing in upskilling and reskilling individuals to match changing customer expectations, adopting digital tools and platforms to improve service delivery and encouraging a culture of innovation and continuous learning inside businesses.

As businesses seek to pool their resources and expertise to tackle complicated client challenges, collaboration and strategic partnerships are also growing in popularity. Furthermore, in the wake of high-profile corporate scandals, there is a greater focus on governance and risk management within the profession, as well as increased regulatory scrutiny, due to the growing emphasis on transparency, accountability, and ethical practices.

We are in a strong position to handle the shifting professional services market and keep providing our clients in Cyprus and globally with outstanding value by keeping up with these significant trends and proactively adapting our operations, services, and strategies.

How do you envision the future of Cyprus as an international business hub and what steps are essential to enhance the country’s global appeal and competitiveness?

Cyprus has traditionally been seen as a strategic gateway for international business due to its location, tax and legal system. In the future, I see Cyprus maintaining its prominent standing, by leveraging a number of important elements.

The most crucial element that should be considered, in my opinion, is the continuous alignment of national laws with EU norms and best practices. Maintaining compliance with international standards will increase investor confidence.

Developing strategic alliances with multinational corporations, governments and organisations to encourage cross-border investments and collaborations will also be essential. This will embrace digital transformation by fostering a thriving tech ecosystem that can draw in startups and well-established businesses in industries like blockchain, e-commerce and digital services. It is important to mention that the Government's support will significantly assist these industries evolve.

As the industry evolves, what new skills or competencies do you consider critical for your workforce to maintain a competitive edge in the professional services sector?

I believe that continuous professional development is crucial to keeping a competitive edge in an ever-changing sector. Our team must be skilled in the use of data analysis tools and technologies, possess a global perspective and an understanding of diverse cultures and business practices, be able to swiftly adapt to changes to the market and customer demands, and be able to understand and implement new regulations both domestically and internationally.

Ultimately, RSM is dedicated to investing in professional development that emphasises all necessary competencies to stay competitive. In addition to improving our service delivery, we believe that by providing our people with these skills, we will also build a vibrant, adaptable culture that can meet the demands of a changing industry.

This interview first appeared in the November edition of GOLD magazine. Click here to view it.