The Practice Management program aims to help members evaluate and make an informed decision regarding entering public practice, including the role and responsibilities of a public practitioner in the enhancement of both the quality and efficiency of services they provide. A detailed program outline is provided below along with information on the study materials and time commitment.
Who should complete Practice Management?
Successful completion of the Practice Management exam is one of the prerequisites for obtaining a Public Practice Certificate or Limited Practice Certificate to offer public accounting services in Australia or New Zealand*.
The program is also suitable for members based outside Australia or New Zealand who are interested in learning about practice management. Additional non-examinable introductory information on the requirements to practise as an accountant in Hong Kong, Malaysia, New Zealand and Singapore is also available in the International Practice Management supplementary booklet.
To be eligible to enrol in Practice Management, members must be of CPA or FCPA status and have successfully completed the Taxation/Advanced Taxation segment of the CPA Program. Members who have not completed the Taxation/Advanced Taxation segment may enrol in Advanced Taxation and Practice Management in the same semester. This requirement does not apply to members in New Zealand or members overseas who do not wish to obtain a public practice certificate to offer public accounting services in Australia. An exemption from the requirement to complete the Taxation/Advanced Taxation segment will be granted to members who hold registration as a Registered Tax Agent.
*CPAs and FCPAs who do not earn more than $7500 gross fees per annum from the provision of public accounting services do not need to obtain a Public Practice Certificate or Limited Practice Certificate; however, they must hold professional indemnity insurance. Please also note that there is a requirement to hold a Public Practice Certificate or Limited Practice Certificate if you are conducting audits of self-managed superannuation funds, irrespective of the fees earned.
Study and materials
Practice Management is offered by distance learning mode, providing a flexible approach to learning. The study materials consist of a printed study guide with learning resources made available via My Online Learning. The learning resources include:
- tools that help you understand or practise particular concepts covered in the program.
- a calendar of important dates.
- self-assessment questions that you can use, along with the questions and activities from the study guide, to assess your understanding of the study material and help you prepare for the exam.
- study groups if you want to participate in group discussion. Register through My Online Learning and access a secure online email contact list for other candidates who have also registered for a study group. You can use these details to form your own study groups and share your learnings and thoughts with peers.
- the Guide to public practice distance learning program where you can access important information to help you manage your enrolment and study program including forms, important dates and fees for exam deferral, enrolment cancellation, special consideration and change of exam location.
- announcements and critical study material updates. My Online Learning is the key communication platform for providing important information to candidates. You should access it at least once a week to support your studies.
Total hours of study required depend on a candidate's capabilities and individual study technique. As a general guideline, a minimum of 10 to 15 hours per week over a 12-week period is required.
Program outline
Module 1: An introduction to public practice
Module 1 introduces the term ‘public practice’ and its requirements. It discusses how public practice has changed in recent years and helps you to examine the fundamental question regarding the suitability of public practice for you. In a way the whole program helps you to address this question. Module 1 provides you with a checklist to assess your strengths and limitations, as well as giving a broad outline of the changing trends in business and public accounting. It looks closely at the requirements of public practice and the challenges it offers to practitioners.
Contents:
- What is public practice?
- How has public practice changed in recent years?
- What does public practice involve?
- Is public practice for me?
- Pathways in public practice
- Managing yourself and others
- What types of practice structure could I establish?
Module 2: Ethics, professionalism and risk management in public practice
Module 2 studies a range of ethical and professional issues associated with public practice.
It emphasises the special responsibilities placed on public practitioners concerning their ethical and professional conduct. The module examines APES 110 Code of Ethics for Professional Accountants, APES 320 Quality Control for Firms and addresses the issue of quality control in public practice.
Accountants are under increasing threat of litigation for professional negligence. In this context having a risk management program and appropriate professional indemnity insurance is of immense significance. The module covers aspects related to risk management in a public practice and emphasises the importance of quality control in delivering quality services.
Contents:
- Ethical issues in accounting
- Risk management and quality control in your practice
- Self-regulation discipline principles
- Liability and insurance
- Professional standards for specific practice areas
- Licensing requirements in Australia
- Providing credit advice or assistance
Module 3: Planning an independent practice: the big picture
Module 3 further builds on your understanding of what is involved in setting up a public practice. It is important to develop a business strategy in order to create a thriving public practice. This requires you to have a ‘big picture’ view of the practice’s present resources, and where you want your business to go. In this context the term strategic planning is explained and steps involved are highlighted in the module. It also discusses some of the long-term strategies you will need in order to build a strong, well-regarded practice in the coming years.
Contents:
- Strategic planning
- The strategic planning process
- Evaluating and valuing a practice for purchase
- Building and growing a practice: the long-term imperative
Module 4: Creating a business plan that fits your strategic plan
While Module 3 deals with your practice’s basic direction for the future and its purpose, Modules 4, 5 and 6 focus on elements of your practice which play a role in achieving your objectives such as your people, resources and finance. For each of these elements you need to have objectives and operational plans in place to achieve those goals.
Module 4 in particular looks at the detailed business planning for five major functions in your proposed practice, namely:
- the structure of your practice
- the services offered
- practice operating systems
- marketing and
- technology strategy
In addition it covers the risk management issues pertaining to each of these aspects of your practice.
Contents:
- The need for business planning
- Building a risk management approach into your practice
- The structure of your practice
- Issues in structuring a practice
- Your services strategy
- Your practice operating systems
- Developing a marketing strategy
- A technology strategy
Module 5: Developing a people strategy
Module 5 looks at a further element that will play a role in achieving your objectives—staffing.
Along with the functions covered in Module 4, the people strategy is a component of your business plan. Module 5 looks in detail at a range of complex staffing issues and emphasises the importance of well-developed policies and procedures as a means of maintaining high-quality service.
Contents:
- Your practice and its people
- The market for accounting staff
- Considering generational diversity
- The practice's culture
- Delegation: the key to practice leverage
- Communication
- The staff mix
- Hiring
- Inducting
- Retaining and developing your people
- Approaches to non-chargeable time
- Dismissal
- Risk management issues
- Quality control issues
Module 6: A finance plan within your strategic plan
This module gives you the opportunity to estimate and summarise the financial implications of your decision to enter public practice. It also outlines some of the cash-flow implications for a new practitioner, as you decide whether to start your own practice, or buy into an existing one. As you work through Module 6, you will also be able to revisit the threshold question: ‘Is public practice for me?’.
Contents:
- Financial issues to consider
- Some general financial considerations
- Building a set of practice KPIs and benchmarks
- Your financial feasibility
- An exit strategy
- Risk management issues
Module 7: Building and growing a practice
The strategic plan should also take into account the issues relating to building and growing a practice. This module focuses on growth within an established practice.
Contents:
- Assessing your growth requirements
- Developing your growth strategy
- Creating a practice culture
- Identifying your target client
- Building your brand
- Putting your plans in operation
Module 8: CPA Australia support services
This module provides an overview of support services specifically for public practitioners in addition to the support services provided for all members.
Contents:
- CPA Australia governance structure
- Continuing professional development (CPD)
- Networking
- Public practice support services
- General member support
International practice management supplementary booklet
The material in the supplementary booklet is intended to be an introduction to the requirements only. Members are responsible for ensuring they comply with the regulators' requirements in the country in which they work.
As CPA Australia does not regulate members working in public practice outside Australia, this material is not examinable. The contents of the booklet are as follows:
Hong Kong
- Introduction to the accounting profession in Hong Kong
- CPA Australia members working in Hong Kong
- Obtaining a HKICPA Practising Certificate
- Ongoing requirements for holders of an HKICPA Practising Certificate
- Hong Kong organisations recognising the CPA Australia qualification for their entry requirements
- Hong Kong organisations only recognising the HKICPA qualification for their entry requirements
Malaysia
- Malaysian accountants and the regulatory framework
- Registration of accountants
- Setting up a public practice in Malaysia
- Continuing Professional Education (CPE)
- Risk, liability and insurance in public practice
New Zealand
- Accountants
- Chartered accountants
- Auditors
- Investment advisers and investment brokers
- Tax advisers
Singapore
- Regulatory environment for professional practice
- Registration as public accountants
- Registration as public accounting corporations, firms or limited liability partnerships
- Registration as financial advisers
- Registration as a tax adviser
- Professional indemnity insurance