THOUGHT LEADERSHIP – Russell Bedford International
40 years at the forefront of the accounting revolution
Russell Bedford marks a key milestone in its long history
It is hard to describe just how much change has occurred across the world since 1983. But to put it into some context, Motorola introduced the first mobile phones in that year, “The Police” topped the singles charts in a number of countries with "Every Breath You Take", and Margaret Thatcher won her second term as the UK Prime Minister with a huge majority and cemented her friendship with Ronald Reagan.
Over the past 40 years, transformative change has also been seen in the accounting industry; some firms have fallen, while others survived and flourished, moving with industry change to keep afloat. Then there are those who have been there from the beginning, leading with vigour and contributing to the advanced profession we see today.
Drivers of this change include advancements in technology, globalisation and regulatory developments, which have led to the evolution of accountancy into the dynamic and progressive industry it is today.
Naturally, the introduction of computers and the internet completely transformed accounting. The profession has seen a monumental change moving from manual, paper-based accounting systems, the long sheets of paper stained with red, blue and black numbers that occupied the desks of accountants, to the use of spreadsheets and countless modern-day software applications.
Ana Carolina Franco-Soto
Managing Partner of Russell Bedford’s Dominican Republic firm, reflects on these times and remembers her grandfather.
I recall waiting on my grandfather with his thick black briefcase, carrying the inventory registers that he had just audited and sitting in his home office for hours, as there was still very limited computer-based accounting in our economy. Now, long gone are the days of tons of papers, pencils and thick black briefcases, that preceded this greener, more environmentally responsible and efficient present, in which we develop our everyday more agile practices to support strategic and timely decision making for business.
These developments have supported the automation of many processes, significantly enhancing financial analysis and reporting, while increasing efficiency and accuracy. It has also meant that the role of the accountant has shifted from purely being a provider of accounting services to today playing a much larger part as business consultant and trusted advisor; one that provides strategic advice to clients with less of a focus on the traditional service provision of the previous decades.
Steve Horn
Partner at Atlanta member firm, and Russell Bedford global board director for North America, appreciates how far the industry has come and remembers having to take extreme measures to get work done.
The cloud and AI have improved efficiency and productivity across the profession. When we first advanced to computers, tax input sheets were completed manually and couriered to a software company that would input the numbers into the computer. We would then be able to access the software over phone lines and make changes. But the bandwidth was so bad that we would often have to make changes in the middle of the night when less people were using the computer. Turn-around times were long and unpredictable.
Nowadays, of course, tax return numbers can be input online from multiple devices and tax returns can be produced and changed instantaneously. With the benefit of email and electronic signatures, tax returns and financial statements can be transmitted to the client in real time.
Globalisation and the importance of international accounting networks
To meet the needs of an ever-increasing globalisation of business, the accountancy profession had to become more international in its outlook; a move that put the focus on the development of international standards and the introduction of professional accounting bodies. This included enhanced development of the International Accounting Standards Committee (IASC), which was actually established 50 years ago and would become the International Accounting Standards Board (IASB) in 2001, creating International Financial Reporting Standards (IFRS) in the same year, and the increased importance of cross-border auditing.
Russell Bedford also began prioritising quality assurance in the early 2000s, with the network taking steps to develop an Audit Quality Control system. The organisation successfully implemented a globally coordinated quality assurance programme in 2007, leading to Russell Bedford International being named one of the first full members of the IFAC Forum of Firms in 2008.
Javier Jiménez
Managing partner of Russell Bedford Mexico and Russell Bedford global board director for Latin America, reflects on the incredible growth Russell Bedford International has seen across his region.
Mexico was one of the first countries to join Russell Bedford International. Back then, we offered very basic accounting-consulting services and we had a small staff of personnel. However today, with support from the network, the Latin American region has become a robust, highly organised and active network, present in almost all Latin American countries, with a coverage near to 50 offices and 1,500 personnel. We are proud to be one of the most dynamic regions within our global organisation.
Developing a growth mindset: Turning negatives into positives
The past 40 years were not without their scandals, calling for increased focus on transparency, accountability, and ethics. This led to the introduction of new regulations such as the Sarbanes-Oxley Act, new rules following the collapse of Lehman Brothers in 2008 and the introduction of other necessary accounting standards.
The accountancy profession has also moved from offering traditional accounting and audit services to a much broader business support package including consulting, advisory, and risk management services. Focus further shifted to continuing professional development/education (CPD/CPE) and lifelong learning, with professional bodies requiring members to undertake CPD/CPE to maintain their professional status.
Increasingly, globalised business requirements began to pave the way for the role of the International Accounting Network.
With the Big Eight becoming the Big Six in 1989, to the Big Five in 1998, and then the Big Four in 2001, and following the financial crisis in 2008 which led to significant losses for the Big Four, quick responses by Russell Bedford allowed the network to position itself as a credible alternative for small to medium firms. Drawn to the personal approach Russell Bedford was able to offer, the network began to secure several new firms and, by 2009, had gained representation in 80 countries.
One of these was Russell Bedford’s firm in Ho Chi Minh City, Vietnam. Partner at the firm, Van Anh Thai, explains what becoming a member of Russell Bedford International has done for her practice.
Being a member of Russell Bedford International, has meant that even when we sleep we can get updates from our network friends on what is happening across every corner of the world. When we had problems with Covid, and additionally with flooding in our country, our partners, friends from all over the world texted us and checked on us. It is not only professional, but also friendship and trust that we built. For me, I am not only happy to be part of the professional group of people, but also I learn so much from our network partners. We always feel part of the Russell Bedford family.
The Covid-19 pandemic in 2020 pushed the network to evolve at lightning speed; quickly adapting to seismic change with respect to how the network operated and serviced its members. This forced the network to reflect on the relevance of its service offering and consider exactly what members needed from their membership, leading to the focus being placed on supporting members with their personal and professional development and, particularly, their mental health.
James Ngai
Partner at Russell Bedford Hong Kong, agrees, saying:
Being part of Russell Bedford International leads to collaboration opportunities, support and referrals among member firms. This helps to build relationships with professionals in other jurisdictions, and often leads to new clients.
Many of my colleagues in Hong Kong, as well as myself, have taken advantage of the professional development opportunities, including training, webinars, and conferences. These all help us stay up to date with industry developments and improve our knowledge and skills in what is an ever-advancing industry.
Standing the test of time
Since 1983, the Russell Bedford group of professional services firms has provided financial expertise and business consultancy to companies and business owners in an array of markets and industries.
The past four decades have seen Russell Bedford not only survive the industry but demonstrate itself as a leader of change, flourishing through the good times while digging deep to survive times of insurmountable challenges. Javier Jiménez sums it up, saying:
Over the years, we have experienced a series of external factors such as sociocultural and geopolitical conflicts, health and pandemic emergencies, which have definitely challenged our network and have forced us to reconfigure ourselves to adapt quickly and adequately to the circumstances. We faced those difficult moments, but such circumstances have also strengthened us enormously.
Laurence Newman
Global board director for finance, and partner at founding member firm Lubbock Fine in London, says:
In my extensive association with Russell Bedford, I’ve enjoyed watching the network grow from strength to strength, while developing great business relationships and friendships along the way.
Russell Bedford CEO, Stephen Hamlet, concludes:
Growing from humble beginnings, Russell Bedford has carved out its place as a credible, quality, closely connected network. Our strong and inclusive culture is evident from our commitment to social responsibility initiatives and people development. We are serious about shaping learning and development programmes to support our young leaders - the future leaders of this growing international network. The network has stayed true to its values which we very proudly celebrate at Russell Bedford’s annual taking you further day. And we have no intention of stopping there. Our team is growing to meet the needs of our ever-expanding global network, we continue to develop meaningful initiatives, while bringing new and improved services to members around the globe. What a privilege it is to be part of this remarkable journey!