Turning strategy into strong growth and positive action
Praxity is set for a bright future following record-breaking revenues and successfully delivering on its growth strategy.
Latest performance figures for the year ended December 31, 2022, show global revenues of $8.77bn, up 11.7% on the previous year, at constant exchange rates. Revenues increased in all service lines, with Audit & Accountancy up 6% to $4.4bn, Tax up 12% to $2.2bn and Advisory up 29% to $1.8bn.
As well as achieving strong performance year after year, Praxity is firmly on track to achieve its three-year growth strategy to extend its global reach and provide greater support for member firms.
Commenting on the evolution of Praxity’s strategy in 2023, Praxity CEO Samantha Louis says: “The Board continues to review our strategy and make adjustments as necessary but the important thing is Praxity continues to go from strength to strength.”
Hinting at an exciting future, Samantha says: “2022 saw some really strong organic growth by region and by service line. It was a great year for the Alliance and in 2023 we are going to see a lot more of that work come to fruition.”
Delivering a strategy of growth
Praxity’s record-breaking performance coincides with comprehensive improvements to the Alliance’s Reach, Reputation and Responsiveness – the three key objectives of Praxity’s strategy to 2024. Further positive action is being rolled out in 2023 to add value and provide even more support for member firms worldwide.
The improvements are in line with Praxity’s vision to be “an alliance of high-quality firms, rooted in collaboration and trust, and recognised as the best-in-class alliance”.
By delivering on its strategy, Praxity is well placed for continued growth, cementing its position as the world’s No.1 alliance of independent accounting, tax and advisory firms.
To work effectively as an Alliance, it is important Praxity has the right member firms in the right countries with the right expertise to service global clients.
Praxity is achieving global reach and great client service through:
- Pro-actively targeting new firms
- Continued tri-annual assessment
- Creating best practice frameworks and protocols based on sharing knowledge
To maximise reach without compromising on quality, the Alliance has improved its application criteria. Praxity CEO Samantha Louis explains: “We reviewed our criteria for emerging market firms by taking into account country size and local market conditions. In some countries, a firm with five to ten partners is quite sizeable and can be a country leader, so it was important to acknowledge this in our membership criteria.”
Praxity welcomed seven new firms in 2022:
- Hamed AlShameri CPAs, Yemen
- K Professional Accountants (KPA), Cambodia
- McInerney Saunders, Ireland
- Bansal & Co, India (returning member)
- Magma Chartered Accountants, UK
- Olistica, El Salvador
- Prime Solutions, Panama
As of 2023, we have been joined by a new firm Nwanda in South Africa further enhancing Praxity’s coverage. Additionally the remaining firms in the Talenz group based in France have now joined the Alliance, alongside Talenz Axe Conseils and Talenz Group Fidorg.
To ensure consistently high standards are met year after year, Praxity has continued to uphold its robust tri-annual assessment criteria for existing member firms to remain part of the Alliance. This ensures all member firms have confidence in each other.
New working groups To help both new and existing member firms benefit from expertise and guidance in specific disciplines, Praxity introduced two new working groups in 2022: Outsourcing and ESG (Environmental, Social and Governance). The working groups are made up of expert professionals from member firms. They provide essential information on new developments and regulatory changes.
Conferences Further knowledge sharing was possible through Praxity’s national and international conference programme which went ahead as planned in 2022, providing exceptional forums for networking, learning and debate on the key challenges facing the profession. The only exception was the UK Autumn Conference which was cancelled due to the death of Her Majesty the Queen Elizabeth II. Each event generated good feedback from attendees.
New code of practice This year will see the launch of a new code of practice to help member firms achieve the highest standards in a range of deliverables including collaboration, client delivery, communication and inclusion.
Samantha Louis, Praxity CEO
New measures and tools continue to be introduced to ensure member firms have an attractive and compelling proposition for potential international clients. This includes networking channels to support referrals and joint pitches.
“We continue to promote the ethics, integrity and quality of all our member firms, across every communication channel. We have been working with communication strategy experts to create a consistent, clear message around Praxity to support member firms in acquiring new clients,” Samantha Louis explains.
Thought leadership Building on the Alliance’s reputation as a leader that supports and enables firms to win global business through collaboration, Praxity Executive Office published the first in a series of thought leadership reports in June 22. The report examines Cybersecurity in the Hybrid Workplace, with examples and guidance from member firms on how to respond to the increasing cybersecurity threat. It will be followed in Spring 2023 with a report on how to navigate the challenges of ESG (Environmental, Social and Governance). This new thought leadership will examine how ESG has evolved, the risks and opportunities, and how to integrate ESG with CSR and business as a whole.
“We continue to promote the ethics, integrity and quality of all our member firms.”
Praxity is always looking at new ways to support member firms through networking, knowledge sharing and collaboration.
The objective is to:
- Deepen inter-firm relationships with training and networking opportunities beyond senior firm leadership
- Provide regular communication to member firms
Several initiatives have been launched to be more responsive, including a new Customer Service Metrics Taskforce, improved communications and the extension of the Praxity Champions programme. Bootcamps were held at the North American International Tax Conference 2022 for the first time in New Orleans. The bootcamps provided training to less senior accountants and consultants, while giving them the opportunity to get to know their Praxity colleagues around the world.
The Customer Service Metrics Taskforce, chaired by Rebecca Pomering, Chief Practice Officer, Moss Adams, has been created to understand how firms are measuring customer service and what they do with the information they obtain. Praxity member firms can expect to read more about the taskforce during the course of the year.
The Praxity team has refreshed its communication channels, improved social media content and made its digital magazine HUBLite a quarterly publication. Having successfully completed the Praxity Champions pilot, the programme is being extended to all firms in 2023.
The Praxity marketing team has also evolved its social media activity to support and enhance member firms’ reputation. The team has put a lot of time and energy into Praxity’s LinkedIn page, increasing followers by 60% in 2022.
Further developments include the launch of a thought aggregation database showcasing thought clouds from member firms in different regions of the globe, and the introduction of Channel Praxity, the Alliance’s digital channel featuring webinars, podcasts, training resources and conference recordings.