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More than 80 percent of all businesses in the Philippines are family-owned. The nature of these businesses covers a whole range, from the small sari-sari stores to the big malls like those of SM and Ayala. Yet, despite the vast disparity in their sizes and profits, most family businesses share the same quest to preserve and grow their businesses.

My husband once quipped, “An investment in health is always a winner.” This comment seems to paraphrase the principle advocated by famous motivational speaker John Maxwell, who said that leaders who are already generally driven and result-oriented, must invest in their health so they can give their best at all times and have enough energy in their work. To Maxwell, eating healthily, exercising regularly and resting sufficiently are a must. He wrote that our health determines our quality and quantity of life.

As an employer, do you know that your obligation goes beyond remitting your employees’ (plus the employer’s) statutory contributions to various government agencies, such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and Home Development and Mutual Fund (HDMF)?

Likemost persons, my interest is piqued by any sort of lists or rankings, from NBA’s all-time greatest to Billboard’s Top 100. Thus, when I recently came across the latest Harvard Business Review’s (HBR) list of best-performing CEOs,I really had to take a look.

In the book “Revolutionary Wealth” by futurist couple Alvin and Heidi Toffler, there is a quote from Robert Manning of the Council on Foreign Relations that states: “Ponder the world of 2050, an Asia with more than half of the world’s population, perhaps 40 percent of the global economy, more than half of the world’s information technology industry, and world class high-tech military capabilities.” The Philippines, analysts predict, will be the 16th biggest economy by 2050. Such is the promise of the future of Asia-Pacific. Currently, Asia-Pacific is the engine room of the global economy. GDP growth across the region outstrips the West’s while the vast majority of European and North American economies are forecast to grow by less than 2 percent this year, many of those in Asia Pacific are looking for at least 3 percent growth, in some cases more. When Grant Thornton asked 675 business leaders across ten Asia-Pacific countries, through its International Business Report (IBR) covering the 2nd quarter of 2016, about their views on the myriad of challenges and opportunities facing them, Grant Thornton found that overall business optimism is increasing. Business optimism across the whole region increased by seven percentage points to a net 28 percent in the second quarter of 2016. This level is significantly above the IBR long-run average of optimism for the region of 18 percent. Interestingly, business leaders in emerging Asia-Pacific economies reported optimism at 50 percent, while in developed economies it was 20 percent (20 percent more pessimistic than optimistic). Among developed economies, optimism is low in Singapore (-12 percent) and Japan (-51 percent). However, across emerging Asia-Pacific economies, the Philippines has the highest business optimism of any economy in the world in the IBR at 94 percent. Philippine business leaders are expectant about increases in exports and profitability over the next 12 months. (As the survey covers the 2nd quarter of 2016, it does not take into account the new administration’s comments about some of its trading partners.) Many are excited by the prospect of automation transforming the business landscape, while others see it as a potential threat to third party providers of low-skilled labor, a pillar of some economies in the region like India and the Philippines, which are both known for their call centers. Likewise, developed Asia-Pacific economies, in particular, are positive about the Trans-Pacific Partnership (TPP) while others urge diversification of investment into the Asean economic community. India is also gearing up to attract yet more foreign investors in 2017 by introducing the long-awaited simplification of its indirect tax system. However, the region faces significant economic, political and social challenges that, if left unmitigated, could undermine its economic promise. The re-balancing of the Chinese economy, ageing populations, territorial conflicts and the US Federal Reserve’s plans to increase interest rates, are all issues firmly on the minds of business leaders across the region. Asia-Pacific spans a huge and diverse business community, from India to Japan to New Zealand. What is clear from our research is that while businesses remain largely confident about the coming months and years, with many areas ripe with opportunities, threats do linger which could undermine growth if left unaddressed. Grant Thornton recommends that, while there are so many moving parts, now is the time for dynamic businesses across the Asia-Pacific region to reassess the opportunities and challenges present in the regions they operate in. After all, opportunities exist for dynamic organizations that are able to change with the evolving business environment. A healthy proportion of leaders within the region recognizes the transformative power of technology to automate business tasks and processes. Those with the foresight to invest time and resources in understanding the opportunity will be in the best position to gain a competitive advantage over their peers. For firms in the Asean region, the recent commitment to greater economic cooperation is a major step forward and business goals should reflect the improved relationship with their nearest neighbors, which should open new markets offering fresh opportunities. At the same time, the Grant Thornton research highlights the need for businesses across the region to take proactive steps to minimize the risk of overreliance on China. While it will remain a hugely important trading power, what’s clear is that as it continues to evolve, firms should explore ways to diversify. Not just in terms of trading partners, but product and service offerings, too. Ageing populations have also emerged as a significant threat in the region and while it is not the job of the business community to reverse this demographic trend, it needs to react now to stay ahead of the trend. Automation could be part of the answer, but so could closer links with education institutions and a revitalized training program to ensure that the skills needed by their workforce are continuously being developed. Asia-Pacific holds so much promise for the future. Opportunities are knocking; we should be welcoming them, but at the same time we should be mindful of the challenges. Jessie Carpio is a Partner and Head of BPS/Outsourcing of P&A Grant Thornton and concurrently President of P&A Grant Thornton Outsourcing Inc., an entity wholly owned by P&A Grant Thornton. P&A Grant Thornton is one of the leading Audit, Tax, Advisory, and Outsourcing firm in the Philippines, with 21 Partners and over 700 staff members.

A combination of complex regulatory environments and dynamic, competitive markets means that the challenges firms need to hurdle to compete and flourish have arguably never been this daunting. According to Nick Jeffrey, director for public policy at Grant Thornton, “if Boards are not looking ahead, through the right lenses, the risk is they will only spot these issues when they are right in front of them—which may be too late.”

Based on the recent pronouncements from the Bureau of Internal Revenue (BIR), we expected to see improvements in the way the Bureau treats the taxpayers. There has been a promise that we can expect to see a “new” BIR. In a recent forum on policy developments, a key officer of the Bureau emphasized that taxpayer service will be a focus of the BIR. This is a shift from the position held by the previous commissioner. The focus and efforts of the Bureau then were solely on tax compliance and enforcement. Indeed, we are seeing some changes being made, and we do commend the new BIR administration on these; but the question we need to ask first is: How does the BIR define taxpayer service? The relationship between the BIR and a taxpayer has always been cordial at best and adversarial at worst. One party usually eyes the other with some reservations. Given this state of a relationship, does the BIR understand the customer experience that taxpayers look for? If the BIR is not clear about this, there will always be a gap between the expectation of taxpayers and the quality of service that BIR is providing. Both sides will be frustrated. Several studies show that it is critical for suppliers of services to manage customer satisfaction. To this end, there is a common view that a supplier must have an accurate understanding of its customer’s expectations, the customer value proposition. The supplier must strive to deliver such values consistently throughout the customer’s journey. While this is a big challenge, the BIR has the capability to provide better and efficient services. It should strive to provide it. I am not aware if a study has already been conducted by the BIR to determine the quality of service that a taxpayer seek. But based on my experience as a tax practitioner, I see that taxpayers, both individual and corporate, demand security and confidentiality in their tax information, ease of access and dealings, consistency in the use of tax policies and procedures, speed in processing, and fairness and transparency throughout. They expect these qualities of service to be provided to them always in all their transactions with BIR—from the time they are required to register as taxpayer, during the period when they are expected to file tax returns and submit information, and throughout the entire period they remain a taxpayer. To truly deliver better taxpayer service, BIR must map out the different transactions that it has to make with taxpayers and, for each of these touch points, review and evaluate them to ensure that its delivery of services meets the quality expectations of the taxpayers. This is a big task, and the BIR should seriously consider it if it is its intention to serve its constituents better. To emphasize this point, let’s consider, for example, a start-up company that has to register its business for tax purposes. BIR has to assess whether the current rules to register a business—the requirements and processes that the new company needs to go through—are clear, streamlined if possible, and easily accessible. The BIR should also look at the current channels of registration. Do the BIR website and other sites on the internet that businesses would normally visit contain information about corporate registration? Does the BIR system allow online applications—including submission of documents—and send the status of application or notification of approvals online, as well? Or will it continue to require applicants to go to the BIR offices and wait for hours to be attended to? Can the processing of the approval be expedited and can the taxpayer be notified in time in case there are questions or concerns regarding its application? If there are indeed concerns, how fast will these be evaluated and resolved? Is it clear who the decision-maker will be? Obviously, to meet taxpayer expectations, much work has to be done. To me, for the “new” BIR to happen, it requires a set of organizational capabilities, and a drastically different mindset and culture. BIR has to study if it has the right organizational structure, the right people to understand the changing environment and the capability to identify the changes it can introduce under a situation on a limited budget. This process also requires a thorough evaluation of the current tax laws to determine if there are provisions that need to be amended or scrapped altogether because they restrict the Bureau from adopting new practices. We have several examples of government agencies that have been successful in improving the services they provide to the public. With the right tone and strong drive from the top, I am confident that we can have a “new” BIR. Marivic Espano is the Chairperson and CEO of P&A Grant Thornton. P&A Grant Thornton is one of the leading Audit, Tax, Advisory, and Outsourcing firm in the Philippines, with 21 Partners and over 700 staff members.

The business landscape is being continuously reshaped by globalization, by advances in technology, by demographic and political shifts, and by transformational innovation and disruptive business models. For accountants, there is a two-fold challenge to this constant reshaping: first, the need to assess the implications of these transformative forces to the business of the organizations they serve; and second, the need to prepare and equip them adequately to address these changes. In response to the foreseen challenges, the Board of Accountancy increased the continuing profession development (CPD) unit requirements for Certified Public Accountants (CPAs). The Philippines, being a member of the International Federation of Accountants (IFAC), is mandated to comply with and increase the CPD units to 120 from the current 60 CPD units. Over a three-year period, the required CPD units will be increased with increments of 20 units per year starting in 2017. The declared increase in CPD units has not been well received but rather is viewed as costly, in terms of finances and time investment. The reaction stems from the common understanding that CPD units can only be earned through traditional training. However, further study of the pronouncement shows that only 40 units are required to be earned through training covering three broad thematic areas: Technical Competence (30 units), Professional Skills (5 units), and Professional Values, Ethics and Attitudes (5 units). The rest of the units can be earned through various modes, in keeping with the view that learning is a lifelong process and not strictly confined to activities in the workplace. The other sources of CPD units include completing a post-graduate degree, participating in fellowships, authoring books, doing creative projects, inventing programs or solutions, writing articles, speaking in workshops and conventions, and other self-directed learning activities. It is the hope of IFAC that through a more robust CPD program, CPAs can choose modes of learning that suit specific needs in preparation for the challenges ahead. With the aim to assist CPAs to comply with the CPD requirements, our firm through the P&A Grant Thornton Academy offered a curriculum called Learning Excellence in Accounting Practices (LEAP). As we endeavored to educate fellow professionals, it has become apparent in our interactions with them that the role of the accountant has transitioned towards that of being a business advisor and partner for the companies they serve. Apart from the technical rigor, accountants need to revisit their crucial role to all stakeholders, not just to management. There is growing consensus to provide focus on a holistic view of complexity, risk, and performance. Such a holistic perspective must account for the complexity of modern business and encompass financial and non-financial indicators of a company’s status and potential. Reporting should also assess organizational health, performance, and prospects alongside their impact to the communities wherein they operate. The profession is also called to address public concerns when it comes to establishing trust and ethical leadership. The profession could do more to highlight and prevent small-scale financial irregularities up to thwarting major systematic failures that helped cause the global financial crisis and the ensuing economic uncertainty. Even though the above demands seem daunting, our experience in working with fellow CPAs proved to us that we are more than ready to take on the challenge of the profession. The breadth and depth of what we can do to influence economic development is vast and far-reaching, making it impossible to look at our calling with frigid passivity or apathy. CPAs are the unsung heroes in fiscal management and good ernance. We are the quiet vanguards of transparency and accountability. We are the silent workers who build and strengthen the financial ecosystem so our economy can grow robustly and sustainable. We are the obscure leaders whose influence cuts across all sectors in society. We are the defenders and guardians of integrity that our collective conscience is in dire need to be infused with. We are so many things, we have so much to do, and if done well, we can make a whole lot of difference. The pace of the global expansion of firms from developed and developing markets alike is taking the spotlight to the accountant’s ability to master the technical, language and cultural challenges of cross-border operations. An agile mind with a global orientation is crucial to successfully navigate the nuances of working within a high diversity hyper connected workplace. CPAs need to continually learn, adapt, and evolve to be relevant to the business landscape that is continuously being reshaped. Jahleel-An Burao is a managing consultant, Advisory Services of P&A Grant Thornton, one of the leading audit, tax, advisory, and outsourcing firms in the Philippines, with 21 Partners and over 700 staff members. JAHLEEL-AN BURAO