Management Advisory Services
Management Advisory Services (MAS) refer to a wide range of consulting services provided by accounting firms to assist businesses in improving their performance and achieving their strategic goals. The services offered under the umbrella of MAS are typically non-audit services and can include financial, strategic, operational, and other areas of advice.
Examples of Management Advisory Services include:
- Financial Management: Services can include assistance with financial analysis, cash flow management, budgeting and forecasting, and risk management.
- Business Valuations: These services typically involve determining the value of a business for purposes such as mergers and acquisitions, shareholder disputes, estate planning, and more.
- Information Technology (IT) Consulting: This can involve advising on IT strategy, system selection and implementation, data security, and other technology-related issues.
- Strategic Planning: This can include assisting with market analysis, business strategy development, business model design, and other strategic decisions.
- Human Resource Consulting: Services can involve assistance with recruitment, compensation, benefits, training, and development.
- Operations Consulting: This can include advising on process improvement, supply chain management, productivity enhancement, and quality control.
- Risk Management: These services may involve assessing and advising on various types of business risks, including operational, financial, and strategic risks.
These services can provide significant value to businesses, helping them to make informed decisions, improve performance, manage risks, and achieve their strategic objectives. It’s important to note that while many MAS are provided by accounting firms, they do not necessarily have to be – many consulting firms and independent consultants also offer these types of services.
Example of Management Advisory Services
Suppose an up-and-coming tech company, let’s call it TechStart, is planning to expand its operations. They’re doing well, but they realize that they need expert advice to ensure that their expansion is strategically sound, financially feasible, and well-executed.
TechStart decides to engage an accounting firm known for its Management Advisory Services. The firm then provides a variety of services to assist TechStart in their expansion:
- Financial Analysis and Forecasting: The firm helps TechStart build robust financial models that project revenue, costs, and potential profits under various scenarios of the expansion. They assess the financial viability of the expansion and help set realistic budgets.
- Strategic Planning: The advisory team helps TechStart clarify their business strategy for the expansion. They assist in conducting market analysis to identify potential opportunities and challenges in the markets TechStart is planning to enter.
- IT Consulting: As TechStart is a tech company, the advisory firm provides advice on their IT strategy, ensuring they have the right systems and infrastructure in place to support their growth and handle increased data security needs.
- Risk Management: The advisory team helps TechStart identify potential risks associated with their expansion, from operational risks to financial and strategic risks. They then assist in creating a risk management plan to mitigate these identified risks.
By using these Management Advisory Services, TechStart is able to make informed decisions about their expansion, reduce their risk, and improve their chances of successfully growing their business. The professional advice they receive aids them in navigating the challenges that come with expansion and business growth.