Across South Asia, increasing regulatory complexity, automation of routine work and the growing sophistication of small businesses are pushing small and medium-sized practices (SMPs) to broaden their role, resulting in a gradual shift towards advisory services.
While many firms have already begun the journey from compliance provider to business partner, the transformation is likely to be incremental rather than overnight. For most South Asian SMPs, compliance work still dominates.
‘Automation and AI are changing the economics of compliance services’
A market in transition
‘Audit, tax filing and regulatory reporting are the main source of revenue,’ says Mubashir Ahmed FCCA, senior consultant at Pakistan-based Limitless Consulting. ‘Clients also continue to see accountants primarily as compliance service providers.’
Yet Ahmed also sees signs of change. Increasing regulation, shrinking margins and more complex business environments are forcing firms to rethink how they add value. ‘Many firms are gradually moving beyond routine compliance and offering services such as tax planning, internal controls review and financial advisory,’ he says.
The shift is often driven by practical realities rather than grand strategy. As routine accounting processes become more automated, the economic model of traditional compliance work is evolving.
Nikhil Narang FCCA, founder and managing director of Peakvisory Accountants in India, has seen this at first hand. His firm has invested heavily in automation and AI-enabled tools to streamline routine tasks. ‘Automation and AI are rapidly changing the economics of compliance services,’ he says. ‘Tasks that historically required hours of manual effort can now be handled efficiently by AI-powered systems.’
The result is a shift in where value lies. ‘As compliance becomes more automated, the value shifts toward interpretation and advisory,’ Narang says.
‘Clients want clarity, risk awareness and forward-looking insights’
More than reports
While technology is one driver, changing client expectations are equally powerful. Small and medium-sized businesses increasingly want strategic intelligence rather than simply historical reporting.
‘Clients no longer want just financial statements or tax returns; they want clarity, risk awareness and forward-looking insights,’ Ahmed says. ‘They appreciate professionals who flag issues early and suggest workable solutions.’
That does not mean clients explicitly ask for advisory services. In practice, the transition happens more subtly. ‘Advisory is often delivered informally through discussions and practical guidance rather than as a structured, separately priced service line,’ Ahmed explains.
New services
Technology is making it easier for smaller firms to offer insight-driven services, with automation transforming how teams work. ‘AI acts as an enabler of advisory services, allowing us to transform compliance data into strategic business insights around profitability, growth planning and financial efficiency,’ Narang says.
These insights can include identifying declining margins, spotting unusual expense patterns or forecasting potential cashflow pressures. When a firm’s insights have real financial outcomes, the value of advisory services becomes clearer. ‘When clients see that these insights can prevent financial risks or improve profitability, advisory services become clearly valuable rather than an additional expense,’ Narang says.
Quick wins
Not all advisory services are equally easy for SMPs to introduce. In many cases, the most successful offerings are those that sit closest to existing compliance work. Ahmed points to areas such as tax planning, internal control reviews, budgeting and risk assessments as natural extensions of traditional services.
More strategic services – including ESG advisory and corporate restructuring – tend to require deeper expertise and stronger client relationships before they gain traction.
‘Clients look to us not just for filings but for guidance’
Specialisation can also play a role. In India, Paurav Thakker FCCA, owner of PAT, has built a niche practice around international taxation and cross-border advisory. ‘Since 2009, the firm has gradually transitioned from being largely compliance-driven to becoming more advisory-focused,’ he says.
The change has been driven partly by the firm’s growing expertise in international tax matters and the needs of overseas clients doing business in India. ‘Clients look to us not just for filings, but for guidance on tax-efficient structuring, regulatory implications of transactions, and financial decision-making in the Indian context,’ he says.
Regulation as opportunity
South Asia’s dense regulatory environment – often cited as a burden – can also create opportunities for firms willing to expand their advisory role.
Bangladesh-based Shah Ahmad Hossain FCCA, managing partner and CEO of Ahmad Mariyam Shah, saw this dynamic while working on a major power plant project. His team was responsible for securing more than 100 regulatory permits from different government ministries during the project’s development – an experience that revealed an opportunity.
‘We saw an industry gap in terms of providing regulatory compliance services,’ Hossain explains. That insight ultimately led to him establishing a new firm focused on regulatory advisory, legal support and business consulting.
Increasingly complex regulations mean companies often need guidance that spans accounting, legal and operational considerations – an area where multidisciplinary advisory can flourish.
‘The real tipping point is proactive, commercially relevant insight’
Barriers to change
Despite the opportunities, the transition is far from straightforward. One challenge is perception. ‘Many businesses still approach advisers only for filings and regulatory requirements,’ Thakker says.
Another is capacity. Compliance workloads remain heavy across the region, leaving limited time for higher-value advisory work.
Skills, too, can be a constraint. Hossain points out that compliance and regulatory advisory increasingly require expertise across multiple disciplines. ‘Compliance requires expertise in different areas of technicality,’ he says, explaining that accountants often need knowledge of legal frameworks and regulatory processes, as well as financial reporting.
A gradual evolution
For most South Asian SMPs, becoming a strategic adviser involves a gradual evolution rather than a sudden transformation. And while technology, regulatory complexity and changing client expectations are all pushing firms in that direction, success will depend on internal changes as well – from new skills and pricing models to a shift in mindset.
Ahmed believes the defining difference lies in how accountants engage with clients. ‘Compliance providers report the past; trusted business partners help shape future decisions,’ he says. ‘The real tipping point is proactive, commercially relevant insight.’
