Page 157 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

achieve limited success, but consistent and sustained efforts will secure governmental recognition to them, and this
in turn will encourage the stand alone practitioners to upgrade their model of practice.

3.4 It needs to be understood that Networking per-se may not create new professional opportunities. Most Indian firms
who have tried networking have had wrong expectation that clients will be referred, work shared, geographical
demarcation, etc – these are totally wrong expectations. Networking will only enable:
• Cost sharing
• IP/ knowledge sharing

• Common branding and marketing efforts
• Common work procedures (best practice)

• Common IT Infrastructure (hardware and software)
• Common quality control procedures
The individual firms in network have to put their efforts to grow/ add clientele etc. Initially tangible benefits may not
be visible, but eventually, if the model succeeds, the firms will stand to gain substantially.

4. Three models of networking – Options offered to Members
4.1 Following approaches are placed before the Members in practice, any one of which can be adopted by those desirous
of expanding their practice:

Approach I – Different firms coming together to form an Alliance with
A a new name of Alliance and continuing to practice independently and
can showcase as an Alliance to the world.

Approach II – Different firms coming together to form a Network with
a new Network name and practicing in the name of firms belonging to
Network. This Model is sub- divided into following two options:

B1 B2

Network of firms in existing Network of firms with a Lead
model by practising in firm acting on behalf of
1
individual firm name constituent firms of Network

4.2 Firms may adopt any of the three Models that will be best suited for expansion of practice. It may be noted that different
models may be suitable for different practitioners, depending upon their needs and inhibitions. Therefore, the intention is not to
force any one particular model upon members, rather members are at liberty to continue with their existing model of practice and
need not adopt any of the following models:

1 Lead Firm model is explained at the end of the Table

144 Quick Insights on Professional Opportunities for Chartered Accountants