Marios Cosma: "As the professional services industry transforms, all who are part of it need to adapt"

Marios Cosma, Managing Partner at K. Treppides & Co Ltd, discusses the transformation of the profession into expert advisory and highlights the urgent need for accounting firms to adjust to technological changes and make significant investments in infrastructure, automation and staff training.

He shared his expert opinion as part of a recent interview in GOLD magazine.

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?

I expect that consulting firms with specialisation in accounting and taxation will step into a more crucial role as strategic advisors, far beyond the traditional role of conducting compliance and audit. Our clients are currently facing increasing demands in areas like digital innovation, complex regulatory frameworks and ESG reporting. As a result, I expect that firms like ours will become invaluable partners in helping clients navigate this new journey. Using artificial intelligence, advanced data analytics and cybersecurity frameworks, consulting firms will be able to assist clients in decision-making, in forming robust, forward-thinking strategies and guide them through emerging risks and opportunities, to align their financial objectives with sustainable growth and stakeholder value creation. In other words, accounting firms will become essential in helping clients transform any challenges into competitive advantages and apply the transformation in practice. Our firm will become the expert-extending arm of all businesses for the practical application of changes to processes and services.

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

The challenges can be classified into three categories: current, intermediary stage and strategic. Current challenges include the management of the workforce and the gap between the expected academic and professional qualifications of staff and the perception of qualification required by professional firms so that they can serve the business needs of the clients. Intermediary stage challenges include changes in the international markets that affect businesses in the form of trading and investing. These are addressed through significant investment in quality and technical knowledge which we, as a firm, manage through the education and training of our staff to enable them to serve the business needs of our clients. Finally, strategic challenges include the period for which a firm and its management can predict long-term changes. Given the rapid changes in the use of technology and in global market reorganisation, which frequently mature earlier than expected, there is an increasing pressure for fast adjustment in the business approach. Identifying such changes implies a continuous examination and assessment of market and business conditions.

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?

Considering the evolution of revenue streams, I do not expect that traditional services will cease to exist. However, as market demands are changing, it would be impossible for these services not to adapt to technological changes. The audit function, for example, seems to be transitioning from a primarily compliance-driven role to one that is more proactive, focusing on real-time risk assessments and operational efficiencies. In tax, it is evident that global tax regulations are becoming increasingly complex and we foresee significant growth in tax advisory services, particularly in areas such as digital taxation, international tax planning and sustainability-focused tax strategies. Our clients are actively seeking strategic guidance to engage in compliant practices that support their tax positions, while taking evolving compliance requirements into consideration. Digital transformation, data analytics and business intelligence are areas in which we expect significant growth soon, together with areas in which we can help our clients decode their data effectively, uncover insights and optimise their operations.

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?

Global technological advances and changing client expectations, regulations and workforce dynamics are some of the major factors reshaping the industry. Companies wishing to progress and enhance further will make significant investments in infrastructure, automation and staff training. The implementation of artificial intelligence in operations including data analysis, audit procedures and predictive analytics is important to free up time for more complicated advisory responsibilities which are currently in high demand from our clientele. Such investments improve productivity and efficiency without compromising the quality of work, which must be held to high standards, irrespective of the challenges we may face as a profession and as a firm.

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?

Given its strategic location, tax-compliant environment, legal framework and skilled workforce, Cyprus ticks all the boxes to remain a strong and powerful international business hub. However, to meet its maximum potential and enhance its global appeal and competitiveness, Cyprus should strengthen its regulatory framework to align with international standards, enhance its digital infrastructure in both services and ground infrastructure, foster a business-friendly environment by streamlining processes, leverage its strategic geographical location by improving logistics and transportation networks, support education and workforce development by collaborating with education institutions to ensure skilled workforce meets market demands and last but not least promote Cyprus as an international business destination for competent services and not as a taxation hub.

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?

As the professional services industry transforms, all who are part of it need to adapt and develop new skills and enhance existing skills. Competitiveness necessitates a comprehension of ESG, data analytics and digital literacy. Organisations move towards automating parts of their activities and as such, familiarity with analytics, AI, and of course digital tools skills are crucial. Additionally, as services become increasingly client-focused, critical thinking, adaptability and problem-solving skills are essential in our industry. Fostering a culture of ongoing learning is crucial due to rapid technological changes. Staff with a variety of legal, technological, financial and most importantly engineering, academic and software backgrounds can provide clients with more complete solutions and can advance the level and quality of services.

(Original photo by TASPHO)

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